Opening a juice bar, or any other business, necessarily goes through the market research stage. We have thought of those who could be a little lost, so we are giving you some ideas to carry out your market research and your forecast. We are talking about a juice bar here, but overall, this applies to any type of establishment.
MARKET RESEARCH:
Creating a juice bar requires in-depth analysis, of which market research is a part. It is structured around 4 main points:
Location study:
The location of a business, beverage sales or otherwise, is a pillar of market research. The location of your activity and its environment will have a direct impact on the sustainability of your activity. There are then 2 possibilities:
You take over an existing bar: The situation is easier. You will benefit from the elements of accounting and attendance of the previous manager who will know how to describe the flow of customers, their habits, their potential.
You create a juice bar: More complicated but just as exciting. In this case, the phase of finding the location can sometimes be long. When you have found a location that suits you, do not hesitate to take the time to analyze the frequentation and the sociological typology of the district, the visibility of the future business.
In both cases, check the accessibility of the place of your future activity: Is it easy to access? Is there public transport nearby? A parking ? Is it a “lively” neighborhood? You can also find out about the type of businesses located in the same area as your future establishment.
The rule is simple, the more people there are in the area, the more your juice stocking will be able to benefit from it in terms of attendance.
As part of the creation of your juice bar, the chosen location must be clearly visible and located on a busy, busy axis, in a rather urban environment.
Study of the room:
The room (well placed) does not need to be very large in the context of a juice bar. An area of between 30 and 50 m2 may be sufficient to start a juice bar activity focusing in particular on take-out. Inspired by fruit juice kiosks coming directly from Australia and the United States, the favorite land of juice bars, small stores are on the rise for this type of activity. Small bonus, a small area will cost less.
Customer study:
The juice bar will mainly attract a certain type of clientele. According to some studies, the clientele of a juice bar is more young, urban, female, middle and upper class. Rather active, athletic people for whom having a healthy diet is important. Without these criteria being limiting, having an idea of your main clientele can help you guide you on the choice of your products and your location.
The sales share of fruit juices increases considerably each year, with a real awareness, increasingly strong, of the importance of a healthy diet, associated with organic and “healthy” products. At the same time, there is an increase in the number of customers.
Study of Competition :
Before you fall for the location of your dreams, remember to check the state of direct and indirect competition in your catchment area.
Direct competition: Is there already a juice bar near your future location?
Indirect competition: Are there establishments serving drinks near your future location?
The impact of direct competition is much greater than that of indirect competition. The existence of another juice bar in your area could jeopardize your project, while the existence of a classic bar or a café will be less problematic, although it will be necessary to stand out to attract the customer base.
Once the market research has been carried out, the next step is to work on the financing of your project.
THE BUSINESS PLAN:
Independent business or franchise:
The opening of a juice bar requires asking the question of whether the management of the company will be done as an independent or as a franchisee of a chain of juice bars.
Each status has its advantages and disadvantages. In this article, we will study the specific case of independent management.
The lease of the premises:
A lease is necessary to start this kind of business, unless your business buys the premises and becomes the owner. The price of your lease will depend on many parameters: location, district, surface area, urban rental price, city, etc.
Plan before your installation, your security deposit which will be equal, at least, to one month’s rent. Remember to check that your lease will allow you to exercise the type of activity you want. Certain restrictive covenants may apply. Attention, in some leases, a clause of payment of all or part of the property tax by the tenant may be mentioned. Read your lease carefully to quantify all your charges and expenses.
Development work :
Before opening your juice bar, you must be able to offer your customers a clean, repainted room, suitable for this type of sale and in compliance with standards of hygiene and accessibility for people with reduced mobility.
The costs of bringing them up to standard and fitting out will vary depending on the type of fitting out. Large works or simple decoration, you can contact a professional to cost your work and integrate them into your forecast.
Equipment expenses:
A juice bar needs solid and reliable professional equipment to function, capable of high yields. Investing in quality equipment will prevent you from unpleasant surprises when using it.
Juice extractor or Juicer : Perfect for mixing fruits and vegetables, they are essential in a juice bar. Find out about the performance of each machine according to your needs and preferably opt for professional equipment that will not overheat your food and retain its nutritional values. The Zumex Multifruit centrifuge has been designed for intensive use and fully complies with these recommendations. Its design and silent motor will allow you to use it directly in front of your customers.
The Citrus Press : Consult a professional who will be able to assist you in choosing a professional citrus press that will meet your needs and your use. The choice of an automatic juice machine makes it possible to have an optimal quality juice, with a simple use. Your time savings will be considerable compared to a conventional citrus press. Automatic juicers are available for rental , so think about it when developing your juice bar business plan, as this will allow you to conserve your cash flow.
The essential professional machines for your professional juice bar are:
- A professional juicer for fruit and vegetable juices.
- A professional automatic citrus press for pressing your different citrus fruits.
- A manual electric citrus press as a supplement if necessary.
- A blender for making your smoothies.
Other equipment is of course necessary: cash registers, refrigerators, ice machines, air conditioning, heating, sound systems, etc. If you take over a business, these elements will be mentioned there. If you create your structure, you will have to cost them.
The material investment to create a juice bar is not very important in view of the prospects for profitability.
Supply management:
For a juice bar, your sales will depend on several factors:
- The weather: As often, the weather and the season will have an impact on your sales.
- Location: As we saw above, location is one of the pillars of a successful business.
- The time of year: Each season will determine the cost of purchasing your fruits and vegetables. Bet on seasonal fruits and vegetables. They cost less and you can promote respect for seasonality.
- The concept: The trend for fresh fruit and vegetable juices continues to gain momentum, in particular thanks to consumers’ awareness of their diet.
The cost of supplying fresh fruits and vegetables is therefore a major factor to take into account when carrying out your financing plan. If you’re taking over a juice bar, talk to the suppliers from the previous owner. If you are creating your structure, find out about suppliers in your area. In both cases, do not hesitate to compare the quality of the products, the delivery times and the possible ease of payment.
The stock of a juice bar is a bit special. The juices are produced as and when requested by customers. Fresh fruit juices do not keep for long. No more than 24 to 48 hours if the nutritional benefits are to be retained. Stock management is therefore essential and must be done with meticulousness in order to avoid possible losses.
The loss caused by the perishable aspect of fruits and vegetables should be taken into account in your forecast. To start, you can, for example, launch a restricted juice card, with seasonal fruits to familiarize yourself with the management of your stock, the quantities to order and the perishability of the products.
Cash advance:
To be able to start your activity and compensate for any charges or unforeseen events, pay your suppliers, hire staff (if necessary), absorb the operating costs of your premises, it is essential to have a cash advance.
The cash advance will be modulated according to the size of the expenses and your turnover. Your forecast will be of great importance at this level. You can be assisted by a chartered accountant for these questions and obtain a forecast balance sheet as accurately as possible.
Equity:
Before borrowing, the bank will ask you how important your personal financial contribution is. Banks very often ask for a personal contribution of between 20 and 25% of your total investment. It will also ask you for your 3-year business plan, your forecast balance sheet and your complete market study.
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