How to start a bubble tea business in Australia
To start a bubble tea business in Australia you need a site and a lease, a registered food business, usually with a certified food safety supervisor, a compliant fit-out and equipment, a reliable supply of tea, tapioca and packaging, staff paid under the right award, and enough working capital to trade through the early months. You can build all of that yourself as an independent shop, or buy a franchise that supplies much of it.
Key takeaways
- Every bubble tea shop needs the same nine things, whichever route you take. The steps below cover each one.
- A shop making milk-based drinks will usually need a certified food safety supervisor in place before it opens.
- Takeaway drinks staff are generally covered by the Fast Food Industry Award.
- An independent shop costs you no royalties but leaves you to build the brand, menu, supply chain and systems. A franchise supplies those in return for an upfront investment and ongoing fees.
Independent shop or franchise: what actually differs
Neither route is right for everyone. The difference is who builds each part of the business, and what you pay for the parts you do not build yourself.
| Part of the business | Independent shop | Franchise |
|---|---|---|
| Brand and menu | You create the name, the recipes and the menu, and build recognition from nothing. | You trade under an established brand and its menu. Changes to the menu or look need the franchisor's agreement. |
| Suppliers | You find, test and negotiate with suppliers for tea, pearls, syrups and packaging. | Ingredients, packaging and equipment come through the brand's supply chain. |
| Training and systems | You write your own recipes, procedures and training, and choose your own point of sale. | Training, operating standards and a point-of-sale system are provided. |
| Site and lease | You find the site and negotiate with the landlord on your own. | The franchisor usually helps identify the site and deal with the landlord. |
| Upfront cost | Whatever you choose to spend on fit-out, equipment and stock. | A set investment. At Chatime, typically $300,000 to $375,000 + GST, depending on format and site. |
| Ongoing fees | None beyond your running costs. | Royalty and marketing levy, set out in the disclosure document. |
| Control | Full control of pricing, products, hours and branding. | You run the business, within the brand's standards. |
| Legal protection | General consumer and business law. | The Franchising Code of Conduct adds a disclosure document, a cooling-off period and a public disclosure register. |
The nine steps to opening a bubble tea shop
These apply whichever route you take. Under each step is what changes if you open as a Chatime franchise.
Choose your route
Decide whether you want to build the brand yourself or buy into one. That single decision sets your budget, how much you control and how much you need to learn before opening.
Franchise route: compare brands on the same evidence, using the 12-point comparison guide.
Work out your budget and funding
Total the fit-out, equipment, opening stock, any lease security the landlord asks for, professional fees and the working capital to cover wages and rent before the shop pays its own way. Talk to a lender early, so you plan against a real borrowing figure rather than a guess.
Franchise route: a Chatime franchise costs from $300,000 + GST, typically $300,000 to $375,000, covering the franchise fee, fit-out, equipment, training and opening stock. Working capital and your own advisers sit outside that figure.
Find a site and secure the lease
Site matters a great deal for a bubble tea shop. Common choices are shopping centre food courts, transport hubs, university precincts and busy shopping strips. Each state has its own retail leasing law. Have a lawyer review the lease before you sign, including the term, rent reviews, make-good obligations and any security the landlord requires.
Franchise route: Chatime works with you to identify a location and supports you through landlord engagement.
Set up the business
Choose a structure (sole trader, partnership, company or trust) with your accountant, then apply for an ABN. Register a business name with ASIC if you will trade under a name other than your own. Register for GST if your current or projected annual GST turnover is $75,000 or more.
Franchise route: the same steps apply. You own and run your own business, trading under the brand.
Register the food business and appoint a food safety supervisor
Register or notify your food business with your local council or state food authority before you trade. The process differs by state and council.
Under Food Safety Standard 3.2.2A, food service businesses that handle unpackaged, potentially hazardous, ready-to-eat food must appoint a certified food safety supervisor before they start, and make sure food handlers are trained. A shop making milk-based drinks will usually fall within the standard. Your council can confirm which category applies to you.
Franchise route: the obligation is still yours as the operator. A franchise's operating standards and training help you meet it.
Fit out the shop and install equipment
Check whether your council needs to approve fit-out plans before work starts. The premises must meet the Food Standards Code, including hand-washing facilities. A typical bubble tea shop needs:
- Tea brewing equipment and a tapioca pearl cooker
- A cup sealing machine and a shaker
- Syrup or fructose dispensers
- Commercial refrigeration and an ice machine
- Blenders, if you sell blended drinks
- Sinks, a hand-wash basin and dishwashing
- Point of sale, menu boards and signage
Franchise route: a Chatime fit-out is built to the brand's store format, kiosk or inline, and the fit-out and equipment are included in the investment.
Set up your supply chain and packaging
You need a steady supply of tea leaves, tapioca pearls, syrups, powders, fresh fruit and toppings, plus cups, lids, sealing film and straws. Many ingredients are imported, so allow for lead times and keep a backup supplier for anything you cannot run out of.
Most Australian states and territories have banned single-use plastic straws, which matters for a drink usually served with a wide straw. Check your state's current rules before you order packaging.
Franchise route: Chatime's supply chain delivers ingredients, packaging and equipment, so the menu, recipes and sourcing come with the brand.
Hire and train your team under the right award
Staff in a takeaway food and drinks shop are generally covered by the Fast Food Industry Award. A business that mainly serves customers on the premises with table service may fall under a different award, so confirm coverage with the Fair Work Ombudsman. The award sets minimum pay, casual loading, penalty rates for evenings and weekends, and record-keeping and payslip requirements. Fair Work actively checks compliance in the food and beverage sector, and the employer is responsible for getting it right.
Franchise route: you are still the employer. Chatime's training covers the brand's operating standards: 5 days online, then 6 days in-store at a Sydney franchise alongside a current franchise partner.
Build the menu, brand and launch plan
Settle a menu you can make consistently at speed, price it against your real costs, and plan how people will find you: signage, social media, delivery platforms (which charge commission on each order) and a reason to come back, such as a loyalty program.
Franchise route: national campaigns, social media and the Loyal-tea app are run centrally, alongside local activation for your store.
How much it costs to start a bubble tea business
There is no single figure for an independent shop, because you choose the site, the size of the fit-out and the equipment. What every budget has to cover is the same:
- Fit-out and equipment, including any council approvals and trades
- Lease costs: rent, outgoings and any security the landlord requires
- Opening stock and packaging
- Wages for training and the opening weeks, before the shop covers them
- Business setup, insurance, and legal and accounting advice
- Branding, signage and launch marketing
- Working capital to carry you until the shop pays its own way
A Chatime franchise costs from $300,000 + GST, typically $300,000 to $375,000 depending on store format and site. That covers the franchise fee, fit-out, equipment, training and opening stock. Royalty and marketing levy rates are set out in the disclosure document, and Chatime does not charge an application deposit at any stage.
Can you start a bubble tea business with no experience?
Yes, but the learning curve sits in different places. On your own, you learn recipes, food safety, rostering, supplier management and marketing as you go, with your own money at stake. In a franchise, training and the brand's systems cover much of the operating side before you open, although you still run the business day to day. Chatime does not require food and beverage experience, and training is included in the investment.
Is a bubble tea business profitable?
Some are and some are not. Results depend on the site and lease, local competition, wage and rent costs, trading hours and how the shop is run. Any figure that promises otherwise, independent or franchised, is not one you can rely on. Chatime does not publish turnover or profit figures, and does not guarantee or predict what any store will earn.
For what decides the result and how to build your own numbers, read is a bubble tea franchise profitable?
Before you commit to either route
Take independent advice from a lawyer and an accountant on the lease, the structure and, if you go the franchise route, the disclosure document. You receive that document at least 14 days before you sign a franchise agreement, and a 14-day cooling-off period applies once you do.
Find out what a Chatime franchise involves
Tell us where you would like to open. The team will be in touch within one business day with an information pack and an invitation to apply. No deposit, and no obligation to go further.
Starting a bubble tea business: your questions
How much does it cost to start a bubble tea business in Australia?
For an independent shop it depends on the site, fit-out and equipment you choose, plus lease costs, stock, wages and working capital. A Chatime franchise costs from $300,000 + GST, typically $300,000 to $375,000, covering the franchise fee, fit-out, equipment, training and opening stock.
Do I need a licence to open a bubble tea shop?
You need to register or notify your food business with your local council or state food authority before trading. A shop making milk-based drinks will usually also need a certified food safety supervisor under Food Safety Standard 3.2.2A.
What equipment does a bubble tea shop need?
Typically tea brewing equipment, a tapioca pearl cooker, a cup sealing machine, a shaker, syrup dispensers, commercial refrigeration, an ice machine, sinks and a hand-wash basin, and a point of sale. Blenders are needed if you sell blended drinks.
Is it better to open an independent bubble tea shop or buy a franchise?
It depends on what you want to build yourself. An independent shop pays no royalties and gives you full control, but you create the brand, menu, supply chain and systems. A franchise supplies those in return for an upfront investment and ongoing fees.
Can I start a bubble tea business with no experience?
Yes. Independently, you learn as you go. Chatime does not require food and beverage experience, and its training is 5 days online, then 6 days in-store at a Sydney franchise alongside a current franchise partner.
Which award covers bubble tea shop staff?
Staff in a takeaway food and drinks shop are generally covered by the Fast Food Industry Award. A business that mainly serves customers on the premises with table service may fall under a different award, so confirm coverage with the Fair Work Ombudsman.