If you’re looking for a beverage LTO opportunity or an interesting platform to expand your reach, you’ll want to take a serious look at bubbles. As in boba beverages. I can think of 10 good reasons why tapioca pearls have legs and why now is the time to look into them.
First: You can use bubble tea to draw more of the coveted Gen Z (ages 14-27). Some 23% of Gen Z have purchased bubble tea from a foodservice location in the past three months, according to the survey conducted for Mintel’s Foodservice Coffee and Tea, US—2023 report. That is significantly higher than the other generations.
Second: While boba tea is still emerging, it will soon become ubiquitous across all demographics considering that you can now find endcaps of boba tea kits at Costco!
Third: Bubble tea is absolutely viewed as a snack. According to Mintel’s consumer survey, 74% of those who drink bubble tea say they typically consume it in the afternoon, which is its highest timeframe and operators’ most-coveted daypart expansion.
Fourth: Bubble tea is experiential. Other adjectives could include fun, playful and unique. This could be the reason why it appeals to the younger generation. Mintel’s report highlights that almost 40% of Gen Z consumers would be motivated to order coffee/tea from foodservice establishments if they offer unique drinks on the menu.
Fifth: The fun, playful and aesthetically pleasing quality of boba drinks places them in the center of customer social media posts, which turns everyone into an influencer for your brand.
Sixth: Boba tea can help you check the “global cuisine” box. It was founded in Taiwan during the 1980s and is popular among Asians, which is notably obvious when you visit a bubble tea-centric operation in a college town.
Seventh: Tapioca boba/bubbles are adaptable. Though milk tea is the original host for the chewy pearls, tea is not mandatory. In February 2024, Del Taco ran an interesting series of three LTO beverages called Poppers. The Strawberry Lemonade Poppers mixed the boba pearls with strawberries and Minute Maid Zero Sugar Lemonade over ice. Another version mixed boba pearls and real strawberries with Sprite over ice. And interestingly, the third one combined boba pearls with real strawberries layered in a vanilla shake.
Eighth: Any foodservice concept’s menu can benefit from an infusion of bubbles. I mentioned Del Taco above. Last summer, Jack in the Box tested a trio of boba-enhanced beverages: milk tea, iced coffee and a vanilla shake. I’m waiting for a big convenience store chain to lay claim to boba beverages. I did notice that Quik Trip in India has a line of four bubble beverages.
Ninth: Bubble beverages are a perfect expansion option for the fast casual segment with its playbook of customized, “pick your own ingredients” offerings.
Tenth: Bubble chains are emerging. They are their own concept, and the more that pop up, the bigger splash they will make in their markets. To name a few, there’s Gong Cha, Uncle Sharkii Poke Bar (bubble tea is as much a part of the concept as Hawaiian poke) and Krak Boba. But there are more, and plenty of independents.
It just seems like a no-brainer to make the beverage menu the place to launch some interesting LTOs. Boba covers a lot of bases and could be an easy way to add some spark while boosting the bottom line.
Jody Shee
