General Questions

Cost of open a bubble tea house in China for reference

The cost of opening a bubble tea shop can vary depending on factors such as location, store size, brand positioning, equipment choices, and decoration style. Below is a rough cost estimate for your reference:


1. Initial Startup Costs

(1) Store Rent

  • City Tier: Rent is higher in first-tier cities (e.g., Shanghai, Taipei) and lower in second- and third-tier cities.

  • Store Size: A recommended store size is around 15-30 square meters.

  • Estimate:

    • First-tier cities: Approximately RMB 10,000-30,000 per month (around NT$ 45,000-135,000).

    • Second- and third-tier cities: Approximately RMB 5,000-15,000 per month (around NT$ 22,500-67,500).

  • Deposit: Typically, 2-3 months' rent is required as a deposit.

(2) Renovation Costs

  • Simple Style: Approximately RMB 30,000-50,000 (around NT$ 135,000-225,000).

  • High-End Style: Approximately RMB 80,000-150,000 (around NT$ 360,000-675,000).

  • Note: Renovation costs vary depending on design complexity, material choices, and local labor rates.

(3) Equipment Purchases

  • Basic Equipment:

    • Commercial ice machine: Approximately RMB 8,000-15,000 (around NT$ 36,000-67,500).

    • Sealing machine: Approximately RMB 2,000-5,000 (around NT$ 9,000-22,500).

    • Shaker (cocktail shaker): Approximately RMB 1,000-3,000 (around NT$ 4,500-13,500).

    • Pearl cooking pot: Approximately RMB 1,000-2,000 (around NT$ 4,500-9,000).

    • Refrigerator: Approximately RMB 5,000-10,000 (around NT$ 22,500-45,000).

    • Cash register system: Approximately RMB 3,000-8,000 (around NT$ 13,500-36,000).

  • Total: Approximately RMB 20,000-45,000 (around NT$ 90,000-202,500).

(4) Raw Materials and Inventory

  • Initial Raw Materials (tea leaves, pearls, syrup, non-dairy creamer, cups, straws, etc.): Approximately RMB 10,000-20,000 (around NT$ 45,000-90,000).

(5) Franchise Fees (Optional)

  • Franchise Fee: Well-known brands charge approximately RMB 50,000-200,000 (around NT$ 225,000-900,000).

  • Brand Royalty Fee: Typically 3-8% of revenue.

(6) Other Costs

  • Business License and Permits: Approximately RMB 2,000-5,000 (around NT$ 9,000-22,500).

  • Promotion and Opening Events: Approximately RMB 5,000-10,000 (around NT$ 22,500-45,000).


2. Monthly Operating Costs

(1) Rent: As mentioned above.

(2) Utilities: Approximately RMB 2,000-5,000 (around NT$ 9,000-22,500).

(3) Employee Salaries:

  • Number of Employees: Generally, 2-3 employees are needed.

  • Salary Level: Approximately RMB 3,000-5,000 per person per month (around NT$ 13,500-22,500).

  • Total: Approximately RMB 6,000-15,000 per month (around NT$ 27,000-67,500).

(4) Raw Material Costs: Approximately RMB 10,000-20,000 (around NT$ 45,000-90,000).

(5) Other Expenses (e.g., cleaning, maintenance): Approximately RMB 2,000-5,000 (around NT$ 9,000-22,500).


3. Total Cost Estimate

  • Initial Startup Costs: Approximately RMB 80,000-200,000 (around NT$ 360,000-900,000).

  • Monthly Operating Costs: Approximately RMB 20,000-40,000 (around NT$ 90,000-180,000).


4. Factors Affecting Costs

  • Location: Costs are higher in first-tier cities and lower in second- and third-tier cities.

  • Brand Positioning: High-end brands require higher investment in renovation and equipment.

  • Store Size: Larger stores incur higher rent and renovation costs.

  • Business Model: Franchise brands require franchise and royalty fees, while self-created brands do not.


5. Recommendations

  • Market Research: Conduct detailed market research before opening to understand local consumer preferences and competition.

  • Cost Control: Choose cost-effective equipment and raw materials, and avoid excessive renovation.

  • Marketing Strategy: Utilize social media and online platforms for promotion to attract more customers.