Established
2018
Franchise Units
2
Minimum Investment
$180,000
Franchise Fee
$35,000
Total Investment Range
$350,000
Home Based
No
Description
Redstraw is a modern, culture-driven bubble tea franchise that has helped redefine how premium milk tea and handcrafted beverages are experienced in the United States. Known for its clean store design, consistently high-quality ingredients, and strong appeal among Gen Z and millennial consumers, Redstraw has positioned itself as a lifestyle brand rather than just a beverage shop.
The brand focuses on freshly brewed teas, house-made syrups, and customizable drink options that align with evolving consumer preferences, including reduced-sugar alternatives and non-dairy choices. Its minimalist aesthetic, social-media-friendly presentation, and efficient service model make it a natural fit for high-traffic retail corridors, college towns, lifestyle centers, and mixed-use developments.
From an investor’s perspective, Redstraw sits at the intersection of affordability, repeat customer behavior, and scalable operations. Bubble tea remains one of the fastest-growing beverage segments in the U.S., and Redstraw has built a loyal following by balancing trend relevance with operational discipline. This combination allows franchise partners to develop a community-focused business with strong daily transaction volume and long-term brand value.
Why Invest in This Franchise?
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High-Growth Beverage Segment
Bubble tea continues to outperform many traditional QSR categories, driven by younger demographics, personalization, and visual appeal. -
Distinct Brand Positioning
Clean interiors, premium presentation, and consistent product quality separate Redstraw from generic tea shops. -
Operational Efficiency
Compact footprints, limited cooking, and streamlined prep reduce labor complexity and operating costs. -
Strong Repeat Business
Loyal customers and frequent visits create predictable cash flow and stable unit economics. -
Multi-Unit Expansion Potential
The model is well-suited for operators interested in scaling across multiple territories.
Background
- Established Year: 2018
- Founders: Entrepreneurial team with experience in specialty beverages and retail operations
- Industry Category: Specialty Beverages / Bubble Tea
- Franchise Active Units (USA): 2
Redstraw was founded with the goal of elevating bubble tea into a premium, everyday beverage experience for the U.S. market. Early locations focused on product consistency, thoughtful store design, and operational simplicity. As awareness of bubble tea grew nationwide, the brand expanded carefully, refining its menu and systems to match American consumer expectations.
Support Training
Redstraw offers structured, end-to-end support to help franchisees launch and operate successfully.
Pre-Launch Support
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Site selection guidance and market evaluation
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Store layout planning and design standards
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Equipment specifications and supplier coordination
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Pre-opening timelines and launch checklists
Training & Academic Support
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Comprehensive initial training covering operations, beverage preparation, and quality standards
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Hands-on training at designated locations
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Management education on staffing, inventory control, and cost management
Marketing & Brand Support
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Grand opening marketing strategies
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Brand-approved creative assets and promotions
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Digital and local marketing guidance tailored to each market
Ongoing Support
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Operational reviews and performance guidance
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New product introductions and seasonal menu updates
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Continuous access to best practices and system improvements
Ideal Candidate
The ideal Redstraw franchisee is a motivated operator or investor who values consistency, customer experience, and brand standards.
Best Suited For:
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First-time franchise owners seeking a proven, structured model
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Existing café or QSR operators diversifying into beverages
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Multi-unit investors looking for a scalable concept
Key Attributes:
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Strong people-management and customer-service skills
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Willingness to follow established systems and brand guidelines
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Sufficient capital to support development and early operations
Preferred Locations:
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High-foot-traffic retail areas
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College towns and lifestyle centers
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Urban neighborhoods and growth-oriented suburban markets
Financial Detail
| Cost Component | Estimated Amount (USD) |
|---|---|
| Franchise Fee | $35,000 |
| Total Initial Investment | $180,000 – $350,000 |
| Build-Out & Leasehold Improvements | $80,000 – $150,000 |
| Equipment & POS Systems | $40,000 – $70,000 |
| Initial Inventory & Supplies | $10,000 – $20,000 |
| Marketing & Grand Opening | $8,000 – $15,000 |
| Working Capital (3–6 months) | $20,000 – $40,000 |
| Royalty Fee | Ongoing percentage of gross sales |
| Marketing Fund Contribution | Ongoing system-wide contribution |
| Estimated Break-Even Period | 12 – 24 months |
| Expected ROI | Attractive unit-level returns |
| Potential Revenue Streams | Beverage sales, add-ons, catering |
All figures are estimates and may vary by location, market conditions, and store size.