Question 1

Do you need a licence to open a bubble tea shop in the UK?

Accepted Answer

No licence, but registration is compulsory. Any food business must register with its local authority at least 28 days before opening, which the Food Standards Agency states is free and an offence to skip. Registration cannot be refused. An inspection follows and produces a food hygiene rating. Planning permission may be needed depending on the unit's existing use, which the council confirms.

Question 2

Is there VAT on bubble tea?

Accepted Answer

Yes at 20% when it is drunk on the premises or sold hot to take away, because that is a supply in the course of catering. Cold takeaway is the unsettled case: it is standard-rated as a beverage unless it qualifies as tea under overriding item 4 of group 1, schedule 8 of the VAT Act 1994. The Association of Taxation Technicians asked HMRC for specific guidance in August 2024 and none was found published as at September 2026, so the position is taken product by product with professional advice.

Question 3

How much does it cost to start a bubble tea business?

Accepted Answer

There is no published UK average. Food business registration is free and incorporation is £100 online, but the fit-out, equipment and rent are not recorded anywhere public. Franchise figures circulating in directories disagree sharply, with the same brand appearing at a total investment of £30,000 to £60,000 in one listing and £160,000 to £365,000 in another, so the only reliable number is the one in a brand's own cost schedule.

François Lozano

About Me

Their articles

Wingstop opens in Bournemouth as UK estate passes 100 sites

Co-op adds six Peacocks and Bonmarché concessions

Randy’s Donuts picks Edinburgh for first UK shop

How to open a dark kitchen in the UK 2026

How to open a bubble tea shop in the UK 2026

T4 bubble tea tops 60 UK sites and seeks franchisees

Papa Johns franchise partner hands 19 shops to son

Morrisons adds 71 Morrisons Daily franchise shops in 2026