Australia’s leading bubble tea company, Sharetea, is planning a major expansion of its chain of outlets as the country emerges from COVID restrictions and people return to their workplaces.
Now 10 years old, Sharetea has almost 90 franchised stores employing more than 700 people. The plan is to reach 110 outlets by the end of 2022.
“The pandemic placed a lot of stress on our business as our outlets were closed during lockdowns and there were issues with supply,” said CEO Anthony Mu. “However we have emerged from COVID in better shape and are keen to expand our footprint across Australia as more consumers enjoy bubble tea as an alternative to coffee.
“We are developing new products and recipes to attract new demographics in what is one of the fastest growing beverage categories in the world.”
The global bubble tea market was valued at US$2.4 billion in 2019 and is predicted to reach US$4.3 billion by 2027.
Fending off rising prices
Bubble tea is a tea-based drink invented in Taiwan in the 1980s. Like coffee, tea prices have risen in the last two years, along with freight, rent, utilities and labour costs. However Sharetea has been able to avoid imposing any price increases on its franchise network.
“We have been able to maintain our network of loyal franchisees despite the pressures brought on them by COVID,” said Mu. “Many of our partners are planning to expand their number of outlets as economic and labour hire conditions continue to improve this year.
“We are seeing very encouraging signs in the turnover of our stores, with an expansion in the number of flavours we are creating, as well as bubble tea products that our customers can make at home.”
