Refreshing and Profitable Business Opportunities from Contemporary Tea Drinks

Iced tea is no longer conventional but comes with various flavors and toppings. “The development of the contemporary tea business is also supported by increasingly easy distribution via online motorcycle taxis with a grab and go concept, making it easier for consumers to buy

Recently, the number of shops and booths offering iced tea drinks has increased in number. The proliferation of the contemporary tea beverage business is not a phenomenon that occurs without reason. This business turns out to have very promising prospects.

If you are interested in trying this business, you need to know several things below, starting from opportunities, obstacles, and estimated capital for the current tea drink business.

Reasons for Choosing an Iced Tea Business

Iced tea is indeed refreshing, but the current iced tea drink business is even more refreshing because the prospects are quite good. There are several reasons underlying this, let's look at the details below.

1. The price of iced tea is very affordable

Do you know why iced tea is always a best seller in restaurants or eateries in Indonesia? Usually, iced tea is priced the cheapest among other types of drinks. Therefore, consumers will not think long about ordering and buying these drinks.

With low prices, this means the iced tea business can reach more consumers. You can target school children, students, and adults who are already working as the target market. So, the target market for contemporary tea drinks is quite broad.

2. Iced Tea – Indonesian People's Favorite Drink

The second reason why the current iced tea business is so promising is that most Indonesians like iced tea. This drink is very familiar to Indonesian society in general. Iced tea has a simple taste and is liked by children, teenagers, adults and even elderly people.

In contrast to the chocolate drink business , this drink is only liked by children and teenagers. Usually, adults or the elderly don't like this drink because it tastes too sweet and doesn't suit their taste.

This means that it will be easier for you to get customers if you run an iced tea business compared to other types of drinks. That way, it is possible for this business to develop more easily.

3. Only requires minimal capital

Still related to the cheap selling price of iced tea, it turns out that the capital you need to start this modern tea drink business is not that much. The reason is, the tools you need to start this business are also relatively minimal. The furniture and tools you need include:

• gas stove,
• pan,
• measuring cup,
• tea box ,
• ice box ,
• wooden counters , as well
• sealer or glass press tool .

You can get all this equipment at affordable prices. Apart from that, you can also buy the ingredients needed to start an iced tea business at low prices. You can also easily get ingredients at affordable prices in shops that sell wholesale drink powder .

4. Does not require special skills

Starting a contemporary iced tea business does not require special skills or expertise. You certainly already understand how to serve iced tea. In general, you just need to prepare hot water to brew quality tea leaves in the appropriate dosage. After that, mix the sugar and ice cubes or other additions.

Then package the iced tea according to your taste and brand theme. So, iced tea is ready for you to market.

There are only a few tools you will use when selling iced tea. You may just need to learn how to use a glass press or sealer properly. Apart from that, there are no other tools that have to be operated in a complicated way. This factor is also the reason why the iced tea business has mushroomed recently.

What are the Obstacles in the Contemporary Tea Drink Business?

Even though selling iced tea is very promising for the 4 reasons you have seen above, obstacles in this beverage business cannot be avoided. If you choose to enter the iced tea business, be prepared to face the following 2 main obstacles.

A. Competition is getting fiercer

Take a look at your surroundings, how many iced tea booths are there currently? In the area around a campus or school, there is definitely more than one iced tea seller, whether current or not. This means that competition in the beverage business is quite tight.

To overcome these obstacles, you need to create something different or distinctive that makes potential consumers interested. For example, by selling iced tea variants that are not sold by competitors as well as unique and pleasant service.

B. Cold or Rainy Weather

It's no longer a secret that hot and hot weather is a ‘friend' for cold drink businesses, especially iced tea. On the other hand, rainy weather or cold air is a big obstacle to running a modern iced tea business.

Turnover can decrease drastically when the weather is rainy. However, this condition can still be resolved if you choose a strategic and easily accessible location. Even though turnover will decrease for a moment, it will not be difficult to find buyers again.

What is the Estimated Capital for a Current Tea Business?

You can start a modern tea beverage business independently without a franchise program from a brand with minimal capital, please see the details below.

1. Initial Capital

The following are some of the equipment you need as initial capital to run a modern iced tea business.

• Booth / cart: Rp. 1,000,000.00
• Thermos: Rp. 100,000.00
• 3 jars: Rp. 50,000.00
• 16 OZ plastic glass & lid: Rp. 15,000.00
• 500 straws: Rp. 25,000.00
• 500ml measuring cup: Rp. 120,000.00
• Filter: Rp. 15,000.00
• X-banner 60×160 cm + design services: Rp. 100,000.00

So, the total initial capital you must prepare is IDR 1,600,000.0. If you choose to use a sealer machine, your capital can increase by around IDR 500,000.00 to IDR 1,000,000.00.

2. Sales Per Month (Realistic)

Estimate that you can sell 60 cups of iced tea per day at a price of IDR 4,000.00/cup. So, the calculation of turnover in a month is:

60 x Rp. 4,000.00×30= Rp. 7,200,000.00

Based on the estimates above, you only need 1 month of consistent sales to get back your initial capital.

However, you also shouldn't forget to take into account capital costs, materials and operations to find out the net income from this business.

Don't hesitate to start a contemporary tea business!

Even though the competition is getting tougher, the profits you can make from the contemporary tea drink business are quite large if you can sell consistently.

Likewise, you still need a mature marketing and sales strategy, as well as trying to review the various risks that may occur so that you can make business decisions and execute with minimal losses.Source