Why Bubble Tea Shops Close and How to Prevent It
The bubble tea industry in the UK has seen a surge in popularity, with new shops popping up in high streets, shopping centres and takeaway apps. But despite the growing demand, not every shop thrives. Many close within their first year.
So why do some bubble tea shops succeed while others struggle?
Introduction to the Bubble Tea Business Landscape
Bubble tea is no longer just a niche product. It is now a popular part of the UK drinks market, especially among younger audiences. Its customisable nature, fun textures and social media appeal have helped it stay in demand.
However, launching a bubble tea shop is not easy. The market is competitive and customer expectations are high. A strong concept, consistent quality and good business sense are all essential.
Here are five of the biggest pitfalls to watch out for.
1. Inadequate Market Research and Poor Location Choice
Choosing the wrong location is one of the most common mistakes new shop owners make. Opening in the wrong area, or in a market that is already saturated, can lead to slow sales no matter how good the product is.
Key issues include:
- Low foot traffic or visibility
- An area with little interest in bubble tea
- Competition from more established brands
What to do instead:
Research your customer base carefully. Understand who your ideal customer is and where they spend time. Visit potential locations at different times of the day to see how busy they are. Talk to local business owners. Make sure the area has enough demand to support your shop.
2. Lack of Unique Selling Proposition (USP)
With so many bubble tea shops already in the market, having a clear point of difference is vital. Many shops fail because they do not offer anything unique. If your drinks, design and branding look the same as everyone else’s, there is little reason for customers to choose you.
Common pitfalls:
- Copying other brands
- Offering a generic menu
- No brand identity or story
What a good USP looks like:
- A focus on sustainability (e.g., plastic-free packaging)
- Exclusive house blends or flavours
- A bold, recognisable visual style
- A specific community focus (e.g., student-friendly pricing)
How to avoid this:
Define what makes your shop different. Are you using rare toppings, offering homemade syrups or focusing on healthier recipes? Build your brand around that difference and make it obvious in everything from your menu to your interior design and social media.
3. Ineffective Marketing and Customer Engagement
One of the quickest ways to fail is to launch with no marketing plan. Many shops think that once the doors are open, customers will just appear. But without strong marketing and regular engagement, it is difficult to build a loyal customer base.
Common issues:
- Inactive or poorly managed social media
- No website or online ordering system
- Lack of promotions or launch offers
- Not building a local following
How to avoid this:
Marketing starts before your first cup is sold. Build hype in advance through social media, local partnerships and early bird offers. Post regularly with high-quality images and behind-the-scenes content. Run giveaways. Create a Google Business profile with correct opening hours and photos. Engage with customers online just as much as you do in person.
4. Poor Inventory and Staff Management
Operational issues behind the scenes can quickly derail your shop. Stocking too little or too much, training staff poorly or not tracking sales accurately all add up.
Common signs:
- Running out of key ingredients mid-day
- Wasted stock due to poor rotation
- Long wait times at busy periods
- Staff who aren’t confident making drinks or handling questions
How to avoid this:
Work with reliable suppliers and maintain clear stock tracking. Train every team member thoroughly, not just on drink preparation but also on customer interaction. Review sales data weekly to spot trends and plan ordering. Keep a small buffer of essential ingredients so you don’t run out of your best-sellers.
5. Ignorning Customer Experience and Feedback
Bubble tea is not just a drink. It is an experience. If customers do not feel welcomed or valued, they are unlikely to return. Many shops lose business by overlooking the small but important parts of the customer journey.
Warning signs:
- Lack of regulars
- Poor online reviews
- Customers not finishing their drinks
- Low word-of-mouth referrals
How to avoid this:
Put yourself in the customer’s shoes. Are they greeted when they walk in? Is the shop clean and inviting? Is their drink made the same way every time? Encourage feedback and actually use it to improve your service. Respond to reviews politely, even if they are critical. People notice when businesses care about their customers.ity.
Strategies to Prevent Failure in Your Bubble Tea Business
Running a successful bubble tea shop takes more than a trendy menu. It’s about planning, consistency and delivering a great experience every single time.
Here’s a quick summary of what you can do:
1. Research before you launch.
Know your audience, scout your location and learn from existing shops (both good and bad).
2. Develop a real USP.
Be clear on what sets you apart. It doesn’t have to be complicated — just unique and memorable.
3. Market constantly.
Use social media effectively. Keep your audience engaged. Promote offers and new flavours.
4. Stay organised.
Track inventory closely. Train your staff well. Keep a lean but effective system behind the scenes.
5. Prioritise customers.
Good drinks are the start, but it’s the experience that brings people back. Listen to feedback, keep standards high and aim to improve every week.
At Taipec, we work with bubble tea businesses across the UK. We supply high quality ingredients, reliable equipment and the guidance new shop owners need to succeed. If you are launching a shop or looking to improve an existing one, we are here to help you stand out.
Want more support on building a strong bubble tea business? Get in touch! We would be happy to share our experience.