Overnight Tea Zone Business Prospectus

Bubble tea is a specialist drink that has increasingly been offered in many cafes, tea and coffee shops. Bubble tea originates from Asia, and it is made up of sugar, hot or cold tea, giant black tapioca balls, and milk. Therefore, this business seeks to bring Boba tea shop with authentic Asian flavor and personal touch. Overnight tea zone business will be situated in one of the busiest locations of Seattle populated with university students who have an interest in alternative eating, drinking, and studying venue. The tea shop will be located in a strategic location where it is easy for customers and employees to access. Therefore this trend as influenced the bubble tea market as businesses have also be forced to be more proactive to research on new flavors and types that will excite new and existing customers.

Considering this trend, my business seeks to avoid using flavor powder and frozen foods which are very harmful. According to a recent report from the Global bubble tea market 2017, the Boba tea market was valued to be $1,957 million in the year 2016. Also, it is projected that this market will continually grow to $ 3,214million in the year 2023 (Hajra, 2017). Research also shows that USA is a coffee industry where overall each American drinks eight fluid oz. Since this business intends to operate overnight, it will effectively keep students awake as they study, do assignments and interact. Our intention is not to make revenue only but also ensure that we have a healthy margin always. This business does not intend to sell bubble tea only but also deal with various products such as drink toppings consisting of pudding, jelly, and beans.

Also, overnight tea zone will provide products and services such as bubble tea recipes, jellies and juice balls, consultancy service and different flavors such as milk tea, fruit tea and types such as shaken, blended, smoothie, tea-based or slush. Market and Competition Boba tea is a specialist drink that has been offered in coffee shops, bars and cafes. This company has an international market cap of an approximate $ 88. 4 billion (Hajra, 2017). Seattle in a known home for coffee companies and sometimes tea is usually overlooked. However, various bubble tea shops (over 10) have been established in settle over the recent years due to the need for healthier lifestyles to sodas and common things like coffee. The American Boba tea market is growing rapidly with increased sales of 165% in the last fifteen years (Hajra, 2017).

Boba tea bar will be open for breakfast, lunch and late night hangouts for seven days every week. The services at the bar will begin at 8:00 AM and end at 11:30 PM every day. To avoid errors due to long working hours, I will have two shifts with a different set of employees. The first shift will run from 8:00 AM to 3:00 PM while the second one will run from 3:00 PM to 11:30 PM. The overnight tea zone will be open 365 days of the year. Having critically looked at the beverage industry, and the customer needs in Seattle I am quite certain that the business will not only grow but also thrive in this market. Therefore I gathered data and information from the field to come up with the following financial projections assuming that $50,000 is enough to get my business off the ground; Year 1 2 3 4 5 Revenue ($) 40,000 75,000 100,000 200,000 300,000 Net income ($) -500 5,908 13,720 39,704 62,126 The above projections were made on several assumptions regarding what is obtainable in the industry and the location assuming no economic downtowns will occur during this period or arrival of a new competitor.