How to Start a Milk Tea Business in the Philippines (2026): Costs, Permits, Equipment and POS
A small independent milk tea kiosk can start from the low hundreds of thousands of pesos; a sit-down shop costs far more. You'll need a DTI or SEC registration, barangay clearance, Mayor's permit, BIR registration and a sanitary permit. Here's the full checklist, equipment list and the numbers to watch.
Wemu Team
Editorial
To start a milk tea business in the Philippines you need four things: a location and format (home-based, kiosk, or shop), startup capital that can range from tens of thousands of pesos for a home setup to over a million for a fitted-out shop, a set of registrations and permits (DTI or SEC, barangay clearance, Mayor's permit, BIR, sanitary permit and fire safety inspection), and a simple system for costing and selling each cup.
Milk tea is a crowded category, so the shops that last are the ones that know their cost per cup and their best sellers by week. This guide walks through the money, the paperwork and the setup in the order you'll actually do them.
Last updated: October 22, 2026
Cost figures are ranges drawn from current supplier listings and franchise packages and will vary by city, supplier and fit-out. Fees for permits are set by DTI, your LGU and the BIR and change from time to time; confirm them with the issuing office.
Step 1: Pick your format
| Format | Typical setup | Best for |
|---|---|---|
| Home-based / online | Sealer, shakers, small fridge, delivery apps and social media | Testing recipes and demand with little capital |
| Kiosk or stall | Counter, sealer, fridge, small menu, 1–3 staff | Malls, schools, transport hubs, high foot traffic |
| Inline shop | Seating, full bar, bigger menu, 3–8 staff | Neighborhood hangouts, study spots, dine-in groups |
| Franchise | Brand, recipes and supplies from the franchisor | Owners who want a proven playbook and accept fees and supply rules |
Franchising trades control for a head start. You get recipes, branding and supplier access, but you'll pay a franchise fee (packages are commonly advertised in the hundreds of thousands of pesos), may owe royalties, and usually must buy ingredients from the franchisor. Read the contract term and renewal conditions carefully before you sign.
Step 2: Budget realistically
These are planning ranges for an independent operation, not quotes. Your location and fit-out decide most of the total.
| Item | Home-based (₱) | Kiosk (₱) | Small shop (₱) |
|---|---|---|---|
| Equipment (sealer, shakers, fridge, dispensers, blender) | 10,000 – 50,000 | 60,000 – 200,000 | 150,000 – 400,000 |
| Stall build or shop fit-out | — | 50,000 – 250,000 | 300,000 – 1,000,000+ |
| Rent and deposit (first months) | — | 30,000 – 150,000 | 100,000 – 400,000 |
| Opening ingredients and cups | 5,000 – 20,000 | 20,000 – 60,000 | 40,000 – 120,000 |
| Permits and registration | 2,000 – 10,000 | 10,000 – 40,000 | 15,000 – 60,000 |
| POS device and software (first year) | Phone you own | Tablet + subscription | Tablet(s) + printer + subscription |
| Working capital buffer | 10,000 – 30,000 | 50,000 – 150,000 | 150,000 – 400,000 |
The line most first-time owners underestimate is working capital. Plan to cover two to three months of rent, wages and ingredients before the shop pays for itself. Also budget for the 13th month pay of any staff you hire; see our 13th month pay guide.
Step 3: Register and get your permits
Do these in order; each office usually asks for the document from the step before.
- 1Business name registration. Sole proprietors register with the DTI through the Business Name Registration System (bnrs.dti.gov.ph). Fees depend on territorial scope: ₱200 for barangay, ₱500 for city or municipality, ₱1,000 for regional and ₱2,000 for national, plus ₱30 documentary stamp tax. Partnerships and corporations register with the SEC instead.
- 2Barangay clearance from the barangay where the shop operates.
- 3Mayor's permit (business permit) from your city or municipal Business Permits and Licensing Office. Expect to submit your DTI or SEC registration, barangay clearance, lease contract and other documents; fees depend on the LGU and your declared capital.
- 4Fire Safety Inspection Certificate from the Bureau of Fire Protection, typically processed alongside the business permit.
- 5Sanitary permit and health certificates from the city or municipal health office. Everyone who handles food or drinks will usually need a health certificate.
- 6BIR registration. Register through your Revenue District Office or the BIR's Online Registration and Update System (ORUS) to get your Certificate of Registration, register your books of accounts and sort out your invoices. The old ₱500 annual registration fee was removed under the Ease of Paying Taxes Act (RA 11976).
- 7Employer registrations with SSS, PhilHealth and Pag-IBIG once you hire staff.
Do you need an FDA license?
A shop that makes drinks to order and serves them directly to customers is generally handled by your LGU's sanitary permit. If you manufacture, repack or distribute packaged products (bottled milk tea sold through resellers, packaged syrups or pearls under your own brand), FDA licensing and product registration may apply. Check with the FDA before you package anything for resale.
For receipts: since the Ease of Paying Taxes Act, the invoice is the primary proof of sale for both goods and services. If you'll issue invoices from a POS, the system needs a BIR Permit to Use. Our BIR POS requirements guide explains what to ask any vendor before you buy.
Cost every cup before you open
Build your menu with recipes that deduct stock on every sale, then watch margins and best sellers by day. Try Wemu free.
Try Wemu free →Step 4: Equipment checklist
- Cup sealer (manual or automatic) and sealing film
- Shakers, measuring jiggers and a scale for consistent recipes
- Tea brewing: kettle or hot water dispenser, tea urns, strainers
- Pearl cooking: induction cooker or stove, large pots, a warmer to keep pearls at serving temperature
- Refrigeration: an upright chiller for milk and toppings, a freezer if you serve frappes
- Ice: an ice machine or a reliable ice supplier with a backup
- Blender for frappes and smoothies
- Fructose or syrup dispenser for consistent sweetness levels
- POS: a tablet or phone, a receipt printer and a cash drawer if you take cash
Buy the sealer and the refrigeration with care; those break most often under daily load. For everything else, start simple and upgrade once you know your volumes.
Step 5: Price your menu from cost per cup
Cost per cup is tea, milk or creamer, sweetener, toppings, cup, lid or film, straw and bag. Add them up for each size and flavor, then price so ingredients sit at a sensible share of the selling price. Our food cost percentage guide shows the formula and the targets most drink businesses aim for.
- Keep the core menu short: a handful of best sellers in two sizes beats forty flavors you can't keep in stock.
- Price add-ons (extra pearls, cream cheese, nata) so they lift margin rather than give it away.
- Recheck costs whenever a supplier changes prices. Milk and sugar move more than you'd expect.
Step 6: Choose a POS that understands recipes
A milk tea shop sells the same twenty ingredients in hundreds of combinations. A POS that only counts cups won't tell you when you're about to run out of tapioca. Look for:
- Modifiers for size, sugar level, ice level and add-ons, priced correctly
- Recipes that deduct each ingredient from stock on every sale
- Low-stock alerts and reorder suggestions so you order before you run out
- Reports by item, hour and day, so you staff the after-school rush properly
- Rosters and timesheets for part-time staff
- BIR readiness: ask how the vendor's system is registered and what they provide for your Permit to Use
Wemu runs on the tablets and phones you already have, with recipes that deduct stock, low-stock alerts and reorder suggestions, a kitchen display for the bar, QR ordering, rosters and timesheets, and Wemu AI you can ask "what sold best this week?" See how it fits a drinks bar on our café and restaurant page. As with any vendor, confirm BIR registration details for your setup before you go live.
Step 7: Launch and the first 90 days
- Soft-open for a few days with friends and nearby offices to test speed and recipes.
- Set up your Google Business Profile with real photos, hours and a menu.
- Track sales by hour from day one; it tells you when to staff up and when to run promos.
- Review cost per cup monthly and cut slow sellers that tie up stock.
Opening a bigger café instead? Our coffee shop guide for Manila covers fit-out, staffing and budget for a sit-down space.
Open with your numbers already working
Menu, recipes, stock, staff and sales in one app on a tablet. Core is US$29/month and Growth is US$49/month per location. Try Wemu free.
Try Wemu free →Keep reading
- How to open a coffee shop in Manila: the 2026 guide
- Food cost percentage: how to calculate it
- The best POS systems in the Philippines, compared
