This article was written by our expert who is surveying the industry and constantly updating the business plan for a tea room.
Opening a tea room requires careful financial planning to ensure your business starts strong and stays profitable.
Your startup costs will typically range from $75,000 to $200,000, depending on location, size, and design choices. The largest expenses include lease deposits, renovation costs, and initial equipment purchases.
If you want to dig deeper and learn more, you can download our business plan for a tea room. Also, before launching, get all the profit, revenue, and cost breakdowns you need for complete clarity with our tea room financial forecast.
Tea room startup costs vary significantly based on location, size, and concept, with total investments typically ranging from $75,000 to $200,000.
The following breakdown shows the major cost categories and expected ranges for opening a tea room in Ho Chi Minh City as of October 2025.
| Cost Category | Range (USD) | Details |
| Location Lease (First Year) | $16,200 - $27,000 | Based on $4.50-$7.50 per sq ft/month for 300 sq ft space |
| Renovation & Interior Design | $15,000 - $50,000 | Complete buildout including furniture, décor, and ambiance creation |
| Kitchen & Brewing Equipment | $20,000 - $40,000 | Commercial tea equipment, refrigeration, display units, storage |
| Initial Inventory | $3,000 - $8,000 | Tea varieties, food items, packaging, accessories |
| Licensing & Permits | $800 - $2,500 | Business registration, health permits, fire inspection |
| Staffing (6 Months) | $8,000 - $30,000 | Wages, training, uniforms for service and kitchen staff |
| Working Capital Reserve | $22,000 - $40,000 | Six months operating expenses buffer |
What is the average cost per square foot to lease a suitable location for a tea room?
Tea room lease costs in Ho Chi Minh City average $4.96 per square foot per month citywide, with premium locations reaching $10+ per square foot.
For a tea room specifically, you should expect to pay between $4.50 and $7.50 per square foot monthly, depending on foot traffic and neighborhood quality. Prime downtown locations with high visibility will command the higher end of this range.
A typical 300 square foot tea room space would cost $1,350 to $2,250 per month in rent. Factor in security deposits (usually 2-3 months rent) and first month's payment, bringing your initial lease commitment to $5,400 to $11,250 upfront.
Location directly impacts your customer base, so investing in a slightly more expensive space with better foot traffic often pays for itself through higher sales volume.
What is the estimated budget required for renovations, décor, and interior design to meet customer expectations?
Tea room renovation budgets typically range from $15,000 to $50,000, with the wide range reflecting different design ambitions and space sizes.
Small, cozy tea rooms with basic renovations and furniture can operate effectively with a $15,000 to $25,000 budget. This covers essential electrical work, basic flooring, simple furniture, and minimal décor elements.
Mid-range renovations costing $25,000 to $40,000 include custom millwork, upgraded lighting, quality furniture, and distinctive design elements that create a memorable atmosphere. Premium buildouts exceeding $40,000 feature luxury finishes, custom furniture, elaborate lighting schemes, and unique architectural details.
Remember that tea room customers expect a calming, aesthetically pleasing environment, making interior design crucial for attracting and retaining customers. Budget at least 20-25% of your total startup costs for this category.
How much should be allocated for kitchen equipment, tea brewing tools, and storage solutions specific to a tea room?
| Equipment Category | Cost Range (USD) | Essential Items |
| Tea Brewing Equipment | $5,000 - $12,000 | Commercial hot water dispensers, quality kettles, teapots, brewing timers, temperature controls |
| Refrigeration & Storage | $4,000 - $8,000 | Commercial refrigerators, freezer units, dry storage containers, tea canisters |
| Display & Service | $3,000 - $7,000 | Display cases, serving trays, tea sets, glassware, serving utensils |
| Food Preparation | $4,000 - $8,000 | Small ovens, prep tables, mixing equipment, baking tools |
| Furniture & Fixtures | $4,000 - $10,000 | Tables, chairs, shelving units, counter space, customer seating |
| Miscellaneous Equipment | $2,000 - $5,000 | Cleaning supplies, small appliances, backup equipment, maintenance tools |
| Installation & Setup | $1,500 - $3,000 | Professional installation, equipment testing, initial maintenance |
What is the typical cost of initial inventory, including tea varieties, food items, packaging, and accessories?
Initial tea room inventory typically costs between $3,000 and $8,000, depending on your menu breadth and quality positioning.
Tea inventory alone represents $1,500 to $4,000 of this cost, covering 15-30 different varieties including black, green, white, oolong, and herbal teas. Premium tea rooms focusing on rare or specialty teas will lean toward the higher end.
Food inventory adds another $1,000 to $2,500, covering pastries, light meals, and accompaniments that pair well with tea service. Fresh ingredients require careful inventory management due to shorter shelf lives.
Packaging materials, serving supplies, and retail accessories account for the remaining $500 to $1,500. This includes takeaway containers, branded packaging, retail tea accessories, and gift packaging options that can boost revenue through retail sales.
What are the licensing, permits, and inspection fees usually involved before opening a tea room?
Tea room licensing and permit costs in Ho Chi Minh City range from $800 to $2,500, covering all mandatory requirements for legal operation.
Business registration forms the foundation, costing approximately $200 to $500 depending on your business structure. Food service licenses add another $300 to $800, covering health department permits and food handling certifications.
Fire safety inspections and permits typically cost $150 to $400, while signage permits range from $100 to $300. Additional costs may include building permits for renovations ($200 to $600) and specialized permits for outdoor seating or entertainment.
Budget extra time and money for potential re-inspections or permit modifications, as regulatory requirements can change or inspectors may require adjustments to meet current standards.
You'll find detailed market insights in our tea room business plan, updated every quarter.
How much capital should be reserved for staffing, including wages, training, and uniforms for the first six months?
Tea room staffing costs for the first six months range from $8,000 to $30,000, depending on team size and experience level required.
Small tea rooms with 3-4 staff members (including part-time positions) typically budget $8,000 to $18,000 for six months. This covers basic wages, minimal training, and simple uniforms for servers and kitchen assistance.
Larger or upscale tea rooms requiring 5-8 experienced staff members should budget $18,000 to $30,000. This includes competitive wages for skilled baristas, experienced servers, and specialized kitchen staff who can handle complex tea preparations and food service.
Training costs add 10-15% to your base wage calculations, covering initial onboarding, tea knowledge education, customer service protocols, and ongoing skill development. Quality staff training directly impacts customer satisfaction and repeat business.
What is the recommended marketing and branding budget for the pre-launch and first year of operation?
Tea room marketing and branding budgets should range from $3,000 to $15,000 for the pre-launch period and first year of operation.
Basic marketing programs costing $3,000 to $6,000 cover social media setup, simple website development, local advertising, and soft opening events. This approach works well for neighborhood tea rooms relying primarily on word-of-mouth marketing.
Comprehensive marketing campaigns budgeted at $6,000 to $10,000 include professional branding, digital marketing campaigns, influencer partnerships, and grand opening events. Premium or concept-driven tea rooms may invest $10,000 to $15,000 in sophisticated marketing strategies.
Focus your marketing spend on digital platforms where tea enthusiasts gather, local food blogs, and community events that align with your target customer demographics. Consistent branding across all touchpoints maximizes the impact of your marketing investment.
What are the average monthly utilities and maintenance costs that need to be factored into startup planning?
Monthly utilities and maintenance for tea rooms in Ho Chi Minh City average $400 to $1,200, depending on size and operating hours.
Electricity represents the largest utility expense, ranging from $200 to $700 monthly due to air conditioning, lighting, and equipment operation. Water and sewage add $50 to $150 monthly, while internet and phone service cost $50 to $100.
Maintenance costs vary from $100 to $350 monthly, covering equipment servicing, minor repairs, and preventive maintenance. Tea brewing equipment requires regular cleaning and calibration to maintain quality standards.
Budget an additional 10-20% buffer for unexpected utility spikes during peak seasons or maintenance emergencies that could disrupt operations if not addressed quickly.
How much working capital is generally advised to cover at least six months of operating expenses?
Tea rooms should maintain $22,000 to $40,000 in working capital to cover six months of operating expenses.
This calculation includes monthly rent ($1,350 to $2,250), staff wages ($1,300 to $5,000), utilities ($400 to $1,200), inventory replenishment ($500 to $1,300), and other recurring costs like insurance and loan payments.
Small tea rooms with lower overhead can operate with $22,000 to $28,000 in working capital, while larger operations or those in premium locations need $30,000 to $40,000 as a safety buffer.
Working capital protects against seasonal fluctuations, unexpected expenses, and cash flow gaps that commonly occur during the first year of operation. This reserve allows you to focus on building your customer base without financial stress.
This is one of the strategies explained in our tea room business plan.
What is the expected cost range for insurance coverage specific to a tea room business?
Tea room insurance costs range from $500 to $2,500 annually, depending on coverage levels and business size.
Basic coverage including general liability, property insurance, and fire protection typically costs $500 to $1,200 yearly for small tea rooms. This protects against customer accidents, property damage, and basic business risks.
Comprehensive coverage adding product liability (for food service), business interruption, and equipment breakdown insurance ranges from $1,200 to $2,500 annually. Premium locations or businesses serving alcohol may face higher rates.
Product liability insurance is essential for tea rooms, as hot beverages and food service create specific risks. Worker's compensation insurance becomes mandatory once you hire employees, adding $300 to $800 annually depending on staff size.
What technology or point-of-sale systems are required, and how much does it cost to set them up?
Tea room technology setup costs range from $2,000 to $6,000, covering essential systems for modern operations.
- Point-of-sale systems: $800 to $2,000 for hardware and software setup, including tablets, receipt printers, and payment processing integration
- WiFi infrastructure: $200 to $500 for commercial-grade internet setup and customer WiFi access
- Security systems: $400 to $1,000 for cameras, alarms, and monitoring equipment
- Inventory management software: $100 to $300 setup plus monthly fees for tracking tea varieties and food items
- Table ordering apps: $500 to $1,500 for custom mobile ordering solutions that enhance customer experience
Modern customers expect seamless payment options, reliable WiFi, and potentially mobile ordering capabilities. Investing in quality technology systems improves operational efficiency and customer satisfaction from day one.
What hidden or often-overlooked expenses should be anticipated when calculating total startup costs?
Hidden tea room expenses can add $5,000 to $15,000 to your startup costs, making thorough planning essential.
- Unexpected repairs during renovation: $1,000 to $3,000 for plumbing, electrical, or structural issues discovered during buildout
- Professional fees: $800 to $2,000 for lawyers, accountants, and consultants during setup phase
- Banking and payment processing setup: $500 to $1,200 for merchant accounts, credit card processing equipment, and initial fees
- Deep cleaning and pest control: $300 to $800 for thorough pre-opening cleaning and ongoing pest management contracts
- Staff recruitment and training costs: $500 to $1,500 for advertising positions, background checks, and extended training periods
- Grand opening promotions: $1,000 to $3,000 for discounts, free samples, and marketing materials that exceed normal marketing budgets
- Equipment replacement and backup: $1,000 to $2,500 for backup brewing equipment and replacement of items damaged during setup
It's a key part of what we outline in the tea room business plan.
Conclusion
This article is for informational purposes only and should not be considered financial advice. Readers are encouraged to consult with a qualified professional before making any investment decisions. We accept no liability for any actions taken based on the information provided.
Starting a tea room requires careful financial planning, but the investment can yield substantial returns when executed properly.
Success depends on balancing startup costs with long-term profitability, ensuring you have adequate capital reserves while investing wisely in elements that directly impact customer experience and operational efficiency.
Sources
- Cushman Wakefield Vietnam Retail Market Report
- VietnamNet Retail Property Analysis
- B-Company Vietnam Retail Real Estate Report
- Dojo Business Tea Room Equipment Guide
- Kamereo Restaurant Opening Costs Vietnam
- The Home Barista Tea Equipment Catalog
- Hotel Mart Coffee and Tea Equipment Pricing
- TripAdvisor Tea Room Reviews Ho Chi Minh City
