Milktea Shops Closure: Challenges Encountered By the Owners in Cauayan City

The popularity of milk tea products gained the interest of people, not just those who love drinking this product but also entrepreneurs. Philippines ranked with the most bubble tea drinkers in Southeast Asia in 2019. People who ventured into this business experienced more than just unprofitability but also bankruptcy and closure. It is common and inevitable that a micro-enterprise experiences closure, considering numerous factors that affect the daily operation of ventures. This study opts to identify challenges that caused the closure of milk tea shops. The study suggests the link among dependent and independent variables. Quantitative research was conducted in selected closed milktea shops in Cauayan City, Isabela, to understand the owners’ perceptions of the closure of the milktea shops and assess the relationship between the challenges. The respondents of the study were business owners in Cauayan City, Isabela, who were the ones who closed their milktea shops. Purposive sampling is the method of sampling that was used in the study. The data was gathered through a questionnaire and employed frequency, percentage, average weighted mean, and Likert scale as statistical procedures to analyze and interpret the collected data. The respondents generally proved that internal and external challenges contributed to the closure of milktea shops. Business owners may create better strategies to eradicate the impact of the internal challenges in terms of financial resources and inventories and external challenges in terms of location and government policies. Future entrepreneurs may use this research to avoid pitfalls common in the milk tea industry and apply best practices to other ventures. Embrace continuous innovation and adaptability as critical drivers of success in any competitive market.