Finding the ideal location for your shop might be challenging, especially if you want to enter the popular market of owning a bubble tea shop. In recent years, bubble tea, also known as boba or pearl milk, has gained popularity in Australia and worldwide. Regarding Australia, there’s no surprise that people fell in love with bubble tea because of the country’s diverse food culture and love for trying new things. The same initiative has been shown by other countries as well.
However, this does not change the fact that starting a business, especially a franchise like a bubble tea shop, is not easy. A successful franchise location can entirely determine the difference between success and failure. We’ll share helpful tips for choosing the best location and ensure you know how to select one that supports your business objectives and helps you optimise your profits.
Start by researching your options
If you want to do things right, you must know your options. To know this, you have to conduct thorough research to find locations with high traffic, good visibility, and access to your target market. High traffic increases the percentage of foot traffic, resulting in higher profit. If the store is accessible to a higher percentage of your target customers, your sales will increase. Especially if you find potential franchise locations with high foot traffic and low competition, you’ll have better access to your target market.
Know your competitors
The next step is to know and evaluate your competition. This is slightly different when buying into a franchise, as the franchise agreement defines where you can operate. When it comes to a regular bubble tea shop, you need to determine if there is existing competition in the area. If so, assess the strength of the competition and identify opportunities for differentiation. Identify market gaps to know how to address them and turn them into business opportunities.
Parking and traffic
If you want many customers, your business must be accessible. People today are always in a rush and having available parking space near your shop is a significant advantage. At the same time, if the store is located in a high-traffic area, it will also significantly increase your sales. Do your homework to evaluate traffic patterns and parking options, which will help you make the final decision. By selecting a location with easy access, you can attract more foot traffic and increase sales.
Consider buying a franchise
Starting any business can be difficult, but starting from scratch can be even more so. However, if you’re thinking about buying a franchise in Australia, bubble tea can be a great choice. It’s a growing industry with a loyal customer base. You’ll have access to an established community of franchisees who can provide support, advice, and networking opportunities. Australia is a viable option due to its stable economy and business-friendly environment.
Look for support
You’ll also get immense support if you go for a franchise with a proven track record of success, as the business model has already been tested and refined. Established franchises like bubble tea shops or others often offer full training and support from the franchisor. They typically provide comprehensive training and ongoing support to help new franchisees succeed. Not only that, but you can also get help with lease negotiations and obtain valuable insights into potential locations. Apart from the benefits of an established brand with high recognition, community and loyal customers, you’ll also get the support that leads to better outcomes for your franchise.
Do your due diligence
Any business endeavour requires a great knowledge base before writing a business plan. This means that you must sit down and start writing down all the information you’ll need before you go location hunting.
You need to know the laws and regulations for starting a business in your country. Next, you need to know how to obtain the right financing and the projections of the initial costs. Lawyers, financial consultants, real estate agents, established business owners, existing franchise owners, and accountants can help you build a knowledge base. Do your due diligence and talk to other experts to ensure you make informed decisions throughout the location selection process.
The ideal spot has to accommodate the ideal store layout
When picking the ideal spot for your bubble tea shop, consider the size and space available. The store layout has to fit into available space without compromising anything important, like the place for sinks or stools. Of course, the bigger the store, the higher the costs, so you must strike the right balance and not compromise too much.
The demographics of the area
You can pick the cutest location in the hottest part of the town at the moment and things can go south pretty fast if your demographics don’t go there. To determine if it’s a good fit for your shop, you need to consider the area’s demographics, including population density, income levels, and age ranges. Based on these, you can determine the shopping habits of those populated in the area you want to base your shop. For a business to thrive, you must choose a location with the right demographics, as it is directly linked to your revenue. At the same time, you’ll boost your chances of success.
Finally, you need to determine whether the cost is within your budget. Enlist all potential locations you find attractive based on everything we’ve listed above. Then, calculate the cost of rent for potential locations to determine if it fits within your budget. If it’s a fit, label them as a perfect match and try to come up with a list of at least three locations. Their availability and lease agreement requirements will further influence your final choice.
The ultimate goal is to make a final decision that will ensure your bubble tea shop is set for long-term success. By choosing an ideal spot for your shop, you will take the right steps into making the ultimate goal your reality. So, take the time to conduct thorough research, and evaluate demographics, and everything we’ve listed out so that you can make informed decisions that lead to increased visibility, foot traffic, and revenue. Also, consider entering an existing franchise as you get the right support. Not only that, but franchises also tend to have lower failure rates due to the support and resources provided by the franchisor.