The continued popularity of Taiwanese-style bubble tea shops across Hong Kong has sparked interest in the business behind the trend, with one store owner sharing details of the high startup costs and operational challenges involved in opening a franchise outlet.
The owner shared the experience on social media, revealing the realities of entering the bubble tea business during the height of the industry's expansion in 2018. According to the post, the owner obtained franchise rights in Taiwan before returning to Hong Kong to open a store, a process that involved significant upfront investment in training, travel and supplier arrangements.
Startup costs quickly mounted after the owner leased a shop of less than 200 square feet on Hau Fook Street in Tsim Sha Tsui, where monthly rent and related charges totaled about HK$130,000.
The business required a “three-month deposit plus one month’s rent” arrangement, amounting to approximately HK$520,000 upfront. Renovation costs reached between HK$500,000 and HK$600,000, while equipment sourced from Taiwan and Hong Kong cost more than HK$200,000. A further HK$200,000 was spent on ingredients and supplies for the first two to three months of operation.
The owner also highlighted less visible expenses, including mandatory purchasing requirements under franchise agreements and various site-related charges.
The post quickly attracted attention online. Some users questioned the sustainability of the bubble tea franchise model, arguing that heavy marketing campaigns and artificially long queues were sometimes used to attract franchisees, only for foot traffic to be diluted as more outlets entered the market.
Others expressed surprise at the six-figure monthly rent, with some asking what gave the owner the confidence to take on such an expensive location in one of Hong Kong's busiest commercial districts.
Responding to questions about profitability, the owner said the shop needed to sell an average of around 500 cups a day just to break even.
