Design a “Perfect” Milk Tea Store for

00-10 generation
 Abstract

Considering the popular yet low-quality status quo of the milk tea industry, our project

intended to explore possible marketing systems for milk tea companies to prevail under the modern

environment. The overarching aim was to define and apply the “perfection” in our heart and

enhance consumers’ overall happiness subtly by innovating niche business models whilst

investigating our targeted consumer groups. Firstly, we encouraged the customization of products in

which menus are adapted towards greater flexibility and individual preferences on APPs. Charity

institutions, non-governmental organizations are also included in cooperation, allowing consumers

to visualize their efforts and donations towards philanthropic programs based on their personal

willingness with well-aimed interactive design. With regard to the concerns arising with quality and

health issues, we decreased caloric intake by investigating new possible alternatives and health

limitations available for consumers. In response to our survey and interviews, we intensified the

usage of APP/miniprograms by transferring the physical ordering procedures to APPs, providing

more flexibility and even discounts. Surveys and interviews were the main methods to attain

information of our intended audience’s preferences. Throughout the process, the SWOT model

(Strengths, Weaknesses, Opportunities and Threats) was applied in assessing the validity of our

outcomes. The innovation has a general popularity and approvals among our intended

audience,those born from 00-10, however, concerns based on profit making and business format

arise. Limitations of this innovation have occurred in its high dependence on consumers’

acceptance. High risks are foreseen in applying this innovation. Yet we insist on our idea to choose

responsibility towards health and wellbeing rather than short-term profit, and we continue to seek

other ways of profiting. Additionally, our innovation has great potential in improving the market

strategy as well as the industry standard by its niche concepts provided to the consumers.

Keywords: Milk tea, software design, donation, food health, DIY

quality and innovation on a larger scale. In recent years, milk tea as a newly emerged beverage is

most preferred by consumers, especially the younger generation. Yet new concerns arise

accompanied with the development of this industry, including food safety, nutritious value,

overpricing and the homogeneous products. Milk tea market, are one of the undoubtedly

controversial topics on the table.

Even more remarkably, teenagers, especially those born from 2000-2010, were found to be

the targeted and major crowd of consumers in this market. As part of this generation ourselves, we

are deeply aware of the impact of milk tea industry among our peers, and the possible potential

values it can bring to the society and the generation. Vice versa, this huge impact can also bring

serious results to this highly directed crowd including health and addiction issues, which is fatal.

Despite the above, the ongoing remarkable expansion of the milk tea industry can be

attributed to consumers’ rising demand for freshness, style, flavor and price. In this scenario, major

brands still have rapidly flooded and grown in the market, bringing drastic rivalry among the

proprietors. Regarding this clear trend of the milk tea market in China as a whole, we decided to

focus on developing a new business structure that is more flexible, healthy, and social-friendlier as a

whole.

Throughout our investigation of the current inadequacy of the industry, we discovered

several aspects. First, the supreme popularity of milk tea is seriously affecting the obesity and

unhealthy rate of teenagers. Second, technology and innovation included in this industry is not

equivalent to its foreseeable popularity. Third, stores commonly show scarce social responsibility in

terms of even industry-related issues.

On the other hand, as people's quality of life improves, consumers' demand for milk tea is

becoming more and more diversified, not only satisfied with the basic taste and flavor, but also
more concerned about health, nutrition and environmental protection. With the emphasis on health,

the milk tea industry has continued to introduce various healthy fashion products. Throughout this

process, more types of drinks derived from the initial cup milk tea. Zero-sugar yogurt, alvocado

bowl, etc. Milk tea store is not only symbolic for selling milk tea with bubbles, but with these

innovative healthy products.

Meanwhile, milk tea market has been remarkably saturated, which means brands need to

continue to innovate flavors to attract consumers. New born brands are hard to survive, old brands

are hard to persist. Different innovation started to emerge as a new form of competition. For

example: many stores combine traditional milk tea flavors with local popular symbolic “tastes” to

launch a unique local flavor milk tea; Chinese traditional thematic names of milk tea and

decoration; seasonal fruits added in drinks to diversify the colors, etc. But none of these trends can

be compared with the dramatic trend of online channels. In short and on paper, milk tea brands need

to integrate online and offline sales channels to provide a more convenient purchasing experience

because of the vareity types of drinks existing for the demand. This may also serve to enhance

brand influence through online platforms. Combining these market issues and trends, we hope to

create the “perfect” milk tea store that meets the needs of most people.

2. Essential Research
Our research question focuses on identifying the elements that make a ‘perfect’ milk tea

store.

2.1 Market investigation

The importance of this research lies in the significant growth and evolution of the milk tea

industry. The global bubble tea market size was valued at $2.29 billion in 2022, and is projected to

grow from $2.46 billion in 2023 to $4.08 billion by 2030.[1] With a tendency to shift into the online

sector.[2]
 Thus, we aim to create a model that concludes elements current popular milk tea stores share

that contributes to their popularity, considering factors such as taste, variety, packaging, etc. This

research gains significance in the context of the dynamic growth and transformation within the milk

tea industry, marked by evolving consumer demands for freshness, health, fashion, flavor, and

reasonable pricing.

In the context of our research, the term “universally appealing” refers to the set of attributes

or characteristics possessed by a milk tea store that resonate positively with the targeted consumer

base. [2] However, due to the specialty of our project, not as much academic papers and anlysis can

be found in the database available. So far our conclusions and schemes are made upon both paper

reviews and physical survey, as well as interview.

2.2 Consumer preferences

Earlier research has explored topics related to milk tea and the application of conjoint

analysis in studying various beverages. A study examining consumer beverage purchase behavior

and preferences for different beverage categories in Tainan, Taiwan using descriptive statistics and

pearson correlation coefficients gave findings that indicated a positive correlation between product

attributes and consumers' purchasing decisions.[3] Therefore, visual elements and making products

attractive contribute to higher popularity. Focusing on unique and visually appealing store logos and

drink cups can create a memorable and distinctive brand image, attracting customers and fostering

brand loyalty.[4]

Likewise, an analysis to comprehend the factors influencing consumer preferences and the

changing purchase intentions across a wide array of products within the dynamic beverage

industries was conducted. The findings revealed that significant shifts in consumer focus towards

milk and fruit-based drinks were primarily influenced by factors such as health benefits and calorie

content.[5] Therefore, focusing on healthier product contents and lesser calories is a strategy to

attract more customers.

Our proposed approach revolves around personalized customer experiences through the

implementation of a special mini program. Although there are various milk tea brands utilizing mini

programs, these programs are only designed to order, our mini program will include a DIY format

and prioritize personalized designs for each customer.

To enhance convenience, we transition to an online-only ordering system. Our physical

stores will transform into vehicle stations or workshops, maintaining a tranquil environment for

order pickups. Instructions will be prominently displayed outside for easy navigation, ensuring a

seamless and accessible experience for all customers.

We prioritize health-conscious choices by linking the calories intake to sugar restrictions.

Compared to current existing healthy-milk-tea products, the products we produce are more

personalized, as customers are encouraged to make healthier choices with options selecting lesser

sugar, different types of milk, substitutes for pearls, etc. For example, we also researched about the

accessbility of the healthier alternative for bubbles—-grass jelly.[6] Other than this, consumers are

able to try out more diverse tastes.

Embracing innovation, our new DIY format empowers customers to design their own milk

tea with limitless combinations. However, with non-uniformed products, every single product will

experience different procedures to make, and every choice of design has to be carefully recognized

for the products to be totally matching with what consumers demand.

However, providing completely personalized products might be costly, as a larger variety of

substitutes are demanded and more time is taken for a single product’s production, compared to

making uniformed products with the same procedures for each cup of drink. Therefore, we suggest

the mini program to include the ability to present and show the price and expected time of their

drink completion of the customers’ creation as they choose.

the milk tea, VIP privileges are granted annually for this unique customization.

In comparison with current existing milk tea stores, our implementation of the mini program stands

out, providing a personalized and interactive platform for customers. This goes beyond

conventional ordering systems, fostering a deeper connection between the brand and the consumer.

The emphasis on health-conscious choices allows customers to customize sugar levels and offers

substitutes for pearls, distinguishing our solution by catering to the growing demand for healthier

beverage options.

Furthermore, the introduction of the DIY format, where customers design their own milk tea

with the ability to determine its price, adds a unique and engaging dimension to the user experience

that almost no current brand produces. These features collectively elevate our solution, providing a

more dynamic and customer-centric approach compared to current existing milk tea stores.

2.4 Statistical survey

For the purpose of how to design a ‘perfect’ milk-tea-shop, we did social surveys and held a

heated discussion according to the results of the investigations. We got a large amount (more than

100) of useful responses and ideas about the milk tea store ideas. For instance, according to our

survey, 96.25% of people prefer to buy milk tea online and 100% people agree with the argument

that milk tea shops need to have their own small order program because they think buying milk tea

offline is extremely inconvenient. Therefore, we should try our best to improve the online channels

and make customers take pride, comfort and satisfaction. As a result, we also did an investigation

about the reviews and suggestions in regard to the online channels from consumers. We also found

that special demand for some consumers are hard to be claimed through online portal. For instance,

for some consumers who dislike sugars or other pellets like pearls, there is no choice to remove

them when they want to order milk-tea with the Apps and there are only three choices about sugar

( 30%,70% and 100%). Thus, online channels of ordering milk-tea have lots of room for
improvement and we have had many discussions on such issues and would put it into practice as

soon as possible.

2.5 Current solutions

Not as many people so far gave successful solutions in the problem of our project. We

concluded three of the major questions: First, teenagers are out of the management of family,

school, and have weaker self-descipline comparatively. Thus it’s hard to impose sugar limiting

policy on the sake of milk tea store. [7] Second, despite the willingness of some stores to use

healthier ingredients, these materials are substantially more expensive. Thus we need to find other

ways to make profit that can afford these actions.[8] Third, New technologies of solving the

inefficiency in space utilizing have emerged, but it’s both inconvenient and expensive for a milk tea

store. We need a clean and accessible way in order for this innovation to be spread.[9]

2.6 Persoanl Interview

We also consulted the experience and precautions of relevant milk tea shops. According to

these activities, we also got a lot of important information about a “perfect” milk-tea-shop. Too

many milk-tea-shops owners argue that they have to launch many more new kinds of milk tea for

different people and in different seasons. And according to our survey, 80.79% people think the

diversity of milk-tea is the most important thing for an ordering program.

We also found that many of the workers at milk tea store complained about the bad working

environment, most of which is face-to-face ordering. The crowded and noisy atmosphere and the

variety choices of customers are overloading their work.

Combining these information, we decided to create this online portal with more kinds of

milk-tea like low sugar, healthy milk tea and better warm milk tea material in winter and so on.

Siting location is also a really significant part of operating a milk-tea-shop. Neither a little corner in

the middle of nowhere in a city nor a crowded but competitive area. We need to continue to study

the strategy and wisdom of siting locations. According to the interview with the employees,
patience and a smile is the most important thing for them. These not only can increase customer

satisfaction but also can make themselves more hAppy. What’s more, we also learned that a milk-

tea shop doesn’t need too many employees. The best number of employees may be 2 or 3. One

employee must be patient and he is in charge of entertaining customers, another one or two in

charge of making milk-tea. If necessary, the owner can hire one or two more to stand in front of the

store as an anime character to attract customers. Only if we consider as many things as possible, the

more chances we have to create a “perfect” milk-tea-shop.

(Both of surveys and interviews related files will be uploaded in the submission portal)

3. Innovation Design
3.1 Intended audience

Based on our literature and first-stage market research, we have identified the teenage

crowd, born specifically from 2000~2010, was the major consumer in the milk tea industry. We

noticed that this crowd is taking both the pros, and the cons of the milk tea industry. They show

high enthusiasm and preference in milk tea, yet endergo high potential health threats accordingly.

The ideology among elder groups makes milk tea harder for them to accept, leaving only teenagers

as the major consumers.

Being separated and isolated from society, teenagers are easily addicted without proper

management. A great amount of them are away from their guardian, or parents, resulting in a more

severe and uncontrollable situation for drinking milk tea. One milk tea per day is common for this

crowd based on our survey. Thus because of the potential and natural purchasing power our

intended audience have, we decide to turn our focus onto innovative ideas in order to attract them.

Having so many homogeneous products and business formats of advertising, the market has shown

a tiring trend, and many past-day big sales have been shut down due to their lack of competitive

power.
 Consequently, after our background research of this generation, as well as our own

generation, we proudly found that we are a generation with high standards, high acceptance of new

things, and high sense of responsibility in society. Based on which we started our next stage of

innovation. We are confident that our innovation is highly correlated to our intended audience who

are easily accessibly throughout the research.

3.2 Innovation

To echo what we have in audience research, we have concluded 3 major innovations of ours.

On the final terminal, these modules are called “drink to sea”, “DIY”, and “Short-GAR”.

First and foremost, “DIY” is the only terminal to order in our design. No more purchases can be

made physically. Throughout our field research, we have found that milk tea stores are relatively

small compared to other shops. This is mainly due to the conventional thought starting from the

start of this industry. However, no one realizes that the status quo no longer matches with the

growing market demand and consumer demand. Despite the urge of expanding the store area,

limitation in funds and desire of making profit withdraw the impulse of the natural market. Thus

this innovation optimized the in store area usage by eliminating the long lines and huge amount of

online order drivers awaiting. This innovation also raises the level of consumers’ freedom and

flexibility. We included different functions in the DIY module, allowing consumers to design their

own package, milk tea seasoning, even materials of straw within provided choices. This includes

one of the vital parts of our revenue, of a monthly premium policy.

Our next innovation is “drink to sea”, meaning “drink your ideas to own a sea”. Our

audience is a crowd filled with passion and speculation towards society. But being restricted in

school and curriculum has refrained their ability to advocate for their willingness. “Drink to sea”

provides teengers with the ability to make an impact, based on their consideration. As a teenager of

this era myself, we sincerely understand the App and pursuit of our own generation. For those that
are younger than us, this function helps to build a sense of responsibility in society. A designated

amount of money in each bottle of milk tea we sold can be donated to the specific individual in

need, organizations, or even a fundraising committee. We researched for a widely spread list

possible for us to access, in order to provide this opportunity to our generation.

Our final major innovation is regarding the current arising concern of the health issues

relating to the milk tea industry. With the high addictive characteristics and directness towards our

young generation, the milk tea industry should be more strictly managed in its quality and

ingredients, as well as hygiene. In our App/miniprograms, the function “Short-GAR” is designed

towards the current problems of obesity due to excessive intake of milk tea among teenagers. In this

function, consumers can choose to design their own plan of diet on sugar, or just to use our

suggested template. During our research, we have investigated the price and nutritious value of

many alternatives to the unhealthy boba now predominant in the industry. With those alternatives,

consumers will definitely have a better chance to keep their health while drinking milk tea.

3.3 Interactive design

In order to be more easily accepted by both consumers and the market, our innovation is all

choices available for the consumers to experience. In order to make it more accessible for

consumers, QR code will also lead consumers to the same terminal to order. Advertising will be a

vital part for this idea to be spread and popular. Cooperation with other enterprises and IPs are also

significant by learning from other existing successful examples in the market. Below is the original

design and blueprint for the 3 basic functions of our APP/ miniprograms. (The words below in the

image are intro)

We have been working on online portal for more than a month. We decided to start with app,

considering the convenience for most customers to come to our store without having to download

an APP. So far we have done the basic interactive design and conceptual input. Now we are

currently using JavaScript to write the code to run the app. Our script will be attached on the

submission portal. Below is the basic construction of our code.

However, applying for a app as teenagers need extra time for them to validate. So far we

have input our code into the WeChat developer tool. But we need to finalize our idea and time for

validation our idea and code in order to really get it transferred into a real app. Thus recently

starting from January, we started to develop the website. The link will be attached in the submission

portal as well. The website is to be updated and consummated. Many functions that require coding

wasn’t all done.

We used the SWOT model to validate our results. SWOT stands for strengths, weaknesses,

opportunities, and threats. The strengths of our project is clearly stated to be the innovation of this

brand new business model and its applicable usage in any milk tea store that will soon accustom

anywhere in China. However, our weakness is also obvious. We highly depend on the acceptance of

our intended audience, as well as the initial crowd of consumers. But higher risks always stand for

higher payoffs. In this project so far, we haven’t really reach the part of consolidating the location

choice and the raw material sources, although we have collected data of them. Submission will not

be the end of our project. In February, we have a continuous plan for tidying the JavaScipt and

consummate the website as well. Opportunities in thi project will be the CTB national site seminar,

where we can hear from others’ opinion about the current shortcomings we have and more ideas

about our future directions. Basing on our foundamental core thought of environmental friendly and

positive externality to society, we are confident that this project has no potential threats on any

aspect. On possible effect might be employment change for eliminating the physical order, but since

most stores are hiring workers for multi-purposes, this should not have a negative impact.

As a result of the particularity of our project, it’s nearly impossible to have any direct

outcome and feedback before our app/ website is out for a period of time. But in our surveys we

have concluded that this project ends up being revolutionary, innovative, and fresh to our intended

audience.

5. Discussion and conclusion

Throughout the process of our project, lacking of resources might be one of the vital

questions that we have. As students, none of us have really stepped into real society, or business
world. Even though we had interview with professional people, as well as survey to gather

everyone’s ideas, we are still pinned on theoretic dimension. In the future, we might continue to

research the market, and dive deeper into the industry to find more painpoint and details. We will

also consummate our App/webpage and publish them to get real user feedbacks from other angles.

We also planned for advertising part that is not included so far in our project. As an integral part,

advertising and promoting strategy is the key to success.

5.2 Conclusions

In the process of this project, we’ve been sparing our efforts to improve the unhealthy

ingredients in the industry, the inefficiency of store usage, as well as the limitation of flexibility on

the consumer side. Our innovation provided solutions and ideas according to those respectively. The

function accumulating App/webpage assembles our optimal alternatives for the consumers,

including DIY, sugar cutting plans, and social engagement. Our surveys adequately provide us with

insights on the points of view from our targeted audience and questions arised. Interviews also

helped us find many shortcomings in both consideration and pracctical Application. We used SWOT

theory to test our effectiveness that got.a satisfactory result. We have developed a rather mature

system of business model that can be Applied in any milk tea store, and an ongoing improving

webpage/App terminal that can be accessible as well. We think the ultimate goal for this project is

to have responsibility and use advanced mindset to revolute the tradition.

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