Tiger Sugar Franchise Costs and Profits (2024)
Tiger Sugar Franchise is a popular Taiwanese bubble tea brand known for its unique and visually appealing brown sugar drinks. With its distinctive tiger stripe pattern created by caramelized brown sugar, Tiger Sugar has gained a strong following worldwide. This article provides an analysis of the Tiger Sugar franchise based on information obtained from their Franchise Disclosure Document (FDD) in 2020.
Tiger Sugar Franchise Costs and Profits (2023)
How is Tiger Sugar Positioned in the Food and Beverage Industry?
Tiger Sugar is positioned as a unique and innovative player in the food and beverage industry. It differentiates itself by specializing in handcrafted boba milk tea with a distinct tiger stripe pattern, which has gained popularity among consumers.
The brand focuses on offering high-quality ingredients, including freshly brewed tea, premium milk, and handmade brown sugar syrup. Tiger Sugar also emphasizes the use of natural ingredients without artificial preservatives or additives to appeal to health-conscious customers.
In terms of branding and marketing strategies, the Tiger Sugar creates an image of exclusivity and indulgence through its limited menu options and aesthetically pleasing presentation. The brand often utilizes social media platforms to showcase its visually appealing drinks, attracting younger demographics who are active on these platforms.
Furthermore, Tiger Sugar franchise positions itself as an experience-based business by incorporating an interactive element into its stores. Customers can watch the preparation process of their drinks through transparent glass windows or participate in DIY workshops to create their customized beverages.
By positioning itself as a premium boba milk tea brand with a focus on quality ingredients, unique presentation, and immersive experiences for customers, Tiger Sugar aims to carve out a niche within the highly competitive food and beverage industry.
How Much is a Tiger Sugar Franchise?
The initial Tiger Sugar Franchise Fee is $20,000. You have to pay this upfront fee when opening a Tiger Sugar franchise. Note that this fee might have increased since 2020.
Tiger Sugar Franchise Cost
The estimated total investment necessary to begin the operation of a Tiger Sugar Franchise ranges from $224,500 to $462,000. The following costs are part of the upfront costs included in the initial investment for Tiger Sugar. Many of these are one-time fees that are needed to launch the franchise. Review the chart below to see how much it costs to buy a Tiger Sugar franchise in 2020.
Estimated Initial Investment
| Type of Expenditure | Amount |
|---|---|
| Initial Franchise Fee | $20,000 |
| Business Licenses & Permits | $6,000 to $20,000 |
| Leasehold Improvements | $50,000 to $180,000 |
| Fixtures, Furnishings & Equipment | $45,000 to $50,000 |
| Computer and Point of Sale System | $3,000 to $5,000 |
| Architect/Engineering Fees | $5,000 to $20,000 |
| Rent, Security, Deposits and Utility Deposits | $5,000 to $20,000 |
| Other Professional Fees | $1,000 to $5,000 |
| Insurance Deposit | $1,000 to $2,000 |
| Initial Inventory Of Food, Beverage, Paper Supplies and Small Wares | $25,000 to $30,000 |
| Training Expenses | $500 to $5,000 |
| Grand Opening Advertising | $3,000 to $5,000 |
| Additional Funds | $60,000 to $100,000 |
| Total Estimated Initial Investment | $224,500 to $462,000 |
Tiger Sugar Requirements
To become a Tiger Sugar franchisee, you must meet specific requirements. These include
- Financial Requirements: Prospective franchisees should have a minimum net worth of $500,000 and liquid assets of at least $150,000.
-
Experience: Although the food and beverage industry does not demand prior experience, having some business management or operational experience can benefit prospective franchisees.
- Operational Skills: Franchisees should possess strong organizational and leadership skills to successfully manage the day-to-day operations of their Tiger Sugar location.
- Location: Franchisees need to secure a suitable location for their store that meets the brand’s criteria regarding size, foot traffic, visibility, and access to utilities.
- Training and Support: Tiger Sugar provides comprehensive training programs for franchisees covering various aspects of operating a successful store. This includes product preparation techniques, inventory management, customer service standards, marketing strategies, and more.
- Ongoing Fees: In addition to the initial franchise fee mentioned earlier ($20,000), franchisees are also required to pay ongoing royalty fees based on a percentage of gross sales (typically around 5%) as well as contribute towards advertising (currently set at 2% of gross sales).
Potential investors interested in opening a Tiger Sugar franchise should thoroughly review the company’s Franchise Disclosure Document (FDD) to gain complete details about all the requirements involved in becoming a franchised partner with Tiger Sugar.
Owning a Tiger Sugar Requires Ongoing Fees
Royalty: 5% of Net Sales
Marketing Fee: 1% of Net Sales
Local Marketing: 1% of Net Sales
How much do Tiger Sugar owners make?
In 2020, when Tiger Sugar released the FDD, the company did not operate any franchises, so there are no publicly available financial representations for Tiger Sugar. However, the figures below represent Tiger Sugar’s 4 company-owned stores that were operational in 2019.
Operating Results for For the Period from March 1.2019 through September 31, 2019 Affiliate-Owned Tiger Sugar Store
| Items | Amount | Percentage |
|---|---|---|
| Net Sales | $665,149.57 | |
| Cost of Goods Sold | $121,416.97 | 18.2% |
| Labor Costs | $154,848.22 | 23.2% |
Tiger Sugar Franchise Alternatives
Sharetea: Sharetea is a Taiwanese bubble tea brand with a strong presence in the international market. Like Tiger Sugar, Sharetea offers a variety of unique and high-quality bubble tea flavors. They also focus on using natural ingredients and providing an immersive customer experience.
Gong Cha: Gong Cha is another popular Taiwanese bubble tea brand that has expanded globally through franchising. Known for its customizable drinks and wide range of flavor options, Gong Cha appeals to a broad customer base. The brand focuses on using premium ingredients and offering personalized service to create a memorable beverage experience.
Kung Fu Tea: Kung Fu Tea is a fast-growing franchise specializing in traditional Chinese tea-based beverages, including milk teas, fruit teas, and specialty drinks like cheese foam toppings. With over 250 locations across the United States, Kung Fu Tea differentiates itself by combining traditional brewing methods with modern technology for consistent taste and quality.
Overall, these alternatives offer similar products but may have different branding strategies or target markets compared to Tiger Sugar.
Conclusion
Tiger Sugar is a unique and innovative player in the food and beverage industry, specializing in handcrafted boba milk tea with a distinct tiger stripe pattern. The brand differentiates itself through high-quality ingredients, natural flavors, limited menu options, and aesthetically pleasing presentations. By incorporating an interactive element into its stores, Tiger Sugar provides customers with an immersive experience.
To become a Tiger Sugar franchisee, prospective owners must meet certain financial requirements and possess strong organizational and leadership skills. The initial franchise fee is $20,000, with total investment costs ranging from $224,500 to $462,000. Franchisees are also required to pay ongoing royalty fees based on gross sales.
While there are no publicly available financial representations for Tiger Sugar franchises at this time since they did not operate any franchises at the release of their FDD in 2020; alternative bubble tea brands such as Sharetea, Gong Cha, and Kung Fu Tea offer similar products but may have different branding strategies or target markets compared to Tiger Sugar.
Overall, Tiger Sugar offers potential franchisees the opportunity to be part of a unique and visually appealing brand within the competitive food and beverage industry.
While this may be the business for you, make sure also to check out other companies offered on Vetted Biz and in the Food and Beverage industry.
