TAIPEI (TVBS News) — Taiwan's tea shop industry is booming, with the Ministry of Economic Affairs (MOEA, 經濟部) reporting 16,070 stores nationwide as of May 2024. This growth, averaging 40.2 new stores per month over the past year, represents the highest increase among all business sectors.
In the first half of 2024, tea shops generated NT$66 billion in revenue, with the MOEA projecting that annual earnings will surpass NT$130 billion. Taipei leads the country with the highest density of tea shops, averaging 12 stores per square kilometer.
Fan Hui-yi (范慧宜), a researcher at the Commerce Development Research Institute (CDRI, 商業發展研究院), attributes this surge to the low barrier to entry. The average startup cost for a tea shop is NT$1.37 million, with gross profit margins ranging between 50% and 70%.
Many entrepreneurs opt to create their own brands rather than join existing franchises. Ku Shang-chun (顧上鈞), vice secretary-general of the Association of Chain and Franchise Promotion Taiwan (ACFPT, 台灣連鎖加盟促進協會), cautions against common mistakes. "Fail to build brand differentiation, and poor quality management will lead to a gradual loss of consumer trust," he warned.
In response to rising labor costs, many tea shops have introduced self-service kiosks with multilingual options, which help maintain consistent quality and streamline operations. As the industry continues to grow, experts advise aspiring entrepreneurs to prioritize brand differentiation and quality control to ensure sustained consumer confidence.