Neighbourhood loose-leaf tea shop

Local tea lovers, gift shoppers, tourists and people looking for something a bit different from supermarket teabags.

Retail margin on tea sold by weight or in packs, plus teaware and gift sets. Sales are often strongest in autumn, winter and around the holidays.

• Knowing teas and how to brew them
• Customer service and recommending products
• Stock buying and basic bookkeeping

• Commercial lease terms, deposits and who pays for fit-out, get advice before signing
• If you serve brewed tea or sell by the cup, a food premises permit from your local public health unit will likely be needed, so check before you plan the layout
• Business licence and signage rules from your municipality
• Packaged food labelling rules, including bilingual labels, and French-language rules if you are in Quebec
• GST/HST registration and provincial sales tax rules
• Commercial general liability insurance and WCB/WSIB coverage once you hire staff
• Slow summer months in some locations, plan your cash flow

Startup costs are typically estimated at around $25,000 to $90,000, depending on your location, the shop size and how much tea and teaware you stock. Check commercial lease terms, deposits and who pays for fit-out, and get advice before signing.

If you serve brewed tea or sell by the cup, check whether a food premises permit from your local public health unit is needed before planning your layout. Also check municipal business licence and signage rules, bilingual labelling, French-language rules in Quebec, and GST/HST.

Monthly revenue is typically estimated at around $6,000 to $30,000, depending on location, range and season. Plan on roughly 35 hours a week at minimum. Some locations have slow summer months, so plan your cash flow.