Argo Tea facts for kids
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Argo Tea former headquarters on Randolph St. in the Chicago Loop
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| Subsidiary | |
| Industry | Restaurants Retail Tea and Coffee Wholesale Tea |
| Founded | June 2003 at 958 West Armitage Ave. Chicago, IL 60614 |
| Founder | Arsen Avakian Daniel Lindwasser Simon Simonian |
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Number of locations
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8 (2023), all located on college campuses |
| Products | Signature tea drinks Loose tea leaves Bottled beverages Coffee Teaware |
| Parent | Planting Hope |
Argo Tea started as a chain of tea cafes in Chicago, Illinois, in June 2003. It was founded in the Lincoln Park area.
In 2020, the company was sold to Golden Fleece Beverages. This company wanted to sell Argo's ready-to-drink products in stores. They closed the company-owned cafes. Argo Tea was sold again in 2023 to Planting Hope. Planting Hope decided to stop selling bottled drinks in stores. Instead, they focused on letting other businesses open Argo-branded cafes. By the end of 2023, there were eight Argo Tea cafes. All of these were on college campuses. Companies like Aramark and Sodexo operated them.
Argo Tea used to have its main office in Chicago's Loop area. It had many locations in the Chicago area. In 2010, it expanded to New York City. It also opened stores in St. Louis and Boston. By October 2011, Argo Tea had 26 locations. Its products were sold in over 3,000 grocery stores. The company grew as more people became interested in tea. Arsen Avakian is the current chief executive officer. By 2013, Argo Tea had also opened in Beirut. They planned to open more stores in the Middle East.
Argo Tea mainly sells many kinds of hot and cold tea drinks. They also offer about 36 types of loose-leaf tea. These are teas brewed from loose leaves, not from tea bags. You could also buy coffee, baked goods, small meals, and teaware. Their tea menu included black, green, white teas, and natural herbal teas. These were served hot or iced. Argo Tea worked with Whole Foods Market to sell its products. They also sold music CDs.
In 2020, Argo Tea started selling bottled tea in stores like Walgreens. They focused on these ready-to-drink teas. Golden Fleece Beverages bought the company. Golden Fleece continued to run Argo Tea. Loose tea was sold online.
How Argo Tea Started
Argo Tea wanted to be like the Starbucks of tea. It was started in 2003 by three friends: Arsen Avakian, Simon Simonian, and Daniel Lindwasser. Arsen and Simon grew up together in Armenia. They moved to the United States in the 1990s. Simonian was a computer scientist. Avakian was good at starting new companies. Lindwasser was from France and moved to the U.S. in 1997. He used to be a business consultant.
The first Argo Tea cafe opened in June 2003. It was about 900 square feet. It had 24 indoor seats and 20 outdoor seats. This cafe was at 958 West Armitage Avenue in Chicago. It was the first tea cafe in the Lincoln Park area. A Starbucks was right across the street. The name "Argo" came from the story of Jason and the Argonauts in Greek mythology. The founders used their own money to open the first store. They did not have outside investors. Mark A. Cuellar, a Chicago architect, designed the early cafes.
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At first, Argo tried selling dry tea in boxes at Whole Foods. But they soon changed their plan. Six months after opening, Argo planned to open more stores in Chicago. In late 2004, Argo opened its second location at Loyola University. By early 2006, there was a third store in the Loop area. A fourth store opened soon after. In March 2006, Argo expanded to the South Side of Chicago. This location was at the University of Chicago Medical Center. It was a small tea kiosk. By 2007, the company decided to make all its drinks the same way. They started brewing tea concentrates in one central place.
After five years, Argo Tea had 10 locations. All of them were in Chicago. Many of these early cafes were near Starbucks stores. Argo thought that Starbucks was making more people want tea. By February 2009, all 13 Argo Tea locations were still in the Chicago area. In July 2011, Argo Tea opened a store in the Tribune Tower. This was the first new store there in six years.
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Argo opened its main New York City store in January 2010. It was in the famous Flatiron Building. They quickly opened more stores in New York. These included locations in Chelsea and Columbus Circle. They opened four cafes in New York City in 2010. They were able to get good locations because of the late-2000s recession. This meant they could rent places like Union Square at good prices. In May 2011, the company added its fifth tea room in New York City.
By 2010, the company changed its goal. They no longer wanted to be just like Starbucks. Arsen Avakian said, "Starbucks is like an old computer. We want to be like a new, cool computer." He meant they wanted to be fresh and healthy. At that time, Argo Tea had 18 stores. They had 14 in Chicago and 4 in New York. They were the largest tea-focused chain.
In 2011, the San Francisco Chronicle said Argo Tea started a new tea shop trend. Time magazine wrote that Argo helped Americans drink more tea. By 2011, there were over 3,000 tea rooms in the United States. Between 2006 and 2009, coffee drinking went down. But tea drinking went up. This growth in tea made Starbucks change its name. It also built its Tazo tea brand.
The first Argo Tea location closed on April 30, 2013. But the company opened a new "greenhouse" store nearby. By March 2013, bottled drinks made up 20% of the company's sales. Argo Tea also opened a store in Beirut. They planned to open more in the Middle East that year. By September 2013, a store in Doha opened. A second Beirut location also opened.
In October 2016, Argo Tea made a deal with Caribou Coffee. They planned to open stores together.
In 2020, Argo Tea changed its focus to selling bottled tea drinks. Golden Fleece Beverages bought the company. They made a deal with Walgreens to sell the bottled teas. Golden Fleece Beverages later filed for bankruptcy in October 2021. This happened after they closed all their company-owned cafes during the COVID pandemic.
A company called Planting Hope bought Argo Tea in August 2023. Planting Hope is a company that focuses on natural foods. They plan to stop making and selling Argo's bottled tea drinks. Instead, they will focus on selling licenses to others. This lets other businesses operate Argo-branded cafes. When Planting Hope bought the company, Argo had eight cafes. All of these were on college campuses. Food service companies operated them.
What Argo Tea Sells
Tea is the second most popular drink in the world, after water. Argo Tea started because many Americans only knew about tea bags. Most tea shops either sold loose tea to brew at home or offered sit-down service. But Argo focused on special tea drinks in paper cups. Argo wanted to show that tea is a healthy choice instead of coffee. When it started, Argo was part of a new trend of tea cafes. By 2002, there were 1,100 tea rooms. In 2003, tea sales were $5.1 billion. The special tea market was growing fast.
Argo started with 35 different teas from around the world. These included black tea, green tea, and herbal teas. Some of their teas were seasonal. One of their special drinks is the "teappuccino." It's a black tea mixed with steamed milk and froth. The company has a trademark for this drink. Their menu uses new ways to serve tea. Teas can be sweetened or spiced. They can be mixed with milk, sparkling water, or fruit juices. In the early years, popular drinks included Bubble tea, Pomegranate tea, and Chai tea.
The company used to sell illy brand coffee. Argo imports its teas from all over the world. Now, they brew their teas in one central place in downtown Chicago. Argo also sold loose tea in bags. They also had a version of the mate drink. This is a popular drink in Argentina and Uruguay. Argo serves it as a Mate Latte. By 2010, the company started selling bottled teas in grocery stores. These included Whole Foods and Treasure Island. They planned to have their own bottling factory. By the time they opened in New York, they offered fair trade certified coffee. In 2011, they started selling their bottled teas in grocery stores across the country.
In 2011, Argo Tea opened its 20th location. Their menu included "all natural tea-based signature drinks." They also had over 30 types of loose leaf teas. They offered fair-trade organic coffee, fresh-baked pastries, and special foods. They also sold teaware and accessories. Some signature drinks were Maté Laté and Green Tea Ginger Twist. Their food menu had gourmet pastries and French quiches. They also had "SpecialTea Foods" made with tea-infused ingredients. These included Teanie Panini and Teapot Grains. Argo Tea's bottled drinks were also sold in grocery stores. Bloomberg Businessweek said Argo Tea wanted to show tea as a healthy lifestyle choice. They wanted to create unique tea drinks. They also wanted their stores to have modern designs and be good for the environment. The teaware included teapots and high-tech tea infusers.
Helping the Community
Some people believe tea is good for your health. Argo Tea agrees and supports research on this. Argo Tea gave a lot of white teas to the University of Chicago Hospitals. White teas have many antioxidants. This donation led the University of Chicago to invite Argo to open a kiosk in the hospital lobby. The company also holds tea classes with Northwestern University and the University of Chicago. These classes teach people about the health benefits of tea. They also explore research ideas for tea.
Argo Tea cares about the environment. They try to be sustainable in their business. They encourage customers to use reusable mugs and plates. They also use washable silverware for people who eat in their cafes. Argo also sells reusable tea tumblers. Customers who use these get discounts on their drinks. The company thinks about sustainability in all parts of its business. This includes how they get supplies, how they operate, and how they design their stores and products.
Company Information
Argo Tea was founded in Lincoln Park. But its main business office is in the Loop area of Chicago. The company mostly has part-time employees. But they offer health benefits to employees who work 20 hours or more per week. By September 2008, about 200 people worked for Argo Tea.
Even with many items on the menu, about 80% of Argo's sales came from tea drinks in 2011.
In August 2011, a Chicago city official allowed Argo Tea to develop a store in Connors Park. This park had been neglected. In exchange for a 15-year lease, Argo agreed to take care of the park. The business opened its new glass-walled store in the park in May 2013.
