Written By: Nikita Janiya

The hot world of bubble tea, boba, or pearl milk tea, has taken India by storm. With its playful combination of sweet tapioca crystals and sweet tea blends, bubble tea is more than just a drink; It’s an experience. Are you a seasoned entrepreneur looking to capitalize on the popularity of this trendy drink? This blog post is your one step into the exciting world of bubble tea franchise in India

Unveiling the Bubble Tea Franchise Craze in India

The origin of bubble tea can be traced back to Taiwan in the 1980s. Fast forward to today, and it has become a global phenomenon, appealing to experimentalists worldwide. The young Indians and their increasing disposable income have made it a prime target market for these soft drinks. This growing demand presents an exciting opportunity for aspiring entrepreneurs looking to open a bubble tea opportunity.

Why did you consider a bubble tea franchise in India?

• Growing Market: The Indian bubble tea market is experiencing phenomenal growth, with a projected CAGR (Compound Annual Growth Rate) of more than 20% this translates into a highly profitable growing industry.
• Low Investment: Compared to other F&B (Food and Beverage) franchises, bubble tea shops generally require less initial investment, making them a viable option for entrepreneurs on
• Increased Profitability: Studies have shown that bubble tea franchises in India can achieve profit margins of 15% to 25%.
• Scalability: The bubble tea business model is well suited for scalability. Once you establish a successful franchise, you can easily expand into other areas.
• Trendy appeal: Bubble tea caters to tech-savvy youngsters drawn to its unique taste, social media appeal, and customizable options.

Find the best bubble tea franchise in India

There are many established and emerging franchises in the Indian bubble tea market, each with a unique offering. Here’s the list toppers:

• The Tea Planet Franchise: Offering an extensive menu of bubble tea flavors, coffee drinks, and desserts, The Tea Planet caters to a wide audience Their franchise model offers comprehensive support including training and marketing support.

• Dr. Bubbles Franchise: Pioneering the introduction of authentic Taiwanese bubble tea to India, Dr. Bubbles is a suffrage favorite. Commitment to quality, fresh flavors, and customer satisfaction are emphasized.
• Yifang Taiwan Fruit Tea Franchise: This international franchise brings the taste of Taiwan to India with a focus on fresh fruit teas and high-quality tapioca pearls. Yifang Taiwan Fruit Tea offers an impressive brand image and a proven business model.
• Mochi Mochi Franchise: If you’re looking for a franchise that focuses on variety, Mochi Mochi could be the perfect fit. They offer not only the classic bubble tea flavors but also creative concoctions including fresh fruits, jellies, and cheese foam.
• Chaayos Franchise: Chayos, a well-known name in the Indian beverage industry has recently ventured into the bubble tea scene. Their brand recognition and established customer base make them a promising franchise option for entrepreneurs.

Choose the right bubble tea franchise for you

With so many options, choosing the best bubble tea franchise can feel overwhelming. Here are some key considerations.

• Brand name: Choose a franchise with a strong brand name and a proven track record of success.
• Investment fees: Review franchise fees, royalty fees, and initial investments carefully to ensure they are in line with your budget.
• Training and Support: Choose a franchise that offers a comprehensive training program and ongoing support to help you get into the business.
• Target Marketing: Consider your target audience and choose a franchise whose menu and brand image match them.
• Location: Determine the look of the existing franchise in your desired location to ensure that the market is the only growth potential.

Cost of opening a bubble tea franchise in India

The cost of opening a bubble tea franchise in India can vary depending on many factors, e.g.

• Franchise Fee: This fee gives you the right to operate under the franchisor’s brand name. The cost of a franchise usually ranges from ₹5 lakh to ₹20 lakh.
• Royalty Fee: An ongoing payment to the franchisor, generally a percentage of your total sales. Royalty fees can range from 5% to 10%.
• Marketing Fees: Some franchisors may charge additional marketing fees to support national and regional advertising campaigns.
• Inventory and Equipment: Expenditure on the purchase of tea utensils, tapioca beads, bowls, cleaning machines, and other necessary equipment.
• Store rent and maintenance: The cost of buying and setting up your bubble tea shop can significantly affect the initial investment.
• Location: Attractive areas with lots of foot traffic will naturally command higher rents. However, greater customer visibility can justify the cost.
• Store Size: The size of your store will determine your rent. While the larger space offers more seating and a wider variety of features, it also means higher rents.
• Fit-out costs: This includes costs such as flooring, lighting, furniture, signage, and decorations. Creating an inviting and Instagrammable environment can attract customers but comes at a cost.

When calculating rental costs:

The cost of bubble tea shops in India can vary greatly depending on your city and location. Here’s a ballpark range to consider:

• Tier 1 cities (Mumbai, Delhi, Bangalore): ₹50,000 - ₹1,00,000 per month
• Tier 2 cities (Pune, Ahmedabad, Hyderabad): ₹30,000 - ₹70,000 per month
• Tier 3 cities (Indore, Chandigarh, Jaipur): ₹20,000 - ₹50,000 per month

Fit-out includes:

Depending on the size of your store and your desired aesthetic, the cost of fit-out can range from ₹3 lakh to ₹10 lakh.:

• Flooring: It is important to choose flooring that is durable and easy to use. Moreover, options include tile, vinyl, or polished concrete.
• Lighting: Proper lighting is essential for productivity and also to create a welcoming atmosphere. Consider a mix of overhead lighting and talking lights.
• Furniture: Comfortable chairs, bar stools, as well as display cases are essential for your store.
• Signage: Attractive signage is important to attract customers. This includes both external icons and internal menus.
• Decor: The visual appeal of your store plays an important role in customer perception. Invest in tasteful furniture that matches your brand identity.

Other factors to consider

• Licensing and Licensing: Include the cost of permits and licenses required to operate the food and beverage business.
• Utilities: Calculate your monthly utility bills, including electricity, water, and garbage disposal.
• Inventory: Planning the purchase of initial inventory, including tea preparations, syrups, toppings, and packaging.

The Growth of the Bubble Tea Franchise Industry

The Indian bubble tea market is witnessing tremendous growth. Here are some interesting statistics on its potential growth:

• Market Size and Growth: According to a report by Mordor Intelligence, the Indian beverage market was worth ₹18.9 lakh crore (US$247.7 billion) by 2023 and stumbled to ₹32.4 lakh crore (US$423.5 billion) by 2028, 2028 It is expected that if. with a CAGR of 9.1%. Bubble tea has been a major driver of this growth, especially in non-alcoholic beverages.
• Consumer Demographic: The key demographic that drives craving for bubble tea is young adults between the ages of 18 and 35. This tech-savvy generation is influenced by social media content and also embrace the novelty and visual appeal of bubble tea
• Increased disposable incomes, which creates a larger segment of consumers willing to spend money on holiday drinks like bubble tea.
• Consumer preferences for change: Consumers today are increasingly gravitating towards healthier and fresher drinks. Bubble Tea’s customizable nature as well as ability to meet a variety of tastes make it popular.

A glimpse into the future: Why bubble tea franchises are here to stay

The future of bubble tea franchises in India looks bright, driven by several key trends:

• Innovation: Franchise brands are constantly innovating with new flavor combinations, toppings, and also healthier options to meet changing consumer preferences
• Omnichannel retailing: Bubble tea franchises are ramping up online ordering as well as delivery services to meet the growing demand for convenience
• Integrating technology: Automatic order kiosk loyalty programs can be used to enhance customer experience as well as streamline operations.
• Marketing and branding: Franchises use social media marketing and also influencer collaboration to manage brand visibility and attract new customers.

Conclusion

Opening a bubble tea franchise in India can be a lucrative and exciting venture. By carefully considering factors such as brand name, investment, target market, and location, you can choose a franchise that best matches your goals. Also remember that thorough research and a well-designed business plan are essential to success. Nonetheless, with the right mix of passion, structure, and a reputable franchise, you can be well on your way to becoming a successful bubble tea entrepreneur in India.

Contact us at Franchisebazar to get your franchise.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.