The bubble tea business valued at $2.75 billion with over 3,000 milk tea shops in america. What’s extra is that the way forward for the bubble tea business seems to be even brighter with annual gross sales development projected by 2030.

One milk tea model to take a look at is Ding Tea. Based mostly in Taiwan, Ding Tea gives totally different sorts of milk tea on their menu resembling flavored teas, espresso, fruit juices, glowing drinks, and yogurt. This boba model has over 300 places worldwide with 100 of them working in america.

How a lot does it value to open Ding Tea? To franchise this milk tea model, count on the funding vary to speculate between $195,240 to $324,170 ($259,500 median value) and the franchise charge of $30,000 to get began.

Is Ding Tea value this degree of funding contemplating the income expectations? Reader the dangers and monetary alternative of investing on this this Taiwan-based boba model franchise. Take our 7-minute quiz to search out the most effective boba tea franchise primarily based in your funds and area.

Monetary Necessities and Charges

The next are the monetary bills you may count on once you franchise Ding Tea:

Different charges to notice are their promoting expenditures which is 3% of the gross month-to-month gross sales. As of the time of this writing, they don’t have a advertising and marketing fund however Ding Tea has the correct to cost franchisees with this fund after they determine to determine it. This fund can also be 3% of the gross month-to-month gross sales.

Ding Tea additionally offers coaching previous to the opening of their store however do you have to want further coaching for the reason that firm will cost you $500 per individual per day.

Common Gross sales / Income per 12 months

At current there isn’t a public info as to how a lot Ding Tea makes yearly. Sadly, Ding Tea doesn’t make this info publicly out there. However an estimate on a small bubble tea store can generate about $1,000 to $3,000 or $360,000 to $1,080,000 yearly.

Based mostly on different ideas the typical revenue margin of bubble tea is about 18% after overhead like lease, electrical energy, labor, taxes, and components like tea, milk, sweeteners, tapioca pearls, and fruit.

How A lot Does Ding Tea Make in Revenue?

There’s a lack of public monetary statements from Ding Tea. Thankfully, we do have insights from competitor boba tea ideas that function at a revenue margin round 18%. This implies for each $1 million {dollars} in gross sales the standard bubble tea enterprise can be generate $180,000 in revenue after all of the bills. After all be mindful, the profitability of your corporation can be totally different primarily based on operations, components used, and labor prices in your area.

Be sure to assessment your private targets for the profitability of any sort of enterprise earlier than investing. In lots of circumstances, franchise house owners have to function a number of models to hit revenue targets.

Ding Tea Franchise Details

Ding Tea was based in Taiwan in 2004 by Xu Wei-xiang. He believed that regardless of the rising variety of milk tea manufacturers, they have been inconsistent. Thus, he went on a mission to develop a greater high quality of tea and promote a brand new tea tradition by Ding Tea.

Ding Tea’s menu consists of recent teas, flavored teas, latte, milk teas, espresso, fruit juices, Yakult or yogurt drinks, sizzling drinks, and slush. For toppings, you may add golden boba, coconut jelly, grass jelly, espresso jelly, rainbow jelly, star fruit jelly, egg pudding, aloe vera, sea cream, purple bean, and crystal boba to your drinks.

To franchise Ding Tea, reaching out is step one and you could contact them by way of their e-mail at [email protected] or by their contact quantity at +886-4-22530011. As soon as acquired you’ll get a fast franchise dialogue with a consultant.

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Going by the franchise contract comes subsequent and for those who discover issues are agreeable with you, you can also make issues official by signing with them. You’ll additionally be capable to seek the advice of with them your retailer choices in addition to having your proposed location be examined. The coaching and building part of the startup course of comes subsequent adopted by a grand opening.

Ding Tea has the next choices and {qualifications} for the mannequin of their franchised retailer:

• You possibly can select a Private Retailer or Rented Retailer. Ding Tea has not defined additional what the distinction between these two are so it’s greatest to debate this with them when you will have your first preliminary franchise dialogue.
• Retailer location must be evaluated and confirmed by franchise headquarters first.
• Preliminary franchise Assure Fee: $200,000 Promissory Observe.

In addition they have the next {qualifications} for franchisees:

• Over 20 yr outdated and has good credit score
• Has loads of enthusiasm and insistence within the tea business.
• Franchisees are required to take part in coaching for studying abilities.
• All operational supplies associated to “Ding Tea” have to be bought immediately from headquarters to take care of consistency for high quality and model.

Ding Tea’s headquarters is positioned in Taichung, Taiwan.

Benefits of a Ding Tea Franchise

There are just a few benefits you may sit up for once you franchise Ding Tea close to you:

Demand

Milk Tea is a beverage that’s very a lot in-demand for the time being. As talked about above there are over 3,000 shops in america and extra are anticipated to open. In reality, the milk tea business has a compound annual development fee of 8.9%. This total market development ought to present Ding Tea and different bubble tea ideas with the tailwind they should develop.

Have a good time with Ding Tea.

Selection

Ding Tea has a wide range of milk tea on their menu which implies that prospects who are available in have the next likelihood to come back again simply to attempt extra of their flavors. Apart from milk tea, additionally they have flavored teas, yogurt drinks, espresso, latte, and extra.

Variety of Places

Ding Tea has over 100 places in america and is barely simply behind by just a few variety of places from huge manufacturers resembling Gong Cha (190 places) and ShareTea (135 places). Because the variety of places continues to be small in america, it means there’s loads of runway for growth with this idea.

Challenges of a Ding Tea Franchise

Operating a enterprise can have its challenges and listed here are just a few you may count on in relation to franchising Ding Tea:

Maintaining Up with Market Developments: Taste innovation comes quick within the bubble tea business. It’s essential for Ding Tea to stay versatile and adapt to new taste traits or “it” drinks to maintain prospects . Some current taste improvements within the bubble tea business embrace:

1. Lychee Jelly: This was a preferred addition from the beginning. Lychee jelly provides a candy, fruity taste and a novel texture to the drink.
2. Salted Cheese Foam Caps: It is a current pattern amongst customers. The salty, creamy cheese foam contrasts with the candy tea, creating a novel taste profile.
3. Actual Taro in Taro Milk Tea: Utilizing actual taro as an alternative of synthetic flavoring offers a extra genuine and pure style.

Competitors

Ding Tea has some powerful competitors notably in america. There are already huge manufacturers with a lot of places resembling Gong Cha, Sharetea, Coco, Pleased Lemon, and Chatime. Ding Tea might want to up their recreation in relation to advertising and marketing their model in the event that they wish to compete with the remaining.

Comply with Ding Tea on social media.

Lack of Advertising and marketing and Model Consciousness: If individuals don’t find out about your bubble tea store or the drinks you provide, they received’t come to buy them. Sadly, Ding Tea shouldn’t be a family identify in america. This implies it will likely be as much as the native franchise operator to market the enterprise successfully in every market. One of many main causes traders put cash right into a franchise is model recognition. However on this state of affairs, the very fact shouldn’t be many customers find out about this model in america.

Gradual Enlargement in america

Ding Tea could seem robust with their retailer depend standing at 100 places however as of the time of this writing, there isn’t a different information that studies if they’ve any upcoming shops opening round america. A lack of know-how on their growth can have potential franchisees taking a step backwards from signing with them.

Is the Ding Tea Franchise Proper For You?

As of the time of this writing, it’s troublesome to evaluate how worthwhile Ding Tea might be for you since there’s a lack of monetary info made publicly. So it’s greatest to contact immediately with them for those who’re actually and have a monetary advisor or authorized advisor undergo the Franchise Disclosure Doc earlier than signing the contract.

What’s an alternate Ding Tea franchise?

One milk tea chain you may take a look at is Sharetea. This model can also be primarily based in Taiwan and has 400 places worldwide.

To franchise Sharetea, count on a minimal funding of $300,000 and a franchise charge of $48,000. You possibly can take a look at our full information in franchising Sharetea right here.

The milk tea enterprise is booming and with the correct model and site, your milk tea franchise might simply develop right into a worthwhile enterprise. Could this information provide help to select the correct milk tea enterprise enterprise.