Bubble Tea Business Plan


Andover Business Club
Phillips Academy
Bubble Tea Business Plan

Background Information
In the recent years, bubble tea has come in high demand. Its presence and high demand has carried onto Andover’s campus, driving some students to great extents to obtain the drink. Andover Business Club senses this high demand amongst our peers. Our calculations also show high margins of profit. Though initially introduced as a possible venture in the 2018-2019 school year, time limitations have affected our club’s ability to execute the plan. With more time and new members of the club in the 2019-2020

Mission
For students seeking a cold, quick-served drink, Andover Business Club offers bubble tea during dinner time so that students can purchase the drink at the convenience of the dining hall, saving both time and money. 

Management Team
Ava Long ’21, Founder and President of Andover Business Club
Ava manages the equipment, communication with Commons, and overall operations for this venture.
Nick Buehler ’21, Board Member
Nick brought this idea to the attention of the Board in 2019. He is responsible for the finances for this venture. 
Nino Stuebbe ’20, Board Member
Nino manages the making of the tea before sale and during sale. He has a strong understanding of the proportions for making the drink. 

Operations
The powder and tapioca must be purchased ahead of time. They will be stored in a board member’s dorm room until the drink is put together. 

The speed of serving on the night of the sale depends on making the tea ahead of time. The tapioca bubbles must be boiled, stored in a container, and refrigerated the day before. The powder must be mixed with water to form milk tea and refrigerated the day before serving as well. 

The night of the sale, the pre-prepared milk tea and 
bubbles must be brought to the table at commons. Two Andover Business Club members must be present at the table for the serving. 

Marketing and Sales
The timing of marketing is important. Advertisements and notices must be published the day before and the day of the sale, no earlier. Any advertisements published earlier will be forgotten. Instagram posts and stories will be our primary means of marketing. 

On the day of the sale, word of mouth will be critical. As students enjoy the drinks around campus or in Commons, ABC expects the visual presence of the drink to draw questions. C2C communication will draw more customers to the table. 

Financial Projections
We expect 350% profit margins. Each cup of bubble tea costs around $0.75 to make (cup, straw, tea included). We plan on selling each cup of tea for $3. This price is comparable to those off campus. The cost to run each sale totals

Debrief
This sale was very successful and exceeded our expectations for GPM. Furthermore, we sold out of 100 cups of bubble tea within 75 minutes. In the future, considering the popularity of bubble tea, we can afford to create more product so that our sale lasts the entire 120 minutes of dinner.

Our COGS totaled $113.68.

Our revenue totaled $392.00

Gross Profit Margin = (392.00-113.68)/392 = 71.0%




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