Executive Summary

2.1 Business
Sam’s Stop will be a licensed and ensured tea shop located in Downtown Manhattan. We
will be strategically located in the most suitable place for opening a bubble tea shop.

2.2 Management
The business will be solely owned and operated by Sam Kin who is a graduate from Harvard
University and is known for his sharp business acumen and exceptional management skills.
Sam will hire a small team comprising of chefs, waiters, assistants and cleaners for operating
and managing the shop.

2.3 Customers
Our customers will primarily be the residential community living near our shop. We will
offer high-quality and healthy tea latte, milk tea, fruit-flavored tea, brown sugar milk,
macchiato and slush to our esteemed customers.

2.4 Target of the Company

Our primary target is to become the best tea shop in New York City within the next 3 years
of our launch. Our secondary target is to achieve the net profit margin of $10k/month by
the end of the first year, $15k/month by the second year, and $25k/month by the third
year.

Company Summary
3.1 Company Owner
Sam is a business graduate of Harvard University. After completing his Bachelor’s, he
worked with a couple of fast food restaurants at executive positions. He is known for his
sharp business acumen and exceptional management skills.

3.2 Why the Business is being started

The main motive behind Sam starting a bubble tea business is his intense passion for
business. Sam has exceptional business skills and this venture is just his first step into the
business world. Within the next three years he plans to open five more bubble tea spots in
different cities, and after that, he will move towards restaurants. So, this venture is where
Sam will enter the corporate sector.

3.3 How the Business will be started

Sams’s Stop will be launched in a 200-square-feet shop located in the main commercial
market of Downtown Manhattan. The shop was previously used as a grocery store, so a lot
of work needs to be done for turning it into a tea shop. The company’s financial experts
have forecasted following costs for the start-up:

Services for customers

It is wiser to plan your services or menu before you think about how to start a bubble tea
business. You can only plan subsequent things after you know what you will be providing to
your customers. Sam’s Stop will offer the following products to its customers:

Milk Tea: Bubble Milk Tea, Brown Sugar Milk Tea, Almond Milk Tea, Hazelnut Milk Tea
Tea Latte: Black Rose Latte, Oolong Latte Float, Matcha Latte, Tie Guan Yin Latte
Fruit Flavored Tea: Peach Green Tea, Mango Green Tea, Honey Green Tea, Fresh Lemon
Green Tea
Brown Sugar Milk: Black & Yellow Milk, Black Babo Milk, Red & Yellow Milk
Macchiato: Rose Tea Macchiato, Jasmine Green Tea Macchiato, Milk Tea Macchiato
Slush/Milk Shake: Oreo Milk Shake, Mango Slush, Passion Fruit Slush, Ice Cream Shake

Marketing Analysis of bubble tea shop business

The most important component of an effective bubble tea business plan is its accurate
marketing analysis that’s why Sam acquired the services of marketing experts to help him
through this phase. It is only after this stage that a good bubble tea business plan sample
could have been developed. After identifying the local market trends in Manhattan, the
marketing experts and analysts also helped him in developing the bubble tea marketing
plan.

5.1 Market Trends

As for a general trend, the market demand for bubble tea businesses is on the rise. Bubble
tea is one of the most popular drinks with Americans. The biggest reason for the popularity
of this business is that people are becoming more health conscious day by day. As a result,
people have started avoiding carbonated drinks and have leaned towards healthy
alternatives such as smoothies, slushes, milk and fresh fruit juices. That’s why the number of
bubble tea shops has been increasing during the last few years. In short, this industry has a
lot of potentials and even a small bubble tea shop can yield immense profit provided that
you successfully plan it and target your customers.

5.2 Marketing Segmentation

Our marketing experts have identified following type of target audience which can become
the potential customers of our tea shop.

5.2.1 Working Community:

The first category includes the workers and employees who work in the businesses or
offices located in the vicinity of our tea shop. This group leads a strenuous life, burdened
with plenty of work and thousands of matters to think upon. It has been observed that this
group often takes soft drinks, especially coffee and bubble tea to take a break from their
hectic routine. Our tea shop will be the perfect place for them to rest while on their way
home.
5.2.2 Residential Community:
The second group of our target customers will be the community residing in the vicinity of
our restaurant. Bubble tea is one of the favorite drinks of American teens so we hope to
have a lot of sales due to them. Not only teens, adults and middle-aged people also love
smoothies, slushes and fresh tea due to health benefits, but that is also why we classify this
group as our second target group.

5.2.3 Passers-by:
The third category includes those people who do not live or work near our tea shop but
have come to the area for any business purpose or commercial activity. We also hope to
attract these passers-by with our economical and delicious smoothies, milkshakes and tea.
The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business targets are as follows:

To become the best bubble tea shop in Manhattan within the next 3 years of our launch
To recover the initial investment within next 1 year of launch
To open two more tea shops by the end of the second year and three more shops by the
end of the third year
5.4 Product Pricing
After considering the market demands, we have priced all our products in similar ranges as
of our competitors. Our product pricing is as follows:

Small Serving: $3/serve

Regular Serving: $4/serve
Large Serving: $5/serve
Strategy
Sales strategy is also an important component of a bubble tea shop business plan and hence
it must be developed with great care and attention must be paid to every detail.

6.1 Competitive Analysis:

We have a really tough competition because bubble tea shops are nearly everywhere in
Manhattan but none of our competitors is offering as much high quality and delicious drinks
like ours. Our high-quality, healthy and economical drinks, combined with the unparalleled
customer service of our staff will give us an advantage over other tea shops in the region.

6.2 Sales Strategy

We will target our customers by following three ways:
Conducting seminars, webinars, and workshops in different institutions to emphasize the
health benefits of bubble tea and other similar drinks.
Advertising our tea shop in food magazines, newspapers, TV stations, and social media.
Offering a 20% discount on all drinks for the first three months of our launch.

Personnel plan
It is highly advisable to prepare a personal plan before you think about how to start a
bubble tea shop since it is one of the biggest contributing factors of the success of any
business. The personnel plan of Sam’s Stop is as follows:

7.1 Company Staff

Sam will act as the CEO of the company and will initially hire the following people:

1 Manager to manage the overall operations

1 Cashier to receive cash from the people
2 Accountants to maintain financial records
4 Sales Executives responsible for marketing and advertising the tea shop
10 Chefs for preparing drinks
10 Waiters to serve the customers
8 Cleaners to clean dishes and other facilities at the tea shop
7.2 Average Salary of Employees

Financial Plan
The final thing to do before you think about how to open a bubble tea business is to develop
a comprehensive financial plan which will cover the detailed costs of startup.

8.1 Important Assumptions

8.2 Brake-even Analysis
8.3 Projected Profit and Loss
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
8.5 Projected Balance Sheet
8.6 Business Ratios