Pearl and Leaf Boba Tea

Words in [brackets] are blanks you fill in with your own details when you adopt this sample in Supreme Plan AI.

Executive Summary

Pearl and Leaf Boba Tea is a bubble tea shop in Maryland. We make fresh brewed teas, fruit teas, milk teas and slushes to order, with chewy tapioca pearls, jellies and fruit toppings, and we sell small snacks and take-home tea kits. Customers pick the tea, sweetness and toppings on a touch screen or at the counter and watch their drink being made.

Why this fits. Bubble tea is a popular treat for students, young workers and families, and many people want a drink that is fun, fresh and made their way. A shop near a school, a college or a busy shopping street can build a loyal base of regulars who visit several times a week. The menu is small and the drinks are quick to make, which keeps the line moving.

Here is what our numbers show. In Year 1 we plan to sell about 38,000 drinks (about 104 a day), 9,000 snacks and add-ons and 1,200 take-home kits and merchandise. That brings in sales of $320,550, growing to $589,452 by Year 5. We expect a loss of about $12,100 in Year 1 because the build-out, the lease and the staff are paid before the shop is known, then a profit of about $23,300 in Year 2, $49,200 in Year 3 and $88,100 by Year 5. Rent and pay are our largest costs, and the plan counts all of them.

We need $135,000 in total. Of that, $81,100 is startup costs (tea brewers, cookers, sealing machines, an ice machine, refrigeration, a counter, a point-of-sale system, the lease deposit, permits, signs and opening stock), and the rest is cash for the first months. I am putting in $65,000 of my own savings and asking for a $70,000 SBA 7(a) loan.

I am Linh Tran, the owner and manager, with six years in food service, including three years as a store manager at a tea and dessert shop. These numbers are estimates based on the assumptions listed at the end of this plan, not promises.

Company Description

Pearl and Leaf Boba Tea is a small, independently owned bubble tea shop in Maryland, planned as a limited liability company (LLC). We serve students, workers and families in our neighborhood from a leased storefront near a school and shopping area.

Our mission. To make fresh, tasty tea drinks and a friendly place to meet.

What we believe. A good drink starts with good tea. We brew tea fresh, cook tapioca pearls in small batches several times a day and throw out pearls that sit too long. We list sweetness options, allergens and calories on the menu, never make health claims and treat every customer with respect.

What we offer:
- Bubble tea and fruit tea drinks. Milk teas, fruit teas, slushes and seasonal specials, with a choice of sweetness, ice and toppings.
- Snacks and add-ons. Small bites, such as popcorn chicken, waffles and fruit cups, and extra toppings.
- Take-home tea kits and merchandise. Loose tea, tapioca kits, reusable cups and shop merchandise.
- Order ahead. Online and app ordering, plus group orders for classes, clubs and offices.

Who we serve. Students, young workers, families, clubs and offices that want a treat or a group order.

What we do not do. We do not sell to customers a drink with an allergen we have not labeled, make medical or weight claims or serve pearls past their safe holding time.

How we are run. I am the owner and manager and I work behind the counter. A shift lead and counter staff, about two and a half full-time equivalents in Year 1, work with me. An accountant keeps the books.

Where things stand today. We have toured two storefronts and have a lease offer on one, quotes for the equipment, a draft menu with costs per drink and early support from two nearby clubs, a school activity office and a dance team that would place group orders. (Replace this with where you really are.)

Problem & Opportunity

Many people enjoy bubble tea, but quality varies. Some shops use powders and syrups instead of fresh tea. Pearls can be hard or mushy when they are not cooked and held correctly. Prices can be high, and long lines make people give up. Customers with allergies or diet needs often find that staff cannot answer questions about ingredients.

Running a bubble tea shop is also harder than it looks. Ingredients are cheap, but the equipment and the lease are not. Drinks take a few minutes each, so staffing and speed matter. Trends change quickly, and a new shop opens nearby almost every year.

For a new owner, the hard parts are the cost of the build-out and equipment, finding the right location, building a base of regular customers and controlling waste. The first months can be slow while people find the shop.

We want to be clear about what we know and do not know. Bubble tea is a real, popular category, but its popularity can change. We do not know how quickly our corner will fill, so our plan assumes a loss in Year 1 and cash to cover it. We will use current local numbers on foot traffic and competing shops in our final plan and will not overstate them.

Products & Services

Pearl and Leaf Boba Tea will make fresh, tasty drinks quickly and make every customer feel welcome.

How it works, step by step:
1. Order. A customer orders on a touch screen, with an app or at the counter. The menu is short and shows allergens and sweetness choices.
2. Brew. Tea is brewed fresh on a schedule and cooled in clean containers, and tapioca pearls are cooked in small batches and held for a limited time.
3. Make. The drink is made to order with measured tea, milk or fruit, ice and toppings, and sealed with a film and a straw.
4. Serve. We aim to hand over each drink within about four minutes at busy times, with the name called and a friendly word.
5. Pay. We accept cards, phone payments and cash, and offer a punch card app for regulars.
6. Reduce waste. We track what we throw away, adjust batches by time of day and offer a discount on the last pearls of the day.
7. Clean. We follow a checklist every shift for brewers, sinks, the counter and the floor.
8. Listen. We ask regulars for ideas, add a new drink each month and retire items that do not sell.

Why this approach is strong. Fresh tea, well-cooked pearls and a fast line bring customers back. A small menu keeps costs low and the shop easy to run.

Market Analysis

Who we serve: students, young workers, families, clubs and offices in our neighborhood.

Our primary group is students and young adults who come after class, after work or on weekends. Our secondary group is families, clubs and offices that place group orders. We will use the most recent local numbers on foot traffic, nearby schools and competing shops in our final plan.

How we sized our plan. We plan about 38,000 drinks (about 104 a day), 9,000 snacks and add-ons and 1,200 take-home items in Year 1, growing to 59,000, 15,600 and 3,100 by Year 5. Our Year 1 prices are about $6.75 per drink, $5.25 per snack or add-on and $14 per take-home item, rising about 3% a year.

Demand data. Early support from two clubs, a school activity office and a dance team covers part of the first months, and a short survey of nearby students will show which drinks they want. We do not count on any one customer. Sales are higher in warm months and after school, and lower in the coldest weeks.

We do not serve everyone. We pass on very large special orders that slow the line at busy times, and we do not promise custom recipes we cannot make safely.

Competitive Landscape

Other choices for customers, and what makes us different.

- Other bubble tea shops and chains. Some are very good. We compete on fresh tea, well-cooked pearls and friendly service.
- Coffee shops and dessert cafes. They are close and familiar. We offer a different treat and a social place for students.
- Convenience stores and bottled drinks. They are cheap and fast. We offer fresh, made-to-order drinks.
- Making drinks at home. Many people do. We offer variety and convenience.
- Smoothie and juice bars. They offer health-focused drinks. We offer tea and a fun, shareable experience.

What makes us different.
- Fresh brewed tea and small-batch pearls.
- Clear allergen labels and sweetness options.
- A fast line and a punch card for regulars.
- Group order menus for clubs and offices.

What we do not claim. We are new. Chains have more locations and bigger budgets. We plan to earn regulars one good drink at a time.

Marketing & Sales Strategy

How we will reach customers.

Grand opening and sampling. A free sample day and a first-week discount, with sample cups handed out near the school and in the shopping area.

Schools and clubs. We will visit school activity offices, clubs and teams, offer a group order menu with a small discount and drop off menus.

Online and social media. A website with the menu and online ordering, a Google business listing, reviews and short videos of drinks being made and customers' favorite combinations, with permission.

Loyalty. A punch card app, where the tenth drink is free, and a monthly special for regulars.

Offices and events. We will offer catering trays and drink stations for offices, parties and community events.

Pricing. About $6.75 per drink, $5.25 per snack or add-on and $14 per take-home item in Year 1, set to be fair compared with nearby shops.

Operations Plan

How the business will run.

Setup (the 3 to 4 months before opening). We will form the LLC, get an EIN and open a business bank account, sign the lease, get the health permit and business license, build out the counter and prep area, install and test the equipment, set up the point-of-sale system, hire and train staff and test every recipe for taste and cost.

The shop. A leased storefront of about 900 to 1,100 square feet near the school and shopping area. Rent and common-area charges are $36,000 a year in Year 1.

Staffing. In Year 1: I serve as owner and manager and work behind the counter. A shift lead, paid $31,000 a year, and about two and a half full-time equivalents of counter staff, paid $26,000 a year each, work with me. Counter staff grows to 3 in Year 2, 3.5 in Year 3 and 4 in Year 4.

Costs. Tea, tapioca, milk, syrups, cups and packaging are about $1.95 per drink, $2.10 per snack or add-on and $6.50 per take-home item in Year 1. Utilities are about $7,200 a year, insurance about $3,400, card processing fees about $7,200 and marketing about $6,000.

Quality and safety. We follow our state and county food safety rules, keep temperature and pearl holding logs, label allergens, wash and sanitize equipment on a schedule and keep a written plan for emergencies.

Payments. Almost all sales are paid at the counter by card or phone, so cash comes in the same day.

Insurance. We carry general liability, property, workers' compensation and food product liability coverage.

Management & Organization

The people who will run Pearl and Leaf Boba Tea.

Linh Tran, owner and manager. Six years in food service, including three years as a store manager at a tea and dessert shop, where she ordered supplies, scheduled staff and trained new hires. She leads operations, menu, hiring and finance. (Replace this paragraph with your own background.)

Shift lead (from Year 1). Opens or closes the shop, trains new staff and handles busy times.

Counter staff (from Year 1). Make drinks, serve customers and keep the shop clean.

Outside advisors. A bookkeeper, an accountant, an attorney, an insurance broker, a tea supplier and a free mentor from SCORE or the Small Business Development Center.

Staff pay in this plan is a full year per person: owner and manager $42,000, shift lead $31,000 and counter staff $26,000 per full-time equivalent. Replace them with the pay you can offer where you live.

Milestones Narrative

Our goals and when we plan to reach them.
- Before opening (3 to 4 months ahead): sign the lease, get the health permit and business license, build out and test the shop, test every recipe for taste and cost, hire and train staff and sign up at least 100 people for a grand opening list.
- Year 1: about 104 drinks a day and a group of regulars; $320,550 in sales and a loss of about $12,100.
- Year 2: about 126 drinks a day and school and office group orders; $407,871 in sales and a profit of about $23,300.
- Year 3: about 142 drinks a day and a larger counter team; $483,155 in sales and a profit of about $49,200.
- Year 4: about 153 drinks a day; $541,072 in sales and a profit of about $66,100.
- Year 5: about 162 drinks a day and a catering menu; $589,452 in sales and a profit of about $88,100.
Growth depends on winning and keeping customers, so treat the later years as goals, not promises.

What we check every week: drinks sold per day, average ticket, waste, labor hours, group orders, repeat customers and cash in the bank.

Funding Request

How much we need and how we will use it. Total we are raising: $135,000.

How we got that number. The Funding Need Calculator in this plan adds up three things:
- Startup costs of $81,100, listed item by item in the Startup Costs section: $16,500 for tea brewers, tapioca cookers, shakers and sealing machines; $15,500 for ice machine, refrigeration and a display case; $10,500 for counter, sinks, shelving and seating; $5,500 for point-of-sale system, tablets and menu boards; $8,100 for lease deposit and first month of rent; $1,800 for health permit, business license and food handler cards; $3,400 for attorney and accountant: lease review, LLC and books; $7,500 for exterior sign, menu design, branding and website; $6,500 for opening stock: tea, tapioca, syrups, cups and lids; $5,800 for insurance down payment and grand opening.
- The cash the business uses before it breaks even, about $0. Sales cover the daily costs of the shop once the doors open, so the cash we need up front goes mostly to the lease, equipment and first stock, which are counted in the startup costs.
- A cash cushion of about $53,400: three months of Year 1 operating costs.
- Together, the cash used before break even and the cushion come to about $53,400, and the three pieces add up to about $134,500, rounded up to the nearest $500: $134,500.
We are raising $500 more than that, $135,000 in all, to cover a slow first season and the cost of adding counter staff as sales grow. With this funding, the lowest year-end cash balance is about $82,400, at the end of Year 1.

Where the money comes from:
- My own money: $65,000.
- SBA 7(a) loan: $70,000.

Kind of funding we are looking for. An SBA 7(a) loan from a lender that finances small food businesses, backed by my own savings and the equipment as collateral.

How we will pay it back. We expect a loss of about $12,100 in Year 1, a profit of about $23,300 in Year 2, a profit of about $49,200 in Year 3, a profit of about $66,100 in Year 4 and a profit of about $88,100 in Year 5. With this funding, the business has money in the bank at the end of every year of the plan. Our loan is the SBA 7(a) loan at 12.5% over 10 years, about $1,025 a month. That payment is already included in our cash flow. We chose these as cautious planning rates; ask the lender for the real rates, which may be lower or higher.

What we are offering the lender: the equipment and my personal guarantee.

A smaller first step, if needed. If we cannot raise the full amount right away, we can start smaller and grow into this plan:
- Phase 1: open with a smaller menu and a smaller space, with one fewer counter staff and less equipment, which lowers startup costs and the loan.
- Phase 2: once the shop has regulars, add snacks, take-home kits and more counter staff and follow this plan.
To plan the smaller start, make a copy of this plan (use Duplicate) and lower the numbers to match.

All numbers in this plan are estimates. We will update them as real results come in.

Appendix Notes

Documents to attach before you send this plan:

- Your resume and a personal financial statement (a list of what you own and what you owe; lenders usually provide a form).
- Business registration papers and your EIN (your business tax number from the IRS, free at irs.gov).
- The lease or a letter of intent from the landlord.
- Quotes for the equipment and the point-of-sale system.
- Your health permit application and food handler cards.
- Your menu with the cost and price of every drink.
- Letters of interest from nearby clubs, schools and offices.
If you don't have any of this yet, no worries - let's continue.

The assumptions behind our numbers (change them in the Financials section to match your own):
- Bubble Tea and Fruit Tea Drinks (per drink): about $6.75 in Year 1, rising to $7.60; about $1.95 in direct costs, rising to $2.19; about 38,000 in Year 1, growing to 59,000.
- Snacks and Add-Ons (per item): about $5.25 in Year 1, rising to $5.91; about $2.10 in direct costs, rising to $2.36; about 9,000 in Year 1, growing to 15,600.
- Take-Home Tea Kits and Merchandise (per item): about $14 in Year 1, rising to $15.76; about $6.50 in direct costs, rising to $7.32; about 1,200 in Year 1, growing to 3,100.
- About 38,000 drinks in Year 1 is roughly 104 a day. Prices rise about 3% a year.
- Equipment ($48,000 in Year 1) covers brewers, cookers, an ice machine, refrigeration, a counter and the point-of-sale system, and later years replace small items.
- Pay (a full year, per person): owner and manager $42,000; shift lead $31,000; counter staff (full-time equivalents) $26,000.
- Other yearly costs in Year 1: rent and common-area charges $36,000, utilities $7,200, insurance $3,400, card processing fees $7,200, marketing and social media $6,000, accounting and legal $3,200, payroll taxes $12,500. These grow between 3% and 12% a year.
- Startup equipment and later purchases ($48,000 in Year 1, then $3,000, $4,000, $3,000 and $3,000) are spread evenly over five years in the plan's books.
- Customers and payers pay about 4 days after service, so at the end of Year 1 about $3,206 is still owed to us. Income tax at 21%.
- Every dollar amount is an estimate. Replace them with your own quotes and research.

Startup Costs