Today we’d like to introduce you to Dan Klein and Patrick Tannous.
Tiesta Tea was founded on March 12th, 2010 by college seniors and preschool best friends, Dan Klein and Patrick Tannous. Patrick and Dan both studied abroad during college and took a weekend trip to Prague together. Their adventures abroad took them to a tiny Czech tea house, where they had their first cup of loose leaf tea and they have been hooked ever since. It was in this wow-inspiring moment that made them wonder, “why don’t more Americans drink loose leaf tea?” Back home, Patrick found himself spending hundreds of dollars on loose leaf tea and quickly concluded that loose leaf tea in the United States was too expensive, very intimidating and inaccessible to mainstream consumers. These three conclusions helped format the company’s mission and business strategy of making loose leaf tea understandable, accessible and affordable to the mainstream consumer.
When they returned to the US, both Dan and Patrick were seniors in college and put their heads together to submit the idea for Tiesta Tea in a business plan competition in Dan’s entrepreneurship class at The University of Illinois. Tiesta Tea’s business plan submission won first place and placed Dan and Patrick into an incubator program in the University of Illinois Research Park.
Originally, Dan and Patrick planned on Tiesta Tea being a nationwide loose leaf tea cafe.
They soon realized that having storefronts around the country would not only make nationwide expansion extremely difficult, but the overhead cost of the cafes would drive up the price on the tea blends. Instead, they decided that launching a brand to be sold exclusively in specialty, natural and conventional grocery stores was the best way to stick to the mission of the company and build a successful business.
Although there were obstacles along the way, now Tiesta Tea is sold in 6,500 grocery stores nationwide, as well as hundreds of cafes. In 7 short years, Tiesta Tea has gone from working in a college dorm room to a brand new 23,000 sq./ft. warehouse over in Elk Grove Village, IL with a sales and marketing office in downtown Chicago. Tiesta now has 14 full-time employees and the business had its first profitable year 2016. Tiesta Tea also pioneered the loose leaf bulk program in grocery stores, allowing customers to engage in a store-within-a-store concept by scooping tea in an economically and environmentally friendly way.
Overall, has it been relatively smooth? If not, what were some of the struggles along the way?
In the beginning, Tiesta Tea experienced trouble breaking into the marketplace. Dan and Patrick had to find creative ways to keep the business afloat. Back in 2011, these two business partners couch surfed in four cities for 20-days throughout New York, going door-to-door talking to over 500 potential customers to keep the business alive. From that trip, Tiesta Tea gained several large clients that finally helped them break into the grocery store marketplace. In addition, Dan and Patrick had limited experience and knowledge of the food and beverage industry. It was this lack of experience that gave them the determination to learn and the passion to be successful. The tea industry is saturated by tea companies that focus on tea type and ingredient origin. This is not a bad thing, but Patrick and Dan realized the common consumer does not care where the tea leaves are from. What the common consumer cares about is what the tea will do for them (functionality) and what the tea will taste like (flavor).
Alright – so let’s talk business. Tell us about Tiesta Tea – what should we know?
To truly invest all of his time and effort into starting the business, Patrick dropped out of college and forewent his college degree. When Tiesta Tea experienced trouble breaking into the marketplace, Dan and Patrick had to find creative ways to keep the business afloat. To start the company, they put their personal credit on the line from knocking on over 500 potential customer doors in one week to creating a professional presentation and recruiting their fathers as the first investors of the company. Not only did they risk their financial reputation, but they also risked the trust and confidence of their families.
In addition, many people say that starting a business with your friends is a bad idea. As the current President and CEO of Tiesta Tea, Patrick and Dan have defied this logic so much so that Patrick stood up as the best man at Dan’s wedding.
Tiesta Tea creates understandable, affordable and accessible quality loose tea blends by using natural fruits, herbs and spices that enhance the flavor and function of tea. In 2010, two childhood best friends discovered their love for loose leaf tea while studying abroad in Prague. That love quickly turned into a mission to bring quality loose leaf tea to the masses with wow-inspiring flavors that highlight the amazing health benefits tea has to offer. With over 50 loose leaf tea blends segmented by functionality, Tiesta Tea offers a unique way to energize, relax, slenderize, boost immunity and defy age naturally with tea. Today, Tiesta Tea can be found nationwide in over 6,500 specialty, natural and conventional grocery stores along with hundreds of cafes.
Dan and Patrick had limited experience and knowledge of starting a business in the food industry.
It was this lack of experience that gave them the determination to learn and the passion to be successful. The tea industry is saturated by tea companies that focus on tea type and ingredient origin. This is not a bad thing, but what Patrick and Dan realized is that the common consumer does not care where the tea leaves are from. What the common consumer cares about is what the tea will do for them (functionality) and what the tea will taste like (flavor). This is why Tiesta segments its blends by functionality into five different categories: Energizer, Slenderizer, Immunity, Relaxer and Eternity. With these five tea functions, Tiesta makes it simple for consumers to find a tea that fits their lifestyle. Tiesta also focuses on creating over 50 flavorful loose leaf tea blends that include a variety of fruits, herbs, and spices. Patrick and Dan believe that every grocery store in the country should offer loose leaf tea. That’s why the company is continuously innovating to improve the loose leaf tea experience offered in grocery stores. Tiesta Tea pioneered the loose leaf bulk program in grocery stores, allowing customers to engage in a store-within-a-store concept by scooping tea in an economically and environmentally friendly way.
Patrick’s vision has always been to inspire others and enhance lives to create a wow moment for everyday people in their everyday lives…every day.
Contact Info:
- Address: 219 W. Institute Pl.
Suite 310
Chicago, IL 60610 - Website: Tiestatea.com
- Phone: 312-202-6800
- Email: info@tiestatea.com
- Instagram: Instagram.com/tiestatea
- Facebook: Facebook.com/tiestatea
- Twitter: Twitter.com/tiestatea
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