By Heidi Kyser

According to tea businesses participating in World Tea News’ Tea Business Benchmarks survey for the third quarter 2008, gross sales among tea rooms and tea retailers were significantly higher compared with the same time last year.

WTN began quarterly surveys of tea businesses following the second quarter of this year, so no year-over-year comparisons of Tea Business Benchmarks are available yet. However, we asked respondents what their gross sales were for July, August and September, as well as the percentage of increase (or decrease) over last year those sales represented.

Of the 182 survey respondents, 21 percent were from tea rooms or cafes, 32 percent were tea retailers and the remainder was from tea bars, coffee shops, general retailers, shops where tea is an ancillary product and other businesses.

Respondents from tea rooms reported July sales averaging $14,437, and increases averaging 15 percent compared with July 2007. August tea room sales were $15,415, and were up 6 percent on average; September tea room sales were $14,582, and were up 15 percent on average. 

Tea retailers saw even greater average increases: They reported average July sales of $7,369, and sales increases averaging 21 percent compared with July 2007.  Average tea retail sales in August were $6,020, and were up 15 percent; average tea retail sales in September were $6,373, and were up 19 percent.

 The most popular types of tea to sell in tea rooms, according to respondents, are unblended/unflavored green (sold by 93 percent of tea room owners participating in the survey), unblended/unflavored black (90 percent) and blended/ flavored green (88 percent).

Unblended/unflavored green also topped the list of teas sold by retailers, with 95 percent of these respondents saying they offered straight green tea. It was followed by blended/flavored black (93 percent) and unblended/unflavored black (89 percent).

As for what sells best, green tea trails far behind black, and unblended trails behind blended in both tea rooms and among tea retailers. Forty-three percent of participating tea rooms reported that blended/flavored black tea was their best seller. Thirty-two percent of tea retailers said the same tea was their best seller. Blended/flavored green tea followed, as the best seller with 13 percent of tea rooms and 18 percent of tea retailers.

And what are tea businesses charging for their tea? We asked them to give per-pot prices of four different kinds: jasmine pearl, Earl Grey, silver needle and jade oolong. Average answers across all types of businesses (tea rooms, retailers, tea bars, coffee shops, etc.) revealed a range of less than one dollar, with Earl Grey being the cheapest pot (at $4.65) and jade oolong being the priciest ($5.36).

Beginning in January, WTN will conduct its Tea Business Benchmarks survey monthly with a core group of participants in the business of selling tea.