Lately, iced tea franchises have been popping up everywhere. You can easily spot iced tea stalls on almost every street or alley, each with its own unique brand and concept.
Iced tea itself has become part of everyday life in Indonesia. It’s almost always on the table whenever we eat, whether at home, in restaurants, or small food stalls.
Because of this habit, the iced tea business has been booming and attracting lots of new entrepreneurs. But even though the demand is high, picking the right spot to sell your iced tea is super important. The right location can make all the difference in bringing in customers and boosting your profits.
In this article, we’ll share five of the best and most strategic spots to start your iced tea business.
Contents
A Glance at the Iced Tea Business in Indonesia
According to data from Databoks, sweet iced tea is the most popular homemade beverage in Indonesia, with around 63% of survey respondents saying they regularly drink it every week.
This aligns with findings from Jakpat, which reveal that nearly half of Generation Z in Indonesia drink sweet iced tea one to three times a day. These numbers show that iced tea is more than just a refreshing drink, it has become part of the daily lifestyle of many Indonesians.
This high level of consumption is also supported by strong domestic tea production. In 2023, Indonesia had about 97,000 hectares of tea plantations, producing approximately 116.5 thousand tons of tea annually. With an abundant supply of raw materials, the country’s tea-based beverage industry has a solid foundation for sustained growth.
Given these trends and opportunities, the iced tea business offers promising potential for entrepreneurs. Strong market demand, stable raw material prices, and a deeply rooted tea-drinking culture make this industry an attractive field for business development.
Iced Tea Business Locations with High Customer Potential
Despite the high public interest in iced tea, entrepreneurs still need to carefully choose the right location when starting this business. A strategic location plays a key role in attracting more customers and maximizing revenue.
Below are five promising locations for an iced tea business that offer high foot traffic and strong customer potential, great options to consider before you start.
Campus or School Areas
The first strategic spot to sell iced tea is around campuses or educational areas such as elementary and middle schools, or even tutoring centers.
These areas are always full of activity, especially with students who often look for refreshing and affordable drinks during study sessions or breaks. Based on the data mentioned earlier, Generation Z is the demographic that consumes sweet iced tea the most, with a frequency of up to two to three times per day.
This makes educational areas an ideal place to reach your main target market. In addition to students, these areas are also frequented by parents, teachers, and local residents, all of whom can become potential customers.
Busy Streets with Vendors
The second ideal location to sell iced tea is in busy village alleys or streets that are already filled with various vendors and trading activities. In almost every region, there is always a spot known as a local hub where sellers gather to offer food, drinks, vegetables, and household necessities.
These areas often serve as centers of community activity and favorite shopping places for residents. The lively atmosphere also creates a positive chain reaction for small businesses. When many vendors operate in one place, the number of visitors naturally increases. Therefore, opening an iced tea business in a busy and densely populated area can be a great way to reach more customers.
Near Stations or Terminals
Stations and terminals are locations with almost constant activity. From morning to night, these places are always filled with hundreds or even thousands of people, including workers, students, and intercity travelers.
This busy and dynamic environment makes stations and terminals highly strategic spots for selling sweet iced tea. To attract more customers, businesses can set up stalls near entrances, exits, parking areas, or bus stops in front of stations and terminals, if permitted. These spots offer high visibility and steady foot traffic, increasing the chances of higher sales.
Traditional Markets
The last potential location for an iced tea business is traditional markets. Markets are always bustling with buying and selling activities and experience high foot traffic throughout the day, especially in the morning and afternoon. This makes them excellent places to reach a wide range of customers.
In addition, selling in market areas provides logistical convenience. Most of the main raw materials, such as tea leaves, sugar, ice, and packaging, can be easily sourced nearby, allowing businesses to operate more efficiently while keeping supply costs low.
Find the Best Business Location with LOKASI Intelligence
LOKASI Intelligence is a geospatial analytics platform equipped with integrated location intelligence and comprehensive location data. With LOKASI, businesses can easily identify the best locations and analyze an area’s potential based on various key factors.
LOKASI offers a wide range of location-based data, including population demographics, Points of Interest (POIs), socioeconomic status, and land prices. This information provides businesses with a complete picture of an area, covering aspects such as accessibility, visibility, and surrounding market potential.
With these insights, businesses can make smarter and faster decisions — from selecting new business locations and assessing existing branches to developing more efficient expansion strategies.
To learn more about how LOKASI Intelligence can help your business grow, contact us at:Email: [email protected] or WhatsApp: 0877-7907-7750
FAQ
How much capital is needed to start an iced tea business?
The capital required to start an iced tea business can vary, typically ranging from IDR 2 million to IDR 5 million, depending on the scale and concept.
Is the iced tea business profitable?
Yes, the iced tea business is highly promising. Tea has long been a part of Indonesian culture and daily life. In fact, data from Databoks shows that 63% of Indonesians drink sweet iced tea every week.
Who is the Target Audience for Tea?
The target audience for tea is actually very broad, as almost everyone in Indonesia enjoys drinking tea, from children and teenagers to adults. However, according to a survey by Jakpat, nearly half of Generation Z in Indonesia consumes sweet iced tea one to three times a day.
Considering this habit, businesses can focus their marketing strategies and sales locations in areas that are frequently visited by Gen Z, such as schools, campuses, and popular hangout spots.
