Smoothie bars sell blended fruit drinks, health food bowls, and juices to patrons. They’re typically found in busy shopping centers or fitness clubs as a way to introduce fresh options to a fast-food-laden culture. Smoothie bars rely on premium ingredients and inventive combinations to appeal to people who don’t want to sacrifice taste for health.
Who is the target market?
The target market for a Smoothie Franchise business typically includes anyone who wants to make their body healthier with ingredients that actually taste good. This can include hard-core fitness fanatics or dieters of course, but there’s a larger target market out there for those who want to live healthier lives. Anyone with high cholesterol or diabetes can supplement an unhealthy diet with smoothies as a means to get more nutrients in their life. It’s a substantial opportunity to be a part of a national shift in the public perception of health food. However, smoothies are luxury food items, so owners may want to be careful about targeting lower-class neighborhoods.
How does a smoothie business make money?
Smoothie bars make money by setting profit margins on all of their menu items. The standard rule is to set menu prices at roughly three times what it costs for the raw ingredients, though the exact amount you charge will be based on location as much as this generic recommendation. People are typically willing to pay a premium for fresh, quality ingredients they may not be able to get in their local grocery shops.
How much can you charge customers?
The average price for a smoothie is typically around $5 for a small and $7 for a large. Fruit and yogurt bowls typically sell for around the same prices, while juices are around $4 to $7, depending on the size. Smoothies owners should look at their direct competitors to get a sense of the demand before determining prices.
How much profit can a smoothie business make?
Profits can vary depending on the location of the smoothie business. The average Jamba Juice takes in about $700,000 in annual revenue but considering it can cost up to $600,000 or more to open one, the numbers aren’t quite as impressive. However, assuming it costs about $350,000 to run a smoothie store a year after initial start-up costs, owners can enjoy a comfortable profit margin on their business.
How can you make your business more profitable?
Popular smoothies business owners may want to consider opening their own food truck to take to busy areas with lots of thirsty people. They can also consider opening up a sit-down restaurant that serves a wider variety of healthy foods.