The tea industry in the United Sates is a growth industry and the role of retailers or value added resellers has played an important part in the overall expansion. Value added resellers and retailers add significant value to the tea industry as they bundle tea offerings with quality dining and other services but they must be supported by comprehensive wholesale programs that are reliable , consistent and profitable.

What trends are driving the market?

In most countries in the world, tea is the second most popular beverage after water. The one exception is tea drinking in the United States. But the market for quality loose leaf tea has unlimited upside potential for tea drinkers in this country.

The market for high quality loose leaf tea is experiencing strong growth and this is expected to continue for the foreseeable future. The growth of revenue and profits in the value added retail sector of the market is also very strong particularly when tea is prepared and presented as a part of a total offering in tea rooms, fine dining establishments and hotels.

There are a number of factors influencing this growth in loose leaf tea demand:

? The incredible good taste of tea and blends.

? The health benefits of tea.

? The wide variety of tea flavors and blends.

? A growing awareness about the enjoyment benefits of loose leaf tea .

? An expansion of the value added reseller network for quality loose tea.

? Many consumers are looking for an alternative to coffee as a hot or iced drink of choice.

? Consumers are tired of the “tea bag mentality” where the taste and quality of tea is sacrificed for the convenience of the tea bag.

Because of a number of historic factors like the American Revolution and other socio-economic events, the market for loose leaf teas was stalled for over two centuries in the United States but that is changing dramatically and rapid growth is now a fact.

What is the biggest mistake retailers make in regards to their tea program?

The biggest mistake that retailers make is the failure to prepare and present tea properly.

Quality tea, served either hot or iced, is a wonderful discriminator for any restaurant, tea room or hotel. Quality, loose leaf tea on the menu of a high quality food establishment will separate the retailer from the competition.

Quality tea can also serve as a profit center for the retailer as consumers are willing to pay extra for a quality cup of hot tea or glass of quality iced tea.

Many resellers however, have not focused on the value that tea can bring to their Unique Selling Proposition. Through oversight in the tea offering, many consumers are left with lower levels of satisfaction and this is adversely affecting retailers and their overall product offering.

For consumers, there is nothing more deflating for the total dining experience than a bad cup of tea, offered without consideration to the consumer. At the close of an otherwise ideal meal experience costing in excess of $100.00 per person, customer satisfaction can be ruined by simple oversight. This happens time and again as tea drinkers, expecting a quality brew are slighted by a saucer with tea bags mixed with a cup or bowl of warm tap water.

Ending a meal this way is a good way to loose customers to the competition.

Advice to retailers to maximize their tea program

High quality loose leaf tea can play an important part in a retailer’s business. As the demand for quality loose leaf tea expands, retailers should :

? Understand the tea culture and the role of tea in growing your business

? Use only the highest quality loose leaf tea.

? Train your staff to prepare and present both hot and iced tea in a quality manner.

? Offer the customer the best tea ware (tea infusers and pots) to complete the presentation.

? Include quality tea as part of you Unique Value Proposition and product/service offering.

Things to keep in mind for new retailers

The most important thing is to deal with a tea manufacturer that offers a total benefit program to the retailer including:

? Highest quality, best tasting tea backed up by superior packaging and a no questions asked guarantee of quality.

? Dedicated customer support with staff knowledgeable about tea and the tea business (not just taking orders)

? Multiple-tier wholesale pricing. with volume based discounts.

? Easy ordering and order lookup.

? Unlimited shipping locations per order.

? Single point of billing for multiple locations.

? Automatic recall of locations and recipients.

Value added tea resellers and retailers add significantly to the tea industry but they also need quality wholesale programs to support their value added efforts. Retailers should seek out the best tea suppliers that meet their value added requirements.

In this franchise article I am going to analyse the many different types of business that a potential franchisee can buy into. There are franchises to suit all types of budgets and different levels of experience.

Internet Franchises – these usually involve either selling goods, services or advertising on the net. Usually the entry costs for these businesses are low but a huge amount of effort is required to generate targeted traffic to the internet site. People often make the mistake of assuming that less effort is required to grow these opportunities.

Retail Franchises – The entry costs are much higher and overheads are huge. Not only does the franchisee have to pay a high initial fee but they also have to worry about the staff costs, rent and rates. These range from fast food outlets, beauty salons, and laundrettes amongst others.

Service Franchises – These range from providing financial services, coaching and providing business advice. These types of businesses suit people who have extrovert personalities and enjoy meeting new people. The entry costs are lower as are the running costs but a lot of selling is involved.

Van Franchises – these businesses involve carrying stock and distributing to either businesses or people at home. Typically they are designed to be operated by one person but for people who are willing to work hard it is possible to grow into multiple units with employees driving and managing their own vans.

There are as many types of franchises as there are businesses. The franchise model is usually a safer way of starting a business for the first time. Many would be entrepreneurs fail at their first attempt in business when they start on their own. A franchise business can give people the knowledge that is required to run a business and this knowledge can be used successfully in any future business.

As the demographic of the population changes more people than ever are now living longer, healthier and wealthier lives and with the advent of high speed internet access many new franchises are coming on stream. Some of the new opportunities are very good indeed.

Mature franchises are generally safer than new ones but because they have been proven longer are more expensive to purchase and therefore the return on investment can in some cases be lower.

Always make sure you take legal advice before signing the franchise agreement. A good legal document will protect both parties whilst the majority are far too one sided and protect the interests of the franchisor only.