How much does it cost to open a tea shop in Singapore?
According to founder of local milk tea brand Amacha, Sebastian Ang estimates that it comes up to about $209,000.
Sebastian broke down the costs in an Instagram video posted on Sunday (Sept 27).
The 35-year-old begins by sharing the rental costs.
“Our rent here is about $15,000 a month. We have to put down three months of rental deposit plus the first month’s rent,” said Sebastian, which adds up to about $60,000 up front.
“Then comes one of our biggest costs: Renovation,” he said.
The store’s wooden structures and carpentry cost around $15,000 and the storefront walls as well as nooks in the shops cost another $10,000.
Flooring and tiles also came up to about $10,000.
“Then you still have the electrical, plumbing, aircon, ceiling and everything else [which] cost us an additional $50,000,” he explained, bringing the total cost of renovations alone to about $85,000.
He then highlighted how expensive the equipment needed can be with a $10,000 automated milk tea machine and $13,000 gelato machine.
Not to mention the ice makers, tea brewers, fridges and sealing machine, which amount to around $17,000.
Meanwhile, the cashier’s point-of-sale system cost around $4,000.
Sebastian added that the three display televisions for the store’s menu comes up to $5,000.
“And we’re not done,” he said.
[[nid:738181]]
Before the store can fully open up, it still has to consider the first round of ingredients and packaging, staff salary, insurance and utility deposits that add up to about $15,000.
“So before we even sold our first cup, we have already spent $209,000. And that’s just enough to get the doors open,” he said teasingly.
Sebastian reminded viewers that it’s important to also factor in running capital to keep the business going.
“So tell me, would you do it?,” he asked viewers.
Amacha is Singapore’s first Traditional Chinese Medicine (TCM)-inspired herbal milk tea and gelato brand, opened in 2025.
It has five outlets island-wide in Chinatown, Tampines 1, Capitol Singapore, AMK Hub and Parkway Parade.
Other than Amacha, Sebastian also runs speakeasy bar Mama Diam and TCM-themed restaurant and bar Synthesis.
AsiaOne has reached out to Sebastian for more information.
[[nid:744057]]
Read the full article here
