Smoothie franchises offer quick, portable and convenient treats, snacks and meal replacements that are healthy and delicious for the modern health-conscious consumer.
Communities around the world had long been enjoying fruit-based drinks before the invention of the blender. But it was the blender’s invention in the 1930s that jump started the popularity (and possibly the creation) of the smoothie—a drink typically consisting of fruit blended with other ingredients like ice, milk, soy milk, yogurt, ice cream and/or nutritional supplements.
According to Healthy Smoothie HQ, the popularity of smoothies steadily grew through the rest of the 1930s, as well as throughout the 1940s and 1950s. However, it was the 1960s that saw a dramatic uptick in smoothie consumption.
<blockquote>“What really boosted the smoothie’s popularity was the growth of the macrobiotic and health food movement of the 60’s. According to Dan Titus, the director of the Juice and Smoothie Association, health-food stores began to sell fruit juices and fresh fruit drinks to meet the demand and interest more and more people had in macrobiotic diets and their health.”</blockquote>
That significant growth continued in the 1970s as bodybuilding and weight lifting began their rise in popularity. Public figures, such as Jack Lalanne, touted the benefits of juicing and smoothies.
Nowadays, per IBISWorld, the market size of the United States smoothie bar industry, which is combined with juice bars for the company’s reporting, by revenue is $2.7 billion (2021). Already substantial, the smoothie industry is only expected to continue growing as Americans adopt healthier eating habits and desire fresh, healthy, and quick foods to fuel their on-the-go lifestyles. From Research and Markets’ report on the global smoothie market:
<blockquote>“According to the Centers for Disease Control and Prevention (CDC), chronic diseases are one of the leading health problems in the US. However, owing to rising health consciousness in confluence with the adoption of healthier lifestyles, consumers are altering their everyday diet. They are shifting from carbohydrate-laden food products toward healthy protein-enriched snacks and meals. In addition to this, they are consuming more functional foods and beverages like smoothies to meet their daily nutritional requirements. Apart from this, owing to hectic lifestyles and long working hours, a rise in the demand for on-the-go-meal options has been observed which, in turn, is strengthening the industry growth. Looking forward, the global smoothies market is expected to exhibit moderate growth during the next five years.”</blockquote>
Major players in the smoothie & juice franchise industry include: Planet Smoothie, Smoothie King, Jamba, Robeks Fresh Juices & Smoothies, Juice It Up!, Maui Wowi Hawaiian Coffees & Smoothies, Tropical Smoothie Café, Nekter Juice Bar and I Love Juice Bar.
Beyond Smoothies
In a May 2021 editorial covering ways franchises should prepare themselves for the future, Jamba President Geoff Henry said of menu evolution, “Continue to evolve your menus and think outside of the box. Adding items that allow you to partake in different dayparts, ensuring your menu meets guest demand and having digital technology that helps you solve a guest need will give you the ammunition to remain relevant.”
To that end, similar to fellow food franchise industry categories such as coffee franchises, ice cream franchises and frozen yogurt franchises have, over time many smoothie franchises have expanded their menu offerings beyond their namesake to wraps, sandwiches and more.
The Increasing Importance of Mobile Ordering
“It’s been huge,” Steve Schulze, CEO of Nekter Juice Bar said in September 2020. “Average ticket is higher. Labor is lower because we’ve been open for takeout only. A lot of restaurants are comping positive while running 20% lower labor.”
The pandemic has been huge for mobile ordering, driving more consumers to download restaurant apps and sign up for restaurant loyalty programs. The forced result, according to a company news release, has provided the industry with an opportunity to drive more business, and certainly one most operators did not expect just a year ago.
To illustrate the impact the pandemic had in a brief time on mobile ordering consider this: Before the pandemic, close to a third of Nekter Juice Bar’s business came from its digital channels. By the time the pandemic hit the six-month mark, it was “more than half, helping the company to largely recover from the shutdown and its severe restrictions on dine-in service.”
Since March 2020, mobile app usage by customers of virtually all food franchises that utilize them has skyrocketed. The pandemic sped up consumers’ shift online, a shift most industry observers said was already happening, albeit at a comparatively glacial pace. As Emil Davityan, CEO of Bluedot, said in an interview, “Investments in technology that were going to take three to five years to accomplish have really accelerated.”
The benefits of mobile ordering also extend to the customer as well. As Jamba President Geoff Henry has said, “Digital platforms and mobile ordering have also enabled us to personalize our communication with each loyal customer, while making it easier and more convenient to earn and recoup rewards.”
Initial Investment and Opening Costs for Smoothie Franchises
The amount necessary to open a franchise varies depending on the unique business system and execution requirements.
The opening costs for a food franchisee can depend on many factors, including but not limited to: the franchise fee, land and building costs, training expenses (such as travel and living expenses, not the actual training courses), grand opening advertising and marketing costs, and more.
One of the most important variables in how much it costs to open a franchise is the type of franchise being opened and how big it is. Commonly, the two types of food franchise offered are traditional and non-traditional. Traditional franchises are usually the biggest option. They are typically standalone buildings where the service of the franchise is the only business offering. Non-traditional franchises are smaller, and typically located within another building like airports or gas stations. Other food franchise types include kiosks, trucks, and satellites.
Franchisors offer estimates in their FDD based upon their experience establishing, and in some cases operating, units. However, prospective franchisees should keep in mind these estimates are just that—an estimate. Prospective franchisees should review the figures presented with a business advisor, taking into consideration their unique circumstances, before making the decision to enter into a franchise agreement.
Facts About Smoothie Franchises
The worldwide juice and smoothie industry is worth an estimated $9 billion while growing at a rate of 2.3% since 2015.
Consumers are turning to smoothie franchises for a quick, convenient way to kick their greasy food habits. Smoothies, smoothie bowls, and freshly-squeezed juices offer a healthier alternative to traditional fast foods.
And, while smoothies are generally relatively high in sugar, they’re rich in the vitamins our bodies need to combat those free radicals that can lead to cancer and other diseases.
Smoothies are a popular breakfast choice for those looking to kick a coffee or caffeine habit (or those who want to replace a greasy fry-up for something that’s filling, delicious, and more virtuous). Athletes (both amateur and professional) regularly rely on smoothie franchises for their nutrient hit after working out.
Smoothies make the perfect alternative to unhealthy choices such as fizzy sodas and greasy fries, satisfying the desire for a sweet treat. You get a good hit of sugar with a smoothie, but it contributes to your 5-a-day.
Major players in the juice and smoothie franchise include Planet Smoothie, Smoothie King, Robeks, Juice It Up!, and I Love Juice Bar.
Smoothie franchise owners love the opportunity to share a healthy treat that tastes great. Children and adults alike are drawn to the bright, happy colors of smoothies and juices. Indeed, many smoothie franchise owners find great joy in putting a smile on people’s faces while helping them enjoy a healthier lifestyle.
Franchising Vs. Independent
Franchising requires a reasonably hefty initial investment, generally starting at around $75,000. Obviously, most of us don’t carry amounts like that in our back pocket; most of us would need to apply to banks or moneylenders for assistance.
Luckily, franchise businesses tend to have a headstart with moneylenders because the business model has been proven successful, profitable, and sustainable.
Independent companies starting without the support of an established partner tend to struggle to achieve necessary startup collateral because they can't prove the market viability of their business idea. On the other hand, Franchises can demonstrate real-world evidence of the viability of the business model, meaning that there's a lower financial risk for the lender.
The first three years of any business tends to be a challenge while you rely on sales to help you recoup your initial investment - actual profit comes a bit later. Franchise businesses tend to turn to profit more quickly because they can rely on the brand's familiarity to help establish themselves in the local marketplace.
Unfortunately, almost half of all independent companies go bankrupt within those problematic first three years as they struggle to establish a reputation and a following of loyal customers. Franchises inherit a reputation, making it much easier for them to hit the ground running as soon as they open their doors to the public.
Smoothie Franchises
Check out Franchise Direct's fabulous choice of exciting smoothie franchise opportunities, and help those around you drink more healthily today!
You can also check out many more Food Franchises here on Franchise Direct, such as: