World Tea News - Tea Exchange Trades on Quality, Creativity

Tea Exchange Trades on Quality, Creativity

Tuesday, 17 February 2009

The Tea Exchange in Lake Arrowhead, Calif., is growing, despite the recession.

Expansion might seem like the impossible dream for business owners during an economic recession, but one California tea room is proving that with enough creative thinking and careful planning, substantial growth can be a reality.

Harvey and Ginny Durand spent three years developing their tea business before their Lake Arrowhead store launched in 2007. Just two short years later, the Tea Exchange won an Outstanding Merchant Award from the local merchant’s association, receives multiple offers from potential franchisers and looks forward to opening two more corporate retail stores within the year.

According to Ginny Durand, their success can be attributed to three things: commitment to quality, menu growth and creative thinking.Every drink served at the Tea Exchange is freshly-brewed in the company’s own patent-pending steeping method. The tea recipes, décor, style and ambiance were also carefully considered and planned by the Durands.

“We wanted (the tea room) to be a place where people felt totally comfortable and wanted to learn about tea,” Ginny Durand explained. “We wanted the menu to bring them back to try other drinks, then find their favorite and be hooked.”

The Tea Exchange recently won a business award.

With more than 95 different kids of teas served, customers new to the world of tea have plenty to try. According to Durand, the company’s healthy living teas – designed by a woman who studied holistic tea health – have become a popular seller. Similarly, the line of desert teas has also been a big hit among customers with a sweet tooth but a commitment to avoid calories.

“Everyone who’s on a diet knows you can get that chocolate taste in a tea,” Durand said. “They just love that.”

The Tea Exchange also serves 11 different kinds of tea lattes and a wide assortment of edible delights.When they opened, the Durands offered a short food menu. Very quickly, their in-house bakery gained a following, but many customers wanted more edible complements to their teas. So, the Durands began to do research by talking to other small businesses selling teas, desserts and light food.

"Every time we went into a crepe shop, (the owners) always said (customers) asked for tea,” Ginny Durand said. “That’s when the light turned on in our heads. If they’re wanting to complement crepes with tea, then we should do the reverse.”

The Durands began testing crepes in their tea shop and saw overwhelming results. The Tea Exchange now boasts a full line of crepes, as well as panini sandwiches. Eventually, gelato was added into the mix – including a crepe gelato dessert that Ginny Durand says is quite popular. The business’s 50 percent growth rate for two years in a row, she added, can be attributed in large part to the expanded menu.

Durand also noted that education and reaching out to the local community also play a role in increasing the Tea Exchange’s visibility and reputation. She frequently does speaking engagements and tea tastings, occasionally even going into depth on the nuances of accessories like tea pots. She’s spoken to churches and the local women’s club. “Basically, anybody who’s interested,” she said. “We really try to educate the customer.”

Partnerships with charities, as well as wholesale business with hotels, are other steps the Durands have taken to increase the Tea Exchange’s profits within its first two years. The pair also uses free samples to get customers to try new products.“With every e-mail order we get, (the customer) gets samples to try,” Ginny Durand said. “We have people who say they’re green tea lovers, and ‘that’s all we drink.’ We’ll send them a fruit tea or a desert tea – the complete opposite of what they like.” A gelato bar was one of the additions the Tea Exchange made in response to customer feedback.

A gelato bar was one of the additions the Tea Exchange made in response to customer feedback.

She added, “All the time, we get reorders.”

In another effort to expand the variety of teas their customers are buying, Durand said the Tea Exchange is creating its own tea-of-the-month club. For a small fee, customers will have the opportunity to purchase the selected tea of the month at a discounted price. They’ll also get free samples of flavors and discounts on tea accessories.

It all appears to be paying off. According to Durand, approximately 20 people have contacted the Tea Exchange in hopes of opening a franchise store. Durand says she and her husband aren’t ready for that quite yet – they hope to open two more corporate stores within the year first – but they are optimistic about the future potential.