With the boba business rapidly expanding, and having a promising predicted CAGT of 8.6% between the years 2020 and 2030, starting a bubble tea store is an excellent idea. Millions of people around the world love and praise this delicious drink, so they’re bound to make use of every opportunity to try it. One of the options to fulfill this demand is by joining a major bubble tea franchise. Thus, in this article, we’ll delve into the pros and cons of such a business model. Interested? Read on!
Joining a Bubble Tea Franchise: Pros
We will begin by focusing on the positive aspects. Joining a bubble tea franchise comes with many benefits for your business, letting you kickstart your store much faster. What exactly are the pros of franchising? Here is a list:
- Established brand – The first major advantage is the fact that your brand will already be well-known. This way, you won’t have to worry about attracting the customers – they’ll come to you on their own since they are already familiar with your menu, values, and quality.
- Marketing campaigns – Another huge benefit of joining a franchise is visible in advertising. A large chain has its own marketing plan and will provide you with marketing materials. Plus, their reach is wide, so your store will benefit from every effort undertaken to promote the brand nationally. This level of marketing is much higher than anything that you could achieve on your own.
- Go-to menu – With a bubble tea franchise, you do not have to spend hours designing your menu and then testing what customers like and what doesn’t sell at all. Instead, you come with a ready, go-to solution – a menu loved and used all across the chain.
- Know-how and training – A long-operating boba chain comes with years of experience – an experience that they will share with you. Joining a bubble tea franchise means that you’ll know how to run your store inside-out, learning the know-how and best practices. For example, Sharetea is a bubble tea chain with over 30 years of experience, they have a well-established training model to help start a bubble tea shop with ease.
Joining a Bubble Tea Franchise: Cons
While franchising comes with many advantages, there are also some downsides to this model. What are they in particular?
- Less independence – Joining a bubble tea franchise means that you exchange some of your business independence for the benefits coming from being a part of a large chain. Is it necessarily bad? It depends on how creative you are, but the truth is – you will frequently be unable to put your ideas into practice.
- High investment costs – When buying into a franchise, you often need to have a much larger budget than when starting your business individually. This is mostly related to all the marketing materials, equipment, and ingredients that you will need to purchase at the start.
- Difficult exit – Leaving a franchise is often no easy task – you can only sell your business to an approved buyer, having the consent of the franchise. Thus, you have much less flexibility in terms of stopping running your store.
So, you know what are the pros and cons of a bubble tea franchise. Is it a good option? It all depends on your situation, your ideas, and the area that you want to set up your store in. Nevertheless, with the knowledge from this article, you will be able to make a conscious choice!