Argo Tea

Argo Tea

File:Argo logo.png
File:20110723 Argo Tea HQ.jpg Former Argo Tea headquarters located on Randolph St. in Chicago's Loop
Company type	Subsidiary
Industry	Restaurants Retail Tea and Coffee Wholesale Tea
Founded	June 2003 (2003-06) at 958 West Armitage Ave. Chicago, IL 60614
Founder	Arsen Avakian Daniel Lindwasser Simon Simonian
Number of locations	8 (2023), exclusively on college campuses
Products	Signature tea beverages Loose-leaf teas Bottled drinks Coffee Teaware
Parent	Planting Hope
Website	www.argotea.com Template:Fix/category

Argo Tea is a tea café chain established in Chicago’s Lincoln Park neighborhood in June 2003 by entrepreneurs Arsen Avakian, Daniel Lindwasser, and Simon Simonian.

Following its acquisition by Golden Fleece Beverages in 2020, Argo Tea shifted its focus from operating company-owned cafés to retailing ready-to-drink tea products. After Golden Fleece filed for Chapter 11 bankruptcy protection, Planting Hope took ownership of Argo Tea in 2023. Under Planting Hope’s direction, the company halted retail production to concentrate on licensing franchisees to run cafes under the Argo brand. By the close of 2023, eight franchised locations operated exclusively on university campuses through collaborations with foodservice providers such as Aramark and Sodexo.

Originally based in Chicago’s Loop district, Argo Tea grew beyond its initial dozen outlets scattered across Chicago to enter New York City’s market in 2010, followed by expansions into St. Louis and Boston. By October 2011, the chain managed 26 locations and distributed products in more than 3,000 grocery stores. The brand also ventured into Middle Eastern markets with a store opening in Beirut and plans for further regional growth.

The company’s offerings revolve around a variety of hot and iced signature tea drinks as well as approximately thirty-six international loose-leaf teas. Additional menu items include coffee, baked goods, light meals, and teaware accessories. Collaborations with Whole Foods Market have supported product distribution while the brand emphasizes contemporary design aesthetics and sustainability initiatives. Beyond beverages and food, Argo has marketed lifestyle items including audio CDs.

Argo Tea began emphasizing bottled ready-to-drink teas in 2020 with placement in retailers like Walgreens. Loose-leaf tea sales continue through online platforms. CEO Arsen Avakian remains at the helm guiding strategic decisions amid changing market dynamics.

History

Argo Tea was founded in 2003 by three partners: Arsen Avakian, Simon Simonian, and Daniel Lindwasser. Avakian’s father holds multiple patents related to wind and solar energy technologies.</ref>

The first café opened its doors in June 2003 at 958 West Armitage Avenue within Chicago’s Lincoln Park area, situated directly opposite a Starbucks. The founders financed this initial location using personal credit lines; it accommodated 24 indoor seats and an additional 20 on the patio. Early interior design was crafted by Chicago architect Mark A. Cuellar.

Initially exploring distribution of boxed dry teas through Whole Foods Market, Argo quickly pivoted toward expanding its retail footprint. By late 2004, it secured a second site at Loyola University Chicago, followed by further outlets in Chicago including spots within the Loop and near the University of Chicago Medical Center. By 2007, operations were standardized with centralized brewing of tea concentrates. After five years of growth, Argo operated ten locations throughout Chicago. Many cafés were deliberately positioned near Starbucks stores to capitalize on local demand for tea beverages.

In January 2010, Argo launched its flagship store in New York City with a decade-long lease at the Flatiron Building, soon adding additional locations in Chelsea and Columbus Circle. The company took advantage of favorable retail leasing conditions during the late-2000s recession to establish prime storefronts such as those at Union Square and the Flatiron District. Investors backing these efforts included Sam Zell, Glen Tullman, and Oxford Capital. By May 2011, five stores operated across New York City.

By that time, Argo had transitioned its branding away from aspiring to be the "Starbucks of tea," instead positioning itself as the "Apple of tea," focusing on innovation and appealing to younger consumers. The chain reported $10 million in annual sales with eighteen stores (fourteen in Chicago and four in New York), making it the largest U.S.-based tea-centric chain according to Technomic Inc.

In 2011, media coverage credited Argo Tea with igniting a U.S. tearoom resurgence amid growing tea consumption trends that contrasted declining coffee sales. The overall U.S. tea industry generated $7.7 billion compared to Starbucks’ $9 billion coffee revenue; leading U.S. tea chains accounted for $443 million. By October that year, Argo had expanded to twenty-six locations spanning Chicago, New York, Boston, and St. Louis with product presence in over 3,000 grocery outlets including Whole Foods and Safeway.

Upon expiration of its original Lincoln Park lease in April 2013, Argo closed that location but opened a nearby “greenhouse” style café. By March 2013, bottled tea beverages represented twenty percent of total revenue. International expansion efforts included opening a store in Beirut alongside plans for additional sites across Doha, Abu Dhabi, Dubai, Kuwait City, and Riyadh throughout that year.

In October 2016, Argo entered into a licensing partnership with Caribou Coffee to develop co-branded outlets.

By 2020, following acquisition by Golden Fleece Beverages, Argo shifted focus from operating cafés toward bottled tea product sales. The company partnered with Walgreens for retail distribution while retaining the Argo Tea brand identity. It ranked tenth among U.S. tea sellers.</ref> However, Golden Fleece filed for Chapter 11 bankruptcy protection in October 2021 after shuttering all company-run cafés amidst challenges posed by the COVID-19 pandemic.

In August 2023, Planting Hope—a sustainable foods enterprise—acquired most assets and intellectual property associated with Argo Tea. Planting Hope intends to discontinue manufacturing ready-to-drink teas and concentrate on licensing franchise operations under the Argo brand. At acquisition time, eight franchised campus cafés were active under management agreements with food service providers.

Products

Argo was established to fill the gap in the U.S. market for premium specialty tea beverages, prioritizing individually served drinks in paper cups rather than traditional bulk or dine-in formats. The company highlighted tea’s health advantages as a coffee alternative and leveraged the rapidly growing specialty tea sector, which was increasing by 20% annually and anticipated to surpass $10 billion by 2010.

Beginning with a selection of 35 teas sourced globally—including varieties such as black, green, chamomile, and unique blends—Argo introduced creative offerings like its signature teappuccino, a black tea combined with steamed milk and froth. The menu features specialty teas that can be enjoyed sweetened, spiced, or blended with milk, sparkling water, or fruit juices. Early favorites included Bubble tea, Pomegranate tea, Matte Latte, Chai tea with milk, and Tea sangria.

Initially retailing loose leaf teas alongside illy coffee, Argo centralized its brewing processes in downtown Chicago. The company also reimagined traditional drinks like Argentine and Uruguayan mate into a Mate Latte. By 2010, Argo expanded into retail distribution with bottled specialty teas available at grocery chains such as Whole Foods and Treasure Island, alongside plans to establish its own bottling facility. Additionally, fair trade certified coffee was offered at its New York outlets. By 2011, their distribution network had grown to include national grocery store availability.

When opening its 20th location in 2011, Argo’s menu boasted more than 30 loose leaf teas, fair-trade organic coffee, freshly baked pastries, specialty food items infused with tea ingredients, and a variety of teaware and accessories. Signature beverages emphasized health-conscious options like the Maté Laté made with almond milk, Green Tea Ginger Twist, and MojiTea featuring mint and lime. Bottled drinks were accessible nationwide through retail channels.

Bloomberg Businessweek characterized Argo Tea’s business approach as transforming tea into a healthy lifestyle choice via distinctive all-natural beverages and contemporary sustainable customer experiences. The product assortment also includes teapots, advanced infusers, and a wide range of tea cups.

Social efforts

Argo Tea actively promotes tea’s health benefits while supporting related scientific research. The company donated substantial amounts of antioxidant-rich white teas to the University of Chicago Hospitals, which led to an invitation to operate a kiosk in the hospital's lobby. Furthermore, Argo collaborates with Northwestern University and the University of Chicago by hosting seminars focused on educating about tea’s potential health advantages.

With a strong commitment to sustainability, Argo Tea incorporates environmental responsibility into its core business practices. This involves encouraging customers who dine in to use reusable service ware such as ceramic mugs and washable silverware, as well as offering reusable tea tumblers that come with discounted pricing incentives. Sustainability considerations influence decisions throughout the company’s supply chain, operational procedures, store design, and product offerings.

Corporate information

Originally established in Lincoln Park, the company now operates its main office from its third site located in the Loop at 16 West Randolph Street, Chicago, IL 60601. By 2008, Argo's workforce consisted of approximately 200 employees, primarily part-time, with medical benefits extended to those working more than 20 hours per week.

Despite a varied menu, tea drinks made up 80% of Argo’s $15 million yearly revenue by 2011. That August, Chicago Alderman Brendan Reilly approved a 15-year lease for Argo to open a 1,200 square-foot outlet in Connors Park within the Gold Coast neighborhood—an area that had been previously overlooked by the Chicago Park District. In return for this lease, Argo took on the responsibility of maintaining the park. The new location was launched inside a greenhouse in May 2013.