Tea2Go: 2021 Profit Updates
Tea is one of the most consumed drinks in America, with 1.42 million Americans drinking tea each day. Tea2Go was founded by the father-son team Jeff and Taylor Hunt. Taylor and Jeff opened Tea2Go in 2013 as a franchise, offering tea-based drinks as well loose-leaf teas for home. They wanted to make delicious teas with unique health benefits that didn’t compromise on taste.
Tea2Go opened many shops but they all began to fail. The Hunts were struggling just to survive. Tea2Go, with over a million dollars of debt, was close to going out of business.
Marcus was essential to the Hunts’ ability to continue their family business.
Tea2Go: The Profit
The Profit Season 4 Episode 8
Marcus believed that the tea industry was worthwhile growing. Tea2Go, however, left much to be desired. There was no point-of-purchase system, no food options, and no accessories. Marcus knew Tea2Go needed a complete overhaul in order to remain in business.
Marcus discovered that the father-son relationship was a complicated one with a history filled with poor decision-making. Taylor was only 18 when they formed their alliance. Jeff requested that Taylor prioritize his family business over his studies. As many children do when they try to establish a relationship with an estranged parent. Taylor left college in accordance with his father’s wishes. Although Taylor thought his father was trying to fix their relationship by investing money in the business, Marcus realized that they were more business partners than father and son.
Marcus visited franchise owners in a number of franchises and noticed a great disparity in the passions of franchise founders and franchise owners. Franchise owners were tea drinkers so they paid more attention to details. Jeff was not a tea drinker. He was not even enthusiastic about the tea he was selling.
Marcus met Jeff and Taylor for a deeper financial discussion. Tea2Go had a net worth of -$700,000. Their product had a profit margin of 90%. Marcus decided to rebrand the company with a new name and a stronger concept in order to get out of this hole. He offered $300,000 to buy 75% of the company. After much negotiation, they settled on $350,000 for 70%. Marcus also made a deal with Manish, the tea shop’s supplier. He offered a portion of the equity in return for debt forgiveness. They agreed.
Marcus came up with a novel idea: adding spices to the business. This idea was presented to franchisees at a new meeting. He sold under the new name, American Tea and Spice Shop. Jeff was slightly apprehensive, but the applause was loud and clear that his idea was well received.
Marcus took his new idea and remodeled one franchise under his new brand. The tea and spice shop would now sell accessories and food. Jeff was not sold on the idea and was selling franchises using the old concept and paperwork. He could technically have been charged with fraud, which would have put Marcus in danger.
Tensions escalated. Jeff quit his job and asked other employees to go if they didn’t like this new idea. He decided to keep Tea2Go the same as before they appeared on TV. Jeff and Marcus would then be operating competing businesses. Marcus made the decision to end their agreement and start American Tea and Spice by himself. Franchisees had the option to choose which franchise they wanted to operate under.
American Tea and Spice employees were delighted with the new look and shelves full of affordable teas and spices. Marcus made two major announcements at the grand opening. He wanted to make American Tea and Spice a profitable franchise. The second was? Taylor would be paid by the company to return and complete his college degree.
Tea2Go for the Profit
Jeff posted a complaint about The Profit and the people involved in creating the episode on social media after it aired. He claimed that the show was full of theatrics and that everything Marcus said or did was entertainment. (Tellingly he said that this was not the first time someone had complained about the show.
Taylor returned to school in January 2017. On his social media accounts, he thanked Marcus for helping him finish his education.
Tea2Go appears to be still in trouble as of June 2020. Although there are many Tea2Go franchises and stands in the region that can be found via a Google search, it appears that just as many of Jeff’s original stores have closed. Sometimes, customers are not even notified. Loyal customers will show up at a closed shop.
Only one Tea2Go franchise became American Tea and Spice. American Tea and Spice was rebranded and now stands for American Tea and Coffee. They do not currently have franchised locations.
Tea2Go files for bankruptcy; Waco location will continue to be called Waco
Ford Ferrer, a local franchisee, stated that the Tea2Go Waco shop will be rebranded to Nobility Tea Company. This is because Tea2Go Texas-based Tea2Go seeks Chapter 7 bankruptcy protection.
Ferrer stated that new signs will soon be put up at the shop on South Seventh Street and Cleveland Avenue. The shop specializes in fresh teas made from whole leaves. He said that they have until June 30 to switch.
Ferrer, who lives near Houston, stated that the Waco location has done well since its opening three years ago. It is also popular among Baylor University students. Ferrer said that the shop sells between 175 and 225 tickets per day, with each ticket representing two to three customers.
Ferrer stated that he has joined forces with several Tea2Go franchisees to form Nobility Tea Co. He will open Nobility-branded shops at several high-end shopping centers in Houston, previously occupied in part by Teavana-affiliated Starbucks shops. He stated that he and Cyndy will open their second franchised store in Houston’s Clear Lake area next week.
Ferrer stated that “Our Waco store is doing great, and the ownership will remain the same.”
He said that Sterling Tea, which is based in Rockwall will supply the Nobility brand with leaves.
He stated that Tea2Go’s founders offered franchisees the option of operating under the Tea2Go name or going separate ways.
He said that he estimated that 15% of Tea2Go’s customers stayed with the company, mainly in the Midland and Lubbock areas.
Tea2Go representatives could not be reached Tuesday for comment
Sean Smith, who runs the Tea2Go in Waco said the same thing as Ferrer, that the group that filed bankruptcy was a separate entity and is not involved in the ownership.
According to him, the shop was opened in March 2015 in Tinsley Square, a complex owned by Shane Turner, Todd Behringer, and it was almost exactly three years old.
A shop called 1102 Bubble Tea & Coffee opened its doors in January. It is located in the same complex at 800 S. Seventh St., also owned by Turner & Behringer.
Ferrer stated that he wasn’t happy his landlord had placed a competitor near his shop. “But I later learned that it is an entirely different concept and our sales have actually increased since it opened.”
Tea2Go TeaN’ergy now has a second location
Tea2Go TeaN’ergy opened a second Midland location at 3211 W. Wadley Ave. last month. Heather Garvin, a franchise owner, was a customer before falling in love with the franchise’s coconut tea. Midland had previously been a Tea2Go store. Garvin was able to find out about the business through the Tea2Go locations. However, the owners closed the Abuelo Mexican Restaurant location. Four years ago, she opened her store at 3415 N. Loop 25 W. Suite 307
She said, “We opened the second place because of the demand.” “Everybody loves tea and it was a joy to see people asking for a second location.”
A friend, who manages the Imperial Shopping Center, told her about the open storefront. Garvin believed that the storefront would attract a lot of people from the surrounding areas.
The tea shop sells energy drinks, specialty drinks, and loose-leaf teas. Garvin also added a self-serve bar to the tea shop, as well as gallons of tea to go. There are more than 65 loose-leaf and energy teas in the store. Her favorite drink is strawberry Starburst energy which she drinks every day instead of coffee.
She said that Wonder Woman and Superman are also popular energy drinks. Our white tea is my favorite loose-leaf, especially during the Texas heat. Mixing our Corner Cafe’s black tea with our Tropical Sangria, and our Madagascar coconut white tea makes it the most popular.
TeaN’ergy will also be rebranding the franchise, but it’s still the Tea2Go Midlanders love. Garvin stated that it will only have new branding. She also created a children’s menu that can be enjoyed by kids without the need for caffeine and energy.
There is a laptop bar and free WiFi available in the store for those looking for work. She welcomes anyone looking for a place to hold business meetings, Bible studies, or mom groups.
Garvin’s locations offer happy hours from 8-10 a.m. Monday to Friday, and 9-10 a.m. on Saturday. All other drinks are half-off
The hours of operation are from 7 a.m. until 8 p.m. on Monday through Friday, 9 am to 8 pm Saturday and 11 am to 6 p.m. Sunday.
Disclaimer: The information in this article is for informational purposes only. Updatedideas.com has no affiliation with Tea2Go, The Profit, or any of their subsidiaries.