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Juice bar business plan for starting your own smoothie corner
Do you want to start a juice bar business? Well, this is one of those businesses that generate huge profits despite requiring little investment group for the business plan and very few employees. One can easily set up and run their juice bar business even by hiring two to three people.
Well, if you are entering this venture you might probably want to learn a stepwise approach on how to open a juice bar. In this sample juice kiosk business plan we’re providing all financial and other details of a juice bar startup, ‘Fructose Bar’ so that everyone can benefit.
Executive Summary
2.1 The Business
Fructose Bar will be a licensed and registered juice corner situated near Detroit St, Denver. The business will be based on offering fresh fruit juices, smoothies and other refreshments to the customers. The company will provide its customers with both sit-in and takeaway facilities.
2.2 Management of Juice Bar
Opening a juice bar is not at all difficult. You just need a few people to ensure the supply of fresh fruits and other eatables and to prepare delicious and freshening juices.
If you are looking for a guide on how to start up a juice bar business, you can take help from this sample juice corner business plan.
Fructose Bar will buy the required machinery and equipment before a month of the launch. The company will also set up a small beautiful place for those who want to enjoy juices while sitting in. Fructose Bar will hire drivers, chefs, general assistants, web developer, accountant, cleaners, and a store manager to ensure the successful running of the business.
2.3 Customers of Juice Bar
Target customers of Fructose Bar are versatile. Adults, youngsters, and senior citizens are likely to consume our juices and smoothies. The children and teens will also be one of our target groups and we’ll be providing some extra services to meet their demands.
2.4 Business Target
Our target is to become a renowned juice corner in our vicinity. We aim at increasing footfall at our site by providing healthy, nutritious, and fresh juices and some eatables. Moreover, we aim at opening our juice bar in at least two more locations in our city.
Company Summary
3.1 Company Owner
Fructose Bar will be owned by Kenneth Grant. Grant is a graduate in management sciences from the University of Denver. He has worked as a manager for three years in a local restaurant. Though he has received a lot of respect in his job, he wants to quit it to start his own business and make huge profits.
3.2 Why the juice bar is being started
Grant has always wanted to start some food-related business to serve people with fresh and healthy foods. After working for three years in a resort, he found that opening juice shop business will be the most convenient and the most desirable option for him.
3.3 How the juice bar will be started
Grant will acquire the required licenses and registrations for opening a juice bar. He will buy the required machinery such as juicer machines, juice extractors, cutlery, etc. to run the kitchen portion. Moreover, to make a small place for customers to sit, he will also be purchasing comfortable furniture and tables.
Since the company will also offer salads, pastries and many eatables other than just juices, it will be hiring a few chefs. The staff as will be mentioned in the next portions will be hired a week before the launch. The company will also hire transporters to provide home delivery services and to ensure a continuous supply of fresh fruits and vegetables. Lastly, the company will hire a web developer to manage the company’s social site and to manage the online portal to take orders and payments from customers online.
If you want to estimate start up cost for a juice bar to write your fruit juice bar business plan, you can take help from here. You can also benefit from here even if you want to open a mobile juice bar because more than 80% requirements are the same.
| Start-up Expenses | |
| Legal | $58,000 |
| Stationery etc. | $61,000 |
| Brochures | $42,000 |
| Consultants | $0 |
| Insurance | $22,300 |
| Rent | $81,000 |
| Research and Development | $32,000 |
| Expensed Equipment | $380,000 |
| Signs | $95,000 |
| TOTAL START-UP EXPENSES | $680,900 |
| Start-up Assets | $0 |
| Cash Required | $890,000 |
| Start-up Inventory | $56,000 |
| Other Current Assets | $170,000 |
| Long-term Assets | $850,000 |
| TOTAL ASSETS | $1,966,000 |
| Total Requirements | $2,646,900 |
| START-UP FUNDING | |
| Start-up Expenses to Fund | $680,900 |
| Start-up Assets to Fund | $1,966,000 |
| TOTAL FUNDING REQUIRED | $2,646,900 |
| Assets | $980,000 |
| Non-cash Assets from Start-up | $540,500 |
| Cash Requirements from Start-up | $0 |
| Additional Cash Raised | $765,000 |
| Cash Balance on Starting Date | $185,900 |
| TOTAL ASSETS | $2,471,400 |
| Liabilities and Capital | $0 |
| Liabilities | $1,240,000 |
| Current Borrowing | $0 |
| Long-term Liabilities | $0 |
| Accounts Payable (Outstanding Bills) | $240,000 |
| Other Current Liabilities (interest-free) | $135,600 |
| TOTAL LIABILITIES | $1,615,600 |
| Capital | $0 |
| Planned Investment | $0 |
| Investor 1 | $2,646,900 |
| Investor 2 | $0 |
| Other | $0 |
| Additional Investment Requirement | $0 |
| TOTAL PLANNED INVESTMENT | $1,340,500 |
| Loss at Start-up (Start-up Expenses) | $484,700 |
| TOTAL CAPITAL | $855,800 |
| TOTAL CAPITAL AND LIABILITIES | $2,471,400 |
| Total Funding | $2,646,900 |
Products of Juice Bar
Before you open a juice bar, you must decide which services and products you will be offering so that you can invest in just relevant arrangements. In this starting a juice bar business plan we’re enlisting the products and services Fructose Bar will provide.
- Fruit Juice & Nectar: Our main service will be providing fresh and pure juices of fruits like cranberry, apples, green apples, pomegranate, strawberry, plum, apricots, peach, pineapple, orange, red grapes, beet, blackberry, sugarcane, etc.
- Smoothies: We’ll offer delicious smoothies made by blending fruits with creamy milk in several combinations like banana, strawberry-banana, blackberry-raspberry mix, peach-mango, and almond-dates.
- Salads: Our third main service will be providing two to three types of salads made by fresh fruits and vegetables.
- Scoops: We’ll offer scoops of vanilla, strawberry, mango, chocolate, butter brickle, butter pecan, and moon mist ice creams.
- Snacks & Refreshments: We’ll also offer packaged snack foods, doughnuts, and pastries. Because teens and kids are usually interested in eating these types of foods.
The company will offer home delivery, dine-in as well as takeaway services.
Marketing Analysis of Juice Bar
Before starting your own juice bar business, you must carry out thorough research on your market and marketplace. It’s essential to analyze different locations to find out one in which there are relatively fewer competitors. Moreover, analyzing the buying patterns, volume and status of your customers is another important thing to do in the market analysis because usually, people with low incomes don’t spend on things like fruit juices and smoothies.
Note
So understanding economic patterns and competitive environments by using the tools of market analysis can help you a lot in writing juice smoothie bar business plan and taking major decisions.
5.1 Market Trends
According to IBISWorld, more than 5600 juice and smoothie bars are running in the United States. Collectively these businesses have generated a revenue of $2 billion in the year 2018. The source has also reported an annual growth rate of 1.4% over the past five years. So, if you are willing to enter this venture and have planned things accurately, you surely won’t suffer a loss.
5.2 Marketing Segmentation
Knowing your customers and their financial status is really important if you are going to start some costly food-related services. Knowing your customers can help you in coming up with services that are expected to be availed by them. Since juices, smoothies, scoops are the things that can’t be afforded by low-income people so if you intend to serve them too, you must provide some additional services that can be afforded by them. And if you aim at targeting rich communities you will have to make a proper and splendid place so that they choose to come to your site.
In this juice parlour business plan on how to start a juice bar we’re providing the details of target customers of Fructose Bar.
Business plan for investors
The detailed marketing segmentation of our target audience is as follows:
5.2.1 Passers-by: The biggest consumer of our products will be passers-by that will include people of all ages. Since our corner will be located in a crowded place which is near to schools, offices and shopping centers so we’ll employ techniques like the attractive display to convert passers-by and tourists into our customers.
5.2.2 Residential Community: Residential community isn’t really far from our location so we expect nearby residents to avail our services too. Moreover, through our home-delivery business services, residents who don’t want to come to us are expected to consume our products by paying online.
5.2.3 Working Class: Another target customer of ours will be the working class. In fact, this group can become our biggest consumer as, after an exhausting and tiring routine, working men and women opt for taking something energizing that is good for their health too.
5.2.4 Teens & Children: The last group of our target customers comprises of teens and children who’ll either be accompanied by other groups of our customers or will be coming to us themselves. Since this category isn’t much attracted to taking healthy fruit drinks thus we’ll be providing scoops, and snacks so that they can also have something to buy from us.
| Market Analysis | |||||||
| Potential Customers | Growth | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | CAGR |
| Passers-by | 34% | 2,300 | 2,460 | 2,740 | 2,950 | 3,410 | 9% |
| Residential Community | 23% | 1,830 | 1,940 | 2,045 | 2,340 | 2,760 | 8% |
| Working Class | 29% | 2,200 | 2,400 | 2,780 | 3,240 | 3,310 | 10% |
| Teens & Children | 14% | 700 | 820 | 960 | 1,230 | 1,980 | 9% |
| Total | 100% | 6,120 | 7,230 | 8,340 | 9,980 | 10,900 | 11% |
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5.3 Business Target
Our business targets to be achieved over the span of the next few years are given here:
- To increase our sales by 8% every month for the first year and by 14% every month for the second year
- To earn a net profit margin of $10k per month by the end of the first year and $15k by the end of the second year
- To establish another juice bar in our city by the end of the first four years
- To establish and maintain a minimum cash balance of $120k
5.4 Product Pricing
Since, Fructose Bar will be providing extremely clean, fresh and nutritious juices and smoothies to its customers, it has decided to keep its prices in almost the same range as that of its competitors. After all, the company owner doesn’t want to compromise on quality by compromising on prices.
Marketing Strategy
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Before opening a juice bar business it’s necessary to think about ways that can help you in getting ahead of your competitors and approaching your target customers.
6.1 Competitive Analysis:
Before making fresh juice bar business plan Grant did research on his competitors so that he can come up with features that others lack. Competitive aspects defined by Fructose Bar are given here:
Our biggest competitive advantage is that we’ve established a comfortable place for our customers to sit in and enjoy our offerings. Our second biggest aspect is that we will be taking orders online so that if customers want to have fresh juice for themselves but don’t want to stay or wait at the stop, they can order us 10 to 15 minutes before they walk by there. Thirdly we will provide snacks and scoops besides juice and smoothies so that every person including kids and teen can have something to buy from us.
And the last thing that can benefit us is our excellent location which is near to offices, institutes resident community as well as shopping areas.
6.2 Sales Strategy
We will offer a 10% discount on our servings for the first month of our launch. To introduce our healthy and fresh offerings to the people we’ll offer a 75% discount on all our products for the first two days of our launch. Lastly, we’ll advertise our products and sitting area on social media to approach distant target customers.
6.3 Sales Monthly
6.4 Sales Yearly
6.5 Sales Forecast
| Sales Forecast | |||
| Unit Sales | Year 1 | Year 2 | Year 3 |
| Fruit Juices & Nectar | 1,300 | 1,460 | 1,729 |
| Smoothies | 1,030 | 1,157 | 1,370 |
| Salads & Scoops | 800 | 898 | 1,064 |
| Snacks & Refreshments | 430 | 483 | 572 |
| TOTAL UNIT SALES | 3,560 | 3,998 | 4,735 |
| Unit Prices | Year 1 | Year 2 | Year 3 |
| Fruit Juices & Nectar | $1,505.00 | $1,822.56 | $2,122.05 |
| Smoothies | $980.00 | $1,186.78 | $1,382.00 |
| Salads & Scoops | $590.00 | $714.49 | $832.02 |
| Snacks & Refreshments | $420.00 | $508.62 | $592.28 |
| Sales | |||
| Fruit Juices & Nectar | $1,956,500 | $2,660,748 | $3,669,024 |
| Smoothies | $1,009,400 | $1,372,737 | $1,893,196 |
| Salads & Scoops | $472,000 | $641,898 | $885,267 |
| Snacks & Refreshments | $180,600 | $245,608 | $338,727 |
| TOTAL SALES | |||
| Direct Unit Costs | Year 1 | Year 2 | Year 3 |
| Fruit Juices & Nectar | $1,120.00 | $1,232.00 | $1,355.20 |
| Smoothies | $730.00 | $803.00 | $883.30 |
| Salads & Scoops | $490.00 | $539.00 | $592.90 |
| Snacks & Refreshments | $330.00 | $363.00 | $399.30 |
| Direct Cost of Sales | |||
| Fruit Juices & Nectar | $1,685,600.00 | $2,245,387.76 | $2,875,802.16 |
| Smoothies | $715,400.00 | $952,984.34 | $1,220,717.07 |
| Salads & Scoops | $289,100.00 | $385,110.11 | $493,303.47 |
| Snacks & Refreshments | $138,600.00 | $184,629.06 | $236,499.00 |
| Subtotal Direct Cost of Sales | $2,828,700.00 | $3,768,111.27 | $4,826,321.70 |
Personnel plan
7.1 Company Staff
The staff you hire can affect your business in the long run. So if you are looking for how to set up a smoothie bar you should first devise a plan to find out the most suitable employees for your business.
Grant will oversee all the operations himself, however, he’ll hire the following people:
- 1 Co-Manager to manage the bar
- 1 Accountant to manage financial records
- 3 Chefs to prepare products & juices
- 3 General Assistants to carry out routine tasks
- 1 Driver to supply products needed by the juice bar
- 2 Drivers to deliver goods to homes
- 3 Cleaners to maintain juice bar
- 1 Web Developer to run company’s sites and record online orders
- 1 Sales Executive to carry out sales strategy
- 1 Front Desk Officer as a receptionist
7.2 Average Salary of Employees
| Personnel Plan | |||
| Year 1 | Year 2 | Year 3 | |
| Co-Manager | $35,000 | $39,200 | $52,500 |
| Accountant | $27,000 | $30,240 | $40,500 |
| Chefs | $70,000 | $78,400 | $105,000 |
| General Assistants | $85,000 | $95,200 | $98,000 |
| Drivers & Cleaners | $130,000 | $145,600 | $195,000 |
| Sales Executive | $21,000 | $23,520 | $31,500 |
| Web Developer | $22,000 | $24,640 | $33,000 |
| Front Desk Officer | $23,000 | $25,760 | $34,500 |
| Total Salaries | $413,000 | $462,560 | $590,000 |
Financial Plan
If you are opening a juice bar, you need not worry about how much does juicing cost because the startup doesn’t require a lot of investment. Keeping in view the few requirements to start this business, people usually think that is a juice bar profitable or not. The answer is that the juice bar business is profitable if you select your location wisely.
Well, if you want to take a relatively larger startup, like Fructose Bar, you must have to develop a thorough financial plan. Through a financial plan, you can easily estimate profits and losses and can make planned transactions, investments, and expenses.
You can get an idea of an effective financial plan from this sample financial plan of Fructose Bar.
8.1 Important Assumptions
| General Assumptions | |||
| Year 1 | Year 2 | Year 3 | |
| Plan Month | 1 | 2 | 3 |
| Current Interest Rate | 10.02% | 10.40% | 10.71% |
| Long-term Interest Rate | 10.00% | 10.00% | 10.00% |
| Tax Rate | 23.40% | 24.30% | 25.70% |
| Other | 0 | 0 | 0 |
8.2 Brake-even Analysis
| Brake-Even Analysis | |
| Monthly Units Break-even | 5120 |
| Monthly Revenue Break-even | $134,500 |
| Assumptions: | |
| Average Per-Unit Revenue | $238.00 |
| Average Per-Unit Variable Cost | $0.72 |
| Estimated Monthly Fixed Cost | $184,300 |
8.3 Projected Profit and Loss
| Pro Forma Profit And Loss | |||
| Year 1 | Year 2 | Year 3 | |
| Sales | $3,618,500 | $4,920,990 | $6,786,215 |
| Direct Cost of Sales | $2,828,700 | $3,768,111 | $4,826,322 |
| Other | $0 | $0 | $0 |
| TOTAL COST OF SALES | $2,828,700 | $3,768,111 | $4,826,322 |
| Gross Profit | $789,800 | $1,152,879 | $1,959,893 |
| Gross Margin % | 21.83% | 23.43% | 28.88% |
| Expenses | |||
| Payroll | $413,000 | $462,560 | $590,000 |
| Sales and Marketing and Other Expenses | $58,500 | $61,425 | $64,496 |
| Depreciation | $32,400 | $34,020 | $35,721 |
| Leased Equipment | $0 | $0 | $0 |
| Utilities | $34,500 | $36,225 | $38,036 |
| Insurance | $36,600 | $38,430 | $40,352 |
| Rent | $21,300 | $22,365 | $23,483 |
| Payroll Taxes | $80,100 | $92,512 | $118,000 |
| Other | $31,200 | $32,760 | $34,398 |
| Total Operating Expenses | $707,600 | $780,297 | $944,486 |
| Profit Before Interest and Taxes | $82,200 | $90,420 | $101,106 |
| EBITDA | $114,600 | $124,440 | $136,827 |
| Interest Expense | $0 | $0 | $0 |
| Taxes Incurred | $16,440 | $18,084 | $20,221 |
| Net Profit | $65,760 | $72,336 | $80,885 |
| Net Profit/Sales | $0 | $0 | $0 |
8.3.1 Profit Monthly
8.3.2 Profit Yearly
8.3.3 Gross Margin Monthly
8.3.4 Gross Margin Yearly
8.4 Projected Cash Flow
| Pro Forma Cash Flow | |||
| Cash Received | Year 1 | Year 2 | Year 3 |
| Cash from Operations | |||
| Cash Sales | $39,000 | $46,800 | $51,090 |
| Cash from Receivables | $11,200 | $13,440 | $14,672 |
| SUBTOTAL CASH FROM OPERATIONS | $51,200 | $57,800 | $61,342 |
| Additional Cash Received | |||
| Sales Tax, VAT, HST/GST Received | $0 | $0 | $0 |
| New Current Borrowing | $0 | $0 | $0 |
| New Other Liabilities (interest-free) | $0 | $0 | $0 |
| New Long-term Liabilities | $0 | $0 | $0 |
| Sales of Other Current Assets | $0 | $0 | $0 |
| Sales of Long-term Assets | $0 | $0 | $0 |
| New Investment Received | $0 | $0 | $0 |
| SUBTOTAL CASH RECEIVED | $51,200 | $57,800 | $61,342 |
| Expenditures | Year 1 | Year 2 | Year 3 |
| Expenditures from Operations | |||
| Cash Spending | $205,000 | $225,500 | $248,050 |
| Bill Payments | $117,500 | $129,250 | $142,175 |
| SUBTOTAL SPENT ON OPERATIONS | $312,300 | $343,530 | $377,883 |
| Additional Cash Spent | |||
| Sales Tax, VAT, HST/GST Paid Out | $0 | $0 | $0 |
| Principal Repayment of Current Borrowing | $0 | $0 | $0 |
| Other Liabilities Principal Repayment | $0 | $0 | $0 |
| Long-term Liabilities Principal Repayment | $0 | $0 | $0 |
| Purchase Other Current Assets | $0 | $0 | $0 |
| Purchase Long-term Assets | $0 | $0 | $0 |
| Dividends | $0 | $0 | $0 |
| SUBTOTAL CASH SPENT | $323,100 | $361,872 | $390,951 |
| Net Cash Flow | $109,800 | $122,976 | $132,858 |
| Cash Balance | $197,400 | $221,088 | $238,854 |
8.5 Projected Balance Sheet
| Pro Forma Balance Sheet | |||
| Assets | Year 1 | Year 2 | Year 3 |
| Current Assets | |||
| Cash | $190,500 | $213,360 | $234,315 |
| Accounts Receivable | $10,200 | $11,424 | $12,546 |
| Inventory | $2,130 | $2,386 | $2,620 |
| Other Current Assets | $9,900 | $11,000 | $11,000 |
| TOTAL CURRENT ASSETS | $234,000 | $245,600 | $263,000 |
| Long-term Assets | |||
| Long-term Assets | $10,000 | $10,000 | $10,000 |
| Accumulated Depreciation | $12,100 | $13,450 | $14,870 |
| TOTAL LONG-TERM ASSETS | $720 | $650 | $430 |
| TOTAL ASSETS | $201,000 | $228,940 | $247,000 |
| Liabilities and Capital | Year 1 | Year 2 | Year 3 |
| Current Liabilities | |||
| Accounts Payable | $10,900 | $11,300 | $12,450 |
| Current Borrowing | $0 | $0 | $0 |
| Other Current Liabilities | $0 | $0 | $0 |
| SUBTOTAL CURRENT LIABILITIES | $9,800 | $10,100 | $11,800 |
| Long-term Liabilities | $0 | $0 | $0 |
| TOTAL LIABILITIES | $10,400 | $11,750 | $12,990 |
| Paid-in Capital | $31,600 | $33,700 | $35,250 |
| Retained Earnings | $42,300 | $48,500 | $53,200 |
| Earnings | $98,000 | $125,600 | $130,500 |
| TOTAL CAPITAL | $174,500 | $198,800 | $253,400 |
| TOTAL LIABILITIES AND CAPITAL | $212,300 | $240,390 | $255,700 |
| Net Worth | $185,400 | $220,500 | $245,900 |
8.6 Business Ratios
| Ratio Analysis | ||||
| Year 1 | Year 2 | Year 3 | INDUSTRY PROFILE | |
| Sales Growth | 7.20% | 17.40% | 39.80% | 4.00% |
| Percent of Total Assets | ||||
| Accounts Receivable | 4.04% | 3.81% | 3.52% | 9.04% |
| Inventory | 1.33% | 1.73% | 1.99% | 9.12% |
| Other Current Assets | 1.49% | 1.98% | 2.01% | 24.78% |
| Total Current Assets | 156.00% | 159.00% | 162.00% | 53.80% |
| Long-term Assets | -7.98% | -8.74% | -9.78% | -10.06% |
| TOTAL ASSETS | 97.10% | 98.00% | 101.50% | 102.37% |
| Current Liabilities | 3.33% | 3.49% | 3.79% | 5.31% |
| Long-term Liabilities | 0.00% | 0.00% | 0.00% | 23.80% |
| Total Liabilities | 4.08% | 4.17% | 4.23% | 7.46% |
| NET WORTH | 98.07% | 99.88% | 101.49% | 102.00% |
| Percent of Sales | ||||
| Sales | 93.59% | 94.89% | 96.30% | 97.00% |
| Gross Margin | 93.00% | 94.80% | 96.90% | 0.00% |
| Selling, General & Administrative Expenses | 71.09% | 72.89% | 74.06% | 80.01% |
| Advertising Expenses | 1.58% | 1.22% | 0.53% | 0.88% |
| Profit Before Interest and Taxes | 25.61% | 27.30% | 29.89% | 1.99% |
| Main Ratios | ||||
| Current | 24.5 | 26.8 | 29.8 | 1.41 |
| Quick | 25.8 | 26.8 | 29.7 | 0.18 |
| Total Debt to Total Assets | 1.89% | 1.52% | 1.13% | 52.00% |
| Pre-tax Return on Net Worth | 66.50% | 70.70% | 76.20% | 4.23% |
| Pre-tax Return on Assets | 66.20% | 71.30% | 76.30% | 10.00% |
| Additional Ratios | Year 1 | Year 2 | Year 3 | |
| Net Profit Margin | 17.80% | 19.50% | 23.50% | N.A. |
| Return on Equity | 48.70% | 53.50% | 58.45% | N.A. |
| Activity Ratios | ||||
| Accounts Receivable Turnover | 4.29 | 4.31 | 4.39 | N.A. |
| Collection Days | 91 | 98 | 98 | N.A. |
| Inventory Turnover | 24.2 | 25.9 | 26.4 | N.A. |
| Accounts Payable Turnover | 13.9 | 14.6 | 15.3 | N.A. |
| Payment Days | 24 | 24 | 26 | N.A. |
| Total Asset Turnover | 1.8 | 1.62 | 1.48 | N.A. |
| Debt Ratios | ||||
| Debt to Net Worth | 0.02 | -0.01 | -0.03 | N.A. |
| Current Liab. to Liab. | 1 | 1 | 1 | N.A. |
| Liquidity Ratios | ||||
| Net Working Capital | $138,500 | $149,500 | $160,300 | N.A. |
| Interest Coverage | 0 | 0 | 0 | N.A. |
| Additional Ratios | ||||
| Assets to Sales | 0.43 | 0.45 | 0.48 | N.A. |
| Current Debt/Total Assets | 2% | 4% | 4% | N.A. |
| Acid Test | 26.3 | 27.9 | 28.1 | N.A. |
| Sales/Net Worth | 1.18 | 0.94 | 0.74 | N.A. |
| Dividend Payout | 0 | 0 | 0 | N.A. |
Juice Bar Business Plan Sample in PDF
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