How to start tea shop business plan

Tea Shop business plan is the best business opportunity with highest expected profitability. All the details to establish and run a tea shop have been explained in this article in detail.

As you all know, establishment of a tea shop business plan is comparatively very easy process. It needs very less amount of investment expenditure. Very interesting thing is that almost 50% of total gross revenue from tea shop will be earned as profit.

tea shop business plan
tea shop

As it is owner and tea sommelier is the same person, there will be a high efficiency in management. If it was started as a small unit, it is very easy to expand as a big size shop in future based on its potential.

As it is a self-employment related business. It is very important that the owner should be a one of the employees in the business. But this profit margin has a limited scale. It is not possible to earn a huge margin of profit from this business as it is a low risk category business.

In these types of business, the quality, taste and neatness of the shop will highly influence the sales and future prospects of the business. Best customer service and relation is also very important in the growth of this business. This analysis has structurally categorized into six areas. Firstly we can analyze about its investment expenditures for start tea shop business plan

How much the investment for tea shop business plan

The main investment for tea shop business plan is investment for infrastructure facilities. Basically we should have adequate space to construct our shed. Within shed, there should be a cash counter, fridge and gas.

Electricity connection is also necessary in shed. In addition to this, you should have necessary plates, glasses and other grocery items. All these items will have a total expenditure of RS 75,000.

The shed can be constructed by sheets and counter can be set by using used furniture or you can set it in your own idea at a low cost. Some other small kind of materials like juice machine and gas stove etc are also essential to run a tea shop. These investment expenditures are subjected to vary based on your ideas and plan.

What are the items or product for tea shop business

Here we are explaining about all necessary items or product for tea shop business. And facilities which you have to set and serve in your tea shop. Even though you can set many items in your shop, here we have listed the very important ten items of products. Which you have to necessarily serve in your shop.

If you wish to know the recipe of following items of products. You can click on the items and you will be directed to another page with the detailed recipe of the items. When you are selecting and preparing items, you must ensure to keep quality and your own taste. Try to attract customers by introducing varieties of products.

Top 10 products for snacks

  1. Pazham pori
  2. uzhunnu vada
  3. mutta bhaji
  4. mulaku bhaji
  5. kaya bhaji
  6. samoosa ( veg, chicken, beef, fish)
  7. undapory
  8. sugeen
  9. masala vada
  10. bonda

Top 10 drinking items

  1. Tea
  2. coffee
  3. elaneer vellam
  4. elaneer juice
  5. munthiri juice
  6. sarbath
  7. lime soda
  8. soda sarbath
  9. fresh lime
  10. payasam

License for tea shop business plan

Now we can analyze the important licenses and its procedures which you have to acquire to establish a tea shop.

  • It is necessary to take license from Panchayat and FSSAI registration. If you are trying to run your shop without taking these necessary licenses, you might have to face serious consequences from the Department of Health.
  • Firstly you have to acquire official number for your shop and by using that number you can access electricity connection.
  • By using these documents of building number and electricity connection you can acquire license from Panchayath.
  • When you are taking licenses from Panchayath, firstly you have to fill and submit the application form along with rent agreements. Please click on following link to know the procedures for FSSAI registration.

Profit margin for the business

This section explains about its profit margin. As we already said, about 50% gross sales revenue from tea shop will be net profit. To calculate net profit, you have to deduct all our operating expenditure from your gross revenue.

The main items of operating expenses are salary, electricity bill, cost of gas and other maintenance expenditures. If you are deducting all these expenditures from our total sales revenue, at least 25% of your revenue will be turned into profit. By this analysis it is clear that tea shop is a high profitable business. That can be run by very low amount of investment.

But the profitability is subjected to your daily sale revenue. By the sales of about 400 to 500 cup of teas per day, you can expect a big amount of profit from your business.

Important thinks for tea shop business plan

Important thinks for tea shop business plan are given below.

Market study

When you are planning to establish any kind of business, it is very important to study its market. In the case of tea shops, the place which has located any public institutions like hospitals or schools is very suitable for that kind of business.

The places nearby Railway Stations and bus stands, rushed highways are also very important and have huge market potential for this business.

Select your product

You have a clear idea about most demanded snacks in the place where you have located your shop.

And try to provide those items snacks at maximum possible lowest price with maximum possible highest quality. It is also beneficial to serve any variety item of product to customers for free.

create cool and cam atmosphere

You should try to create and built a healthy and neat environment in your shop and in your location with cool and calm atmosphere. It is necessary to ensure a adequate parking space for customer’s vehicles near to shop.

create good relation between customer

By providing and creating a friendly and customer relation, you can grow your business and sales in future. Attractive service in counters and keeping tables as clean and neat is also very important.

provide free wifi for promotion

In this modern world, use of technology and internet is widening day by day. Therefore, by providing free wifi in shops, you can attract more customers to your shops. At last but not least, you shouldn’t have any compromise with neatness of your shop and dining places.

This tea shop business plan will be update on the bases of your business development.

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