Tea Shop Business Plan Template [Updated 2024]

I. Executive Summary

You can download our Business Plan Template (including a full, customizable financial model) to your computer here.

Business Overview

[Company Name] is a new tea shop located in the heart of [location]. We will offer a wide variety of delicious teas for our customers to enjoy. [Company Name] will provide many options to choose from, including a variety of black teas, green teas, herbal teas, white teas, and more. We also will have pastries and other delicious snacks on our menu and sell tea leaves and bags so customers can brew it at home.

Products Served

[Company Name] will offer a wide range of teas so that every tea lover leaves our shop happy and satisfied. Though we plan to eventually have hundreds of options to choose from, a few options that will be on our initial menu include:

• Japanese green
• Oolong
• Chamomile
• Milk oolong
• Chai
• Early grey
• Darjeeling
• Sencha
• Matcha

There will also be select pastries and other snacks on the menu that customers can order with their drinks. Furthermore, customers who love our teas can buy select flavors, either loose leaf in tins or in tea bags. We will sell these items on our website as well.

Customer Focus

[Company Name] will primarily serve the residents who live within a 2-mile radius of our tea shop and individuals who work within a half-mile radius. The demographics of these customers are as follows:

• 87,827 residents
• 4,750 commuters
• Average income of $64,700
• 42.9% married
• 54.6% in Mgt./Professional occupations
• Median age: 39 years

Management Team

[Company Name] is run by [Founder’s Name], who has been a tea aficionado for [X] years. She has worked in various coffee shops around town, where she has served thousands of customers various kinds of coffee and tea. However, [Founder’s Name] has always been a tea lover rather than a coffee lover. She noticed that [location] has very few tea shops even though there is a great demand for them. There is especially a lack of tea shops downtown, so she decided to open up her own tea shop that would rival the poor selections of tea found at local coffee shops.

Though she has never run a business of her own, she spent much of her time in coffee shops as a store manager and therefore understands the operations side (e.g., running day-to-day operations) and the business management side (e.g., staffing, marketing, etc.) of running a similar business.

Success Factors

[Company Name] is uniquely qualified to succeed due to the following reasons:

• There is very little competition as [location] has very few tea shops serving its large population. There are many coffee shops that serve tea, but their selection is limited and not of good quality.
• The shop location will be in a high-volume area and will thus be highly convenient to significant numbers of passersby each day.
• The tea shop business is a proven business and has succeeded in communities throughout the United States.

Financial Highlights

[Company Name] is currently seeking $420,000 to launch. Specifically, these funds will be used as follows:

• Store design/build: $250,000
• Equipment and initial inventory: $50,000
• Working capital: $120,000 to pay for marketing, salaries, and lease costs until [Company Name] reaches break-even

Top line projections over the next five years are as follows:

Financial Summary	FY 1	FY 2	FY 3	FY 4	FY 5
Revenue	$560,401	$782,152	$1,069,331	$1,379,434	$1,699,644
Total Expenses	$328,233	$391,429	$552,149	$696,577	$776,687
EBITDA	$232,168	$390,722	$517,182	$682,858	$922,956
Depreciation	$7,000	$7,000	$7,000	$7,000	$7,000
EBIT	$225,168	$383,722	$510,182	$675,858	$915,956
Interest	$6,016	$5,264	$4,512	$3,760	$3,008
Pre Tax Income	$219,152	$378,458	$505,670	$672,098	$912,948
Income Tax Expense	$76,703	$132,460	$176,985	$235,234	$319,532
Net Income	$142,449	$245,998	$328,686	$436,864	$593,416
Net Profit Margin	25%	31%	31%	32%	35%