How Do I Price My Juices
That being said, a retail store that sells bottled juice can achieve a lower food cost, and should strive for 20% ? 25% average food cost for organic juice. This means that if the juice is selling for $10.00 / bottle, the cost of the actual produce that goes into the juice should cost no more than $2.50, on average. Thereof, are juiceries profitable? A juice business or restaurant selling juice direct to consumer can expect about a 50% ? 70% gross margin if careful planning is done when developing the recipes.
Estimated Annual Revenue And Profit Of A Licensed Starbucks Store Owner
However, if we do a little math we can work out the average income of Starbucks license stores. Starbucks is a public company so it will report overall revenue. According to their Q3 2019 earnings release, the company has 30,626 stores, of which 442 were opened that quarter.
Lets just assume that 30,400 as an average number of open stores in the quarter. The company also reported $6.8 billion in revenue. Nonetheless, also note that Starbuck derives revenue from non-store sources: selling coffee at retail stores, corporate machines, licensing, etc. These are about $570 million, so store revenue is about $6.23 billion.
Using simple math, we can ascertain $204,000 in revenue per store this is per quarter. So it would translate to $808,000 per store per year. Notably, in Asia pacific, the company operates 9,246 stores that generate $1.336 billion in revenue, or $144,000 per store per quarter.
Using this same math only on their Americas reported numbers, and $4.671 billion in revenue, divided by 17,700 stores, then its $264,000 in revenue per store per quarter. Nonetheless, there is only one factor that will determine or affect the possible income of any Starbucks store.
How Location Ultimately Determine How Much a Starbucks Store Owner Can Make Yearly
Store Workers Often Earn Low Wages
No matter how much time, money, and love a franchise operator invests into a Smoothie King store, its team members are also crucial. Smoothie King makes clear the position entails being friendly to customers, preparing food items, and creating smoothies. A lot of responsibilities and pressure are therefore placed on Smoothie King’s team members, but the pay doesn’t necessarily reflect that. Glassdoor claims the hourly rate for the position is usually only $9, while Indeed puts it at $10.05. To put that in perspective, Talent estimates the national average salary for team members at all businesses is $16.53 an hour.
Shift leader is another popular role at the chain, a job which Smoothie King notes entails many of the same tasks as a team member, but with additional responsibilities of assisting staff and checking inventories. Indeed reckons the company’s shift leaders can make around $10.79 an hour for the extra work, but Payscale estimates it to be $9.50. Both figures are substantially lower than the national average of $14.31 an hour for all businesses. Other Smoothie King roles include cashier , warehouse worker , and the technology-related IP Network Engineer .
Money isn’t the only compensation for working at Smoothie King. Glassdoor suggests there are also a number of perks for working at the company, including healthcare plans, paid holidays, flexible shifts, and food discounts.
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Is Smoothie King A Franchise
We are the worlds largest smoothie brand and offer an exciting franchise opportunity for you. As a Smoothie King franchise owner, youll have access to: World-class training and support. And a proven record of success from top rankings on Entrepreneur Magazines Franchise 500 list for over 28 years.
What It Takes To Own A Leading Smoothie Franchise
The following costs are excerpted from Smoothie King’s Franchise Disclosure Document and are estimated. Each Smoothie King franchise owner has the right to initially develop one store for the franchise fee of $30,000. The difference between low and high investment levels exists due to labor, location, varying store sizes, build-out costs and expenses, and your experience and management of the stores development.
Below are the financial requirements to open a Smoothie King in the United States:
- Investment Range:
- Endcap or inline location: $320,301 – $585,465
- Free-standing Drive-thru location: $723,501 – $1,184,865
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What Kind Of Support Does Smoothie King Provide For Franchise Owners
Smoothie King provides franchise owners a newsletter with helpful information. They have meetings where you can learn how to make the most of your franchise. They have a toll-free line so that you can call them for free. They help with your grand opening.
They help with internet, security, and safety procedures. They have field evaluations to help you make changes that might help your business. They will train you on the field operations and provide purchasing cooperatives to get your inventory for your Smoothie King.
They have several support options as far as training goes. They offer between 56 and 114 hours of classroom training. They have an additional 44 to 110 hours of on-the-job training. They provide additional training for management at their corporate office designed especially for new store managers.
Average Unit Net Sales Percentage Increase
|Comparison Year||Number / Percentage of Units that Met or Exceeded Average Percentage Increase||Median Percentage Increase|
Another important metric to look at is the increase in net sales percentage increase. The following table shows how net sales numbers have increased from the previous fiscal year.
From 2019 to 2020, same-store net sales increased by 2.46%. For almost the past decade, same-store sales have increased, although there was a lag in growth in the years 2017-2018. However, growth has been revitalized since then and the increase in same store net sales has been growing steadily.
Overall, these numbers show that Smoothie King is a financially stable and significantly profitableWhen the earnings in a given period of time is more than the expenses in a business. franchise concept.
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The Smoothie King Purpose
Smoothie King Franchises, Inc., is a privately held, Dallas-area-based franchise company with nearly 1,300 units worldwide. By creating each Smoothie with a “purpose”, Smoothie King makes it simple and pleasurable for guests to achieve their individual health goals. Our stores offer a number of healthier retail products in addition to our delicious smoothies, including sports beverages, energy bars, vitamin supplements, and more.
Fruit, juice, yogurt, and dairy are all commodities that anyone with a blender can provide. Only Smoothie King creates specialized Smoothies that are expertly blended with more than “just fruit in a blender” for specific needs, goals, and ambitions to inspire our guests to live a healthy and active lifestyle each and every day.
How Much Does A Smoothie King Franchise Owner Make
According to Glassdoor, a Smoothie King franchise owner’s average salary in 2020 would be $42,337 ? $46,085.
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Ageratum is one of the best flower choices to protect profits. Red, white and blue flowers add color to bouquets. It’s called Scabiosa. There is a town called Larkspur. It’s very fast. There is a peony. There is a person named zinias. There are flowers. The word derives from the Latin word brevena.
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Brand Message Doesnt Stand Out Enough
Smoothie Kings brand message may not be distinctive enough in the marketplace to prevent a mom-and-pop business from successfully competing with one of its franchise sites, according to some in the media.
There is nothing proprietary about Smoothie Kings business, so a franchisee is really paying to be associated with a well-known brand that consumers will choose over the alternative. I would like to see Smoothie Kings brand be a bit more differentiated. If you want to get help on how to properly build your message and brand, visit here.
About Smoothie King Franchising
Smoothie King Franchises, Inc. offers franchises for the operation of one of its 1,350 estimated units. Each unit sells various premium, handcrafted smoothies made with real fruits, organic vegetables, and other fresh nutrients blended using their recipes. Units also provide consumers the advantage of nutritional retail merchandise such as herbs, vitamins, minerals, various supplements, and healthy snack items.
Section V Financial Performance Representations And Analysis
- Under Part A below, Smoothie King has provided unaudited statements of average annual Unit Net Sales as of December 28, 2020, December 30, 2019, and December 31, 2018.
- Under Part B below, Smoothie King has provided information on the average annual Net Sales percentage increase for Units comparing the 2020 and 2019 calendar years, the 2019 and 2018 calendar years, the 2018 and 2017 calendar years, the 2017 and 2016 calendar years, the 2016 and 2015 calendar years, the 2015 and 2014 calendar years, and the 2014 and 2013 calendar years.
- All Units offer substantially the same products and services to the public. New franchisees will receive substantially the same services as those offered to existing franchisees.
- Smoothie King obtained these historical financial results from the information submitted by its franchisees. Neither Smoothie King nor an independent certified public accountant has independently audited or verified the information.
Staying Fruitful With Simple Operations And Strong Cost Controls
With our core product offering, were able to keep operations streamlined and simple. A diligently engineered POS system, as well as cutting-edge web and intranet technologies, build new efficiencies and organize the business and guest data that can help franchisees manage their resources and grow their business.
And by leveraging international buying power and vendor relationships, we provide franchisees with robust supply chains that maintain competitive pricing. Our supply chain specialists work with vendors to maintain affordable prices.
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What Is The History Of Smoothie King
Smoothie King was established originally in 1973 after the founder, Steve Kuhnau, started experimenting with mixing fresh fruit, nutrients, and proteins to make a smoothie. He noticed it had a profound impact on his health and created the first Smoothie King from that experience.
Smoothie King launched its first franchise in 1989. There are now about 950 Smoothie King franchises located throughout the United States and around the world. They sell sports beverages, energy bars, and nutritious snacks. They also sell vitamin supplements, herbs, minerals, and many other nutritional products in their locations today. They use all-natural ingredients in their smoothies and other products. With the majority of people becoming more health-conscious these days, it makes Smoothie Kings very popular.
Refreshing Juice Bar Franchises To Consider
The juice bar industry is thriving. According to IBISWorld, the juice and smoothie bar industry brings in about $2 billion per year and is experiencing a steady rate of growth.
That growth could also be due in part to the thriving fitness industry. Consumers are becoming increasingly concerned with health and wellness. So juice and smoothie bars naturally fit into that niche. If youre interested in being a part of that growing industry, here are some juice bar franchise opportunities to consider.
Ongoing Costs And Fees
There are several ongoing fees associated with a Smoothie King franchise. The first is an operating fee, which is 6% of gross salesThe total amount in dollars made in the business before expenses are deducted. See also Gross Revenue. or a monthly minimum fee of $500, paid on a monthly basis.
There are also several advertising and marketing fees that come with running a Smoothie King franchise. The first is a national marketing fee, which is currently 3% of gross sales. There is also a regional marketing fee, which is not to exceed 2% of gross sales.
The local marketing requirement is a minimum of 2% of gross sales. Finally, the last marketing payment is the grand opening advertising payment, which is a minimum of $15,000 for all new units and a minimum of $10,000 for relocated units.
Smoothie King Franchises, Inc., the first smoothie franchise in the United States, is a privately held franchise company based in Dallas. Smoothie King, founded in 1973, has developed into a lifestyle company just like todays innovative and everyones favorite Brooklyn Dumpling or Slapfish Shack Franchise that encourages people to maintain active and healthy lifestyles through great-tasting and nutritious food items.
How Much Profit Does A Franchisee Of Smoothie King Make Per Year
Smoothie King outdoor shop.
According to Glassdoor, a Smoothie King franchise owners average salary in 2020 would be $42,337 $46,085. This figure is a reported average, thus there could be a wide range of salaries. From an ownership perspective, it can also be advantageous from a tax perspective to earn less annually. We have to rely on what other franchise owners report making because Smoothie King does not post any form of expected franchise owner payment.
I suspect the real average revenue of an owner per unit is around $100,000 and not whats being reported on Glassdoor. Its hard to believe that this franchise would still be in business of ownership made less than $50,000 in annual profit.
As a Smoothie King franchisee, your profitability is determined by a number of factors. Food costs, labor costs, commercial lease rates in your area , local product demand, and how well you manage your operations are some of these aspects. In addition, the amount and scope of your investment will also have a big impact on profit.
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What Types Of Locations Fit Into Smoothie King Site Criteria
The ideal size range for a Smoothie King Franchise is generally 800-1,600 square feet. However, smaller or larger stores are an option. They’re usually located in neighborhood and community strip centers, power centers, shopping malls, universities, airports, and downtown business districts. The optimal area typically has a strong residential population, strong daytime employment, dynamic retail activity and proximity to fitness . It also has good street visibility and presence as well as good ingress and egress. We also prefer a drive-thru when possible.
How Much Does A Smoothie King Franchise Cost
Are you wondering how much is a Smoothie King franchise? Before starting a Smoothie King franchise, it is important to know the franchise fee, working capital and other costs required to start the business.
The minimum investment amount required to open a Smoothie King franchise is $320,301 and can go all the way up to $1,184,865. Keep in mind, you should also allocate additional funds to live off of while the Smoothie King business ramps up. This can take as little as 6 months to over 2 years depending on the franchise opportunity. You should speak to at least 5 Smoothie King franchisees to understand the true cost of opening the franchise and how long it takes to: 1) start a Smoothie King business 2) pass break even 3) hit significant income.
After you pass the point of earning significant income from your Smoothie King franchise, there may be enough margin to hire a day-to-day manager and work less hours in the business.
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Estimated Profit Margin Of A Starbucks Store
According to Starbucks tax fillings, the reported profit is roughly about $108,000 per store annually, but their profit margin may be actually much higher. Starbucks generates $650k $750K total revenue depending on location.
Starbucks buys coffee direct from the growers around the world, distributes, roasts, and packages all within their global ecosystem. And with over 24,000 stores worldwide, they get the lowest cost on all goods. With almost no middle men thats just one advantage.
Note that a good percentage of Starbucks profit is parked in tax friendly countries like Ireland, Panama and Switzerland. This money is not judged as taxable income and therefore never reported as profit because it is not paid out to the stockholders or executive boards.
Note that this actually establishes an accounting distortion letting the executive board to effectively juice their financial compensation packages without destroying reported profit margins, which could upset the stock holders, stock price and create negative press media.
Howbeit, this leaves the average profit margin for a Starbucks store closer to 25%. And the average true profit at $175,000 per store. Note that it translates into a hidden margin of $67,000 per store or $1.608B total! This is the way Starbucks can easily fund more health benefits, and perks while opening stores globally faster.
Is Smoothie King A Good Business
Through nutrient-rich, great-tasting smoothies, Smoothie King has evolved into a lifestyle brand inspiring people to live healthy lives. It is the No. 1 franchise in the nation. Ranking No. 1 in the smoothie and juice bar category. In 2020, Entrepreneur will place it at number 14 in their prestigious Franchise 500 list.
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When Was Smoothie King Founded
Smoothie King started offering franchises in 1988. Smoothie King was founded 49 years ago in 1973.
At Vetted Biz, we recommend franchises have 3-5 corporate locations and 5+ years of experience before offering a franchise. There needs to be proof that the business model works and is replicable before offering the franchise to other!