Closes by 5 and still delivers 50 percent EBITDA.

While most quick-service concepts chase the next trend, from bowls to boba. One emerging model is offering something far more enduring: a refined, full-sensory experience built on elegance, tradition, and a proven history of success.

Shelly’s Tea Rooms, founded in southeast England in 2007, has built a reputation over 17 years as a premium tea destination defined by indulgence, simplicity, and authenticity. After racking up multiple “Tea Room of the Year” honors in the U.K., the brand made its U.S. debut in 2022 in Plymouth, Massachusetts, where its warm reception sparked a wave of demand that has only grown. Now, Shelly’s is opening its doors to U.S. franchise partners for the first time, offering a chance to bring a truly differentiated hospitality concept to their communities.

“Everywhere you go in the U.S., it’s the same tables, same sticky floors, same coffee shop chairs,” says Sean Sinclair, president of Shelly’s Tea Rooms. “We’ve created something that just feels different down to the cutlery, the carpet, the teapots.”

According to the Tea Association of the U.S.A., tea is consumed in over 80 percent of American households. In 2021, Americans drank more than 3.9 billion gallons of tea—about 85 billion servings. Over 159 million Americans drink tea daily, and among millennials, 87 percent are regular tea drinkers.

That consumer interest is translating directly into performance. In 2023, Shelly’s Massachusetts location generated $583,273 in gross revenue and $307,547 in adjusted EBITDA, accounting for royalty deductions with an EBITDA margin just under 50 percent. The model’s gross profit margin stands around 80 percent, bolstered by a tightly streamlined menu and high reservation rate. With a buildout investment ranging from $206,000–$280,000, the concept provides an accessible entry point with high returns for prospective franchisees.

“We built this from scratch in a town where we didn’t know a soul,” Sean says. “If you’re a local franchisee, you already have a community around you, and that gives you a huge head start.”

At the heart of Shelly’s is a guest experience unlike any in quick-service restaurants. From its signature Windsor Afternoon Tea to its fresh-baked scones made daily in-house, everything is rooted in authentic English traditions. 

“You can wear a big hat and dress up, or come in casual wear. We don’t script the experience. We want you to feel comfortable, like it’s your own,” says co-owner Michelle Sinclair. “You can bring your grandmother or your friends, and everyone has a great time. It’s cross-generational, and that’s rare.” The concept has seen guests of all ages return again and again, and families often build traditions around their visits.

The menu is simple but indulgent: scones, finger sandwiches, cakes, and, of course, teas, which Shelly’s offers over 100 of—both iced and hot. “In England, we offered ten teas and sold maybe two,” Michelle says. “Here in the States, we offer 103, and we sell every single one. Guests are adventurous and curious. That’s exciting.”

Shelly’s model also offers lifestyle advantages rare in foodservice. The shops open at 11 a.m. and close by 5 p.m., with most operations easily handled by a two-person team. “We’ve been doing this for 17 years, and we have it down to a T. Very little waste. Two people during the week. Predictable, efficient, and rewarding,” Michelle says. “There’s no greasy food, no late nights, no bar crowd. It’s a beautiful business with ideal hours.”

For franchisees, that beauty comes with serious support. New owners receive 64 hours of hands-on training, full operational documentation, and continued access to the founding team. “You’re in business for yourself, not by yourself,” Sean says. “We’re here seven days a week if you need to talk through staffing, strategy, whatever it is. You’re never alone.”

Shelly’s emphasizes community involvement, encouraging operators to engage in local schools, charities, and causes that matter to them. “Before we opened, we donated gift certificates to local fundraisers and hosted events to raise money for families dealing with illness,” Sean explains. “We didn’t know a single person when we moved here, but our community embraced us because we made the effort to be part of it.”

The flexibility of Shelly’s as a destination concept allows for a wide range of location types from strip malls to historic downtowns. “We’re not dependent on foot traffic. People travel hours to see us,” Sean says. “It’s about building something memorable, not mass-produced.”

As Shelly’s enters its franchising phase, the team plans to open 10 to 30 locations across the country over the next five years. Each new territory is exclusive with little competition, but the focus is on steady and sustainable growth rather than rapid expansion.

“This isn’t another pizza chain or burger concept. It’s something fresh, with soul,” Sean says. “Tea is not a trend. It’s part of culture. And we’ve created a space where people can celebrate, connect, and make memories. That’s what we’re offering.”

To learn more about franchise opportunities with Shelly’s Tea Rooms, visit shellystearooms.com/franchise.

By Drew Filipski

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