Iced Tea Business Opportunity: Low Investment, Maximum Profit

Recently, the public was stirred by a religious figure’s statement mocking iced tea vendors, sparking widespread anger and disappointment. However, one undeniable fact remains: iced tea is a favorite drink for many and presents an exciting business opportunity. Let’s take a closer look at how promising this business can be and the capital required to get started!

Why is Iced Tea a Popular Business Choice?

Iced tea is a beverage found almost everywhere, yet it remains a crowd favorite. With its affordable price and refreshing taste, iced tea is a go-to option for people, whether relaxing or accompanying a meal. Many entrepreneurs have tapped into this opportunity, starting small businesses ranging from roadside stalls to modern outlets.

Starting an iced tea business requires relatively low capital, and with a bit of creativity, it can grow significantly. Offering unique flavors, attractive presentation, and eye-catching packaging can further boost customer appeal. This makes it an excellent choice for those looking to start a business on a budget.

Read Also: Will VAT Increase in 2025? What It Means for Consumers

Estimated Capital for an Iced Tea Business

Several iced tea franchises offer affordable startup packages, ranging from IDR 1.9 million to IDR 20 million. However, if you prefer to create your own iced tea business without a franchise, here’s a breakdown of the initial costs:

Portable Cart: IDR 500,000
Promotional Banner or Poster: IDR 100,000
100 Plastic Cups: IDR 50,000
100 Plastic Lids: IDR 40,000
100 Straws: IDR 10,000
Tea Bags (2 Boxes of 50 pcs): IDR 50,000
Sugar (3 Kg): IDR 45,000
Ice (Large Bag): IDR 20,000
Mineral Water (2 Gallons): IDR 30,000

Total Initial Capital: IDR 845,000

(It’s recommended to set aside an additional IDR 150,000 for unexpected expenses such as transportation or extra equipment, bringing the total prepared capital to approximately IDR 1,000,000).

Estimated Daily Operating Costs

Each cup of iced tea is estimated to require the following:

Tea Bags (1 bag for 2 cups): IDR 500 per cup
Sugar (30 grams per cup): IDR 450 per cup
Ice and Water: IDR 300 per cup
Plastic Cup, Lid, and Straw: IDR 1,000 per cup

Total Production Cost per Cup: IDR 2,250

Selling Price and Revenue Potential

The average selling price for iced tea is around IDR 5,000 per cup.

If you sell 50 cups daily, the potential daily revenue is:

Daily Revenue: 50 x IDR 5,000 = IDR 250,000
Net Profit per Cup: IDR 5,000 – IDR 2,250 = IDR 2,750
Daily Net Profit: 50 x IDR 2,750 = IDR 137,500

Monthly Potential

If your business runs consistently, selling an average of 50 cups per day for 30 days:

Monthly Revenue: IDR 250,000 x 30 = IDR 7,500,000
Monthly Net Profit: IDR 137,500 x 30 = IDR 4,125,000

Conclusion

With an initial capital of around IDR 1,000,000, you can start an iced tea business and earn a net profit of up to IDR 4,125,000 per month. This figure can grow even more if you boost sales through promotions, choose strategic locations, or offer unique iced tea flavors to attract customers.

Starting small doesn’t mean limiting your potential. Proper management, especially in finances, is crucial. To simplify managing your business finances, try Ximply – a financial management software that makes handling your business finances a breeze.