Fresh Cup Magazine, providing specialty coffee and tea professionals with unique insight into the trends, ideas, products and people that shape their world.
Issue link: http://freshcup.epubxp.com/i/123507
SARAH CEDERGREN EDUCATE: TeaSource manager Michael Lannier (top right) conducts an advanced cupping class for retail customers based on his latest findings from a trip to Taiwan. Knowing tea inside and out is an effective way to create loyal, educated customers. couple of teas every few months as your business grows, you'll be bringing something new into the business that will in turn build excitement in customers. And remember that tea is still new for most folks. Because fruits and flavors often act as a gateway to full-fledged tea drinking, be ready to sell more flavored teas than straight teas. Even if you are a tea purist, success is based on serving your customers, not just your own tea biases, so give flavored teas their due. BY THE NUMBERS If you do take the plunge to start a tea shop, you'll face a lot of work with no immediate financial gain. Don't expect to break even for nine to 12 months … at least. Don't expect to pull a salary for the first year … at least. Don't expect a day off for a year … at least. The highest gross profit will come from prepared items such as brewed tea and bakery selections. But these items typically also have the highest associated labor costs, so the high GP is a little misleading. You will generate your next-highest GP on your bulk tea items. Packaged teas will be the next most profitable, while you will make the smallest profit on your tea accessories. Keep in mind that when people buy a teapot, it should last for years. When people buy four ounces of tea, they run out in a month and return to buy another four ounces. Do everything possible to generate return visits—they are essential to growing your business. INEVITABLE ERRORS The biggest mistake you can make is to think, "If I build it, they will come." Be very proactive about promotion, marketing and outreach. Just because you are fascinated by the world of tea doesn't mean anyone else is. It is your job to teach, impassion and proselytize. Picture yourself knocking on a stranger's door and saying, "Have you heard the good news about tea yet?" I wish I had budgeted and spent more on marketing and advertising my first year; I would have reached breakeven much quicker. I didn't have the money because it all went into construction (of course). But I still wish I had spent more on getting the word out. Also, I should have hired more pros to get the details sorted out: designers, real-estate agents, lawyers and accountants. They would have been better, quicker and (in the long run) cheaper. They see things (problems and opportunities) that don't occur to non-professionals like you and I. While I understand there is a balance between available cash and hiring professionals, I now know the value of not doing it all yourself. Humility is a good thing for entrepreneurs. PASSION PAYS OFF If you want to get into the tea business because of tea itself—because the leaf, the liquor and the life fascinate you— then let your passion shine through in everything you do. This is your biggest business advantage, and it's something that can't be duplicated. I know in these paragraphs I've taken a somewhat hard-nosed approach, but never lose sight that tea is something to love. After almost two decades in the business I still am inspired by it, and while I've seen some businesses close, I've also seen many specialty tea companies beat the odds, and they continue to prosper and spread that good news. freshcup.com May 2013 57