For friends who have just started on the path of tea franchise and investing in tea shops, choosing a tea franchise brand is the first major decision you face. Sometimes, a single choice or a detail can significantly impact your future franchise operation. Below, we will briefly introduce some things to note for your reference!
Tea Franchise One: Prioritize communication when choosing a tea franchise.
Communication helps you fully understand the culture, philosophy, and operational model of the tea company. On the other hand, communicating with other franchisees who have already joined the company allows you to learn from each other’s strengths and weaknesses, enriching your own experience. At the same time, franchisees should conduct more market research—compare different brands! This is very important. Visit several tea chain stores, observe their differences, analyze their advantages and disadvantages, and this way, you can find a tea franchise that truly suits you.
Tea Franchise Two: When selecting the tea brand to invest in, consider the cost of franchising.
When choosing a franchise tea brand, try to minimize the upfront investment and avoid overly expensive franchise fees. Many tea franchisees often focus on whether the headquarters of the franchise institution is luxurious, how many national franchises there are, and how long they've been operating. While these factors are important, understanding if a company is professional requires delving deeper into the details.
Tea Franchise Three: Consider the scale, primarily focusing on the business district scale where the tea franchise store is located.
The market share of different tiers of business districts varies. The main business district can generate 60%～65% of the store's total sales; the secondary business district usually generates about 20% of the store's sales. Therefore, the scale of the business district where the tea franchise store is located is an important factor to examine.
Tea Franchise Four: Analyze the number of potential customers and customer flow patterns.
Everyone is a consumer and naturally a potential customer of the store. A place with heavy foot traffic is obviously advantageous for setting up a store, but not all places with pedestrians are suitable for opening a shop. Not everyone passing by will enter your store, and not everyone is there to make a purchase. Therefore, it is necessary for tea franchisees to analyze the passersby. Understand the age and gender of the passersby; understand the peak and low times for foot traffic; understand the purpose and timing of pedestrian movement. Only through such comprehensive consideration can an accurate assessment of the passersby be made.
Tea Franchise Five: Analyze the level of competition.
When selecting an operating location, tea franchisees must consider the level of competition within the business district. It is essential to know in detail how many similar stores are nearby and gather information on their size, decoration, product range, price, etc. With competitors concentrated in one area, offering a wide variety of adjacent products, it is very convenient for customers to compare and select, attracting more customers and expanding operations—this is known as the commercial group effect.
In summary, before embarking on franchise investment, please gather more information, analyze thoroughly, and conduct extensive investigations. Think carefully, gain the support of family and friends, which is key. Then operate with dedication so that your tea franchise project can soon move towards a standardized operational path.