The key success factors are what will allow the juice bar to thrive. Those are :
Relationships: it is essential to bring customers in and then bring them back. If the reception is not there, it’s a safe bet that no one will return. On-site, it will be necessary to provide a warm environment;
Offer products on-site or to take away to attract as many people as possible;
Target customers: these are mostly rather young people looking to eat healthy products. Therefore, it may be appropriate to offer organic, eco-responsible, and fair-trade products made from recycled and recyclable materials in this spirit. To attract customers, you will have to focus on juices’ benefits: slimming, detox, healthy glow … Why not set up a partnership with local sports halls or wellness salons?
Extend the offer by offering easy-to-eat sweet snacks: pancakes, waffles, and staying in the same “healthy” niche of fruit salads, smoothie bowls, 0% yogurts… Demand is quite seasonal: we have more inclined to drink fruit juices in the summer when it is hot. If you want to work all year round, you will have to offer other things in winter when it’s cold;
Correctly manage stocks: raw materials are perishable goods. It will, therefore, be important to store them correctly. It is essential to adopt a storage method like FIFO: first in, first out. This means that the products that enter stock first will be those that come out first.
Carry out a business plan and market research, a prerequisite for opening a juice bar
The catchment area
The first step is to carry out market research to know where to get started. It will, therefore, be necessary to determine the catchment area. It must be as large as possible to attract a large number of customers. It is possible to choose a temporary point of sale in tourist areas, which will only open during the summer holidays. It must be in a place with a large passage, on the edge of a busy beach, for example, or in a shopping area.
In a city, it should again be located in a busy area, such as a large number of businesses or shops. Potential customers will not necessarily be the same, depending on the location. In the first case, it will be employees seeking to eat, and the activity will largely take place at noon. In the second, the activity will be more important on weekends. union complex is best location for open a juice bar.
Competition and market research
Once the location is targeted, it will be necessary to carry out a competition study and a market study to ensure that the choice is correct.
The competition study and the market study will be based on quantitative and qualitative analysis and should indicate:
The number of competitors present. It is important to determine the direct competitors (other juice or smoothie bars) and indirect competitors (other restaurants, bars but also supermarkets offering a snacking area with juices);
The products offered: the choice, the concept, the price…;
The customer satisfaction concerning the competitors already present: have loyal customers the air? Do they think the price/quality ratio is correct? Is there room for a new entrant?
Once the location has been validated, it will be necessary to find the premises. If you choose a traveling business, you will have to apply for a traveling business card, for example, in the markets.
If you opt for a fixed room, you will probably have to pay a lease fee or a doorstep. It is a kind of entrance fee. You can also choose to take over a business from an already existing juice bar. In this case, the costs to be paid will be higher since the buyer will pay, in addition to the entry fee, a set of intangible elements, also including existing customers.
The development, installation, and decoration are also required:
- Creation of a catering area and another to make the juices: installation of a bar, chairs, tables;
- Purchase of equipment and consumables: blender, fridge, freezer, glasses, straws…;
- Decoration: paintings, wallpaper, lighting, sign;
- Installation of computer hardware: cash register software, point of sale terminal, thermal printer.
Be careful to respect ERP standards (establishment open to the public). Two main aspects are these standards: accessibility for people with reduced mobility and fire prevention standards.
The business plan
It will show the results of the competition and market study. It will also include a description to present the juice bar, its manager, and its strategy. A large part of the business plan will present the financial elements:
- The provisional income statement will show the expenses and income for the first three years to have an idea of the result;
- The provisional balance sheet, again over three years, making it possible to know the assets (i.e., what the company has) and the liabilities (i.e., what it owes);
- The initial financing plan showing financing needs (fixed assets, starting stock, initial working capital, etc.) and resources (personal contribution, bank loan, grants, and honorary loans, etc.);
- The provisional cash flow statement is showing monthly receipts and disbursements during the first year.
Open as a franchise or independent
At this stage of the project, it may be appropriate to think about the possibility of opening as a franchise. Unlike other restaurant business sectors, such as fast-food restaurants, where franchise names are very well known, it is less so in the case of a juice bar. Indeed, one of the big advantages of the juice bar is the notoriety of the brand.
However, franchising also makes it possible to benefit from a network’s support, both during creation and daily life. In return, the franchisee undertakes to pay the franchisor an entry fee and royalties on turnover.
For running a juice bar business, a good one has to contact the juice bar business plan to avoid any inconvenience