A tea shop is a great business option for aspiring entrepreneurs for several reasons. Firstly, the idea is easy to implement with a small initial amount.
Secondly, you can enter a niche, despite the competition, thanks to the peculiar assortment and point format.
Thirdly , the predominance of the strengths of the business over the shortcomings makes it attractive and interesting. In addition, almost everyone loves tea, and in recent years, the population is more demanding in its choice and wants to see a quality products on the shelves.
Advantages of the tea trade niche:
- The demand for quality products from customers
- Lack of seasonality in demand with its increase for the holidays
- The duration of the storage period of the goods
- Starting investments from 400 thousand rubles.
- Possibility of markup 100%-150%
- Payback per year
- Elite business for the future
- Significant competition
- Small coverage of the target audience – tea connoisseurs
How to organize a tea trade
After evaluating the idea, you need to decide on the format of the outlet . The amount of capital investment at the initial stage and the amount of planned profit will depend on it.
Main formats of tea shops
There are several options for doing business:
- Renting an equipped patch in a shopping center or supermarket: it will require a minimum of investment and labor
- A small pavilion in the market, near the station or other crowded place: able to bring a stable income
- A separate specialized shop for the sale of tea and related products: will provide additional opportunities for the entrepreneur in its production and packaging
- The concept of a club-type store for tea lovers: it assumes the availability of seats for a tea ceremony
- An online tea store in addition to an offline point or as an independent direction: it will save on rent and staff salaries.
Alternatively, you can work on a dropshipping system, acting as an intermediary between the supplier and the client. Tea in this case is sold at a large margin.
Whichever format you choose, a detailed business plan is essential.
How to open a tea shop – step by step instructions
First you need to plan the necessary steps on paper and carry out scrupulous calculations on it: analyze the market situation, draw up the necessary documents, find a retail space and purchase equipment, work out the product range and hire employees, assess profitability and possible risks.
You will also need to find a source of financing for starting a business from your own funds, a bank loan, or raising capital from other channels. Following the outlined points will allow you to avoid mistakes and achieve the intended results faster. Let’s consider each step separately.
Demand and competition analysis
This stage plays a key role in the business concept. It will help you choose the right product range and pricing, determine competitive advantages. The main share of sales 60-70% falls on supermarkets and large stores, while 30% of the market is free for a specialized format.
By visiting the outlets of competitors, you will understand what will interest and attract the attention of buyers. To stand out from the background of similar stores will allow: a diverse range of quality products, a loyalty program and flexible prices, the original design of the tea shop.
The target audience of the store will be:
- Ordinary shoppers purchasing inexpensive products for daily consumption
- Lovers of different varieties of medium-income tea
- High-income elite tea connoisseurs
- Customers buying tea as a gift
- The corporate sector purchasing teas for office workers, visitors, guests
Registration of documents and permits
To open a tea shop, you should obtain permission from the local administration, the conclusion of the sanitary and fire services, and issue an IP at the tax office. To do this, you need to submit an application in the prescribed form R 21001, a passport, TIN and a receipt for payment of state duty in the amount of 800 rubles. You will need to open a bank account and register a cash register.
Suitable OKVED codes for carrying out activities: 47.29.35 for the retail trade of tea , coffee in specialized stores and 10.83 for the production and packaging of tea blends .
As a taxable system, the simplified tax system is optimal with a deduction of 15% from the difference between income and expenses, or 6% of total revenue.
In addition, for a separate store, it will be necessary to conclude agreements for garbage collection, lease of premises, and have a declaration for tea.
One of the advantages of the tea business is that there is no need to use large areas and equipment. For a tea shop, a cozy room from 15 sq. m ., located in a busy area of the city with transport interchange and infrastructure.
It must comply with the requirements of fire and sanitary standards, have communications, ventilation, lighting, appropriate temperature and humidity. Indoors, 4-5 square meters should be allocated. m. under a warehouse for storing products.
Cosmetic repairs are best done in muted or warm colors – yellow, beige, green, with original decor and a sign in the same style. Expressive showcases with beautifully packaged goods, as well as aromas of tea and coffee, will attract the attention of buyers. The costs at this stage will be from 50 thousand rubles.
Purchase of commercial equipment
To equip a tea shop, you will need the following commercial equipment:
- Racks and shelves for products
- Cash register and terminal
- Electronic scales for weighing tea
- Special containers for storing the product and scoops
- Packing containers: packing bags, boxes, jars
You can order it on the Internet from a trusted manufacturer, for which set aside the amount of 80 thousand rubles . The costs will be higher if the store provides tea tasting. In this case, you will need tables and chairs, dishes, a kettle.
Development of the assortment and search for suppliers
The next step will be the formation of the product range of the store. It should consist of 30-150 varieties of tea: 8-10 popular packaged items and 15-20 varieties of bulk large-leaf and small-leaf teas of the middle price segment. It is also necessary to present herbal and fruit tea drinks, elite varieties of tea: souchong, pu-erh, lapsang.
As a percentage of black and green tea, the distribution of 80% to 20% will be optimal. Blends of green and black tea with pieces of berries, fruits, flowers, and spices are in demand. The sale of several varieties of elite and inexpensive coffee will expand the range.
Additionally, you can offer natural sweets, sugar, tea accessories, sets, gift sets.
Popular suppliers of tea in Russia are: India, Kenya, Sri Lanka, China, Azerbaijan. About 500 companies are engaged in import. 99% of Russian teas are made from imported raw materials.
It is advisable to conclude contracts for the supply of tea directly with the manufacturer , but small businesses have to work with intermediaries. When choosing a supplier, be guided by the official representatives of the company. You should first study the information about the manufacturer, product reviews, terms of delivery.
For the successful operation of a tea shop, staff with experience is needed, and most organizational issues can be solved independently. The main thing is to hire friendly and sociable sales assistants for shift work, a cleaning lady and an outsourcing accountant.
Sellers must understand the types of tea and how it is prepared, be able to offer one or another type to the client, and have medical books on hand. To motivate them, wages are set from the salary part and a bonus in the form of a percentage of sales.
How much to invest at the start
As mentioned above, starting a business does not require large investments. For a small department in a shopping center or store, 400-500 thousand rubles are enough . depending on the location, range of products and equipment. The main items of expenditure will include:
- Repair of a retail outlet – 50 thousand rubles.
- Room rental – 30 thousand rubles.
- Purchase of equipment – 80 thousand rubles.
- Purchase of a consignment – 200 thousand rubles.
- Advertising company – 50 thousand rubles.
About 130 thousand rubles will be spent on monthly expenses. for renting premises, salaries to staff, purchase of consumables, utility bills and taxes, advertising.
When planning revenue, they start from the average cost of tea, which is 200-250 rubles. for 50 grams. The price of elite varieties of tea and coffee is much more expensive. Additional revenue will come from the sale of related products. With high traffic per month, you can earn 200-250 thousand rubles, of which the net profit will be 70-120 thousand rubles.
With this indicator, investments will pay off within a year of the store’s operation. Profitability will be 30% -35%.
We should not forget about the possible risks of the tea business. These include:
Growth of competition, which affects the drop in demand and profits of the store
- Raising purchase prices by suppliers The
risk will be prevented by purchasing large batches of products on favorable terms, optimizing the proposed range
- Decline in the purchasing power of the population
A system of discounts and promotions, the sale of tea of an average price category will help maintain sales
- Increase in rent
To minimize the likelihood, it is necessary to conclude a long-term lease with a fixed cost
- Low demand for store products caused by poor location, high prices, or ineffective advertising methods
To stimulate demand and attract customers, they use: a noticeable sign with an unusual name, tea tastings and various promotions. Business promotion is facilitated by a high-quality website and social networks, information platforms.
You need to use outdoor advertising, the media, the services of a promoter for the distribution of business cards and colorful booklets, word of mouth. A loyalty program will help to keep customers with the introduction of discounts for regular customers, holiday sales, and cumulative bonuses.
Only with a competent approach to business with the right pricing and marketing policy , competent staff can count on a successful and prosperous enterprise with the prospect of further development.