Opening a juice bar or any other business requires market research. We have thought of those who might be a little lost, so we are giving you some tips for your market research and forecast. Of course, we are talking about a juice bar here, but overall, this applies to any establishment.
MARKET RESEARCH:
Creating a juice bar requires in-depth analysis, of which market research is one. It is based on four main points:
Location study:
The location of a business, selling drinks or otherwise, is a pillar of market research. Therefore, the place of your activity and its environment will directly impact the sustainability of your training. There are then two possibilities:
- You take over an existing bar: The situation is made easier. In addition, you will benefit from the accounting and attendance elements of the previous manager, who will be able to describe the flow of customers, their habits, and potentialities.
- You create a juice bar: More complicated but just as exciting. In this case, the location search phase can sometimes belong. When you have found a location that suits you, do not hesitate to take the time to analyze the attendance 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? Parking? Is it a "living" neighborhood? You can also learn 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 juicer will benefit.
As part of the creation of your juice bar, the location chosen must be visible and located on a very busy, busy axis in a rather urban environment.
Study of the premises:
The local (well placed) does not need to be very large in a juice bar. A surface area of between 30 and 50 m2 may be sufficient to start a juice bar activity focusing, in particular, on take-out sales. Inspired by fruit juice kiosks coming directly from Australia and the United States, favorite juice bars and small surfaces are rising. A 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 of a young, urban, female, middle, and upper-class clientele. Rather than active, sporty people, having a healthy diet is important. Without these criteria limiting, your main clientele can help you orient yourself to your products and your location.
The share of fruit juice sales increased considerably, with real awareness increasingly strong of the importance of a healthy diet associated with organic and "healthy" products. At the same time, there is an expansion of the clientele.
Study of Competition :
Before falling for the premises 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 area?
The impact of direct competition is much greater than that of indirect competition. For example, another juice bar in your area could jeopardize your project. In contrast, a classic bar or a café will be less of a problem, even if it is necessary to attract customers.
Once the market study has been completed, 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 whether the management of the business will be done as an independent or as a franchisee of a chain of juice bars.
Each status has its advantages and disadvantages. We shall look at the case of independent management in this essay.
The lease of the premises:
A lease is necessary to create this business unless you buy the premises and become the owner. The price of your lease will depend on many parameters: location, district, surface area, urban rental fee, and city.
Provide, 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 carry out the activity you want. Certain restrictive covenants may apply. For example, some leases may include a stipulation requiring the renter to pay all or part of the property tax. Read your lease carefully to figure out all your charges and expenses.
Development work :
Before opening your juice bar, you must offer your customers a clean, repainted room suitable for this sale and comply with hygiene standards and accessibility for people with reduced mobility.
Upgrading and development costs will vary depending on the type of development. You can get closer to a professional to quantify your works and integrate them for large results or simple decoration.
Equipment expenses:
A juice bar needs solid and reliable professional equipment to operate, capable of high yields. Investing in quality equipment will save you from unpleasant surprises when using it.
- Juice Extractor or Centrifuge: They are essential for fruit and vegetable mixes in a juice bar. Please 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 juicer has been designed for intensive use and fully complies with these recommendations. In addition, its design and the silent motor will allow you to use it directly with your customers.
- Citrus press: Consult a professional who will help you choose a citrus press to meet your needs and use. The choice of an automatic juicer allows you to have the juice of optimal quality with easy service. Your time savings will be considerable compared to a classic citrus press. Automatic juicers are available for hire, so consider this when developing your business plan, saving your cash flow.
The professional virtual machines for your professional juice bar are:
- A professional juicer for fruit and vegetable juices.
- A professional automatic citrus press for pressing your various citrus fruits.
- A manual electric citrus press in addition if necessary.
- A blender for making your smoothies.
Other equipment is necessary: cash registers, refrigerators, ice machines, air conditioning, heating, sound systems, etc.
The material investment to create a juice bar is not very important, given 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 impact your sales.
- Location: As we saw above, the area is one of the pillars of the success of a business.
- The time of year: Each season will determine the cost of purchasing your fruits and vegetables. Focus on seasonal fruits and vegetables. They cost less, and you can highlight respect for seasonality.
- The concept: The trend of fresh fruit and vegetable juices continues to grow, particularly in consumers' diet awareness.
Therefore, sourcing fresh fruits and vegetables is a major factor when making your financing plan. Talk to the former owner's suppliers if you're taking over a juice bar. 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 payment facilities.
The stock of a juice bar is a bit special. Customers can order juices whenever they want them. However, fresh fruit juices do not keep for long. More than 24 to 48 hours if you're going to maintain the nutritional benefits. Therefore, stock management must be done with care to avoid possible losses.
The loss caused by the perishable nature of fruits and vegetables will have to be considered in your forecast. To start, you can, for example, launch a limited juice menu with seasonal fruits to familiarize yourself with the management of your stock, the quantities to order, and the perishability of the products.
The cash advance:
Start your activity and compensate for any charges or unforeseen events, pay your suppliers, hire staff (if necessary), and absorb the operating costs of your premises; it is essential to have a cash advance.
The cash advance amount will tobe determined by the magnitude of your costs and your turnover. As a result, your forecast will be critical at this level. For these questions, a chartered accountant can aid you in obtaining an accurate forecast balance statement.
Equity:
Before borrowing, the bank will ask you about the importance of your financial contribution. For example, banks often ask for a 20 and 25% personal donation of your total investment. She will also ask you for your 3-year business plan, forecast balance sheet, and complete market study.
License :
Since June 1, 2011, non-alcoholic beverages no longer require a license. So no need for a permit to open a non-alcoholic juice bar.
Unfermented fruit or vegetable juices with no traces of alcohol above 1.2 degrees are not affected by this measure—no investment is necessary for this chapter.
THE MARKETING PROMOTION OF THE ESTABLISHMENT:
Independent business or franchise:
Start talking about your establishment even before it opens. Use social networks, flyers, and the local press. Hang a poster on your establishment mentioning the change of owner or the upcoming opening. In short, get noticed. This communication represents a cost that should not be overlooked and forgotten in your forecast.
The financial viability of a "Juice Bar" project requires a very detailed economic forecast. Therefore, be as objective as possible when preparing your prediction; this will help you and reassure the bank.
When you have passed all these steps, the entire Instagram team will help you and accompany you in equipping your juice bar.
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