TsaoCaa: Operational Management & Throughput Optimization

Rahul Sharma -

Summary

TsaoCaa is a premium tea franchise that blends fresh, natural ingredients with self-order technology to deliver rapid, high-quality service. Our operational assessment covering executive summary, process mapping, capacity analysis and workflow optimization revealed that while TsaoCaa’s nine self-order kiosks comfortably handle demand (337 orders/hour capacity), the tea-preparation line (90 orders/hour capacity) is the bottleneck. Average daily throughput (~220 orders) aligns with manager reports, but equipment vulnerabilities (five blenders, one ice machine) and underutilized online channels present risks and growth opportunities. We recommend backup equipment, a streamlined store layout, and targeted digital marketing to bolster resilience, increase throughput and expand TsaoCaa’s market reach.

Introduction

Founded in 2018 by Eddie Zhang, TsaoCaa quickly expanded across Nevada, Colorado, Indiana and beyond by offering premium teas made with natural leaves and fresh fruit, served with an immersive café-style experience. Key value propositions include:

  • Authentic tea brewing (espresso-style machines)
  • Customizable beverages (fruit teas, bubble teas, yogurt drinks)
  • Self-checkout kiosks for speed and convenience
    TsaoCaa’s strategic aim is to operate a limited number of high-profile cafés integrated into local communities while leveraging technology for service efficiency.

Process Mapping & Capacity Analysis

Order Placement

  • Resources: 9 kiosks + 1 cashier station (for online pickups & new customers)
  • Observed Data: 96.13 s/order (σ = 41.10 s) → 37.45 orders/hour per kiosk → 337 orders/hour total
  • Utilization: 5.9 % average; 11.6 % peak (39 customers/hour)
  • Wait Time Impact: Negligible (average queue time ~0.000085 s)

Tea Preparation

  • Resources: 5 servers (blenders/operators)
  • Observed Data: 184.62 s/order (σ = 95.69 s) → 18 orders/hour per server → 90 orders/hour total
  • Utilization: 22.2 % average; 43.3 % peak
  • Wait Time: Avg queue ≈0.23 s; avg service + queue ≈184.85 s

Flow & Throughput

  • Bottleneck Identification: Tea preparation (90 orders/hour) limits throughput
  • Daily Capacity: Min{Demand, Capacity} → 20 orders/hour → ~220 orders/day (matched manager’s 200/day)

Operational Challenges & Mitigation

Equipment Vulnerabilities

  • Single Points of Failure: 5 blenders & 1 ice machine
  • Mitigation: Add at least one backup blender and a second ice machine or establish rapid-response maintenance partnerships

Underutilized Online Channels

  • Current State: Only ~5 % of orders via DoorDash
  • Recommendation: Launch targeted social-media campaigns and partner with local student associations to drive online orders

Store Layout Optimization

  • Observation: 9 kiosks occupy valuable floor space with low peak utilization
  • Action: Reduce kiosks to 6-7 units, reallocate space for 10-15 additional seats to increase in-store capacity and dwell time

Conclusion

TsaoCaa’s operations are fundamentally robust, with kiosks and workflow handling current demand efficiently. The primary bottleneck, tea preparation can be addressed by increasing blender and ice-machine redundancy. Optimizing store layout and boosting digital marketing will unlock additional capacity and revenues. Implementing these changes will strengthen operational resilience, enhance customer experience and position TsaoCaa for scalable growth.

Full presentation link - TsaoCaa Presentation Slides