Key Takeways
- There are quite a few benefits of using the cold press juicing process. The most notable benefit is that, contrary to alternative juicing systems, the cold press system allows for the preservation of all of the original nutrients.
- In the end, all of these factors combine to make the opening of a cold press juice bar a relatively low-risk investment with a strong potential for growth.
- Adhering to the broader franchise model is a great way to position your cold press juice bar for long-term well-being.
- Most business owners don’t have the time (and in many cases, the experience or other resources) needed to build their broader operational model from scratch.
If you’re diving into “how to open a juice bar,” the initial steps are crucial. Understanding what products or services to offer is fundamental. Being in tune with market trends is key in identifying what people are willing to purchase.
This holds particularly true if you’re pondering a franchise venture, which—upon success—can be easily duplicated. Franchises thrive in the food and beverage sector due to brand recognition and stable supply chains.
So, what trends are surging in the American food and beverage industry?
A rising star has been the cold press juice bar scene, no pun intended. Annually, hundreds of new cold press juice bars launch nationwide and often start generating significant revenue swiftly.
Yet, opening a juice bar, particularly one that specializes in cold press, involves strategic planning in a rapidly expanding yet competitive market. The US juice market is valued at approximately $24 billion, with an average yearly spend of $75 per person on juice.
To differentiate your juice bar and reach your business milestones, our thorough guide will outline the essentials of owning and operating a cold press juice bar. We cover the concept, advantages of franchising, and strategic planning for enduring success.
WHAT IS A COLD PRESS JUICE BAR?
Before we discuss how to successfully run a cold press juice bar of your own, let’s start by defining what cold press juice actually is. After all, if you are going to be sharing your product with thousands of customers, it is important to understand what you are selling.
The term “cold press juice” is used to describe how the juice is made. (For reference, the alternative, less intensive process is known as “hot press juice). With the cold press juicing process, the juice is extracted from the original fruit input with a high-pressure hydraulic system that exerts thousands of pounds of pressure. This enables the juicer to get the most amount of juice possible from a single input (the fruit).
There are quite a few benefits of using the cold press juicing process. The most notable benefit is that, contrary to alternative juicing systems, the cold press system allows for the preservation of all of the original nutrients. In other words, juices that are made via the cold press process are significantly healthier (vitamins, minerals, other nutrients, etc.) than alternative juices. So, not only are you getting genuine 100% juice with every serving of cold press juice you consume but, additionally, the type of juice you are consuming is significantly better.
Cold press juice first came into popularity in the 1970s, most notably in California, and has since become a mainstay across the United States and the rest of the world. Cold press juice typically costs a little bit more than traditional juices but for those who know what they are genuinely paying for, the price difference is undoubtedly worth it.
This is why so many cold press juice bars are currently in operation. Currently, there are about 5,000 juice bars operating in the United States and the vast majority of these juice bars offer at least a few cold press options.
WHAT ARE THE BENEFITS OF OWNING A COLD PRESS JUICE BAR?
The most obvious reason to open a cold press juice bar is that the product itself—which can come in all sorts of different flavors and varieties—currently has very high demand among a wide range of demographics. In fact, even with the operational challenges introduced by the COVID-19 pandemic, there are currently about 20% more cold press juice bars in the United States than there were just five years ago.
That is a pretty impressive rate of industry growth not seen across most other food or beverage businesses. And as long as the industry continues to expand—which it has been, not just in terms of locations but also in terms of pure revenue—there will be a lot of potential for new cold press juice bar owners to generate a significant profit.
Additionally, opening a cold press juice bar is something that simply makes a lot of financial sense. In order to open a cold press juice bar, you will usually need to have a few hundred thousand dollars cash in hand and if you are a franchise, you will also need a little bit more to pay the original franchise fee (the Pure Green franchise fee, for example, is currently $30,000).
At first, this might seem like a lot—but there are plenty of great financing options available, especially if you utilize the resources your franchise can provide. Additionally, it is important to realize that this initial cash fusion doesn’t just “go away”; instead, it is invested in appreciable assets that will be worth significantly more tomorrow than they are worth today. For example, assuming real estate investment—a major component of the initial financial commitment—appreciates at an annual rate of 10% (a reasonable projection given recent trends), that means it will only take 8 years for $100,000 of real estate assets to double in total value.
Furthermore, when compared to many other types of businesses, cold press juice bars are capable of generating a profit in a very short amount of time. In fact, due to the marketing support and hype that comes with a “Grand Opening”, many cold press juice bars are able to generate revenues greater than their expenses within the very first month. That’s an immediate path to profit that is not witnessed in most other industries.
As long as your recurring expenses (such as rent, wages, and utilities) can be covered, every additional cold press juice sale will increase your total bottom line. At retail, some of the most in-demand cold press juices will sell for $10 or even more. But if you are operating your business at scale, your variable costs might be as low as $3 per juice, which creates an incredible marginal profit for the juice bar owners.
In the end, all of these factors combine to make the opening of a cold press juice bar a relatively low-risk investment with a strong potential for growth. This is why, ultimately, cold press juice continues to grow and increase in general popularity.
BENEFITS OF USING THE FRANCHISE BUSINESS MODEL
If you do decide to open a cold press juice bar—which, by now, you very well might be considering—you are going to have to make a lot of very important decisions. Among the first of these decisions that you will need to make is whether your cold press juice bar will be a franchised juice bar or one that is entirely independently operated.
Of course, it is easy to see why the independent model might make sense in certain situations. After all, if you go your own way (Fleetwood Mac style), you’ll be able to choose your own name, choose your own logo, and have a direct say in various other details. For some business owners, these details are important, which is why they are willing to take a greater risk.
But while there is something to be said about doing it your own, there are quite a few reasons why—at least within this particular industry—franchised cold press juice bars typically perform much better (and operate for much longer) than their non-franchised competitors.
By paying a relatively small franchise fee, you will be able to immediately access all of the benefits that a franchise can provide. By franchising, you will immediately have access to everything you need to prepare for your launch, as well as many other valuable resources, including many of those you will need well after your grand opening.
Keeping this in mind, you might find yourself wondering, what exactly can a franchise membership provide?
In short, becoming a member of a cold press juice franchise will give you access to pretty much everything you need in order to thrive. This includes all sorts of different business “must haves”, including marketing support, legal support, financial and accounting support, staffing and HR support, and so much more.
Additionally, simply having the name of a well-regarded cold press juice franchise—such as Pure Green—creates an additional layer of value. When people see a name that they recognize and have appreciated in the past, they will be much more likely to stop in for a visit. If the brand itself is something entirely unfamiliar, it will take significantly longer before you’ll be able to generate revenue.
Most business owners don’t have the time (and in many cases, the experience or other resources) needed to build their broader operational model from scratch. If you choose to start a cold press juice bar from scratch, rather than tap into the lucrative franchise model, you will be starting significantly behind your competitors. While there are plenty of exceptions, this is not a very clear path to success.
HOW TO FIND THE IDEAL LOCATION FOR A COLD PRESS JUICE BAR
Adhering to the broader franchise model is a great way to position your cold press juice bar for long-term well-being. Choosing to franchise will help you immediately check a lot of boxes on your “to-do” list, including ensuring the broader development and support of your brand, as well as establishing much-needed business connections. If you’ve made this choice, you are already moving in a very positive direction. Of course, even keeping this in mind, there will still be a lot of important things you’ll need to do—such as choosing your location.
When choosing where you want to open a cold press juice bar, there are several factors you’ll want to consider. First, you’ll need to make sure that the juice bar is in a location that enough people live near. Doing extensive geographic and demographic research can help you narrow down your options.
You’ll also want to make sure that the juice bar is in a spot that many people are likely to pass. In some cases, this might be a place with a highly visited parking lot near a highly trafficked road. In others, especially if you are in an urban “downtown”, considering foot traffic will be even more important.
Furthermore, you’ll need to consider how much square footage and how much storefront (the portion of the store that is physically facing the street) you’ll be able to have. Of course, the cost of monthly rent or mortgage will also need to be adequately accounted for. But by considering all of these factors simultaneously, along with working with your franchise partner, finding the right location for your cold press juice bar should be significantly easier.
The Pure Green Difference
In addition to cold pressed juice, Pure Green offers other types of juices, smoothies, acai bowls, and plenty of other healthy, affordable options for our customers. We are a part of the revolution towards a healthier world of quick-service options. Interested in learning more? CLICK HERE to see how you can become a Pure Green franchisee.
