Sharetea Franchise Cost, Failure Rate & Owner Salary 2024

If you’re interested in the popular bubble tea industry, ShareTea could be an exciting chance for you. Known around the world for its great taste, ShareTea is a leading name in tea drinks. It is one of the 10 best bubble tea franchises that you must own.

This article will give you details about starting a ShareTea franchise, whether you’re new to business or already have experience.

Sharetea Franchise

About Sharetea

Sharetea first opened its doors in Taipei City in 1992, offering black tea and pearl milk tea drinks to go. It’s now a well-known Taiwanese bubble tea brand with many locations across the globe.

Using top-quality tea leaves and hand-picked ingredients, Sharetea ensures all products are fresh and tasty.

They also check the tea leaves every season to keep up the quality. Sharetea keeps winning the hearts of tea lovers everywhere.

Sharetea History

Sharetea was started by Cheng Kai-Lang in Taipei, Taiwan, in 1992. Since then, it has grown to 18 countries with over 450 locations. The tea leaves are still sent directly from Taiwan to shops all around the world.

Sharetea Franchise Model

Royalty fee5% of Gross Sales
Franchise fee$22,500
Area RequirementN/A
Estimated Outlets450+

Sharetea Mission

Sharetea Mission

Sharetea’s goal is to spread Taiwanese tea culture around the world. Holding the No. 1 market share in California with 15 licensed locations, Sharetea has become a well-known brand. Their mission includes offering high-quality milk teas at good prices.

Using the freshest and healthiest ingredients, Sharetea serves more than 300 locations worldwide. They continue to please customers with the taste and quality of their drinks.

Key Takeaways

  • Easy to use, manage, and grow
  • Proven success with expanding
  • Full training and support for operations
  • For questions, contact customer care or send an email

Payback Period Of Sharetea Franchise

On the basis of 2021 Sharetea Median Franchise Sales: which is $415,000, and the estimated profit margin of 10%, the yearly profit would be $41,500.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Investment / Yearly Profit = $260,000/ $41,500= 6.26 years

Based on these figures, it will take approximately 6 years to pay back the initial investment for Sharetea. This time period could be longer or shorter depending on your sales, revenue, and profit figures.

Failure Rate Of Sharetea

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change

For the Franchised outlets:

  • In 2019, the growth rate was (29)/54×100≈53.70%
  • In 2020, the growth rate was (16)/83×100≈19.27%
  • In 2021, the growth rate was (25)/99×100≈25.25%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

Overall, we can see that the Sharetea franchise has expanded in the years 2019-2021, showing a total growth rate between 53.70% and 25.25%.

Sharetea Financial Assistance

Share Tea can help you connect with lenders for financing things like franchise fees, startup costs, equipment, and more. They also help with finding suppliers, giving you the power of national buying through respected sellers. This support can make starting your Sharetea franchise easier.

The beverage franchise market offers several opportunities for entrepreneurs, such as franchises from MochinutMilkshake FactoryTiger SugarHTeaO, and Ding Tea Franchise.

Sharetea Comparison

CompanyShareteaKung Fu Tea
Founded In19922009
Initial Investment$260,000$123,000 – $422,000
Total Outlets450200
Annual Revenue$65 Million $27.2 billion 

ShareTea Franchise Owner Salary & Profit

Metric100 Bubble Teas Per Day500 Bubble Teas Per Day
Selling Price per Tea$5$5
Days Open per Year350350
Annual Revenue$175,000$1,100,000
Profit Margin20%20%
Total Annual Profit$35,000$220,000
Total Monthly Profit$2,916.67$18,333.33

While the exact revenue and profit figures for a ShareTea franchise are not publicly disclosed, we can make an educated guess based on the typical earnings of a bubble tea shop.

Considering the average selling price for bubble tea is $5, a shop selling 100 bubble teas a day for 350 days could generate annual revenue of $175,000. With a profit margin of 20%, the total annual profit would be $35,000, and the total monthly profit would be $2,916.67.

As the brand gains recognition, sales can potentially reach up to 500 bubble teas per day, resulting in annual revenue of $1,100,000 or more. Therefore, it can be assumed that owning a ShareTea franchise could lead to earnings in a similar range, making it a potentially lucrative opportunity.

Frequently Asked Questions

Is Sharetea a franchise?

Yes, Sharetea is a franchise organization.

How much does a Sharetea franchise cost?

The franchise fee for a Sharetea franchise is $22,500, and the investment cost ranges from $386,900- $492,200.

How many locations does Sharetea have?

Sharetea has over 400 stores in 12 countries and has expanded to over 150 locations in the United States.

Who owns Sharetea?

The current owner of Sharetea is Lian Fa Dining International Corporation.

Who founded Sharetea?

The founder of Sharetea is Cheng Kai-Lung. He worked in the film and TV industry as a director, although he was not satisfied with his job and quit his job to start his own tea street vendor business.

Where is Sharetea headquartered?

The headquarters of Shretea is in New York City, United States.

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