Why Open A Tea Shop: 7 Reasons A Tea Shop Is A Profitable Potential Business

Why open a tea shop and should it be on your bucket list? Here are seven reasons why opening a tea shop is a profitable potential business.

Why Open A Tea Shop
Tea is easy to store, and you can generate regular customers if you provide good service

Opening a tea shop doesn’t require much experience and maintenance. Tea is easy to store, and you can generate regular customers if you provide good service. 

Customers’ behaviors have evolved with time. Nowadays, they are looking for stellar service, quality time to spend with their friends, and a premium beverage to spruce up their easy weekend or inspire their daily morning routine. Read on to discover seven reasons why opening a tea shop is your next big move.\

1. Tea Is The Second Most Popular Beverage In The World

woman holding a hot tea while pouring it in a cup
In 2020, a report revealed global tea consumption amounted to about 6.3 billion kilograms

Tea is hands down one of the most popular drinks in the world. In 2020, a report revealed global tea consumption amounted to about 6.3 billion kilograms. 

Drinking tea evolves beyond just loose-leaf. From casual, commercial tea bags to modern, trendy boba tea recipes, opening a tea shop is a high potential industry with a huge market to tap into.

Tea shops spring everywhere you go, from bustling metropolis cities to small towns. You’re on the right track as long as you can predict a spike in customers with a big love for tea consumption in your local area.

Check out our guide on how to market your tea business.

2. You Have A Proper Accessibility And Seating Arrangement

Unless you run an online tea shop, you must have a good place with proper seating and stunning décor. You can consider turning your home into a tea shop. It doesn’t have to be insanely large but still a spacious place with ample customer parking.

Design a space where your customers can wait for their tea and cakes. Add soothing music and a theme, stock up some lights and get some comfy sofas.

3. Tea Shops Have A Routine Set Of Consumers

Tea is a stable commodity that comes in various flavors and prices. If you can develop a wide range of tea products throughout the price spectrum to target different levels of customers, you’ll have a set of repeat customers who would buy from you regularly.

Let’s say you have a tea shop nestled by a tea lounge where people can enjoy with their friends; you are creating an environment where they can try different teas in their own time. And after they figure out their favorite type of tea, they’ll return to your shop and buy more.

So what is the key takeaway here? A routine set of consumers means repeated customers, and repeated customers equal re-generated income.

4. You Know A Community Of Suppliers To Partner With

If you don’t own any tea field nor produce your own branded tea, then finding a good supplier to stock up your cabinet is a must. You can open a successful tea shop if you develop a good working relationship with your suppliers. 

workers collecting tea leaves
A successful tea shop means that you have a good working relationship with your suppliers

Your product will define you, so be patient and cautious about product sourcing. For me, a recognized brand with a certified background will speak the loudest. If you can team up with the best suppliers with organic, rainforest alliance, fair trade, free-range, or award-winning history, you are halfway to being a winner.

You might also like our guide on the best distribution strategies for your coffee shop

5. You Like Pastry And Desserts

Tea is fine on its own. But it will make an excellent beverage when paired with the right dessert. Learning how to mashup different pastry tastes with the tea’s flavor profile requires constant experiment.

Making your cakes for your customers is a real deal. If you offer a unique, homemade pastry recipe that no other tea rooms in the area have, that’s a big win right there. 

Your homemade recipe will promote your tea shop business even more and allow you to tap into a different but relevant niche: dessert lovers. The pastry is a great profit margin that can help you compensate for the downtime in the tea industry somewhere down the road.

6. You Know How To Draw Up A Proper Financial Forecast

Think about it; running a tea shop is still a business. And at the end of the day, you want to generate profit for it. You need to work on your skill and gauge what impact you’ll receive based on the different adjustments. 

This is when a financial forecast comes into play. A financial forecast doesn’t have to be big and bold, but it needs to be detailed and accurate. A tea shop owner must keep a close eye on each aspect of the business.

And with a business plan, your financial forecast can give you a bigger picture of the profit and prepare enough money for any investment that gets in the way. This includes any type of financial obligation such as loan repayment, equipment renewal, salary, and so on.

You might find our guide on the best coffee shop business strategy helpful. 

7. You Can Game Up Your Skill On Customer Satisfaction

group of friends smiling inside a tea shop
As part of an F&B business, running a tea shop requires decent intimacy with customer service and experience in designing

As part of an F&B business, running a tea shop requires decent intimacy with customer service and experience in designing. This is a great chance for you to boost your knowledge and skill in the art of serving your customers. It allows you to dig deeper into what your market wants.


  • Oanh Nguyen

    Born and raised by a traditional mama-barista, Oanh is a typical Viet coffee aficionado who would spend her entire precious Sunday showing you how to categorize coffee beans just by the looks and smells. She enjoys writing about everything drinks-related while sipping her favorite rosebud tea. Find Oanh on LinkedIn.