How to Open a Tea Room in Los Angeles
Tea is big business. According to the Tea Association of America, sales of tea in the U.S. broke the $10 billion mark in 2010, an increase of more than 60 percent since 2005. This surge of interest has led to an uptick in business for specialized tea shops, tea rooms and tea houses. Tea rooms and tea houses have enjoyed rapid growth in the first decade of the 21st century. This trend can be witnessed in the variety of tea shops opening in entertainment districts and downtown areas of major cities across the country.
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Instructions
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Develop a comprehensive business plan for your Los Angeles tea room. A business plan should include an overview and a discussion of the business model, location, business licensing and permits, number of employees, competition, pricing, financing and marketing. A business plan for a tea room needs to focus on location -- especially theme and decor -- and marketing.
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File the paperwork necessary to start your tea room business as a sole proprietor, partnership or corporation. Choose a unique name and file a Doing Business As certificate with Los Angeles County Registrar-Recorder. You must also apply for a Business Tax Registration Certificate, and register with the California Board of Equalization to get a seller's permit so you can collect sales tax.
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Contact the Los Angeles County Health Department to request a review of your planned kitchen facilities. A tea room that prepares and serves food on the premises will have to meet all of the health department standards for the licensing of a restaurant. This involves a review of your food preparation facility plans and a pre-opening inspection, as well as regularly scheduled inspections when your tea room is open for business.
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Supervise the interior finish of your tea room, select and order tea, food and other inventory, design menus, establish pricing and accounting policies, and take care of anything else required to get your tea room ready to open.
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Undertake the marketing plan detailed in your business plan, including a grand opening celebration. Marketing is a critical part of getting any small business off the ground, but it is almost make or break for a tea room or tea house. You must create public awareness to bring customers in the door, and a classy website and some carefully targeted Internet and local print and radio advertising can go a long way on a relatively slim budget.
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Tips & Warnings
If you are planning to hire any employees to help run your tea room, you will need to contact the IRS to get an employer identification number. You will also have to register with the state of California to pay workers' compensation and unemployment insurance.
Consider hosting private or public tea parties or other tea-themed events at your tea room to publicize your business or to bring in a few extra dollars.
