The real cost of Bubble Tea EXPLAINED

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  • Опубліковано 1 жов 2024
  • The real cost of Bubble Tea EXPLAINED #personalfinance #bubbletea #boba
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КОМЕНТАРІ • 36

  • @noname-mm9of
    @noname-mm9of 11 місяців тому +53

    Let me correct this as a boba shop owner myself.
    Rent cost: 10%
    Employee cost(CA): 40%
    Cost of good sold: 15%
    Utilities: 10%
    Insurance, taxes etc: 10%
    Total profit margin is about 15%

    • @Mac-pluto
      @Mac-pluto 10 місяців тому +5

      So if you made 650 drinks a day, you only profit 200K a year? Doesn’t seem worth it to me

    • @noname-mm9of
      @noname-mm9of 9 місяців тому

      @@Mac-pluto not necessarily.. the percentage I gave is just average.. and on average, boba cafes make about 200 drinks/day.
      If theoretically you can make 650 cups per day then the profit margin can increase, as the cost of insurance, utilities and rent are pretty much set..

    • @Harrybat
      @Harrybat 7 місяців тому +6

      @@Mac-plutoyour kidding me right😂 if you own and operate you could make 5-20k/mo. Lots of variables. But thats good cheese to pour juice

  • @matthewstewart5113
    @matthewstewart5113 Рік тому +32

    Awesome video. Do more companies break downs. Include 401k and insurance for employees. Also, insurance for the business please. Ty

  • @joeyr1996
    @joeyr1996 Рік тому +26

    Oh Humphrey… what a wonderful breakdown of everything except one thing. You forgot the actual cups. 😂

    • @joshuaroefs9279
      @joshuaroefs9279 Рік тому +5

      Tbf the cost of cups like that themselves is damn near negligible most of the time

    • @nczioox1116
      @nczioox1116 8 місяців тому

      Like another $0.12

    • @sidsolovelyyy
      @sidsolovelyyy 4 місяці тому

      The way I screamed at this comment lol 😂

  • @luminescent1515
    @luminescent1515 11 місяців тому +5

    Selling 600+ Cups per day is a hell of a Sale.....

  • @totalcoward
    @totalcoward Рік тому +34

    Only issue I have with this estimate is that you listed the barista’s yearly salary as $40k, but the upper end for an average barista’s yearly salary in California is ~$32k, which would slightly reduce the cost of labor and increase amount earned per drink.

    • @cantgetright742
      @cantgetright742 4 місяці тому +3

      Yeah but what an employee makes isn’t what an employee costs.

  • @philliptheasian5056
    @philliptheasian5056 Рік тому +2

    Can you explain why tf Apple products so over priced

  • @offhamsterwheel2789
    @offhamsterwheel2789 Рік тому +5

    55% margin is not bad, but with inflation 8%, will eat up the margin though, and plus the Recession...

    • @klariskb4497
      @klariskb4497 Рік тому +6

      Did you just say 55% margin is "not bad"?

    • @jimwavect
      @jimwavect 2 місяці тому

      ​@@klariskb4497Yeah, seriously! A full-size grocery store operates with a 1% profit margin. 55% margin is incredible.

  • @ivonnegilbert1288
    @ivonnegilbert1288 Рік тому +1

    😮I’m making my 🧋 from now on 😅Ty Humphrey ❤

  • @arkadandfortuna1582
    @arkadandfortuna1582 Рік тому +1

    nice! my teenage daughter and her friends pay for their salary for sure...haha!

  • @OMMIO-FL3X
    @OMMIO-FL3X Рік тому +14

    Gotta also add in cup price and straw price

  • @deebee1109
    @deebee1109 4 місяці тому

    This must be a very busy and profitable store location. 650 drinks per day is a very high sales figure. Most boba places near me are open 9hrs per day. That’s about 72 drinks per hour. And if it’s such a good location, rent would potentially be higher.

  • @Steven-xf8mz
    @Steven-xf8mz Рік тому

    People often forgot to include cost of investment. To start a shop such as a bubble shop often requires you to join a chain which comes with big initial fee and yearly fee/commission to the brand itself. the initial investment is losing out interest they would have gotten had it been in a diversified holding or money market. cost of operation for most companies is often more than what's on the surface.

  • @cosmix_official
    @cosmix_official Місяць тому

    I buy canned bubble tea for 99c each

    • @cosmix_official
      @cosmix_official Місяць тому

      You can only get this price in Hawaii or California

  • @TheThreatenedSwan
    @TheThreatenedSwan 10 місяців тому

    How much does it cost your health?

  • @defvent
    @defvent 2 місяці тому

    We love boba 🧋😍

  • @ethancollinsworth3927
    @ethancollinsworth3927 Рік тому

    7000? a month??? holy

  • @fonz-ys6xu
    @fonz-ys6xu Рік тому +1

    And cups, and lids, and straws

  • @TypeOneg
    @TypeOneg 10 місяців тому

    Why it costs so much to sell a sugary drink you can make at home....

  • @believingintheblood8540
    @believingintheblood8540 Рік тому +2

    Why would someone they 40 K a year just putting together a drink talk about getting paid for no skill

    • @EarlofBusterbrook
      @EarlofBusterbrook 10 місяців тому +2

      40k isnt that much bud

    • @AyamesChronicles
      @AyamesChronicles 4 місяці тому

      Because you didn't want to make 600 drinks a day.

    • @siptang81
      @siptang81 2 місяці тому

      Ain’t as easy as you think chump

  • @spenceryoung1427
    @spenceryoung1427 Рік тому +1

    Do a video about why there’s a stupid ass bubble tea shop on every single block here in the bay. It’s so damn annoying

    • @chrisl8950
      @chrisl8950 9 місяців тому

      Boba tea shops are easier to franchise than a coffee shop or the equipment in a coffee shop. It really is just usually a smoothie and drink shop. I'm starting to see the latino market taking similar spots that boba would own for their own dessert place which is also a fruit drink mix. The quality of ingredients is higher than quickly boba tea shops and they usually have fresh fruits in their drinks and they carry ice cream in tropical flavors. I suspect the cost per drink is high as it is similar. In any case, the moat on putting those up is much higher. I know Açai bowls attempted to be the next big thing to boba for a dessert alternative and those popped up a lot of places in the bay area and hype wound down when health foods wound down again.