Key Takeways
- In the world of franchising—especially a direct service franchise, like a juice bar—the place you decide to open your business will be extremely important.
- One of the most common problems faced by franchise owners (and business owners, in general) is that it can be very tempting to grossly underestimate or overlook their true expenses.
- You’ll need to create a robust, multi-platform marketing campaign that appeals to your target audience. A well-developed campaign marketing campaign will eventually pay for itself.
- Keeping careful records can help you forecast your produce needs more accurately.
Key Considerations When Starting a Juice Bar Franchise Business
Owning a juice bar franchise can be an incredibly rewarding venture. In fact, in 2021, the average Pure Green Franchise partner was able to generate more than $700,000 in average store sales.
However, while it is clear that owning a juice bar franchise can indeed be very profitable, there are still a lot of things you will need to do in order to ensure your franchise unit is successful. Amidst the excitement that comes with opening a franchise location of your own, it can be easy to overlook the finer details and make a mistake.
Fortunately, all it takes is a little bit of planning for your juice bar franchise location to be well on its way to success. If you currently own a juice bar franchise—or are considering opening one in the near future—be sure to avoid these common mistakes.
Furthermore, when opening a juice bar, it’s essential to establish a strong relationship with your local health authority. Regular communication with them can provide you with up-to-date information on any changes in health and safety regulations that could impact your business. This proactive approach not only ensures compliance but also demonstrates your commitment to maintaining the highest standards of food safety and customer health.
Additionally, consider subscribing to industry publications and joining relevant forums or associations in the food and beverage sector. These resources can be invaluable for staying informed about best practices, new health guidelines, and industry standards. By actively seeking out information and resources, you can position your juice bar as a trusted and responsible establishment in the community, dedicated to offering safe, high-quality products to your customers.
1. FAILING TO CONSIDER THE IMPORTANCE OF LOCATION
You will often hear real estate agents discuss the importance of “location, location, location.” In the world of franchising—especially a direct service franchise, like a juice bar—the place you decide to open your business will be extremely important.
To start, you will need to find a location that is currently zoned for retail sales. Buildings that are zoned for office use, residential use, and other uses simply won’t suffice, even if you happen to be “allowed” to open a franchise there.
You’ll also want to pay close attention to other factors, such as the volume of traffic (foot traffic, access to public transportation, car traffic and parking, etc.) that accrues every day. Only a fraction of all people who pass your juice bar will ever stop in to visit. But if there are more people passing by, the chances of meeting your revenue objectives will be significantly higher.
Ultimately, the location you choose will affect other portions of your business, as well. For example, if your juice bar franchise is located near a university campus, then your marketing strategies should probably be geared toward college students. If it is located in an office park, then you’ll be better off targeting office workers. Regardless, it is clear that the location of your franchise is not a decision you should take likely.
2. NEVER SPEAKING WITH AN EXISTING FRANCHISE OWNER
When you are excited to cut the ribbon and officially open your juice bar, it can be easy to rush through the research required during the early stages. In some cases, this might mean skipping that meeting you’ve scheduled with an already established franchise owner.
However, failing to speak with an established owner is something you will inevitably realize was a big mistake. These owners have a lot of knowledge, including what works, what doesn’t work, and how your franchise can potentially get ahead.
By taking the time to learn from an experienced pro, you can avoid some of the growing pains that come with early franchise development. You’ll also be able to have an additional source of support to turn to when new franchise ownership challenges emerge in the future.
Fortunately, most franchise owners are very willing to speak with someone who is up and coming. Your juice bar franchise might even be able to provide a list of people who are willing to chat.
Learn about opening up a Pure Green Franchise location.
3. REFUSING TO HIRE THE NECESSARY SUPPORT
During the early days of your franchise, your cash flow might be limited, which makes it tempting to try to cut corners everywhere you possibly can. For some owners, it might appear that the easiest way to limit expenses is to limit their staff (both onboarded and outsourced).
The most obvious benefit of working with a “bare bones” staff is that you can minimize your operating expenses. If your juice bar makes an average of $5 for every juice it sells and your average employee earns $15 per hour (these numbers are hypothetical), that means that by cutting just one staff member, you can sell three fewer juices per hour in order to break even.
However, eventually, you’ll reach a point where if your staff is too small it will cause harm to your business. When your team is understaffed, each member will be more likely to make mistakes. That alone can be problematic. Additionally, if it takes 30+ minutes for their juice to be ready, your customers will be much less likely to return in the future.
In other words, you should be mindful of how the size of your staff affects various performance metrics. In some cases, this might mean you need to be willing to accept an occasional loss in order to create a quality product.
5. UNDERESTIMATING COSTS
One of the most common problems faced by franchise owners (and business owners, in general) is that it can be very tempting to grossly underestimate or overlook their true expenses. But just because your projected costs are limited in your financial model, that doesn’t necessarily mean they will be limited in real life.
As a general rule of thumb, you should also assume things will cost more than you originally anticipated. This rule can be applied to just about every expense associated with doing business, including payroll, taxes, advertising, utilities, marketing, fresh ingredients, and more.
If you are running a juice bar franchise, there will inevitably be a lot of expenses that can be very difficult to forecast. For example, you can’t predict whether the wholesale cost of pineapple suddenly increases due to supply chain challenges. But you can change the way you create projections and manage your books. By overestimating costs by 10 percent, you will be able to adjust to future price changes. And if none of these prices actually change, your margins will be even better.
6. SKIMPING ON MARKETING
Marketing is yet another area that new franchise owners tend to put off, largely because the effectiveness of a marketing campaign can be difficult to quantify. For example, if you spend $1,000 on, say radio ads, it will be very difficult to know whether the ads directly resulted in a $1,500 increase in juice sales.
Sure, you could ask your customers “How Did You Hear About Us?” or get them to take a survey but those strategies don’t always work. Still, that doesn’t mean marketing is something your juice franchise can simply ignore.
If you want people to ever visit your juice bar, you’ll need to make sure they actually know it exists. That means you’ll need to create a robust, multi-platform marketing campaign that appeals to your target audience. A well-developed campaign marketing campaign will eventually pay for itself.
7. EXPECTING AN IMMEDIATE PAYOFF
It is pretty tempting to look at averages and assume they can be easily replicated. When an aspiring franchise owner learns that the average Pure Green franchise owner generates $719,000 in sales every year, it is easy to look at that number and think, “Wow! That’s nearly $60,000 per month.”
But that’s the thing about averages. While some franchises will produce more than this, others will produce less. And usually, whether a given location is above or below the general trend will heavily depend on which stage of the business cycle it currently is in.
Though you will likely be able to generate some initial buzz for your franchise via grand opening events and other promotions, your franchise won’t truly reach its full potential until your franchise starts getting regular visitors. And that is something that takes time. Rather than expecting an immediate payoff, you will need to be patient and willing to make adjustments along the way.
8. FAILING TO CREATE AN EFFECTIVE INVENTORY SYSTEM
In order for your juice bar franchise to succeed, you will need to ensure your product is one that people actually want to consume. And when it comes to selling most types of juice, that means having fresh fruits and vegetables on hand is an absolute must.
Fruits and veggies are perishable produce, meaning you will need to be very careful when managing your inventory. These items are not like napkins, straws, and other non-perishable items that can sit on the shelf for months at a time.
Ultimately, inventory management at a juice bar franchise is a careful balancing act. If you purchase too much produce, you’ll end up having to throw some of it away, which will inevitably hurt your bottom line. However, if you end up purchasing too little produce, you won’t be able to provide your customers with the juices they want.
Keeping careful records can help you forecast your produce needs more accurately. At the end of each week (or even each day), be sure to take tabs on which fruits and vegetables have been consumed, which have been thrown away, and which ones can still be sold.
9. UNDERUTILIZING FRANCHISE PROVIDED SUPPORT
Most aspiring franchise owners are aware that one of the key parts of owning a franchise is paying the initial franchise fee. Once this fee has been paid, you will be able to open your first location and also benefit from the franchise’s brand and other sources of equity.
But what many franchise owners fail to realize is that owning a franchise comes with so much more. In fact, your franchise likely has a wide range of resources available that can be used for financial planning, tax and legal management, employee training, location-specific marketing, and more.
Some franchises will make it easy to access these resources while others will require you to do a little bit of digging. But regardless, it is important to remember that—as part of being a franchise owner—you are not alone. Asking your franchise for help might be one of the most effective ways to get ahead.
10. WAITING TOO LONG TO GROW
What is the only thing more rewarding than running a successful juice bar? Running multiple juice bars.
In fact, the entire franchise business model is designed with long-term growth in mind. And once you have gained some experience opening and running your first juice bar, establishing additional juice bars should be even easier.
But even keeping this in mind, some owners will be content to stick with a single location. This is one of the most common ways that franchise owners limit their own potential. Opening an additional location might sound overwhelming but it is the surest way to increase revenues and generally improve your financial position. If you have the necessary capital, don’t be afraid to grow.
