How to Start a Juice Bar Business
Let me introduce juice bar business to you. Juice bars started out in the 1990s when people began to realize that fast food, known as junk food, was causing monstrous damage to our health. This industry has achieved an annual turnover of over $5 billion. And it is only getting bigger, at a constant rate of 4 to 8% per year.
Starting a juice bar isn’t just a way to start a business and earn a living, it’s also a great way to improve people’s lives. People don’t have time to prepare healthy meals at home and want something quick. Whether you’re making smoothies, protein shakes, or juices, you have the ability to offer people a choice of organic, healthy, quick, and affordable meals.
At this point, you are probably thinking about how to open a juice bar. Well you’ve come to the right place!
After reading this article, you will understand the principles behind opening and operating a juice bar, and you will turn your passion for a healthy lifestyle into a successful business.
In summary:
- Why Start a Juice Bar Business?
- Budget to Open a Juice Bar
- How to Start
- Success Tips
Why Start a Juice Bar Business?
Many people are realizing the need to cut down on carbonated drinks and drink more juice, because of its enormous health benefits, and this is the reason why juice bars are springing up in different places in major American cities.
It is now evident that the juice bar business is a cool business that a budding entrepreneur can afford. The reality is that the juice bar business is one of the activities an entrepreneur can successfully start on a busy street corner or in a mobile store, without breaking the bank for cash.
At the same time, large investors can also take advantage of the high demand for fresh juice to set up their own juice bar in strategic locations all around key cities in their States. Come to think of it, juice bars can be located in any part of town, as long as people live or work there.
Usually, juice bars are located in airports, seaports, shopping malls, hotel lobbies, train stations, bus stations, campuses, hospital lobbies and sports centers, as well as in public places, provided you have permission to locate your juice bar. Then, if you operate a mobile juice store, there will be no restrictions on where you can sell your fresh juice, such as in the classic food truck business.
Opening a juice bar is similar to starting another business. It is not entirely easy, but it is a simple business that can generate huge and steady profits if it is well placed and managed correctly, as starting a juice bar does not require any skill.
Professionally, you would still need good business skills and, of course, customer service skills if you were to actually build a profitable business. So if you are considering opening a juice bar business all you would need is a little capital to buy or rent / rent a suitable establishment (if you are not setting up a mobile juice store), get the necessary materials (juicers / juice smoothie machines, disposable cups, trays, and other serving goods), and furniture. You would also need additional capital to purchase the initial supply of assorted fresh fruit, to pay your employees at least for the first three months, and to pay your utility bills.
How to Start A Juice Bar
1. Learn how a juice bar works
If you are seriously considering opening your own juice bar, it is essential that you do a lot of research on the juice bar market and understand how the industry works.
You can do this in two ways: outside and inside. From the outside, it is important to study your competition. Look for the successful juice bars that you know and really study their business.
Go ahead and taste everything, analyze everything, ask questions (if they want to answer you but that’s not won). In this case, become their best customer. Study their products. Examine their marketing techniques.
If you can learn the main operating points of the most successful juice bar in your area, then you can emulate this business and avoid a lot of the typical beginner mistakes.
Some key points to look for in a juice bar:
- Who are their juice suppliers?
- Who is their market?
- How often do they buy and how much do they spend?
- How do they promote the business?
- What are their regular offers?
- Is their process effective?
The more you know about the keys to success, the better equipped your business will be. Finally, when I say inside, this is what I’m implying. There’s no better way to understand the juice bar business than going to work for a successful juice bar. While you can get a feel for all of the above points as a customer, you can really understand this by participating in the process.
This is particularly useful from an operational point of view. You will have the opportunity to participate in meetings and be trained in the juice creation process. You will not only know which products are selling best, but which products are not selling at all.
You will learn what the peak hours are. Their Marketing Strategies. The list is far from being exhaustive.
So before you do anything else in regards to starting your project, take the time to do some industry research to help you create a plan.
2. Create your niche
Deciding which products to offer can be a bit daunting. But it is essential to the success of your business. This is where you decide why someone should buy from you rather than your competition.
What is your unique selling point?
What can you offer that no one else can? Maybe it’s you, maybe it’s your service, and maybe it’s your experience. But find it, write it down and make it the added value of your concept, literally and figuratively.
- Are you going to serve only one type of drink?
- Do you have any additional snack options?
- Or healthy cooking?
A healthy menu can offer your business to increase your average basket and be consistent with your concept. Be creative! Don’t be afraid to experiment with recipes with different fruits and vegetables.
Plus, be prepared to deal with seasonal changes, which could negatively impact your business.
Winter can usually have an impact on juice bars, but if you can find a “hot” option, like special coffee or “healthy” soups, then you will have a chance to compensate for those drops.
On the other hand, after the holiday season, people start to focus on their health again, and juice bars are becoming a popular destination. Just remember that you want to focus on providing a large and diverse menu without sacrificing efficiency or quality. You can expect to charge between $4 and $7 for a drink, depending on the size of the drink and the ingredients.
3. Ideal location
In the juice bar industry, location is critical to the success of your business. Choose a location based on your target market; conscientious consumers who don’t have time to prepare a meal or who simply prefer the goodness over the flavor. Ideally, you would want to locate your juice bar near a gym, yoga studio, or healthy restaurants. Shopping malls, schools, parks and squares are busy places that can attract many passers-by.
Try to avoid opening your juice bar near an existing juice bar. This immediately puts you in a bad competitive position. Urban areas produce the most revenue for juice bars. Semi-urban areas are also good, as are suburbs. Try to avoid rural areas.
Some factors to consider when choosing a location:
- Budget
- Car park
- Visibility from the street
- Access facility
- Lighting
If you are unsure of the best locations, check with a commercial real estate agent. He / she can have some great suggestions for you within your budget.
4. Business plan
Why Do Juice Bar Businesses Fail? Juice bars really are a numbers game. You need to plan how many people will be entering your store, and when.
You need to determine what they are going to order, and in what quantity. The best way to do this is to create a real business plan. This is very important for many reasons.
First of all, any financing or investing options you explore will require that you have a business plan. But what is just as important is that you are creating a real map for your business.
By thinking and making decisions now, you will speed up the whole process. Develop a business plan that includes both your expected costs and your projected income. It takes research and time. But this time saves you a lot more time on the road.
Other items to add to are:
- Operating costs, including rent and supplies. Are you going to buy? To rent?
- Where will your store open?
- Target market: Who is your customer? Where does he / she live and hang out?
- Legal Requirements: What licenses and permits do you need? How much do they cost?
- Insurance Needs and Requirements
- Human Resources: How many employees do you need and how much will you pay them?
- Marketing plan (and budget), what’s the best way to reach your audience?
5. Establish a budget
Budget to Open a Juice Bar: When you start a juice bar, you need to analyze your costs. When performing cost analysis and economic analysis for your juice bar, all you need to do is critically examine these key factors: location, product, price, and promotion.
Read Also: How To Set Budget on Marketing
In fact, you should continue to review these key factors at regular intervals as you run your juice bar. As the owner of a juice bar, all you need is a good understanding of your competitive environment. Juice bar owners should also be aware that operating their own juice bar outlet (an independent business) is different from running or operating a juice bar chain or franchise.
Running or operating a juice bar chain or franchise comes with other obstacles. It is important to note that the cost of fresh fruit is one of the most important factors and should be considered as a major factor during cost analysis and economic analysis.
If you’re wondering how much it costs to open a juice bar, the answer varies too. A juice bar can cost between $40,000 and $250,000, depending on construction costs, choice of equipment and ingredients, etc.
Buying a franchise has its benefits, such as marketing assistance, the systems and processes already in place which make it much easier to build and operate your store. In addition, instant brand recognition attracts a lot of customers and automatically gives your business credibility. However, your upfront costs will be much higher because of the franchise fees.
Is the added cost of a franchise worth it? It’s a decision you have to make on your own, and a budget can help.
Your budget is the most important part of your business plan and should be used as a tool in all of your financial decisions.
List all operating costs in your budget, no matter how small, whether recurring or fixed. Subtract these costs from your total cash on hand, and what you have left is the amount you have for marketing, reinvestment in the business, and profit.
When you overspend on one category, you need to withdraw money from another category. That’s why your budget is important, it keeps you on track.
Some costs to consider:
- Rent / Leasehold
- Labor costs
- Equipment
- Supplies
- Ingredients
- Marketing
- Interview
- Administration
- Insurance
- Website hosting, design, maintenance
When you open a juice bar, you may run into higher costs, like renovations and construction. Starting a juice bar business can be expensive. That is why it is important to reduce costs.
Here are some tips for reducing costs:
- Appropriate personnel (labor is your highest cost)
- Don’t order too much. It may take a little while, but you will be calculating your average sales for some products and their ingredients. Having to throw away excess ingredients is extremely damaging to your business.
- Use washable rags instead of paper towels for cleaning.
- Be aware of inefficiencies – lay out your kitchen, get the product out as quickly and efficiently as possible to maximize profits.
- Use your budget to guide your decisions!
6. Promote your juice bar
Remember, a juice bar is a volume game. And to keep that volume high, you need to have a plan in place to attract customers.
First, determine who your customer is. Then figure out how to get them to come.
Some great promotion and marketing options include:
- Distribute coupons and flyers.
- Attend events to give away free samples.
- Large signs to attract cars and pedestrians.
- Hang flyers on notice boards around town and in cafes.
- Next, focus on digital marketing. It’s efficient and affordable, and cater directly to your audience, as juice bars tend to attract a young, tech-savvy crowd.
- Take advantage of Google Adwords and Facebook to target consumers at a distance from your business.
- Consider a rewards or referral program to attract new customers and keep your current customers.
7. Hire employees
You can’t do it all on your own. You need employees.
It is up to you to determine the number of employees you need and where to find them. Make sure you hire people who are friendly and upbeat, efficient and responsible. Friends and family are a good place to start. Other options include websites dedicated to this type of profession.
Once you know what character traits you are looking for and how many employees you want to hire, make sure you have an interview process & a hiring process.
Remember, labor will always be your highest recurring cost. So it is important for you as a business owner to keep the workforce as low as possible without harming your business.
If you consistently schedule too many staff, your business will overspend and suffer.
On the other hand, if you don’t have enough staff, your employees can be exhausted and feel overwhelmed with all there is to do.
Over time, you will come to understand the needs of a juice bar, but until then, be prepared to work to fill the needs in order to reduce wait times and save money.
Read Also: How to Set Employee Compensation
8. Join a community
If you explore franchise options, you will join a community with built-in support networks.
But if you are planning to become an independent store, it is important that you get involved in the juice bar community.
This is an opportunity to network, discover new recipes, and learn new industry best practices and techniques to optimize your business.
Success Tips
1. Simplicity!
Far too many people wanting to create their project have not succeeded because they have complicated their lives. The first task that future entrepreneurs like to “make complicated” is in particular the creation of a menu.
By dint of wanting to please everyone, of wanting to appear hype, or of simply wanting to offer an incalculable number of drinks to attract everyone, you will end up attracting no one … Be simple, offer a menu / a card very clear, concise and precise by limiting your choices and above all finding the ideal & adequate target.
With too many options, customers can be confused or overwhelmed with choice very quickly, and you don’t want that. An undecided customer who takes time to make his choice is a customer who is competing. Plus, having more on the menu complicates the process of training your staff and may even cause the production process to slow down.
2. Invest in your staff
Your people are the most important part of your business. Far too many entrepreneurs think they can take charge of the bar and delegate very little to a team. To skimp on the quality of the staff is a very bad choice and you will feel it because you will pay a high price afterwards. The more you invest in them, the more they will feel involved and, which is beneficial for your future business.
Investing in them obviously means paying them a reasonable salary that will motivate them to get involved, to stay motivated, and to respect you. In addition to the purely pecuniary aspect, you must also invest from an emotional & psychological point of view. You must become an exemplary boss, they must feel that they can trust you, and rely on you.
These are not robots that must obey you with the finger and the eye. You should think of your staff as your family. People go through tough times, and as a business owner it is your responsibility to support people, even on an emotional level.
Always go the extra mile to find out what’s going on in the lives of your employees and what could help make their lives more enjoyable & happy. Happy employees is a successful business because customers will feel it.
3. Knowing your role
In any business, it is important to know where your time and attention is most valuable. This means that you need to be able to distinguish what needs to be done by you and what you can delegate to your employees.
Train yourself to empower your team by giving them more responsibility as they become more involved in your business.
Another thing that you might not be aware of is how your personal life, even emotionally for example, may reflect on your business. The business is an extension of you, so if you are tired, overworked, and stressed out in your life, it will reflect in your business.
It’s important to take time for yourself to be fitter and ready to motivate the troops, so to speak. You need to act as a source of energy and inspiration for everyone in your business.
4. Name your drinks by their benefits
Often times entrepreneurs want to try to be too creative with the names of their drinks. The last thing you absolutely want is to disrupt customers.
The best way, in my opinion, to name your drinks is a combination of the “function” of the drink and its flavor. A good example is ginger detox fruit juice:
- Its function: it is a juice that allows you to detoxify
- Its flavor: ginger
Read Also: How to Start a Shawarma Business
Easy! Nowadays, people drink juice not only for the taste, but also for its health benefits. You want to make it easy for customers to choose the ideal drink and mix between goodness & flavor. We return to 1st advice: be simple but clear. Starting a juice bar is a lot of work. But if you do it right, it’s not only rewarding, it’s a lot of fun.
You will become your own boss and impact people’s lives! Plus, you help them improve their health!