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While it is booming and losing money at the same time, why is the milk tea industry in such trouble?

Because it is the milk tea brand that has become popular, but those who actually sell milk tea are facing losses. The most valuable thing in the milk tea industry is the brand. Once the brand becomes famous, many people will want to join the brand. At this time, collecting franchise fees is very profitable, which is much more money than selling milk tea. You may lose money just by selling milk tea, but you can make a lot of money by building a milk tea brand.

The milk tea industry is very popular now. It is common to see 7 out of 10 stores on the street being milk tea shops. The business of the milk tea shop doesn't look very good either. Good business comes and goes only from those few shops. I don’t know if other milk tea shops make money every day. Anyway, they have always been open and have not closed down. Most milk tea shops are losing money because there is too much homogeneity and there is a lot of competition. Only a few milk tea shops can break through, and other milk tea shops are just running behind. Many people once thought about opening a milk tea shop without working part-time, but after opening, they found that they were not as strong as working part-time.

The most profitable thing about a milk tea shop is the franchise fee. Famous brands charge very high franchise fees, including not only the franchise fee, but also other expenses. But if you open a milk tea shop and don't join the franchise, you won't be able to attract customers at all. Nowadays, customers only buy milk tea from brand stores. Unknown milk tea shops can only attract low-end consumers in small alleys. Milk tea shops opened near business districts are almost all chain franchise stores. These franchised milk tea shops may not necessarily do well, because the market competition is too strong. Not only must the milk tea taste good, but also various service upgrades are required to retain customers. Some milk tea shops are set up like high-end coffee shops. Customers sitting inside can take photos while drinking milk tea, which raises the level of milk tea to a very high level.

No matter how popular it is, milk tea shops still suffer a lot of losses. Milk tea has been popular for many years, but the price of milk tea is getting higher and higher, and consumers do not want to pay the high price. Today’s consumer trends have changed a lot. In the past, they liked to pursue high-end brands and felt that queuing up to buy milk tea was very respectable. But now many people choose cheap, authentic milk tea brands, such as Mixue Bingcheng and Yihetang. These milk tea brands are more likely to attract repeat customers. Although opening a milk tea shop seems to be profitable on the surface, if there is no marketing method and no sense of service, opening a milk tea shop will ultimately lose money.