The Cost of Theater
Charles Cain - Dec 1st 2009
Loose Leaf Tea
In order to differentiate the Adagio Teas retail concept from the competition we plan to focus a great deal of attention on creating a sensory rich experience.
For the sake of argument, allow me to describe a few of the elements that I believe would create the ultimate tea buying experience:
- Hundreds of teas accessible to the customer for viewing and smelling
- Samples of each tea available in loose AND brewed form
- The option of performing professional comparison cuppings of any tea in the collection
- The ability to create custom tea blends from any tea in the collection
- Detailed information available for each tea including year picked, country of origin, ingredients, packaged on date, best by date, brewing instructions and the story of the tea (details about the region, garden or production style)
- Unbiased customer ratings of every tea and accessory (teapot, kettle, filter, etc.) in the collection
- A sample of each accessory in the collection open and available for testing and brewing teas
- Experienced, educated staff available to answer questions and guide curious customers
Am I missing anything? Is there anything else that YOU would like to see?
The key, the secret, the magic behind the curtain that will allow us to create a sensory rich environment without relegating Adagio Retail Stores to loss leaders for marketing purposes only is efficiency. Dramatic improvements in efficiency and aggressive adherence to the simplicity of the core concept will allow an Adagio Store to realize savings of time and money on the operation of the store and re-invest those savings into creating customer experiences.
Example: The recent advances in Adagio packaging will dramatically speed the checkout process. All teas will be pre-packaged in 4oz pouches and available for pick-up on the sales floor. Instead of spending time bagging teas for the customer, the staff will be able to spend that time interacting and showing the product.
Great premise, right? But this example of increased labor efficiencies requires a LOT more physical space. Ditto the idea of putting every tea on the floor for sampling, providing space and materials for custom blending or professional cuppings.
So here’s the real question. A tea retail shop can easily fit within a 1,000 square foot storefront with 700 square feet of retail space and 300 square feet of storage. Let’s say, for the sake of argument, that we’re looking at space that costs $75 per square foot triple net. An extra 500 square feet of retail space would allow for a lot of "Tea Theater", but would the extra cost ($37,500 per year or a little over $100 per day) translate to at least another $200 per day in sales? And what about the extra labor costs of staffing a blending table and/or cupping table?
Can a store that offers great "Theater", or a tea buying experience that is incredibly rich, deliver an extra $100,000 in annual sales? Or do we just encourage the same customers to spend more time making the same number of purchases?
Would love to get your thoughts. Stay tuned for more detail on which of these strategies for tea theater we pursue and how.
Adagio Teas
Twitter: @AdagioRetail
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Voice your opinion about this article on TeaChat! |
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Dec 4th '09 9:28
So I'm designing a new tea retail concept. I have plenty of ideas for making it different, interactive and exciting for the customer. The hard part is deciding which will be worth the investment. For example, will allowing customers to blend their own teas drive enough extra business to cover the cost of the extra space, staffing and mess?Read more about my ideas and plans at http://www.tearetailer.com/article_2.html and let me know what YOU would most respond to. Thanks! Charles Cain Adagio Teas |
Chicago, IL |
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Dec 4th '09 11:00
Welcome to TC Charles! The plans you are formulating sound interesting. Much success to you in this new endeavor. Some feedback to follow, probably over the weekend as time allows. Thanks for the informative link. |
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Dec 4th '09 16:10
I really like the idea of the Tea Theater, and know that in a lot of cases, I'd be more likely to buy a larger quantity of tea if I knew what it tasted like. I almost always buy a sample unless I've already tried the tea and know I enjoy it. A perfect example is the Pomegranate black tea: I bought the sample and really enjoyed it. By the time my order of 8 oz came to my door, I had long since finished the sample. By being able to try it in the store I would have most likely started out by buying at least 4oz if not the whole 8oz. Also, I think the tea theater allows your employees to make suggestions to the customer that you don't get by simply ordering online. An employee could share their own thoughts on the tea and recommend other teas that the customer might enjoy, or if the customer doesn't like the tea they're trying, direct them to something different. Not knowing a lot about running a business, I can't really guide you for the cost efficiency of the tea theater, but as a customer I think the idea is amazing.~Zachary Moore |
Zmoore0890
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Dec 4th '09 21:02
First thing I have to get out there: Don't be Teavana. I started ranting... but decided to re-write my post. There's plenty that has already been said on that topic... [url=http://www.teachat.com/viewtopic.php?f=11&t=7509&hilit=teavana:1eauet84]16 pages so far  I guess a tea shop's attractiveness would really depend on one's prior tea experience and knowledge. want to step in a tea shop and feel like a little kid in a candy shop... or whatever analogy you want to use. Tea sensory overload would be freakin' awesome to me. There are plenty here on TC that would truly appreciate a tea theater experience. But a tea n00b would not share the same experience initially. They would most likely be overwhelmed and feel really insecure maybe? Which I guess is where an awesome staff really comes into play. Make sure the staff is friendly and not constantly trying to hard sell goods. Obviously business is business and inventory has to turn but there is a better way. Though I guess Teavana use's the sales tactics they do for a reason. So coming back around: it's got to be a sensory experience... I want to feel welcomed... it's got to be trustworthy. I dunno. Those are just a few of the thoughts that went through my mind as I was writing this. More will come later I'm sure. I really look forward to the next few months and this new journey Adagio is taking. Thanks for including the TC community! |
Lilburn, GA |
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Dec 5th '09 9:29
I can't tell you what would drive in the folks by the millions, but I can tell you some of the things I like:Authenticity: teas that reflect tastes and criteria developed where people have drunk tea for centuries and grow it: China, Taiwan, India, Japan and good traditional blends for export. Tasting: I don't buy tea I haven't already been able to try, for the most part, unless something comes highly recommended by someone I know. (I freely acknowledge this is because I'm lucky and spoiled to be able to do this.) I often taste and compare teas, for example teas in the same category. So there should be a tasting option priced for say, three teas at once or more if that's what someone wants. Let's say there are five new teas from a season of Taiwan oolong: it's a nice introduction to be able to taste and compare the variety of flavors. There's nothing like a tearoom that reflects the traditional idea of being able to spend time and relaxing: talking to friends or reading a book, etc. That doesn't mean you want people to park for hours with computers (although many traditionally minded tea houses allow it because it reflects the traditional idea of a teahouse as a place to do everything, including art and business), but it does imply a particular atmosphere. Sell tea snacks or very light foods - it will make some money, hopefully, and people will be able to keep drinking tea. Tea Ware and teapots for sale, and books esp on tea. Lectures and tastings are great. Have copies of "Teahouse," the play by Lao She  And good, polite customer service a must; great bonus having people who can answer questions and enjoy talking about tea and sharing their knowledge - who love tea. I think snobbery for its own sake is idiotic, there's always someone who knows more than you do: people should be able to be polite to those who are brand new to tea. That's where I'd start. |
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Dec 7th '09 12:29
I completely understand the desire for a cafe or restaurant with a passion for tea. I'm not convinced that is what Adagio would be best at, or that a business can be successful trying to serve two masters. The best cafes don't carry hundreds of teas and the best tea retail shops don't serve food and have seating. Rather than try to write out the full strategy here, I've drafted another piece explaining the logic behind the Adagio Retail Strategy... http://www.tearetailer.com/article_19.html.
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Chicago, IL |
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Dec 7th '09 14:50
Ah, I didn't understand you meant this to be a strictly retail shop. In that case I have the following suggestions:Teance (Berkeley, CA) has a tea bar. I'd have minimal seating (so you don't need to install special bathrooms if you wish to avoid this expense)... I think Teance's bar seats 6 but I'm not sure. The point of the bar is so that people can taste, and also you can organize tastings -- or they can just offer certain teas the owner decides on in a roster all day long. You could take reservations for this or let people walk in the door or both. Either way, I think it's to a great advantage to let people taste teas. I'd also organize formal tastings of groups of tea to introduce people to tea. After all, I've no doubt the more time a customer spends in the store, the more money they're likely to spend. Knowledgeable sales reps are a must - to show teaware and talk about teas. Politeness is mandatory. Need I say stick to the hours posted. I'd still offer minimal tea snacks to go - this requires no cooking if you get, say, traditional Chinese tea snacks or packaged cookies that people can buy to go with the tea or as part of a gift package. And I'd still go with books on tea, and teaware. But you'd know the profit margin better than I. Perhaps in this kind of set up decor will set the tone and mood and if fairly essential in addition to customer service. What kind of decor do you plan? |
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Dec 8th '09 16:25
You have to have staff that really knows about tea in a friendly, non threatening way - a mix of ages would be a plus, as older people might want to try something new but be intimidated by all young staff. Some place where people could see and smell the dry tea, apart from large store canisters. Not pushing product or hard goods. Maybe a medium size place. Maybe a few baked goods, just maybe three or 4 things -aroma brings people in. Something of a coffee house atmosphere - arm chairs, the newspaper,, cozy stuff.
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marlena
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Dec 8th '09 17:23
great ideas, Marlena... I wouldn't have thought about variety in the ages of staff but it is a good idea
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Dec 8th '09 18:06
Great feedback and some good ideas. I've seen some tea retail environments that put the tea on the floor to be seen and smelled by the customer, but most shops keep the majority of the collection "behind the counter". My primary criticism of Teavana's model, if I may be so direct, is that you simply CANNOT look at tea without talking to a sales person. I hope to flip this on its head and put every tea out on the floor where it can be seen, smelled and compared. The staff needs to be present but unassuming - out of the way unless called for. The only part that is still a bit of a question in my mind is where the consultation takes place if the customer requests it. If all the teas are out on the floor does the staff stand in front of the tea display and talk with the customer? Does this invade the customer's "space"? And how does it impact others who want to browse. I KNOW I want to expose the customer to more tea, but we're still working out the operational details.
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Chicago, IL |
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Dec 8th '09 19:13
Try the tea-bar concept. Yes, patrons can ask to smell and taste a specific tea, on request. No, the teas aren't kept out where the customers can get their hands on it, unless its packaged. It's a hygiene thing. Your floor is divided between a small tabled area for seating and prepackaged teas, and a long teabar area with stools. Decor theme is up to you, but I would go for the old neighborhood corner bar theme... Oak and tile, understated but classy. It's instantly familiar, relaxing and encourages a bit of socializing in the evening, where customers can bring friends to try teas. The tea bartenders can provide small labeled envelops of a tea to the patron while preparing a tasting sample. Using simple visual demonstration and re-iterating by providing oral brewing instructions, talking about the tea provenance and qualities while the customer sniffs and tastes the tea introduces and reinforces product familiarity in a friendly manner. You can use tasting/aroma cup sets for the demos to standardize results. Alongside your trademark flavored teas, considering including matcha, quality Japanese and Chinese greens, oolongs, blacks and yes, puerhs, emphasizing aged pu's ability to relax and promote good rest, sans caffeine. The idea is to graduate your new patrons to more sophisticated whole leaf unflavored teas. In another thread you asked about what attracts us to tea: the answer is oral fixation. Once you have introduced a curious customer to better teas, if they are looking for new oral sensations, they will take to it enthusiastically. It's psychological and physiological, and it's habit-forming for those that are hardwired for strong stress-reducing response to certain ingredients in these specialty products fine wines and liquors microbrew beers baked goods / deserts cigars/pipe tobacco You can offer tea snacks and sell same in packaged format. This is not a substantially different model than is used in popular teahouses across the country, for decades. As you cultivate your clientèle, you might consider adding a small second space for tea clubs that might want to host weekly or monthly meetings, if you are going to locate in a mega-metro area like NYC. |
Intuit
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Dec 8th '09 20:37
Thats exactly what I was thinking. I wouldn't feel comfortable buying tea thats been opened multiple times for people to stick their noes' in. From all of the suggestions, the tea bar is my favorite. |
Ebtoulson
GA |
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Dec 8th '09 23:50
Samples out to "smell and taste"....... sale stock kept hygienically safe in cases away from general people.best, ..............john |
Wilton, New Hampshire USA |
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Dec 9th '09 10:32
Good food for thought. Thanks! In response to the comments about keeping the teas fresh and away from the crowds, our current strategy includes three forms of tea merchandising:1. Every tea in the collection will be packaged in sealed pouches that were produced and filled in the Adagio warehouse and packaging facility in NJ. This allows for maximum freshness, cleanliness, and labor efficiency at the store level. 2. Every tea in the collection will be out for the customer to "experience" (sight, smell and touch if you want) in glass jars on well lit sample shelves. This tea will never be consumed, so the affects of repeated opening, handling and light won't matter. We'll have some extra waste as we throw these samples out periodically but the upside is that the customers can easily browse the collection without the forced involvement of a member of the staff. 3. Every tea in the collection will also be stored loose in sealed, opaque containers. This bulk tea will be used for brewing cups of tea and creating custom blends. Because this tea will not be quite AS secure or as fresh as the packaged pouches, some customers will avoid it, but for the majority of consumers this style is what they are used to at every other tea shop this will be just fine. This approach should give us the maximum flexibility and cater to the varied preferences of our customer base. Would you agree? |
Chicago, IL |
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Dec 9th '09 12:55
I would agree ... seems you have the bases pretty covered. And glad to hear about the pouches versus the tins (I have a problem throwing away tea tins  ). This could also give you some options on prepackaged weights as well. Seems that often the amount of tea sold is dictated by how much tea will fit in a tin versus how much tea by weight is desired due to differing densities of leaf.
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Back in the TeaCave atop Mt. Fuji |
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Dec 9th '09 17:30
This puts me off when I go to a tea store. One way is to have sample canisters of the teas for sale. I've seen this at one store, lined up on a self or table, and customers can open it up, inspect the leaves, and smell it before buying. It's so nice 
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USA |
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Dec 9th '09 19:12
The location surely plays a role. It is much more difficult to give a cozy atmosphere in a shopping mall where the accent is on shopping. So it depends.If you locate it not in anywhere near a shopping mall, Camellia Sinesis in Montréal, Québec could be inspirational. Teas are located behind a counter, but they have colour catalogs on the counter. The staff will not get in the way but will be there to answer any questions. Teas are sold in recyclable re-sealable bags which offers the customer a small discount when brought back. Adjoining the store proper is a place to have tea. Moreover the atmosphere is soft and some essence of tranquility associated to having a cup of tea is carried over. This makes the customers go to this place for that and remember it when they have tea. More than tea is sold, the relaxing time when having tea is also sold. This is immaterial and is certainly an added value to a business strategy in our hectic times. Won't get that in a shopping mall, or won't get that if the business model have to be accomodated for shopping malls, though. Pictures: http://camellia-sinensis.com/nous/prend ... 234#28-234 |
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Dec 9th '09 19:27
>Teas are sold in recyclable re-sealable bags which offers the customer a small discount when brought back.Or Bring Your Own (tin) for refills. Can easily be tared for weighing out tea. +1 |
Intuit
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Dec 10th '09 12:01
Great idea here. A very "unique" twist... and that is what you want to be looking for in "branding" such an endeavor; make it unique and different from the comptetition. The one qualification I'd make to that idea is bring your own "ceramic containers".  best, ..................john |
Wilton, New Hampshire USA |
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Dec 10th '09 14:25
You know, as much as I detest the practices of Teavana, I will go out of my way to take a walk through one of their larger stores. The product mix is very interesting and usually attractively presented. It is different enough that if I am in a mall with a Teavana, I will go in along with a stick to beat off the robot staff. As much as I detest Teavana, I will make a non tea purchase virtually each time, even though my purchases do not fit in with their sales model. A store filled with white and glass teaware such as the current product mix of Adagio is not likely to get me to go too far out of my way ... however the friendly, knowledgable staff would. Couple that with an expanded product mix that changes by 10-20% every 6 months, possibly working with some of our Teaware Astisans (hint), as well as more multi cultural teaware elements, now you are talking!!!!! |
Back in the TeaCave atop Mt. Fuji |
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Dec 10th '09 14:53
... should add, Adagio name brand teaware could still a have prominant role, but how many times will I venture far to see the PersonaliTea? Teavana does know something, expanded teaware inventory that changes frequently does equate to more sales. This also instills an urgency in the buyer, what they see today, may be gone forever tomorrow. |
Back in the TeaCave atop Mt. Fuji |
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Dec 10th '09 15:51
I would agree that the collection of teaware & accessories must expand to fit a retail environment. Adagio covers the basic tea brewing and utility items, but we need to, and will, include decorative options. I'd be curious to know how much the average tea addict spends annually on tea vs. accessories... |
Chicago, IL |
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Dec 10th '09 15:56
I would agree that the collection of teaware & accessories must expand to fit a retail environment. Adagio covers the basic tea brewing and utility items, but we need to, and will, include decorative options. I'd be curious to know how much the average tea addict spends annually on tea vs. accessories... That would be an interesting topic, but we would have to take truth serum before posting I suspect. If you do not mind, I could borrow the topic for a TeaDay, breaking it down into ranges and/or ratios. |
Back in the TeaCave atop Mt. Fuji |
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Dec 10th '09 16:07
I would agree that the collection of teaware & accessories must expand to fit a retail environment. Adagio covers the basic tea brewing and utility items, but we need to, and will, include decorative options. I'd be curious to know how much the average tea addict spends annually on tea vs. accessories... Depends I think on the person, and there tendencies towards collecting. I'd say its probably close to 50-50 the whole time, though possibly if they are collecting pieces on the more expensive side it can be 75% teaware and 25% tea. But I'd say unless the person is very content with all their teaware, that it starts to drop and may drop to 0 depending on the person. |
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Dec 10th '09 16:17
If you do not mind, I could borrow the topic for a TeaDay, breaking it down into ranges and/or ratios.Go for it! I'll be curious to see what people say. |
Chicago, IL |
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Dec 10th '09 16:20
If you do not mind, I could borrow the topic for a TeaDay, breaking it down into ranges and/or ratios.Go for it! I'll be curious to see what people say. Tomorrow! Thanks ... always looking for a good topic. 
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Back in the TeaCave atop Mt. Fuji |
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Dec 11th '09 10:05
While most of us here have moved well beyond entry-level tea drinking... I remember what brought me to loose leaf tea. I went through the Teavana gateway like so many before me. I bring this up because you mentioned earlier in the thread the question of blending your own teas.I think if you can feasibly do this in an economical fashion, you should definitely do it. Flavored tea is a major entry point to tea-drinking, and I will go so far as to say that the Signature Blends section of the Adagio website is what prompted me to make my first Adagio orders. For retail purposes... I'd offer a "Design Your Own Flavor" single brew cup... you could easy have a salesperson help a customer pick complementary flavors and ratios, blend it together and brew one single cup for a nominal fee (or even free if you wanted to go there), and then blend those same ratios for a larger bulk purchase if the customer likes it. This will sell you some tea, I guarantee! You could provide a computer-generated label with the contents/ratio so they could easily repurchase in the future. My one complaint with the current Adagio Signature Blends program is that I have to buy larger quantities of various teas and conduct these experiments myself... I would love a chance to do this in-store. For cost purposes, you might have to charge a nominal fee for each experimental blending so you don't end up with a customer in there blending up 50 bad experimental blends for free. Sarah |
Kentucky |
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Dec 11th '09 10:26
Our current plan is to allow customers to blend and brew in-store for free. You would only pay if you take a cup to-go out of the store (though there is some debate on this as well - http://www.tearetailer.com/article_21.html). I've been watching tea people in a retail tea shop environment for five years now. I am led to believe that very few will abuse this, but it will be an interesting test and can always be limited in the future. |
Chicago, IL |
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Dec 12th '09 17:24
What would draw me in? A company that takes responcibility.Environmentally friendly options like using your own travel mugs, re-using tea tins for refills to reduce packaging, a composting program for spent tea leaves, recycling for the plastics and tins that are disgarded. Responcibility for their emloyees. They must be educated and know tea well. Perhaps not to a tea master level, but definalty on the level that they know what a 1st and 2nd flush are and the grading of tea leaves. An awards program, buy 9 and get one free, or a frequent buyers club card that offers discounts. A featured tea (once a month maybe) that allows a "premium" tea to be sold a regular price (by the cup, not the tin). The tasting idea is great, I know of a couple tea houses that offer free samples, but none that cup them for you! |
Halifax, Nova Scotia, Canada |
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Dec 14th '09 2:29
I think that the big thing will be to know your target "audience." Portland is big on culture, especially Asian culture, and so places like Tao of Tea offer an experience more than a product, even in the retail store. Other places around town are mostly tea houses and they either go for an Asian atmosphere or a comfortable atmosphere that is very "Portland." Something to keep in mind: [url=http://www.sciencedaily.com/releases/2009/03/090311111008.htm:3gscipe3]Consumers Stop Buying As Number Of Options Increase (There's lots of other great articles if you search the site for "consumer choices.") One of the problems that you have here on the site is that we're enthusiasts, and you won't make money by catering to enthusiasts. It's the same way that software that caters to geeks doesn't do well. We want to try it all, so sensory overload is great, but most people want simple and familiar. There was an old marketing book that also talked about that, and pointed to a gourmet pizza shop that got around it by offering a guarantee: if you get a slice of gourmet and don't like it, they'd give you a free slice of your normal standby. At one point I gave my mom a big bag full of samples that I had accumulated. It was so much that it overwhelmed her, and she didn't know where to start. At some point she just pulled one out at random per day and actually started to really love it. Something that [url=http://www.oregonlive.com/foodday/index.ssf/2009/10/haute_tea.html:3gscipe3]the guy that started Stash and Tazo is doing now is to do blends of small batches of high quality tea that will sell quickly. So you will go into the store and they will have a limited supply of a handful of unique blends of higher quality tea than they're accustomed to, and it will be a different selection each time; that would certainly keep it simple for those that get paralyzed by too many choices, and keep the obsessive types coming back regularly Of course I imagine that some paralysis could be avoided by splitting types of teas up into different areas of the store. Tao of Tea does some of this: they have a big set of shelves in the back, but all the better stuff is in little islands throughout the rest of the store, among teaware and decorations. That way you're never looking at too much stuff at once. I'm guessing that this goes without saying, but if you're going to give lots of info, I would put simple info that's easy to visually parse up front with more detailed info on the other side. I can sit on the computer and read tea info for hours, as a geek, but I wouldn't have the patience in the store and I imagine that the average consumer would quickly feel overwhelmed. As an aside, I think you should package the puerh in small paper bags With the right label it could even make it look neatly rustic (That's in addition to making it taste better.)
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Portland, OR |
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Dec 15th '09 17:00
Recently I opened a bag of tea from a tea shop I frequent a lot. This is a Huang Zhi tea which means the leaves are shaped like shui xian shape: long and twisty. I bought the last of a particular batch they had without thinking much about it, except that I wanted the tea at home! Well, brewing some yesterday I realized I got all the crushed leaves along with the good stuff. I probably should have thought of this and checked as they filled my order. However, I'm writing this as I think it's imperative you train your customer service about high end teas -- especially from China -- and the high value placed on the shape and the full leaves! They should not dig in to large stored bags of tea to parse out ounces to individuals with sharp instruments that will crush or break tea leaves. Nor use any implements that have just been in a flavored tea or herbal tea, etc. It's important at the high end to understand and respect the qualities that give it value and its high price tag: intactness of leaves, delicate scent also intact without interference or contamination etc. (a pet peeve!!!) I agree with ABx that you probably want to consider those targets outside the enthusiasts you find here (but you will know that far better than I). But still, at the high end for the premium prices, it's an important part of customer service to have the training to respect the qualities we pay for. |
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