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Vortex Restaurant Equipment

Vancouver Restaurant Equipment & Supply

    Juice Bar

    24 Nov, 2022

    Juice Bar Business Tips – Part 1

    To open a juice bar or storefront that serves fresh-squeezed juices and smoothies, you’ll need a prime location, savvy business plan, and juicing equipment. Starting costs range between $20,000 – $400,000, and average annual revenue is $100,000 – $600,000. Successful juice bars require hard work, creativity, and a passion for fresh foods.

    1. Learn How Juice Bars Work

    Before you open a juice bar, you need to learn the ins and outs of how juice bars operate. Juice bars are shops that serve freshly prepared beverages such as cold-pressed or fresh-squeezed juices and fruit smoothies. Other popular menu items include protein shakes, juice shots packed with vitamins, and simple food items like sandwiches and salads.

    The best way to learn how juice bars operate is by working for a juice bar. Before starting your own business, consider working for a successful juice shop to see how juices are created and what the day-to-day aspects of running a juice bar look like.

    If getting firsthand experience at a juice bar is not an option, you’ll have to do market research from the outside. Study successful juice bars in your area including their marketing campaigns and advertising efforts, menu items, peak times, number of employees, and their operating hours.

    2. Create a Budget

    Budgeting for your future business is going to be more of an educated guess than an exact science. But, it’s still important to create some road maps and guidelines to ensure your cash flow remains healthy. Your business likely won’t make a profit for months, if not years, after opening, so you need to figure out how much you can invest, how much outside funding you will receive, and create a plan for covering all of your expenses.

    First, determine how much money you will need to open your business. Consider storefront costs, construction costs, juicing equipment, license and permits, etc. Then, determine what your monthly fixed and variable expenses are. Fixed expenses are things like your storefront rent payment, your phone bill, which will not change. Variable costs are more fluid, such as the cost of juicing ingredients or marketing campaigns.

    The most difficult part of setting your budget is estimating your monthly sales after you open. Be as realistic as possible and air on the side of caution. It will be better to being in more money than expected than to come up short. Now, subtract your fixed and variable costs from your monthly sales. That is your estimated cash flow. Again, it is best to have a large contingency fund in place to use to cover expenses if you do not meet your sales goals upon opening.

    3. Write a Juice Bar Business Plan

    Once you are familiar with how juice bars operate, you’ll need a juice bar business plan. Business plans are necessary for securing funding like bank or small business loans. Plus, having a business plan will give you an idea of what to expect financially, and help you iron out a plan to ensure your business becomes profitable.

    Here are the nine elements found in a typical business plan:

    • Executive summary: An introductory paragraph outlining your company’s purpose, mission, and why it will be successful.
    • Business description: Describe what need or market hole your juice bar is filling in the community, who your customers will be, and the talent on your team.
    • Market analysis: Write an overall outlook on the juice bar industry including trends, what successful competitors are doing, and what your strengths will be.
    • Organization and management: Outline who will be running your business and the experience your team members have in juicing, health and wellness, restaurant, or retail environments.
    • Product line: Outline what kinds of juices you will sell, along with any other food or beverage items. Include research on why you’re selecting those products, such as sales trend data or specific health benefits.
    • Marketing and sales: Describe your general marketing strategy and your plan for attracting and retaining customers.
    • Funding requests: If you need outside funding, outline your needs and specify exactly how you will use the funds.
    • Financial projections: Detail how your business will become stable and profitable, including a projected financial timeline of at least five years. If you are borrowing funds, include a plan on how you will be able to repay the loan.
    • Appendix: Use this space for any supplemental documents, such as logo or branding designs, sketches of what your juice bar will look like, credit histories, licenses, permits, etc.

    When writing a business plan, use the format and software you are most comfortable with. Many people opt to use a traditional word processor such as Microsoft Word or Google Docs. You can also create your business plan in a presentation format using PowerPoint. There are also business plan software programs that offer templates and guide you through the process.

    Juice Bar Franchise Options

    Instead of opening an independent business completely on your own, you can choose to open a juice bar franchise location. Franchises provide built-in name recognition, national or regional marketing efforts, and typically offer guidance on managing day-to-day operations with set policies and procedures.

    However, opening a franchise can be very expensive. Opening a juice bar franchise can cost between $200,000 to $500,000 altogether including franchise fees, construction, and other up-front fees. After opening, you will also pay royalties on the sales you bring in.

    Popular juice bar franchises include:

    • Smoothie King: $20,000 – $30,000 franchise fee
    • Jamba Juice: $25,000 franchise fee
    • Freshii: $30,000 franchise fee
    • Robeks Fresh Juice and Smoothies: $25,000 franchise fee
    • I Love Juice Bar: $25,000 franchise fee
    • Juice It Up: $10,000 – $25,000 franchise fee
    • Tropical Smoothie Cafe: $25,000 franchise fee

    The fees listed above are just the franchise fees. In addition to this flat fee, you will need to invest in application fees or other deposit fees depending on the franchise, pay for your storefront and any construction costs upfront. You will also have ongoing royalty and marketing fees that you will pay the franchise.

    Choose the Best Legal Structure for Your Juice Bar

    Choosing a legal structure for your business is important because it determines how you will collect and report taxes, how you will get paid from your business, and your level of personal liability. There are many types of legal structures, but the two most commonly found in small businesses such as juice bars are sole proprietorships and limited liability companies (LLCs).

    Sole Proprietorships are the default legal structure your business will fall under if you don’t register for an LLC. Sole proprietorships lump together your personal and business finances, which means your business income is considered personal income. However, it also means that if anything goes wrong (lawsuits, bankruptcy, etc.) your personal assets, such as your house and car, could be at risk. Some retail business owners opt for a sole proprietorship, but this legal structure is mainly used by freelancers and consultants.

    LLCs are the most popular legal structure for small retail and restaurant businesses because it separates your business assets from your personal assets and provides some degree of personal protection in the case of bankruptcy. From a tax perspective, LLCs are similar to sole proprietorships.