how profitable are bubble tea (also called boba tea) shops?

Question

Hi BP,

Anyone has any experience having bubble tea/boba tea shop as a tenant?  How profitable are those stores compare to restaurants and others businesses?  @Joel Owens always said rent to sale should be 1 to 10 for restaurants to be profitable, what should be the rent to sale ratio for these bubble tea shops?

Any input is greatly appreciated.

Courtney Duong · Answer

It's a franchise.   It is Happy Lemon.  They have many in CA already and few in DFW, Austin.  Now looking to expand in the Houston area.

Courtney Duong · Answer

I hear ya.  LOL.  That's what I thought when I saw their menu too.  I had them when we were in Canada a long time ago and they were really good.

Cody L. · Answer

I don't know how profitable they are but please open one.  I love those places!  The more the better.

I remember when I was in Singapore for work (this was a long time ago -- 15 years?).  I had one by random chance.  Blew my mind :)

Ronald Rohde · Answer

Is this a franchise or a small shop? The space is very crowded now, but overall I think they are a small footprint with corresponding risk. I know of a few owners here in DFW who had to close during covid.

Courtney Duong · Answer

I see them here too but mostly where there are lots of Asian stores like in Southwest Houston.

Chris Ng · Answer

They are popular among Asians. There are a lot of them here in SoCal.