If I've learned one thing from seven years in the US Tea Industry opening stores and selling online, it's this: To be successful in tea you need to pick a customer and rock their world. It can be hard to tell the difference between a business strategy that will make you king of a niche, and one that will leave you floundering in a sea of competition, but it's those little differentiators that make all the difference to a company's long term success.

The simple truth is that many Victorian Tea Rooms, serving high tea and finger sandwiches, are struggling to survive, while most of the successful new entrants are taking a hip, urban approach to tea. It's also true that averages don't always apply at the local level.

The 2011 Tea Expo East just concluded this afternoon in Philadelphia, PA. This was the first east coast tea show since 2007 and the first ever to take place in addition to the World Tea Expo in Las Vegas. It was a great three days (including the World Origins Tasting Tour), and I wanted to share a few thoughts as I wait to leave town.

As we approach the one-year anniversary of Adagio’s first tea retail store and break ground on our third location, we’re going through an internal discussion of how to apply our branding strategy to the physical retail stores. As the internal discussion has swirled around details such as proper attire for staff, and how many video screens you can incorporate before the store feels too high-tech for tea, I keep taking big steps back to gain perspective. I ended up back at the beginning. Why do people drink tea?

Adagio Teas is EXPANDING! We've just signed the lease on our third store and we're looking for passionate team members to join our team.

Adagio's third Tea Experience Retail Store will open in early October at 617 North State Street in Chicago, IL. This third store completes the original intent of piloting three strategic locations: downtown, suburban street-level and high-end suburban mall.

In April the Adagio Retail Management team set out to adjust the Customer Engagement Process to increase the Average Sale while improving customer satisfaction. We achieved a 25% increase in average ticket, and here's how we did it.

As of the end of March, the Adagio Retail operation had been open for 6 months. Traffic counts were good, and customer feedback was glowing, but the customers were purchasing too little to support the amount of time we put into each transaction, and too little to support the high rents that come with great locations. Starting in early April, we set out to fix this...

I've just returned from another exhilarating and exhausting week of Tea Industry immersion, starting with the New Business Boot camp and ending with the World Tea Expo. 5,000 industry attendees (the general public is not allowed to enter) makes for a fascinating platform. Here's a brief recap of a few highlights:

Frequent tasting is the single best thing you can do to take your tea knowledge to the next level. No amount of reading, lectures, or even tea plantation tours can possibly replace the powerful depth and quiet focus of a refined palate. After all, your appreciation for tea and the success of your business depend on a connected, real relationship with the tea. I'd like to invite you to join Suzette Hammond, Adagio's Tea Expert and Trainer in an interactive, hands-on course at this year's World Tea Expo.

Quackery is nothing new, and the media is full of outlandish claims surrounding tea. At Adagio we've laid out a defined, concise and effective strategy for capitalizing on the craze, educating the customer, and building long term credibility and customer loyalty.

I’ve received dozens of emails and requests for comment in the wake of Teavana’s announcement late last month that they are planning a $100 million IPO to fund an additional 350 stores in the coming years. I’m hearing two basic questions: What does this mean for the tea industry, and how can a small tea business compete? This article attempts to answer those questions.

In case there was any question as to whether or not Teavana is really successful or only well-funded, their $100 million IPO filing proves beyond shadow of doubt that there is money to be made in Specialty Tea Retail. Read more for key excerpts from their filing.

The world's largest educational conference on tea will be held this year from June 22nd to 26th at the World Tea Expo in Las Vegas, Nevada. This will be the fourth year I'm presenting at the Expo and I'm definitely looking forward to what should be a record turn-out of exhibitors and attendees from around the world.

The proper role of health claims in the sale and marketing of tea has been one of the core debates of the last decade. In the last couple years the FDA has cracked down hard, banning nearly all claims of any type whether in retail packaging or even on company websites. Most recently the FDA sent a warning letter to Rishi Teas about claims made on their website that were, until recent years, considered perfectly safe and appropriate.

Branding is important, but there's obviously a point at which the return on investment just isn't there. Spending too little on a store absolutely hurts your image and your sales. But at some point the value of each dollar decreases. I'm working on the design for our outdoor patio at our Old Orchard Mall location and trying to determine how much to invest.

Conventional wisdom holds that loose tea is expensive, messy, and far superior to anything that can be found in a bag. Bagged teas, by comparison, are cheap, convenient and filled with nothing but the dust and fannings swept up after processing “real” tea. What if conventional wisdom is wrong? What if these commonly held beliefs are standing in the way of the growth of specialty tea in America?

The commercial retail real estate market is splitting. The best locations are thriving while many others are seeing rising vacancies and shrinking rents. The process of selecting retail sites has become more complex than ever in a market characterized by churn and uncertainty.

An ongoing debate as we've worked to refine Adagio's brand, model and retail strategy, is how much we should focus on existing tea connoisseurs vs. novices who may be converted into tea drinkers. This challenge is one of the more important aspects of our business strategy.

Last week I had the privilege of attending the GlobalShop show in Las Vegas. GlobalShop is the world’s largest annual event for retail design and shopper marketing. Here are a few takeaways from my time there.

Profits, at their most basic level, are a sign that we are successfully serving our customers. I don't know the exact recipe yet, but I do know some of the ingredients that we believe will make incremental improvements to our profitability. For this second installment I'll analyze Adagio's pricing strategy and how it impacts our profitability.

Profits, at their most basic level, are a sign that we are successfully serving our customers. I don't know the exact recipe yet, but I do know some of the ingredients that we believe will make incremental improvements to our profitability. In Part 1 of this series I'll cover our planned changes to package size.

Five months after opening Adagio's first retail store it's clear that we've captured the attention of the industry and the interest of the consumer. The challenge now is to fine tune the operation and our approach to reach that elusive promised land of profitability. There are five key metrics of profitability that I'm tracking...

This past week I had the privilege of spending some time informally with a handful of industry insiders, CEOs, owners, and managers of some of the more prominent tea wholesalers, retailers, educators and trade organizations. Here are a few of the more interesting topics that were discussed and some of the insights shared:

The tea industry really is an amazing entity. With few exceptions, the people it attracts are open, friendly, generous and unassuming. On both a personal and professional level I have really enjoyed the opportunity to know and learn from such a diverse group of companies and people. No where else have I consistently heard would-be competitors sharing best practices and insights so freely.

Everyone loves statistics! Well, maybe not, but stats and numbers are to an entrepreneur what a new GPS is to a lost driver. The numbers tell you where you are, where you're going, and whether or not you can get there before running out of gas! With more than 200 days of sales data to work with, the picture is really starting to come into focus.

I started 2010 with a series of 10 predictions about how the tea industry would change in the coming year. Before throwing darts at 2011, allow me to take a few minutes to check my batting average on 2010.

I wrote my first post for TeaRetailer on November 30, 2009. Over the year the site has received 22,000 visits and logged over 52,000 posts read. The discussions and feedback have been incredibly valuable to me personally, and to our development as a company. Today I have a question for you: What have you always wondered about tea or Adagio but never had the opportunity to ask?

Mid-January: the holiday buying season is a distant memory and the heart of winter in the the Midwest is upon us. The challenge now is to capture the attention of those hearty souls that brave the cold and are hurrying by our front door, bundled head to toe against the freezing winds and snow. This is tea drinking season, but it is NOT the season in which new consumers stroll down the avenue looking for new retailers to visit.

The most common question that is never directly asked is: "How can I launch an online tea retailer for $10,000 or less?" The questions I usually get are a little less more circumspect, but it all comes down to wondering whether it is possible to build a successful business with limited resources. I've answered this question several hundred times over the past few years. The answer depends on an accurate measure of available resources and YOUR definition of success.

It is still possible to launch an online tea retailer on a shoestring budget and find success. You just need to choose the perfect strategy, perfect product collection, perfect partners and perfect message. For most new businesses, success is a matter of having the funding necessary to allow time to perfect the business model and operation. The less money you have, the more important it is that you don't make mistakes.

I continue to be absolutely amazed by the lack of coherence and logic behind landlord expectations. Asking prices are all over the map, and making sense of this mess requires solid research and a lot of footwork.

On days like yesterday, with the wind howling and snow falling, most shoppers hurry past the front door, bundled tightly in winter gear, faces shielded against the snow and wind. It's a bit depressing, but come spring this location will benefit from an Adagio-branded outdoor patio approved for up to 56 seats!

In business, timing is everything. Location is everything too. And so are people. Apparently, in writing about business, hyperbole is everything. Hyperbole aside, while timing won’t make or break your business, it can have a huge impact on how quickly you break even, and how much cash you need to reach the promised land of profitability.

Perfect packaging, products, marketing, merchandising and store design are only ingredients. Mastery of each of these will not lead to success. The secret sauce of profitability is people.

The greatest difference between the tea snob and the tea novice has less to do with palate and more to do with intellectual bent. Please let me be clear I am not comparing intellects! :) Rather, I am suggesting that for many, the flavor of of a thing defines one’s experience. For others, the experience is informed by many other outside factors including history, culture, tradition, perceived rarity, perceived quality and social or environmental impact.

After two months of brick-and-mortar retail sales, Adagio has sold thousands of $2 sample packages of tea and not made a lot of money. This isn't good, but it IS great. It's all part of the Long Bet.

Adagio's second "Tea Experience" retail store opened today at Old Orchard Mall in Skokie, IL. The complete renovation of the 1,200 square foot space ended up taking exactly 35 days.

Tis the season of miracles. Adagio's second Tea Experience retail store will be transformed from a rough construction zone to tea nirvana in less than 48 hours. Do you believe?

Too many in the Specialty Tea industry are fighting a gentleman's battle, and losing as a result. Many tea shops are doing a rather poor job of appealing to all existing tea lovers, much less converting new ones. As I look at the market on a national scale, I see the need for more competition. The result will be far fewer casualties among independent shop owners than most expect, and a far healthier and faster growing industry in the long run. I'm about to test that theory.

Video of the Grand Opening of Adagio Retail's first brick-and-mortar retail store.

Construction is in full swing at our second store, currently scheduled to open on November 24th at Old Orchard Mall in Skokie, IL. We broke ground on October 25th and expect the build-out to be complete exactly four weeks later.

The first month is in the history books at Adagio's first "Tea Experience" retail store and it's time to recap and analyze the results. Overall, the store and the model has been successful, but we've definitely seen a few surprises!

It's been a little more than a week since we opened Adagio's first Tea Experience Retail Store and the initial results are both good and also a bit surprising. Customer traffic is good, the product mix is shocking, and the challenge of balancing customer engagement and efficiency is proving, as expected, to be the greatest challenge.

Adagio Teas is seeking passionate team members to join our second Tea Retail Store at Old Orchard Mall in Skokie, IL.

Adagio Teas' first "Tea Experience" retail store opened at 27 W. Jefferson in downtown Naperville, IL at 4PM on Sunday, October 3rd. It was the very definition of a "soft open". No press release, no advertising, no announcements, just unlocked the door and hung an open sign in the window. The concept store was born without a sound... or so we expected...

Control is an illusion. This store opening has been a study in Murphy's Law. The sheer number of unforeseeable complications and delays is almost comical. The good news is that we're finally... almost... done. If the next couple days goes as planned, we should be ready to open the doors to the public on Saturday.

Today is the first day of crunch week, and I can definitely feel the pressure. It's amazing how many moving pieces there are at this stage of the process. At this point you hold on tight, make quick decisions, and pray that you can trust your General Contractor.

Sure, it’s nice to have, but are all those expensive design elements really necessary to open a successful tea shop? On a weekly basis I hear from existing and prospective tea entrepreneurs asking variations on this same question. I believe that a quick survey of the retail market and an analysis of human behavior answer this question with a qualified “YES”!

Construction in Naperville is moving along quickly. The framing is complete, with flooring and painting underway before millwork arrives next Monday. We’re also finalizing part-time staff, configuring the Point of Sale system, and reviewing teaware samples from outside providers. A few updated before-and-after photos are posted for your viewing pleasure.

I made a pretty controversial statement in a recent article. When discussing the health benefits of tea I wrote: "Yeah, I know, but honestly I don’t really care." I heard from a few people who were a bit horrified by what they saw as a form of "tea blasphemy", so I wanted to elaborate a little on my opinion and how this topic plays into the growth of the Specialty Tea industry.

Just a quick update today on the progress of construction at Adagio's first Tea Retail shop in Naperville, IL. Eight business days into the process we've completed framing and much of the core electrical and plumbing work, and we had our first round of inspections this morning.

Consumer uncertainty is the enemy that is slowing the growth of the Specialty Tea Industry. Consumers are hesitant to pay a premium for a luxury or gourmet product when they are uncertain of its value. As a result, the vast majority of tea drinkers in the US retreat into the predictable mediocrity of mass-market tea bags on grocery store shelves. There has to be a better way.

We’re now 20 days from our original target opening date of September 13th. There have not been any catastrophes or huge surprises, but a series of minor challenges have forced us to re-calibrate our timelines.

Tea feeds my soul. A friend of mine who owns a small tea company recently challenged me to stop writing so much about the business of tea and wear my soul on my sleeve a little more. So I’m taking this opportunity to describe why I’ve developed a passion for tea.

With less than 60 days before the opening of our Old Orchard store, we're working furiously to finalize the design elements so that we can get contractor bids and begin construction.

Adagio Teas is seeking passionate team members to join our first Tea Retail Store in Naperville, IL. Adagio Tea Consultants are front-line tea evangelists on a mission to introduce casual consumers to Adagio's collection of more than 200 premium loose-leaf teas and line of tea brewing equipment and accessories.

With a little over a month to go before the opening of the first Adagio Retail Store, and two months from the opening of the second, I've begun hiring my team. This past week we added Suzette Hammond as our trainer and the Store Managers for Naperville and Old Orchard.

Adagio Teas is pleased to announce that Suzette Hammond has joined the Adagio Retail team to participate in the company's launch of "Tea Experience" Retail Stores. Suzette will be responsible for Training and Education within the retail division.

In business you never deviate from your core business plan and value proposition, right? Wrong. I'm planning to break some of my key rules in opening our second retail store at Old Orchard Mall.

Whether the vision is traditional English, tranquil and trendy Asian, or some modern fusion, I've never met a tea lover that doesn't get excited by the prospect of sitting down to enjoy a few tea inspired dishes and a flight of premium loose teas with friends. In this piece I've described what I believe are the keys to success for opening a successful tearoom or tea bistro.

Adagio Teas is seeking an experienced and passionate retail professional to manage our new Tea Experience Retail stores in the Chicago land area.

I'm excited to announce that our second Tea Experience Retail Store will open in October in an 1,128 square foot corner location at Old Orchard Mall in Skokie, Illinois.

Now that I'm less than two months from the target opening of the first Adagio Retail store, it's time to make some final decisions on finishes. This is one of the more enjoyable, if somewhat intimidating parts of the process. It's fun to play designer, and it's hard to picture what the finished store will look like sitting in front of a bunch of little samples. Here's what I've selected and why.

It seems that just about ever tea entrepreneur considering a brick-and-mortar tea shop is planning to open a cafe (including seating and some food). This is the default strategy for two reasons: Cafes are a proven, profitable business model in the US, and this is what almost all of the customers SAY that they want. So why is it that I am absolutely convinced that the customer is wrong? What hubris is it that I believe the customer doesn't know what they really want?

There is A LOT of money to be made in tea, but if it were easy to find the perfect path, everyone would be doing it. E-Commerce is the second installment in a series of articles on how to get started in the business on a shoestring budget.

There is A LOT of money to be made in tea, but if it were easy to find the perfect path, everyone would be doing it. Packaging Strategy is the first installment in a series of articles on how to get started in the business on a shoestring budget.

Music has a considerable impact on the ambiance of a store. It affects the mood of the staff and the customers. The right music becomes an inextricable part of the brand presentation and the shopping experience. The wrong music can undermine everything else that you do right. The little things matter! If you know of any musicians who would be a fit for the Adagio brand, please let me know.

The 2010 World Tea Expo is now over, and I must say it was quite the party. Industry insiders and new tea entrepreneurs gathered from around the world to meet with vendors, share business strategies, keep abreast of industry developments, and celebrate an industry that has weathered the recession of the last two years with a fraction of the scars and casualties of so many others. Here were the highlights from my perspective...

The 2010 World Tea Expo was FILLED with excitement and buzz as a thousand starry eyed entrepreneurs rubbed shoulders with a couple thousand more industry insiders. This mix made for a lot of excitement and a little healthy strategic re-examination. The simple truth is that there is A LOT of money to be made in tea, but if it were easy to find the perfect path, everyone would be doing it. Over the next few days I will be write a series of articles sharing the "Start-Up" strategies that I've seen successfully employed to get a business off the ground as quickly, easily and inexpensively as possible without cutting corners that will jeopardize your long term success.

Giving customers the opportunity to brew their own tea in-store goes a long way towards accomplishing each of Adagio’s primary retail strategies; making tea accessible to the average consumer, and creating a sensory-rich and entertaining shopping experience. The challenge is to design a smooth process that minimizes waste and labor and maximizes the customer’s experience and satisfaction with the end product.

Why is it that the keys to building customer loyalty are so obvious and yet so few companies do it well? I've read a thousand articles and books on the importance of branding, value, quality, personal service, etc. Any consumer can tell you what they want from a retailer, and most of them will also tell you that the majority of companies do a pretty poor job converting customers into passionate fans. I'm not going to repeat all of the obvious keys to running a good business, but I do want to share what I believe is the Fountain of Customer Loyalty in the tea business: identity.

Giving customers the opportunity to create their own custom blends goes a long way towards accomplishing each of Adagio’s primary retail strategies; making tea accessible to the average consumer, and creating a sensory-rich and entertaining shopping experience. The challenge is to design a smooth process that minimizes waste and labor and maximizes the customer’s experience and satisfaction with the end product.

After a surprisingly long search and negotiation I am excited to announce that Adagio's first brick-and-mortar tea retail store will be at 27 W. Jefferson in Naperville, Illinois sometime in late August of 2010. Read more for a profile of the location.

I've been silent for a while on our progress in securing our first retail location. The main reason for this is I got tired of tweeting that we were days away from signing a lease each week. We have completed the lease negotiations and are now waiting on final paperwork on a Main Street, Suburban-Chicago location. I've also completed LOI (Letter of Intent) negotiations on our first mall location and am awaiting a draft of the lease.

Passion is an elusive and incredibly diverse concept. For some, passion is inspired by nature and others by art. Some discover their passion in accomplishment and others in relationship. Some are inspired by thought and others by experience. My objective is to inspire passion for tea in every customer that walks through the door. A passionate employee who fails to speak the language of the customer may come across as impressive, but will never transfer their passion to the customer.

The US Wholesale Tea Business is a fascinating niche business characterized by an incestuous supply chain and an irrational focus on everything BUT product quality. In this fifth installment in the series I'll cover sales to food-service and hospitality operations.

I've run across a few interesting developments and facts concerning the world of retail tea shops lately and so wanted to share: TeaGschwendner opens in 30 Rock, Harney & Sons heads to SoHo, Teavana prints money and Teaopia expands west...

A good Point of Sale (POS) system can be a cornerstone for your business and a tremendous aid in managing work-flow and implementing reliable systems. A bad POS system can complicate and frustrate your operation and leave everyone (customers and employees) with a poor impression of your operation. In this second installment I'll describe what I've chosen for Adagio and why.

The US Wholesale Tea Business is a fascinating niche business characterized by an incestuous supply chain and an irrational focus on everything BUT product quality. In this fourth installment in the series I'll share some of our experience with sales into Grocery and large retail channels.

The US Wholesale Tea Business is a fascinating niche business characterized by an incestuous supply chain and an irrational focus on everything BUT product quality. In this series I'll attempt to unpack a few basic truths about the wholesale tea business that every entrepreneur should learn before either becoming a tea wholesaler or buying from a wholesaler. In this third installment I will focus on selling to Independent Specialty Retailers.

The US Wholesale Tea Business is a fascinating niche business characterized by an incestuous supply chain and an irrational focus on everything BUT product quality. In this series I'll attempt to unpack a few basic truths about the wholesale tea business that every entrepreneur should learn before either becoming a tea wholesaler or buying from a wholesaler. In this second installment I will focus on sourcing, storing and blending teas.

The US Wholesale Tea Business is a fascinating niche business characterized by an incestuous supply chain and an irrational focus on everything BUT product quality. In this series I'll attempt to unpack a few basic truths about the wholesale tea business that every entrepreneur should learn before either becoming a wholesaler or buying from a wholesaler. In Part 1 I'll cover the industry at a high level.

One of the hardest lessons to learn in business is how to pass up on opportunity. We believe intellectually that you can't be all things to all people, can't make everyone happy, and can't land every sale. At the same time, we have a terrible time saying "no" to an opportunity to make a sale or grow our businesses. An entrepreneur goes into business because he/she believes they can do something better than it's being done currently. That same confidence becomes a critical liability for any entrepreneur or business that fails to draw a hard line and decide who NOT to be.

In Retail, success is all about location, location, location. We all "know" this, and yet the majority of tea shops are in terrible locations. The problem is not a matter of intellect but of experience and perspective. Few tea entrepreneurs understand the profile of their typical customer an many incorrectly project their own buying preferences and behaviors on their customer. In the following article I will attempt to briefly describe the "perfect location", and dispel several key myths that lead people down dead ends of business and marketing strategy.

On a regular basis I talk (or write) with people who have a dream of someday being "in the tea business". Today I'd like to take a few minutes to promote the single greatest opportunity to learn the inside scoop on the US Tea Industry and the best way to go from 0-60 in just a few days on understanding what it takes to be successful.

I received an excellent question this morning from TeaChat user Herb_Master in Stockton, England. He asked how we intend to handle sell-by dating and what systems we will put in place to track and "move" aging product. There is no uniform or universally accepted system used for food dating in the United States. So how will Adagio manage freshness on our own shelves and guide the customer on drinking only "fresh" teas?

Depending on your technical aptitude and proclivities, choosing a Retail Point of Sale system may feel like a joy-ride of potential or a carnival fun-house full of trap doors, warped mirrors and grinning sales people. The simple truth is that a good Point of Sale (POS) system can be a cornerstone of your your business and a tremendous aid in managing work-flow and implementing reliable systems. A bad POS system can complicate and frustrate your operation and leave everyone (customers and employees) with a poor impression of your operation. In this first installment I'll give you a little guidance into choosing a POS system.

Fact: Consumer unfamiliarity and uncertainty is one of the primary obstacles to the growth of the Specialty Tea Industry. Fact: The Tea Industry is strewn with competing information, myths and unsubstantiated claims. Solution: TeaClass.com. OK, so it's not there yet but it's a step in the right direction. TeaClass is a powerful and dynamic tool for seeking and sharing "tea truth".

There are few things in retail more frustrating than finding the perfect location with the perfect size on the perfect street, offering the landlord's asking price and getting turned down! What did I do wrong? What more does the landlord want? What could I have done, or can I do next time, to avoid going through this process again only to be disappointed?

In Part 1 of this article I covered a few of the strategic elements that must be considered when designing a retail store. Part 2 described the objective of Adagio's move into physical retail stores. In this installment I'll share a number of tactical strategies that we've developed to create an environment so rich and compelling that all other tea shops seem boring in comparison. It's a lofty goal, but that's the point of having a dream!

What's the difference between success or failure of a new tea on the grocery store shelf? Packaging. Long run, quality matters, but before the consumer can be impressed by your quality they first have to make that initial investment and give your product a try. We knew the importance that packaging plays in consumer behavior, but what we didn't know was...

"How did you get into the tea business? And how can I get into the tea business?" I've heard these two question on a weekly basis for a little over five years now. Tea beckons many with its a rich history, diverse cultures, and image of a hip, healthy lifestyle. Most people expressing interest in the tea industry are attracted by one or more of the following opportunities:

In Part 1 of this three part series I covered a few of the strategic elements that must be considered when designing a retail store. In this installment I'll describe the objective of Adagio's move into physical retail stores. Our goal is to reinvent the tea shopping experience and create an environment so rich and compelling that...

For a consumer, the design of a retail store appears simple and straightforward. We quickly absorb thousands of pieces of sensory information and make a snap judgment on whether or not we "like" the store and its products. To properly understand this process and design a store that will welcome the customer, drive sales and run efficiently is anything but simple. In this article I'll attempt to describe a few of the key strategic elements to be considered when designing a retail store.

Navigating regulations is one of the more intimidating aspects of running a business. The Food and Drug Administration's labeling regulations are no exception. The purpose of this article is to provide a little guidance based on my research and experience.

For anyone considering a new tea venture, building a product collection is one of the most important, and most enjoyable parts of the process. While "playing with tea" is what draws many people to this business, when the time comes to start making decisions the range of options and strategies can easily get intimidating. I've talked with dozens of tea entrepreneurs facing these decisions and would like to take this opportunity to highlight the product selection and branding strategy of a successful brick-and-morter and online retailer...

One of the first recommendations I made upon joining the team at Adagio was that we add a "Master's Collection", or a line of super-premium teas to cater to the connoisseur and compete with the Specialty Tea Industry's high-end brands. Adagio's management agreed, and the next step is to choose the right packaging for these teas. To do this, I'd like to start by answering a few key questions posed to me by our resident Marketing and Graphic Design Guru...

Ask 10 people what it costs to open a tea shop and you'll get 10 totally different answers. Ask those same 10 people what it costs to open a profitable tea shop and you'll be lucky if one of them has a clue. When asked this question, and with none of the necessary information like size, location, product mix or business strategy, I usually answer by saying that I personally would not go into the tea business unless could afford to invest at least...

Caffeine may be one of the most often discussed and least understood elements in your cup of tea. Sadly, the myths seem more widely accepted than the truths. Even many of the most widely read and respected tea books still promote the old beliefs about caffeine and tea which have long since been proven nothing more than old wives tales. Without going too deep into the science, let's discuss the truth of caffeine in tea.

The health benefits of tea have been a primary focus of industry marketing for roughly a decade now. Even with all the hype, there are surprisingly few tea consumers with much of an understanding for the health benefits of tea or how best to get them. Here are a few basic terms and answers to the most common questions that tea consumers ask:

In recent years we've seen an explosion of claims and certifications in the tea industry. At the end of the day, the consumer will (and should) drive the evolution of any controls that protect the quality, environmental sustainability and economic sustainability of the foods they consume. That said, it is important for those of us in the tea industry, and those of us who care about the tea industry, to understand and communicate the pros and cons of any particular certification or quality control approach.

In recent years we've seen an explosion of claims and certifications in the tea industry. It is important for those in the industry, and those who care about the industry, to understand and communicate the pros and cons of any particular certification or quality control approach. A few days ago I shared my thoughts on the pros and cons of marketing Organic teas. Today I'm turning my attention to Fair Trade.

"How do I get trained in tea? Where can I get certified as a Tea Master?" There are industry sanctioned answers to this question, but I'm going to take the risk of offending some rather important and influential people and suggest that...

It used to be that bagged teas were markedly inferior to even an untrained palate. Today, while MOST bagged teas are still commodity grade, mass-market products, the gap is shrinking rapidly. Some progressive retailers have even taken the risk of putting (gasp) top quality whole leaf teas into a bag.

A "good sale" is one in which the customer leaves excited about tea AND is likely to remain so after they begin enjoying the product. To accomplish this, the staff must be taught to consult, not sell. A consultation is focused on helping to connect the customer with the products that will meet their needs and/or make them happy. The process of selling typically gets distracted by featured items, current promotions, or whatever the most expensive option might be in order to hit pre-defined sales goals that have nothing to do with customer satisfaction.

A good Tea Consultant, using the APPROPRIATE sales techniques and equipped with a solid knowledge of tea in general and the store's collection specifically can and should deliver 50% higher average sales than a very nice, very friendly but relatively untrained cashier. These are the truths that provide the foundation for my approach to employee training.

Without question, the focus of the Adagio Retail model is loose leaf tea. That said, new retail tea shops often derive 40% of first year sales from accessories. Even well established shops often get 20% to 25% of sales from accessories, so this is clearly a critical component of the business. This article details the Adagio strategy for building a successful accessory collection for the new retail store.

2010 is an interesting year. We seem on the verge of so many changes socially, politically, economically and environmentally. Will the recession of the last couple years result in a REAL change in the mentality of the US consumer? Will the economy recover quickly or will retailers continue to suffer? Will the explosion of information on the health of tea and recent marketing efforts by giants like Lipton and Snapple drive a boom in sales for everyone or just them? Here is what I expect for the tea business in 2010:

There IS a wrong way to make tea. Unfortunately, I've rarely observed people prepare tea correctly - even in a tea shop or tearoom. The truth is that there is nothing that will make a bad tea taste really good. It is also true that the best tea in the world, without the proper equipment, water and technique, will turn out mediocre. I have to wonder how many more Americans would be embracing high quality loose leaf teas if they knew how to pull the most from the leaves?

My top priority these days is finding that perfect first location. I'm looking at some pretty impressive options, but am currently a little caught up in an internal debate over how much competition is a good thing. I'm not so sure how opening a store nearby an existing tea shop would be seen by the local community, the tea community, or the competition. Am I crazy to consider opening a shop a block away from one of the biggest names in the Specialty Tea Industry?

Is the US Tea Industry strong and growing or is it currently characterized by struggle and heartbreak where only a few survive? My answer is… BOTH! I believe without question that there is a ton of money to be made in tea, and a lot of fun to be had along the way. I also believe that most new tea businesses will fail.

An internal debate has been underway for the past month or so on the proper role of Tea-to-Go in the Adagio retail concept. Should we treat it as a profit center, a small side-business, or a marketing strategy to drive loose tea sales?

An environment that brings the customer closer to the leaf and delivers an experience that causes them to fall in love with tea will, by definition, be differentiated and "sticky". The customers will be come back, will tell their friends, and will give us their business if we can spark a passion for tea that mirrors our own.

Most new tea businesses fall into one or more of the following categories: Wholesale, E-Commerce, Retail, Café, or Restaurant. Allow me to start at the bottom and briefly share my opinion of the pros and cons of each.

Adagio Teas, a long-time leader in the online sale of tea will soon open its first Tea “Experience” Retail Store that aims to break with the traditional retail models and offer an environment that encourages customer interaction and experimentation. Unorthodox strategies will include allowing customers to create their own tea blends, brew samples of any tea in the store, and test accessories before buying.

In retail, location is everything! We've all heard that before, and yet I don't think I've ever seen a course on how to find the perfect retail location. As with most things in business, there are a lot of common sense concepts and strategies, and a few tricks that may not be so obvious. One of those is the importance of a Real Estate Broker.

After 10 wildly successful years in the online tea business it's safe to say that Adagio's tea collection is a proven success. But success online will not necessarily translate to a retail store. The question, is how does a company like Adagio need to adjust their tea collection to be successful in a physical retail environment?

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?

For decades, tea was the stale, boring step-child of coffee. My how far we’ve come! Read more for growth statistics and trends.

The truth is that the market really doesn’t have much use for another under-sized, under-funded, “me-too” online tea shop. But that doesn’t mean there isn’t a wealth of opportunity hiding a few steps off the beaten path.

There are a host of reasons why I don't believe any of today's leading tea companies has a real chance at becoming The Starbucks of Tea, but the main reason is that Starbucks has always had the option of claiming the title themselves. For years, Starbucks has been watching and waiting for the moment that tea offered a significant enough opportunity for profits to warrant the investment.