Heres What You Need To Know If Youre Interested In Opening A The Spice & Tea Exchange Franchise
The Spice & Tea Exchange is a spice and tea retail brand founded in 2008. The company strives to “create and share a more flavorful life” by selling high-quality, diverse products. Allowing customers to smell each product before they purchase it makes their shopping experience incredibly sensory and educational. This is partly why The Spice & Tea Exchange has become a nationwide name. With over 70 stores across several states, the brand is looking to expand its reach in all 50 states.
What Is The Best Tea Franchise To Own
The best tea franchise depends on what youre looking for. If you love traditional tea, a business like the Spice & Tea Exchange or The Teahouse may be of interest. Those looking for brand recognition may opt for a business that offers other options like Jamba Juice or The Coffee Bean and Tea Leaf.
The History Of Spice And Tea Exchange
Founded as a small boutique-style store in St. Augustine, Florida, The Spice and Tea exchange first opened in 2005 under the name Old Spice Traders. The store was modeled after an 18th century trading post that proved to be very popular.
After experiencing a greater level of success than ever expected, they were bought out in 2008 by a group of investors looking to take the brand to the next level. They changed the name to The Spice and Tea Exchange and began selling franchise licenses.
The franchise portion of their business got off to an admittedly slow start. After two years of selling licenses they only had 1 franchised location.
They seemed to hit their stride in 2010, with franchise license sales picking up that year. Over the next eight years they would grow to over 50 locations in 30 states.
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Spicing Up The Sensory Shopping Experience
The Spice & Tea Exchange needed a system to support its growth. Cin7 and its seamless accounting integration did it at far less than the cost of competing ERPs.
Step into any of The Spice & Tea Exchange franchises, and youll forever remember the exotic aromas waiting behind their doors.
Founded in 2008, The Spice & Tea Exchange was formed by a group of talented individuals with a passion for life and food. The Spice & Tea Exchanges mission statement, Creating & sharing the experience of a more flavorful life, is the cornerstone of the company which strives to provide guests with quality products and flavorful memories.
Inside, the stores interior is reminiscent of an 18th Century Trading Post with apothecary-style jars lining the shelves. Its an interactive shopping experience where guests are encouraged to smell the spices, and watch Spice Masters create hand-mixed blends before their eyes.
The Spice & Tea Exchange launched as a single store in Florida in 2005, with the intent to lure foodies among Floridas east coast. As the concept developed, customers wanted to get into the business themselves, leading to the companys first franchise in 2008.
The Spice & Tea Exchange has since grown to 54 franchisees, all successfully replicating the companys original vision. Customer reaction has been positive, and the model has worked so well, growth appears to be accelerating, with The Spice & Tea Exchange expanding its footprint by 25% in 2016 alone.
Q& a With Amy Freeman And Penny Rehling Of The Spice & Tea Exchange
In this exclusive Q& A, we get to learn about The Spice & Tea Exchange from its CEO Amy Freeman and COO Penny Rehling.
Franchise Chatter : Tell us more about The Spice & Tea Exchange.
Penny Rehling : The Spice & Tea Exchange is an experience-based store with a mission of encouraging a more flavorful life for our guests. We offer more than 140 spices, 85 exclusive hand-mixed blends, over 30 exotic teas, naturally-flavored sugars, salts from around the world, and gourmet gifts and accessories. With over 50 locations nationwide, we are a rapidly-growing grassroots company that is continually evolving.
FC: Tell us how the concept was founded.
Amy Freeman : When my sister Lisa and I visited St. Augustine back in 2007 for a girls birthday weekend, we stepped into a local spice and tea retailer and I immediately fell in love. I knew the concept had potential and I had a vision on how to expand it. That same day, I spoke with the owners about the potential I saw in their business, and soon after, The Spice & Tea Exchange brand was born.
FC: How did you decide to get involved in franchising?
FC: We understand the company has reached several milestones over the past year can you elaborate?
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About The Spice & Tea Exchange
The Spice & Tea Exchange® Mission: Creating & sharing the experience of a more flavorful life.
The Spice & Tea Exchange® was founded in 2008 by a group of talented individuals with a passion for life and food. Our mission statement Creating & sharing the experience of a more flavorful life, is the cornerstone by which our company which strives to provide guests with quality products and flavorful memories.
With a wide selection of seasonings for any food lover and dozens of choices for any tea enthusiast, its easy to Find Your Way To Flavor!® within a The Spice & Tea Exchange® store. The Spice & Tea Exchange® offers more than 140 spices, over 85 exclusive hand-mixed blends, 16 naturally-flavored sugars, an array of salts from around the world, and more than 45 exotic teas. We focus on providing high quality products and accessories to home cooks, chefs, and tea lovers in an old-world spice traders atmosphere.
With the help of our executive team, managing partners, and dedicated corporate team members, The Spice & Tea Exchange® has been franchising since 2008, and has celebrated 65+ store openings in 27 states in just a few years!
No culinary experience necessary! As a part of our franchise system, you will have access to professional and experienced field consultants, virtual, in-house, and on-site training throughout the franchise development process.
How Much Does It Cost To Open A The Spice And Tea Exchange Franchise
The Spice and Tea Exchange Franchise
Individual Unit Costs
Your income potential as a The Spice and Tea Exchange Franchise entrepreneur depends vastly on many factors. As an entrepreneur, the goals to achieve are related to expanding sales while lowering your operation costs and increasing the quality of your products and or services. Each month your operating costs can include royalty fees, mortgage / rent, supplies for products, staffing, utilities, bookwork, stationary and other items. From one month to the next, you may find your costs fluctuate, but your up-front costs are, for the most part, fixed and they will cover most of the initial setup of equipment, signage and renovations.
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Join The Fastest Spreading Franchise In Ontario
The love for Middle Eastern cuisine in the GTA and beyond is growing rapidly, and at Lazeez we do it best! We have opened 40+ locations with great success and have more in the works. We are always looking for passionate individuals to help share the passion and flavours of Lazeez. Take advantage of a delicious opportunity and join the Lazeez family.
The Value Of A Spice And Tea Exchange License
One of the best parts of owning a franchise that caters to the upper middle class is that it usually involves large ticket items. Those big price tags can mean big profits for your business. With The Spice and Tea Exchange, thats not really the case.
While they do sell items that could be considered luxury, it doesnt mean that they are necessarily big ticket. The herbs and spices that are sold in the stores are quite a bit more expensive than would typically be found in the grocery store. They are considered gourmet because of the way they are grown and processed, so the retailer can charge more for them. This is what makes them a luxury item.
Having a luxury item that still does not bring in a high dollar amount with every sale can be a risky business venture. At that point, you have to find more customers willing to pay higher prices for items that, while arguably lower quality, are available for much cheaper in a place that they already do their shopping. Less expensive and more convenient is a hard combination to beat.
Even if it seems like its impossible to establish a steady market due to the nature of the products being sold, The Spice and Tea Exchange is finding ways to stay open. Clearly, there are enough people out there who are willing to make the extra stop and pay the extra money for some higher quality teas and herbs to keep the brand afloat.
But are there enough to support additional locations, and, if so, how many?
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How Much Does It Cost To Open A Spice Shop
Apparently, Entrepreneur says. Herbs and spices cost between $2,000 and $10,000 on average to start a business. Home-based businesses can drastically lower startup costs because they can be run from a home office. A profit is made from the sale of bulk spices and herbs, mixed, bottled and sold again.
The Coffee Bean And Tea Leaf
Though not exclusively a tea franchise, The Coffee Bean and Tea Leaf offers a variety of both coffee and tea beverages. Founded in Southern California in 1963, tea and coffee franchising company has since grown to include more than 1,200 locations around the world. The company is looking to expand through multi-unit franchise development. The business also offers a variety of nontraditional models and location options, including those at airports, colleges, hotels, and grocery stores. It provides training, development, design, operations, marketing and logistical support. Franchising fees range from $15,000 to $25,000. The initial investment ranges from $183,250 to $615,500.
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The Spice And Tea Exchanges Franchise Performance
When talking about franchise opportunities that cater to niche markets, it can be hard to determine whether or not it will be a good investment. In the case of The Spice and Tea Exchange, there are plenty of factors to consider.
First, the target audience of the brand should be analyzed. Gourmet spices and teas are not things that the average person purchases. Many Americans are on tight budgets and there simply is not room in those budgets for fine herbs and spices. This brand is marketed toward the upper middle class, those who have expendable income to spend on luxury items.
Even the entire upper middle class cant be included in their target audience. The average customer who frequents an establishment like The Spice and Tea Exchange checks a few boxes: expendable income, a passion for the culinary arts, and enough discerning taste to warrant making an extra stop to pick up herbs and spices rather than purchasing from a grocery store.
Adding all of those factors together leaves a very small portion of the population to which they should market.
Knowing just how small their target audience really is gives a better understanding when analyzing their franchise performance numbers.
Since 2010, The Spice and Tea Exchange has grown their franchise numbers by over fifty times. Granted, they still only have 52 locations throughout the United States, but their growth percentage is still off the charts.
What Might Make A The Spice & Tea Exchange Franchise A Good Choice
The Spice & Tea Exchange is conveniently part of two industriesspices and tea. Not only that, but the store will likely appeal to many Millenials, with whom tea is increasingly popular. This means you may have a younger generation to carry your future sales.
Outside of its retail component, The Spice & Tea Exchange franchises are typically cafes, as well. The Tea Bar, a recent addition to the brand concept, sells over 45 different types of hot and cold teas to-go. The Spice & Tea Exchange also offers various incentives, including a quarterly bonus when customers set your store as their home store for eCommerce sales.
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Looking For A Franchise Youll Love Watch Our Free Webinar Live Or The Recording Later
In addition to our new executive roles, we opened our milestone 50th location in Idaho Springs, Colorado this past year, made the Entrepreneur Franchise 500 list of leading franchise companies, as well as the Inc. 5000 list of fastest growing private companies all exciting milestones for us to reach!
FC: What trends have you been observing in the specialty retail space that have impacted your business?
AF: As we know, global spices and teas are on fire right now. Weve found an amazing connection with consumers, especially millennials, as it pertains to teas and custom blends. The millennial generation is adventurous in its cooking and taste palate, a trend as evidenced by what were seeing in the craft brew industry. This generation is also supportive of buying local, giving our specialized stores an advantage in this arena.
Millennials are 1/4 of our entire population, contributing over $200 billion in annual buying power, so theres a ton of potential when you can capture this audience.
Fortunately for us, many of our corporate team members and some of our newer store owners are millennials. Tapping into their insight and hearing their input is an invaluable resource.
Weve even introduced new products geared towards the younger generations. Introducing products that make drinking loose tea easier for millennials, such as The Urban Tumbler, which allows you to drink loose tea on the go, hot or cold, has been great for our stores.
Tea Franchises To Consider
Tea is one of the most popular beverages around the world. As a result, starting a business that offers this healthy and delicious drink can be a rewarding and profitable experience.
If youre interested in starting a tea business, a franchise can help you get up and running quickly. These opportunities give you access to proven menus and systems. And you can attach yourself to a recognizable name right away.
There are tons of tea franchises available, all with different niches and specialties. Understanding the options can help you make the best decision for your new business venture.
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How Much Can I Earn By Owning A The Spice & Tea Exchange Franchised Business
As with any new franchised business, the franchisee’s income and the revenue from a The Spice & Tea Exchange franchise opportunity depends on a variety of factors. One way to check on the potential revenues or profits generated from a The Spice & Tea Exchange franchise investment is to review the franchisor’s Item 19 within their Franchise Disclosure Document. Usually, earnings and owner’s income are correspond to the size of the investment and number of locations you buy. Demand for your products, the labor costs, commercial lease rates and a number of other variables also play a large role in your earnings and your personal income
For more details and franchise specific on the revenue of a The Spice & Tea Exchange franchise, unlock this franchise
The Spice & Tea Exchange
Thinking of investing in a The Spice & Tea Exchange franchise? We think its a great opportunity for anyone looking to open a business with an experienced franchisor behind them. Founded in 2008, The Spice & Tea Exchange specializes in Spices, teas, related products. As a Coffee & Tea franchise, The Spice & Tea Exchange has grown to include over 73 units since they began franchising in 2008 . It costs an estimated $183,650 $384,250 to open a The Spice & Tea Exchange franchise.
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Cin7 Makes Warehouse Operations Easier Too
Our primary distribution facility is housed within our St. Augustine operations center, Kessenich says. This is where all the magic happens as we bring in raw materials from many sources, convert them for sale, and distribute them out to our Franchisees who then prepare products and make the final sale to customers across the country.
Handling orders in the DC for hundreds of SKUs going to dozens of stores was far more labor-intensive prior to Cin7. Warehouse staff had to print out paper orders and pick lists, and after pulling products for those orders, they would enter information into the shipping software to print labels. Finally, someone had to enter the orders off the paper pick list into the accounting system for transaction processing.
With Cin7 we now complete fulfillment electronically on tablets. We are able to track, in real time, the flow of product from receipt of raw materials through printing of shipping labels for packed boxes, says Kessenich. This process allows us to capture far more information than ever before and find ways to create new efficient processes for order fulfillment and inventory management.
Producing custom blends required a similar level of administrative work.
The integration provides visibility and efficiency to franchisees who want to know what products are available or who want to place an order to replenish a product.
The Cin7 Return On Investment
Cin7 has given The Spice & Tea Exchange not only full management of its supply chain but saved time and increased accuracy in order fulfillment.
Were able to fulfill orders quicker with better accuracy, and comfortably serve our franchisees while carrying less inventory, Kessenich says. Not having to manually track and log each process allows us to focus on responding to the needs of our franchisees and find new ways to improve operations. Time previously spent tracking down paper can now be shifted to creating value for the company.
The company also has been able to add a level of quality assurance to its franchisees and customers.
Were using batch tracking now so that we can carefully trace the origins of each product we sell, Kessenich says. For any consumable, its extremely important to provide end users with a clear chain of custody all the way back to the purchase order from the original supplier and doing that on paper was a major challenge. Cin7 is more cohesive and has allowed us to create this tracking data much more efficiently and accurately than ever before.
Cin7 provides such depth of origin tracking that, for just about any product our franchisees sell, they can feel confident that we can trace it all the way back to its original source production lot should there ever be a problem.
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