Let's Talk About Milk Tea: Adrian Hernandez
Let's Talk About Milk Tea: Adrian Hernandez
Let's Talk About Milk Tea: Adrian Hernandez
If you live on planet Earth like I do, you’ve no doubt noticed that the tea industry has been exploding in
recent years. Local grocers have gone from carrying nothing more than boxes of iced tea blends to
stocking gourmet loose leaf in the aisles and multiple varieties of tea-based RTDs in the refrigerated
section. But what about your tea shop? What has changed?
While the selection of loose leaf and bagged teas has grown exponentially, the apprehension that
surrounds many of these specialty items still persists with the general consumer. The mention of the
words “tea shop” still conjures up images of high tea or complicated rituals with hot tea of some sort at
the center of the experience. And this is not too far from the truth. What many traditional tea shop owners
will admit, too, is that serving tea alone is not enough to survive. Food, then, often enters the picture and
can take the focus away from the tea, which is where our true passion lies. It can be very frustrating at
times to find a way to make tea your focus while still hitting decent margins and attracting trendy
consumers.
Let’s talk about milk tea. Milk tea, and its family of bubble teas, has been around for decades in various
forms. The most popular style of milk tea originated in Taiwan back in the 1980s and is a simple blend of
black tea, creamer and sugar. Since then, however, this once simple drink has turned into a revolutionary
tea canvas that has allowed tea lovers to pair their favorite teas with a myriad of creamers, flavors and
sweeteners. But that is not even the best part. It’s also incredibly popular and provides phenomenal profit
margins for tea retailers.
The average bubble tea shop will sell between 150 and 300 drinks per day, according to some industry
reports. The drink attracts many different demographics and allows tea shop owners to make tea their
focus once again. I’ve often been heard calling milk tea a “gateway tea.” It’s an easy way to introduce
customers to the world of specialty teas by way of a popular, fun and intriguing beverage thath can be
served hot or iced.
Once customers get hooked on one style of milk tea, you can begin to introduce them to other styles,
which might open them up to different tea bases, too. So, expand your menu to include milk teas. They’re
a great addition to any tea shop as a way to better use existing stock, attract new customers and increase
profits.
Philippines ‘best
country to invest in’
The Philippines was named the top investment destination by a global
research firm, noting that its young population will attract more firms looking
for a good labour force.
The US News & World Report named the Philippines as the “Best Country to
Invest In” for its 2018 Best Countries report.
“Milk tea is not a fad. We have 5 billion (pesos worth of) potential markets in Asia alone.
We’ve been running for more than two years and are successful so far because we have
a great business structure, unlike those who have closed down,” remarked Tea
Generation co-founder and general manager Vernie Cobreros-Farro.
According to Farro, milk tea shops are currently among the most popular hang-out
places in the metro along with cafés. “Times are changing, so do people. They want to
socialize more. A milk tea shop is therefore a perfect place for them. It gives a certain
fun and cool environment, whereas coffee shops tend to be more formal and serious.”
Today’s generation also has a special craving for anything sweet. Given that milk tea is
relatively a milder beverage than coffee (not to mention sweeter), it has an after taste is
not as distinct as its counterpart – a quality that most teens and yuppies appreciate.
Obviously, that is one the reasons why the industry continues to prosper.