Ngoc Quyen Nguyen

Jian Cao

ACG 6315-001

April 28, 2019

Bobaholics Milk Tea Shop Business Plan

Bobaholics is a milk tea shop that will open in early June 2019 serving milk tea and light

meals. We are establishing our milk tea business to offer various customers quality tea, as well as

the choice of different flavors. Bobaholics’ mission is to bring the safe, hygienic and delicious

milk tea to the customers. Bobaholics’ top priority is using safe, natural and dietary ingredients.

The great taste of drinks is an important goal of ours. Bobaholics wishes to provide the customers

with a professional and friendly service style, and always listens to customers' contributions. Based

on two core platforms, quality and service, Bobaholics strives to build and maintain a positive

brand image in the eyes of customers. The purpose of this paper is to give a brief information about

the milk tea shop business plan and analyze the management decisions that will affect the cost

drivers.

Recently, in South Florida, many milk tea shops have opened. To compete with the

established milk tea shops in the area, Bobaholics will take advantage of using healthy ingredients

and materials. Bobaholics must ensure that the raw materials indicate the source of origin and

health safety. Currently, many milk tea business shops target only profit factors, using inferior

quality materials, affecting consumer health. Therefore, the shop only imports materials from

reputable sources and directly from legit suppliers. Besides, training employees is also essential.

When operating professionally, organized and appropriately allocated, the shop will perform more

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smoothly. Bobaholics has carefully researched the competition in South Florida, and Bobaholics

would use quality products and services with affordable pricing to stand out.

Bobaholics’ long-range products are Jasmine milk tea with sea salt and honey green milk

tea. These products are popular everywhere and will provide long-term profit. For the coming year,

Bobaholics will have menu customization. Bobaholics will innovate to specialty smoothies and

fruit drinks such as Mangonada (mango slush with Chamoy, Tajin, and fresh mango chunks) and

spicy watermelon (watermelon slush with Chamoy, Tajin, and fresh watermelon chunks).

Bobaholics is located in a strategic location that offers the shop the opportunities of attracting more

customers. A strategic store location will make the business more accessible. Bobaholics will

choose public places such as schools, main streets or commercial centers with a large number of

people passing by.

Bobaholics intend to serve different varieties of Boba tea. Therefore, importing machines

and materials is one of the investments that need attention. Bobaholics will invest in necessary

specialized Boba tea makings equipment such as cup sealing equipment, shakers, blender, and an

electric induction heater. We will also use small quality equipment such as stirrers, shaking cups,

pumps for syrups. To help the shop run smoothly, Bobaholics will develop the Point-of-sale system

program where we can track hours, communicate with employees and customers, manage sales,

and do all the accounting.

Bobaholics will import most of its ingredients and raw materials are from Taiwan.

Bobaholics has two main Taiwanese suppliers that offer a reasonable price and high-quality

ingredients. The plan is to develop long-term linkages with these distributors to secure proper

materials in adequate quantities at the optimal time. This will result in suppliers’ initiatives that

develop the profitability of both parties.

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 The core and faces of Bobaholics milk tea shop are the employees. The shop will not only

hire the employees to help Bobaholics manage the business but also will help be able to

communicate the brand effectively to the customers. Training employees are essential because the

employee will need experience in making the milk tea products that meet Bobaholics’ standards.

Before starting to work at Bobaholics, the employees will need to go through the 2-week training

program providing skills and knowledge on making standard milk tea. Several employees will be

assigned to work in different positions that will cover all the products and services. For example,

the shop manager has to ensure that the shop is well managed and secured at all times, and the

cleaner has to ensure that the shop is kept clean at all time.

On the accounting view, the activity cost drivers of Bobaholics are maintenance expense

on facilities and providing delivery service. Every month, a maintenance technician will be sent to

check and troubleshoot on the milk tea making equipment and other facilities such as freezers and

cold product storage, security system, refrigeration system. It costs up to $1000 for each time the

maintenance technician visits. Another activity that drives the cost is the delivery service that

includes the vehicle cost. Providing a delivery service means that the shop will have to hire a

delivery guy and spend cost on delivery transportation. The vehicle cost will include a fuel cost,

vehicle maintenance charges and other different fees, such as parking fees and tolls.

In operating a milk tea shop, not only concern about how to run the business, but we should

also concern the minimum accounting requirements to allocate overhead to produce goods. Cost

drivers directly influence business activities. No industry standards or regulations are stipulating

or mandating cost driver selection. Company management decides cost drivers based on the

variables of the expenses incurred during production. Therefore, it is necessary for Bobaholics to

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indicate and allocate the costs that will affect the milk tea business to have a successful step in the

industry.