A question that many entrepreneurs ask themselves before opening their tea business is whether it is better to open their own shop or join a franchise. As with almost all business decisions, there is no single answer: each option has advantages and limitations that should be carefully analysed.
From our experience, we have seen all kinds of cases:
– Entrepreneurs who have created their own tea shop (the majority),
– Entrepreneurs who have opted for a franchise,
– Brands that started as independent businesses and ended up franchising,
– And even franchisees who decided to abandon the model to create their own tea brand.
That is why we want to share our point of view with you and help you answer this question.
Opening your own tea shop instead of a franchise
In the tea sector, especially when compared to other areas such as catering or fashion, there are relatively few established franchises. This is one of the main reasons why many entrepreneurs choose to create their own tea business.
Pros
Opening your own shop is the best option for having the freedom to create a business that reflects your personal vision. You have complete control over all aspects of the business, from product selection to shop design and marketing strategies.
This autonomy allows you to innovate and differentiate your shop from competitors. You can experiment with new tea blends, tailor your range to your regular customers, hold events in your shop… in short, convey an atmosphere that reflects your personality and values.
Another important aspect is that you are the sole owner, so all the profits generated by the business are yours. You do not have to pay sales commissions or follow guidelines from the brand owners. This will translate into more profit for you.
Cons
That freedom also means greater responsibility. Opening your own tea shop means taking on all the financial risk: initial investment in product, shop fitting, marketing and operating costs, without the backing of an established brand.
All decisions fall on you, which can be challenging if you have no previous experience in business management.
In addition, you will have to pay for your own tea training, although there are many options available.
Finally, compared to a franchise, building a loyal customer base from scratch can take a lot of time and effort. Without the backing of a recognised brand, you will have to work harder to gain the trust of consumers and establish your shop as the go-to place for tea lovers.
Joining a franchise instead of starting your own tea business
Pros
Joining a tea franchise has several advantages, especially for those seeking a safer path to entrepreneurship.
Franchises provide a proven business model and brand recognition that can attract customers from day one.
In addition, they often provide ongoing support in key areas such as marketing, tea training and operational management, which is especially valuable in the early stages of the project.
Another important advantage is economies of scale. By purchasing large volumes, the franchise can negotiate better terms with suppliers, which can translate into lower operating costs.
But one of the main advantages is in marketing and advertising. Tea franchises often run national or regional marketing campaigns to attract more customers to their business. For an independent business, undertaking this type of activity is often difficult without a large budget.
Cons
Joining a tea franchise means giving up a certain degree of autonomy. You will have to follow their guidelines, which, to some extent, limit your ability to innovate and personalise your shop. This can be frustrating if you have a specific vision of how you want your business to be.
On the other hand, franchises require a larger initial investment than starting your own business.
The initial investment is usually higher than for your own business, and you will also have to pay recurring fees such as royalties or licence fees. This reduces your profit margin and forces you to sell more to achieve a similar return.
Although support and brand recognition can offset these costs, it is important to carefully assess whether the benefits outweigh the financial and operational disadvantages.
Conclusion
Choosing between starting your own tea shop or joining a franchise depends largely on your profile as an entrepreneur.
If you have sufficient capital and view the project primarily as a business investment, a franchise can offer you speed and security.
If, on the other hand, you want to convey your own vision of tea, build a brand with its own identity and have creative freedom, opening your own business will be the most logical option.
Who knows? Maybe today you are starting your tea shop… and tomorrow you will be the one leading the next benchmark franchise.
Which option do you think is best and why? We look forward to hearing from you.
