Have a go at our Juice Bar Business Planning Quiz below. The results of previous respondents are then explained throughout this blog:
Who, other than Popeye, ever thought drinking spinach would become a thing? Well in modern life it is!
Whether it be grabbing a quick, green leaf filled detox juice or powering up with a bulky protein smoothie after a heavy workout, the juice and smoothie market has been gaining popularity since the early 2000s. It’s a booming business and one if planned carefully that can provide great profit potential.
You have landed here because of your expressed interest in learning more about the juice bar business. Please enjoy the blog below and learn more about this ever more popular sector.
The figure below shows some of the key industry stats. Market value, sector growth and a number of UK based businesses have all grown at a good rate over the past 5 years.
The UK Juice Bar Industry is currently in a period of strong growth. A preference for leading a healthier lifestyle has consumer tastes moving away from artificial sugary soft drinks and towards more natural based products.
The strongest potential customer base is those ages 18 to 39-year-olds. Over half of these individuals reportedly drink a smoothie or juice once a day which represents a great market opportunity for new business owners who can combat the variable nature of the sector by developing a reliable and robust business plan.
The number of juice bar outlets had grown steadily in the early part of the decade. A slight blip in numbers from 2014-16 came after a number of site closures from a national chain who’s over-aggressive expansion plans backfired.
The nation remains health conscious, however, and as a result, the number of juice bar outlets has stabilised in the past 2 years.
By definition, juice bars have a very clear offering. There are certain variances in product offering, depending on the focus of the juice bar’s menu. The types of drinks can be broadly split into 4 categories. Their individual popularity is shown by the graphic below. Operators can adopt a catch-all approach by offering all 4 categories or may consider specialising in a certain category to perfect the offer.
Smoothies and Juices are the most popular categories served in juice bars. These are closely followed by a growing category, the blended drink. These drinks differ from smoothies by the absence of any dairy. With growing numbers of veganism in the UK, this is one area of the juice market that is e forecasted to grow at a faster rate than other offerings.
The Cost of a Juice or Smoothie
The average cost of a drink from a juice bar is £4.55. The price is reflective of the ingredients used, the human time it takes to make the drinks to order and the potential wastage from unused stock.
The majority of juice bar businesses are kiosk/takeaway style operations but larger establishments may have a juice bar incorporated as part of a larger health food offering such as a shop or cafe.
How Do Juice Bars Get Financed?
The start-up costs for a juice bar can be low, the required machinery is minimal and ingredients are bought regularly so there is no need for large amounts of stockpiling. A healthy cash float is recommended given the demand is very much dependant on the season and the weather. With peaks being in the summer, although with menu’s that vary for winter months, the lower demand period can be mitigated to an extent.
Operations can be run from a small one-person kiosk with the main source of custom driven from passing traffic. This keeps the mean overall operational expenses low.
‘Krushed‘ is a smoothie and juice bar launched by Nutrition graduate Nina. She invested £500 in having a professional business plan developed and written for her business, which focuses on using ingredients grown locally and seasonally. That plan helped her secure a small bank loan which was used to equip a small mobile kiosk from which the business is run.
The low-cost nature of juice bar ventures means a high proportion of businesses are started from small personal savings and short term bank loans.
The table below shows the main sources of business finance and their associated percentage. In some cases, for larger projects, businesses may need to obtain finance from more than one source.
The layperson may be misled into thinking a fully written business plan would only be a requirement if looking for outside finance. Whilst it is true a solid business plan would be a pre-requisite for any form of debt or equity finance or even to secure a premises/kiosk finance/pitch with the local council authority. The value of having a quality business plan cannot be underestimated. Even for those self-funding, a viable and robust business plan is a sure way to keep focused and accountable which will ultimately lead to better business decision making.
Importance of a plan
As the juice bar industry is sensitive to seasonality and changes in the weather a good grip on the company’s cashflow and contingencies is required to run a successful business. A thorough business plan will allow for these potential variations in demand and will show the maximum opportunity in both the best and worst case scenarios. The high percentage of juice bar owners who have a professional business plan is a testament to that fact.
So what can we say about starting your own juice bar?
- Healthy eating is a continuing trend
- Business doesn’t require
largespace to operate
- Can be run with minimal staff
- Variable demand with seasons
- Location is critical to be near right footfall
How you can succeed
The best way to get ahead of the competition and eliminate the biggest unknowns and risks when starting your own juice bar business is to invest in a high-quality Juice Bar Business Plan. The investment is invaluable. We at MyBizPlan provide the highest quality and yet lowest cost business plan in the UK, for a minimal outlay you can obtain a high-quality, visually stunning, financially robust business plan. It will give you a greater chance of seeking that vital finance and in the long run, could save you thousands.
If owning and running a juice bar sounds like the kind of business for you get started with a Juice Bar Business Plan from MyBizPlan. See which of our solutions is right for you by having a go at our – Do You Really Need a Business Plan Questionnaire?