After finishing university, Patricio Lombardo and his sister Daniela began working for transnational companies. In 2002, during a visit to Chinatown in San Francisco, California, they learned about bubble teas, aromatic drinks originating in Taiwan, usually sweets that contain tapioca balls and that were very popular among Asian consumers.
“We were ecstatic about the product because it was something different and innovative and we decided to bring it to Mexico, where the concept did not exist,” says Patricio.
At the beginning, not even the Taiwanese themselves, with whom they went to train, trusted them. “They told us the product wasn’t going to work for Westerners because they had already tried it in the United States,” he recalls. However, after 14 years, Cassava Roots, the brand they founded has 68 branches, 30 of their own and 38 under the franchise model with which they offer a business opportunity for new entrepreneurs.
Create an experience
In 2002, Starbucks was positioning itself in Mexico, “we wanted to make a totally disruptive cafeteria,” Patricio insists. Everything was very organic at first. “I made the logo in paint with the three colors (black, white and red) of my favorite rock band of that time: The White Stripes. The tree represents the root from which the tapioca comes and hence the name Cassava Roots”, explains the entrepreneur.
Special attention was also paid to the design, which was influenced by his taste in graffiti, rock and street art. “I told myself I want a tea shop where I feel comfortable, where I feel original and really different, where I can meet creative people… that’s where the Rockster came from, a hipster rocker, our client”. He refers to someone who decides to be as he is, without fear of prejudice.
The first Cassava Roots unit opened in Interlomas in 2008.
Build a storytelling
In its early days, people believed that a Cassava Roots already existed. And it is that the entrepreneurs took on the task of building a storytelling behind the brand. “The owner of Cassava is called Ichiro Kokoro, who does not exist, but on the napkin it said that in 1700 he found the roots, cooked them and then made a drink and gave it to the samurai, the ninjas, the fighters of juices and geishas. Then a mythical story began to emerge. That’s also where our menu comes from,” says Patricio.
The acceptance was such that people said that they had gone to the unit in Japan, when the concept was born in Mexico. The construction of that storytelling helped them to consolidate the brand and grow. From there began the interest in replicating the business and doing it through the franchise model, which was developed with the Gallástegui Armella Franquicias office.
The second branch opened in Anáhuac del Norte in Mexico City, because to become a franchise the recommendation was to have two branches operating and at least one year of operations. “We only had six months of operation,” acknowledges the interviewee.
replicate success
Already with the second unit operating, the franchises began to be sold. From 2008 to 2010, six stores were opened and capitalized to continue expansion. “We learned to negotiate on the march,” admits Patricio. “Whoever you sell your first franchise to tells you why they are going to pay you a royalty, if you are selling them a new brand. I think we sold it for 50,000 pesos.”
Growth is also somewhat difficult, explains the entrepreneur. Above all, with people, he explains. “He attended to the purchase orders of the five stores and delivered them as well. I bought a little truck and delivered them, but then you wonder, who pays the taxes? We need an accountant, then someone to help with logistics, among others.
My first employee Madeline is now the logistics manager and has been with me for 14 years. We were both frapping and from being the first frapper, now she helps me do all the import and soon the export of our product to the United States.
Patrick Lombard
Contract to be stronger
The creation of Cassava Roots involved an investment of about 600,000 pesos, including the investment in the store, conditioning and training trip to Taiwan. Everything was a product of his savings. The growth has been organic, but in this process they had to make important decisions, such as closing units. “Franchise control is complex,” he warns.
Before the pandemic, the founders decided to close about 10 units because some franchisees did not follow the brand guidelines or acquired it and stopped operating it directly.
The franchise is not an investment, but rather a business that needs to be operated by a franchisee. Now we have a model that allows you to invest in a store and we operate it for you, but back then we didn’t have that capacity.
Patrick Lombard
World-class Mexican bubble tea
Cassava Roots currently has 68 branches, 30 of its own and the rest are owned by 12 franchisees that have several units. “Once they run a store, the business becomes profitable and they open a second or third one,” explains the founder.
The investment for a franchise is between 1 and 1.5 million pesos, plus the franchise fee of 350,000 pesos. “In Mexico we still have a lot of market to explore, for example, in the south of CDMX and in the southeast of the country and to the north, in states like Monterrey,” says the franchisor.
Patrick’s view is that Cassava Roots become the first Mexican bubble tea store internationally. In the United States, the brand has been present since 2019 and an ambitious expansion plan is coming for McAllen and San Diego. Last May they traveled to Spain to prepare the company’s charter, test and configure the stores with a view to its growth in Europe.
Marisol Garcia Fuentes Editorial Director Emprende and Emprendedor.com. I am motivated by stories of tenacity and innovation.