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How to Choose the Right Milk Tea Franchise Business

Finding the right milk tea franchise business starts with a good location, a set budget and a brand that fits your target market. Learn about some top Milk Tea Franchise Busiensses today - Chatime, Sugar Panda, Icelavie, Caffe La Tea and Beanleaf Coffee and Tea.

Milk tea is one of the most popular beverages in the country today. It’s not surprising to see someone you know drink milk tea every day, willing to line up for hours or having it delivered to their doorstep. A lot of people love milk tea so much that they want to franchise it. But with so many choices out there, it’s important to understand the differences.

Here are the points to take when choosing a milk tea franchise:

1. Understanding your budget

There are tons of milk tea brands in the country today. Investment in milk tea carts with a size of four square meters can start as low as P250,000 plus while bigger, more established in-line with seating can cost P5 milion plus. The bigger the store space you get, the larger investment you should prepare. You have to spend money to make money, but do not forget to keep your emergency and insurance fund in place.

2.Prospecting a location, defining your target market

Some brands offer milk teas at P40 while premium brands offer at P150. Make sure your brand and price point match the location and target market. With that, it will be easier for you to build a strong connection to your future customers.

3. Choose: A new franchise brand? Or an established one?

A new franchise brand has more location opportunities especially if it offers unique products and promotions. You will be introducing a new breed of milk tea in the market. While established brand offers familiarity, brand recognition and network. Whichever you pick, whether it is new brand, established or an international one, make sure to be ready financially, mentally and physically.

Here are the top milk tea franchise brands to choose from:

1. Cha Thai by Farron Café

Franchise Fee: P56,000

Total Investment: From P299,000

Cha Thai Authentic Thai Drinks is the famous milk tea franchise by Farron Café. It’s a specialty Thai beverage store with drinks made from the finest grade of quality tea with unique flavors and refreshing taste. With a franchise fee worth P56,000 and a total investment worth only P299,000, you can have a milk tea brand that has a great social media following, tried-and-tested operations, and inclusive management. Borne out of love of the couple Farwa and Ronnel Hombre, Cha Thai is already making waves in the milk tea franchise industry.

2. Sugar Panda

Franchise Fee: P180,000

Total Investment: From P600,000

Serving Taiwan’s No. 1 drink “boba milk tea,” Sugar Panda entered the franchising scene here in the Philippines in 2019 and milk tea lovers are already going wild. Owned by couple Kathleen Ritz and Efren Tanyen, Sugar Panda started its operations in Davao. Their strong selling point lies in the fact that all their premium ingredients come from Taiwan and they use brown sugar, which is healthier than white or refined sugar. Sugar Panda is also environment-friendly because their containers/tumblers are reusable.

3. Icelavie

Franchise Fee: P150,000

Total Investment: P415,000 to P750,000

Sizing up the competition more is Icelavie. Coming from Malaysia, Icelavie has brought in gigantic-sized iced drinks in the Philippines that has helped many milk tea lovers beat the tropical heat. Started in May 2018, the popular Malaysian brand became popular because of its gigantic 32-ounce beverages, which can last six hours without losing their taste. Icelavie offers iced tea, coffee, and fruit drinks available in handy, recyclable containers that are fun and practical. They can also absorb the cup’s moisure, which makes it easier to carry around.

4. Caffé La Tea

Franchise Fee: P650,000

Total Investment: From P4 million

Caffé La Tea is a full-service restaurant that nurtures the Filipino tradition of gathering through good food, cozy dining ambience, and genuine service. It is owned by the four-woman team of Ciarra, Ermina, Happy, and Rona and was established in Cabanatuan City.

According to its website, “Caffé La Tea was conceptualized with the aim to provide a cozy and lively place for friends to gather and chitchat, while filling their cravings for a great cup of coffee or tea, paired with the perfect dessert.” If you want a full restaurant business serving exquisite drinks including milk tea, this is the perfect brand for you.

5. Beanleaf Coffee and Tea

Total Investment: P1.88 million to P3.68 million

“Coffee. Tea. Connect.” Beanleaf Coffee and Tea is an ideal choice if you’re looking to have coffee and tea in one awesome place. It’s an attractive hangout for taste-diverse groups that love both coffee and milk tea. This concept was born in 2014 with the mission to satisfy Filipino customers through a selection of high-quality drinks and food enjoyable in a more relaxed café restaurant setup. As for franchising, it offers aspiring entrepreneurs with an effective, easy-to-learn, sustainable business model.

6. Chatime

Franchise Fee: P300,000 to P500,000

Total Investment: P4 million to P8 million

Teatime, which is a direct translation of Chatime, happens anytime and anywhere with the chain’s 2,500 locations around the world. Founded in Taiwan in 2005, Chatime opend in the Philippines in 2011, according to its website. With a tried-and-tested business, quality, innovation, and fun as its values, Chatime is a leader the flourishing milk tea industry.

Sam Christopher Lim is the CEO of Francorp Philippines; Co-author of 12 Strategies for Franchising; President of U-Franchise Sales & Management; and Chairman for ASEAN Integration of the Philippine Franchise Association.

As published in

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