Tea Shops for the Younger Crowd
Recently, I came across a Quora question asking, “What advice is there for starting a tea shop … that is targeted to a younger crowd?” I’d been thinking a lot about that demographic since my Millennials & Tea post last month, so I decided to answer it. Looking over my answer, I realized that it was absolutely begging to be tweaked, expanded, and transformed into a Tea With Gary blog post.
If you are planning to open a tea shop and you want to target the young folks, here’s what I’d advise:
- Figure out where your target audience hangs out and put the shop close by. Don’t try to entice them to come all the way across town to get to your shop. They won’t.
- Keep it calm. If they want a frenetic environment with lots of energy and noise, they’ll go to a coffee shop (or a club, or a mall, or…). Tea shops are gaining in popularity because they are relaxing places to hang out.
- Hire people who are enthusiastic about tea and train the bejeebers out of them! In many ways, today’s tea shops are where coffee shops of the 1980s were. Our customers don’t just walk in and order a double-shot half-caf low-fat light-froth caramel mocha latte. Most of them walk in and look around, rather overwhelmed by the options. It’s our job to educate the customers. When they learn from us, they come back.
- Pick your niche and fill it. Are you going to be the healthy place that prescribes tea like medications? Are you going to be the socially-conscious place that has the organic, fair-trade, and ETP teas? Are you going to be the British tea house with Earl Grey and scones? Are you going to specialize in Chinese teas only? Will you be the über high-end place with the $500 pu-erh beengs and the $25/oz specialties, or the cheap place where tea is a buck a cup? You can’t be all of those things, so pick something that fits the youth in your area and do it well.
- If you want to sell loose tea, make sure to either sell by the cup or make samples. People are far more likely to buy it if they try it first.
- Prepare the tea for the customer and pour it yourself. Younger customers are less into product and more into experience. Control the amount of leaf, the water temperature, the steep time. Explain what you’re doing, and make it both educational (see #3) and fun.
- Don’t use solid colored dark mugs. Let the customers see the tea. I use glass mugs so that they can enjoy the beautiful colors of the various teas — engage the eyes, not just the taste buds and nose.
- Serve iced tea. No matter what the weather is outside, iced tea is massively popular in the United States. Make sure every single one of your teas is available iced, and teach your staff how to make a proper glass of iced tea. And brew each cup fresh!
- Serve boba tea, but keep it authentic. You’re a tea shop, not a snow-cone shop. Don’t use the sickly sweet syrups, make your boba from tea! Brew it up fresh and make it an experience (see #6). We do our boba in cocktail shakers.
- Most of the younger crowd is looking for a place to settle in and relax for a few minutes, not a place to dash in, grab a drink in 93 seconds, and dash out. Make your shop comfortable, brew everything fresh — even if it means your masala chai lattes take a while — and perhaps keep a hot pot of your tea of the day and a big jug of iced tea of the day for those customers who are in a hurry.
- If you’re pondering this right now, go to World Tea Expo and take their new business bootcamp. It’s coming up fast, and the bootcamp may be booked, but give it a try. The rest of the Expo is a great place to learn the industry and meet the people; and you do not want to miss that wonderful Tea Blogger Panel that I’m moderating. It’ll be a blast!
Millennials & Tea
When a new study comes out, it’s interesting to see who spins it how. YouGov released a survey last month comparing American consumption of tea with coffee. Their headline was “Coffee’s millennial problem: tea increasingly popular among young Americans.” Oh, no! A coffee problem!
World Tea News, on the other hand, reported that same survey with the headline, “America’s Youth Embrace Tea.” Oh, boy! Kids are drinking tea.
Most of the articles I read about the survey included this handy-dandy chart:
It pretty clearly indicates that the younger you are, the more likely you are to prefer tea to coffee. The statistic I liked, on the other hand, I turned into the Venn diagram on my header for this article. Of Americans aged 18-29, 18% drink coffee, 27% drink tea, and 39% drink both (the remaining 17% don’t drink either one). In case you’re interested, 998 people were surveyed and 143 of them were in that “millennial” age range of 18-29.
I’m sure there are some people in the tea business that are saying, “This is marvelous! We just have to sit back and wait and we’re going to own this market!” Others are saying, “We really need to get people over 30 to drink more tea.” The coffee industry, of course, has known about this trend for years. That’s why Starbucks bought Tazo and Teavana.
Being a numbers geek, I decided to pull up the PDF of the full report and do a bit of digging. Here are some interesting points you might enjoy:
- The under-30 crowd is much more likely than the older crowd to drink neither coffee nor tea.
- Blacks are over twice as likely to drink tea only (no coffee) than whites or hispanics.
- 64% of Republicans prefer coffee, vs 55% of Democrats and 52% of independents.
- 33% of independents prefer tea, vs 32% of Democrats and 28% of Republicans.
- Middle-income Americans earning $40K-$80K/year are more likely to prefer tea than higher or lower-income Americans.
- 42% of people surveyed are trying to limit their coffee intake vs only 25% that are trying to limit tea.
- Women are much more likely to prefer tea than men
So let’s see here. A tea shop’s target audience is young women? This comes as a surprise to absolutely nobody in the tea business.
I confess that I didn’t expect some of these results. Since Montana is 89% white and 0.4% black, I don’t really have a statistically significant sampling to judge African-American preferences. I do see, however, quite a few Native Americans in the shop getting tea, although I haven’t tried doing any statistical analysis there.
To what do I attribute the tea-drinking millennial trend? The obvious factor is healthier lifestyles, but I would posit something else as well: younger folks are better informed about tea.
I am much more likely to hear an older person say, “I don’t like tea,” because back in their day, tea meant either a teabag full of basic Lipton black tea or the green tea at a Chinese restaurant. Millennials are more likely to have discovered tea in a tea shop that offers dozens — or hundreds — of options. That person who doesn’t like tea may never have tried masala chai, or oolong, or pu-erh, or white tea, or the huge variety of flavored, spiced, and scented options. They’ve probably never experienced the difference between that teabag full of dust and an FTGFOP-1 golden black whole-leaf tea. They may still be under the mistaken impression that latte means coffee, leaving them blissfully unaware of the wealth of tea lattes awaiting them in a good tea shop.
I’ve said many, many times that if you work in the tea business today, your primary job is education. I think this survey shows that tea education is working. Sure, we still sell your basic Earl Grey tea, but younger folks like the ladies in the picture above are well educated about their options. You’re as likely to see them sipping whole-leaf black Vietnamese tea or Indian oolong as you are a peach-flavored white tea or a sage Earl Grey (popular in our corner of Montana).
So let’s get out there and buy Grandma a great cup of tea!
While writing this post, I was drinking Jasmine King Silver Needle tea. It’s a delicate white tea perfectly scented with jasmine blossoms, so that you get the aroma of the jasmine and the flavor of the tea. Yes, jasmine isn’t just for green tea anymore. Hey, that’s a great tagline. Look for it as a blog post title one of these days!