The bubble tea market is estimated to reach $4.3 billion in value by 2027. One growing bubble tea brand with more than 400 locations around the world is Sharetea and they’re open for franchising.
How much does it cost to open Sharetea? This milk tea chain requires a minimum liquid capital of $100,000. You can expect the initial investment to be a minimum of $300,000 including a franchise fee of $48,000.
Ready to learn more how to franchise Sharetea and whether or not the opportunity is worth the investment? This franchise review breaks down the profitability of this boba tea franchise and the key challenges this business faces. Click here to take our 7-minute franchise quiz to get matched with an opportunity that matches your investment level and interests.
Financial Requirements and Fees
|Fees / Expenses
The details above are the financial requirements and fees you can expect when you want to franchise Sharetea. However, bear in mind that these requirements are only the minimum cost and that factors such as the location, equipment, supplies, and size of the store may affect these numbers. In addition, Sharetea charges a royalty fee of 6% with minimum $1,200.
Average Sales / Revenue per Year
According to Restaurant Business Online, Sharetea generated sales of $47 million in 2021.
|400+ (135 U.S.A)
|Sharetea Franchise International, Inc.
Sharetea was founded by Mr. Cheng Kai-Lung in 1992 in Taiwan. Kai-Lung was working as a film and TV director when he quit his job to sell pearl milk tea and black tea drinks as a street vendor. He found success in this venture and continued to expand. Today, Sharetea has more than 400 stores worldwide.
Sharetea is a brand of bubble tea that is a freshly brewed tea-based drink that’s paired with milk, sugar, and pearl balls made from tapioca that’s also called boba. Mixing all these ingredients creates bubbles. That’s why it’s called bubble tea and has a variety of names such as milk tea, pearl milk tea, boba tea, and tapioca milk tea.
At Sharetea, they use tea leaves shipped from Taiwan in their beverages. They’ve also expanded their menu to include other items than just regular milk and tea such as flavored drinks with fruits. Milk tea can be served either hot or cold.
You Might Like: How Much Will It Really Cost to Open a Kung Fu Tea Franchise?
The menu at Sharetea includes the Classic Pearl Milk Tea, Thai Pearl Milk Tea, Matcha Red Bean Milk Tea, and Mango Green Milk Tea. There are also fruit teas such as Peach Kiwi Tea with Aiyu Jelly and Wintermelon Lemonade. You can also customize your orders such as adding pearls, aloe vera, pudding, lychee jelly, red bean, and herb jelly. Sugar levels can also be customized.
To franchise Sharetea, complete the application form here. You’ll then be contacted by the company and go through their qualification process at their headquarters in Taiwan. You’ll be able to find the best location for your Sharetea and if all goes well, sign the contract, receive the necessary training and then open your own Sharetea.
Sharetea is open for franchising in the United States as well as in other countries such as Australia, Philippines, and the Middle East. In the United States, Sharetea has over 135 locations. Presently, Sharetea is owned by Lian Fa International Dining Business Corporation.
Sharetea saw net profits of $3.1 million in 2021 according to publicly available data. As for franchise owners, it is not known officially how much each store sees in profit but it is estimated that franchise owners can make $50,000 to $100,000 annually. This depends on several factors such as how much work these franchisees put in and whether or not they have a good location. It is also estimated that it might take 5 to 8 years for a franchise owner to recover from the investment.
Sharetea is open for franchising.
The bubble tea market, especially Sharetea, have a lot of advantages when you franchise with them. Here are a few:
Sharetea is a brand that’s known in 13 countries worldwide. They have a strong global presence that continues to expand. In October 2022, Sharetea opened a location in Cairo, Egypt and plans to open 20 more.
The boba tea selections at Sharetea are abundant. They have milk teas, fruit teas, flavored teas, and ice blended ones. They also have different sinkers or add-ons from pearls to aloe vera and lychee jelly. On a diet and still want to get milk tea? Opt for a brewed tea at Sharetea. They’ll also customize the sugar level for you.
It’s Here To Stay
Many think that bubble tea is just a fad just like how frozen yogurt once took over the world by storm but is now seeing unstable market growth. Bubble tea is here to stay. It started as a popular drink in Asia in the 80s and it continues today and in the future. The ingredients are cheap and the startup costs are affordable. What matters is the location and competition in your area for your Sharetea to be able to grow.
Fast Growing Industry
The bubble tea market is growing rapidly. According to Grand View Research, the global bubble tea market is expected to reach $5.42 billion by 2030, growing at a CAGR of 8.9% from 2023 to 2030. There are a number of reasons contributing to growth including the increasing popularity of bubble tea among young people, increasing number of bubble tea shops in the United States and the popularity on social media.
Businesses pose some challenges and franchising one is no exception. Here are a few challenges to anticipate as a franchisee.
The milk tea craze is growing yearly that the competition is tough. You have Gong Cha with over 1,100 stores all over the world. There’s also Happy Lemon with 1,000 stores globally. Kung Fu Tea is also big and according to Yelp they’re the largest bubble tea chain in America.
Some of the major players in the market include Sharetea, Gong Cha, Quickly, Ten Ren, and The Alley. These companies are expanding their franchise network and launching new products in order to maintain their market share. So if you decide to franchise Sharetea, you must be able to pick a really good location so that you won’t compete closely with other brands.
You Might Like: How Much Does a Jamba Juice Cost to Open? Worth It?
Sharetea has been embroiled in a lawsuit in Sharetea Australia regarding underpayment of employees in some of their locations. Though this issue was only brought up in Australia, the lawsuit can damage the brand’s name as a whole.
Fragmented Market Segmentation
One challenge with global expansion of any bubble tea chain is that the market is segmented by region, product type, flavor, and distribution channel. The Asia-Pacific region is the largest market for bubble tea, followed by North America and Europe. The product type segment is dominated by milk tea, followed by fruit tea and smoothies. The flavor segment is dominated by original, followed by taro and matcha. The distribution channel segment is dominated by specialty stores, followed by supermarkets and convenience stores.
Sharetea seems like a good investment but considering that the milk tea market is filled with competitors, it’s best to analyze the location of your possible Sharetea and make sure that it’s located in an ideal location with high foot traffic and a demographic of young people who enjoy this delicious beverage.
What is an alternative Sharetea franchise?
Another milk tea brand that’s worth checking out is Gong Cha. This milk tea company was founded in 2006 in Taiwan. The name translates to “tribute tea for the emperor” which means their ingredients are of the highest quality that’s fit for royalty. They have over 1,800 locations globally.
To franchise Gong Cha, expect the initial investment to be $177,430 to $335,400 with a franchise fee of $41,500.
The milk tea industry looks like it’s positioned to continue growing in the United States for the rest of the decade. Early regional entrants into the space could benefit from a first mover advantages.