As a self-proclaimed boba connoisseur and lover of all things bubble tea, the rise in boba caf\u00e9s around western Washington warms my tapioca-filled heart. What is boba? Boba, bubble tea, boba tea, and milk tea is a Taiwanese beverage often topped with tapioca, fruit jellies, custard, or foam. I am sipping on one as I write this blog post.<\/p>\n
While some of my personal favorite boba shops resides in Federal Way, University of Washington\u2019s \u201cave\u201d boasts a different bubble tea store on basically every block. My sister, a UW student, says \u201cyou don\u2019t have to look for boba to find boba.\u201d<\/p>\n
Just how, exactly, do these caf\u00e9s manage to stay in business? Due to their close proximity, customers can easily check competing prices. Additionally, a limited number variations of bubble tea exist\u2014how does one shop distinguish itself from others?<\/p>\n
Perhaps this problem could be approached from a Hotelling perspective. Location and price matter. Again, these boba shops are so close together. I could stand in one and stare out the window at two competitors. To UW students, what\u2019s another one block walk for better boba or better price?<\/p>\n
In attempts to differentiate themselves, each bubble tea shop offers a kind of \u201cspecialty\u201d or bonus in addition to their basic boba flavors. For example, some shops have started to offer alternative milks, while others serve boba to wash down fried chicken or fresh bao. Some trendy bubble tea stores even sell their own merchandise. Most shops have relied on aesthetically pleasing ambiance in order to advertise via social media posts.<\/p>\n
While the boba market isn\u2019t necessarily perfect competition, the ave presents an interesting study of supply, demand, and firms\u2019 behaviors. Are customers looking for a shop that accepts reusable cups? Do they want a drink they can post on Instagram? Do they want vegan options? The shop down the street offers soy milk, so should we offer almond milk and oat milk? That other store has t-shirts, should we sell stickers?<\/p>\n
UW\u2019s abundance of boba juxtaposes with UPS\u2019s relative lack of local bubble tea locations. Shops within a short drive enjoy an oligopoly of UPS students\u2019 boba consumption. What\u2019s a better study snack than a lightly caffeinated, chewable beverage? Perhaps in the future, Loggers will revel in the vast selection of bubble tea currently enjoyed by our neighbors up north.<\/p>\n","protected":false},"excerpt":{"rendered":"
As a self-proclaimed boba connoisseur and lover of all things bubble tea, the rise in boba caf\u00e9s around western Washington warms my tapioca-filled heart. What is boba? Boba, bubble tea, boba tea, and milk tea is a Taiwanese beverage often topped with tapioca, fruit jellies, custard, or foam. I am sipping on one as I write this blog post. While some of my personal favorite boba shops resides in Federal Way, University of Washington\u2019s \u201cave\u201d boasts a different bubble tea store on basically every block. My sister, a UW student, says \u201cyou don\u2019t have to look for boba to find Continue reading Tea-conomics: thoughts on the Washington boba market<\/span>