they built a successful business and didn’t grow because of the dollar

they built a successful business and didn't grow because of the dollar

Lucas Lu with his wife Oh! created an innovative and modern concept for drinking tea called Tea is a chain with 6 stores. access restrictions official dollar cannot target steady growth for imports and several opening contracts fell. It even fears a shortage of stock to supply its already operating stores.

This initiative emerged in 2019, professionally developed to franchise the format with advice from market, branding and architectural studies, Uses imported machinery and materials in its businesseslike a thermos that keeps water at a constant temperature of 100 degrees and has a large flow capacity that is not locally available.

Moreover bring non-spill thermal cups from abroad uses it to serve its products, which have become very special and a distinctive feature of the brand.

And basically, The main input they use comes to Argentina from the Lu family’s plantations in China: tea.

So, Oh! Since tea is products with no local substitutes of the same quality and characteristics, yes or yes, it has some basics to import.

Actually, Lu says that without dollar shares, about 20 outlets should be in operation right now, instead of the current 6..

The dollar trap makes it difficult for many SMEs to grow or keep their businesses.

The dollar trap is making it difficult for many SMEs to grow and run their businesses normally.

Import issues

Barriers to imports Dollar shortage in Central Bank reserves, This entrepreneur is also concerned about the normal functioning of the chain’s stores.

“Fortunately, we are in a position today to supply our existing franchises with the necessary materials and equipment, but With unforeseen game changes, we may run the risk of running out of stock in our stores.“, says iProfessional Lucas Lu, CEO of Oh! Tea.

And adds: “Most of our products are not locally modified, such as machinery, spare parts, some raw materials and materials used to make drinks”.

In that sense, official measures are affecting this company because, he confirmed, “Import quota is not enough” to continue the expansion of the stores planned by the firm for the brand.

“This is exactly why, We had to cancel 6 signed contracts. Even today, we have a bulletin board with many people interested in our franchise who haven’t been able to fulfill their dreams of owning their own business,” Lu said candidly.

The price of the dollar and barriers to growth

Among the 6 stores owned by Oh!! Tea, half franchise and employs a total of about 100 people. Almost all of them, with the exception of La Plata, are located in the city of Buenos Aires. It will also open in Rosario in the coming months and open more than 100m2 stores at Unicenter. Although it all depends on how the government will continue to tighten the exchange rate.

Restrictive measures, such as the 180-day period to cancel overseas purchases, make it difficult for companies to import.

Restrictive measures such as the 180-day period for the cancellation of overseas purchases make imports difficult for companies.

“If the situation continues like this, it will be very difficult to continue projecting future expansions, increasing business units and investing in the country. Today, despite the financial cost of being able to transfer dollars, we maintain the selling price on our own. 180 days later, it is a constant uncertainty we live abroad.”details from Lu to iProfessional.

Barriers to accessing the official exchange rate also cause businessmen to get started. take as reference free dollars.

“We do calculation after calculation every day to give our franchisees a fine line on price. The truth is, unfortunately, If we start talking in financial dollar values, we should buy the product that will double the value. what’s on the list today, but we don’t”, Lu charts.

And he sums up his situation like this: “At the moment The high season is coming for us, but we cannot gain 100% advantage by increasing business units. Today, as an SME, it is very difficult for us to adapt to the new official measures and the payment method determined for imports, as it is not easy to finance.”

you want to leave as a final message there is “more support” from authorities for small and medium-sized entrepreneurs.-

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