his is a question that I encounter almost daily, and the answer is usually a combination of more questions. How many workouts do you have per day? What are the demographics of your clientele? Do you have the space to build a juice bar? What kind of capital are you working with? Your answers to these questions, and more, will determine the appropriate course of action that is right for you. Remember this, if you own a health club, and you have members, then you are a candidate for a juice bar.
Why do I need a juice bar?
You need a juice bar for two reasons:
1. A juice bar can strengthen the bottom line. There are only a few ways to bring new capital into your health club and a juice bar represents the only way where you don’t have to feel that you are hardselling to your member.
2. If you truly want to help your members get fit and obtain total fitness, then nutrition should be a part of their program. Your products are exactly what they need to achieve their performance goals and, by golly, they taste good too. Let’s face it, juice bars are a relaxed and fun experience for both parties.
Juice Bars are one of the fastest growing facets in the health club industry today. More than ever, individuals are choosing clubs based on the amenities and member services available to them. Surveys show that juice bars are highly regarded as a great service when making these decisions. Members not only value ancillary services, they are becoming more and more aware of the importance of nutrition and a healthy lifestyle. As discussed in my previous article in this magazine, this is the best way for members to take advantage of the healthier choices becoming available to them. In addition to providing a valuable service to your members, a juice bar is an excellent source of recurring revenue. Once your members have paid their dues, this is a great way to extract continuing revenue from them, while supplying them with something they really want and need. The goal is to get as many of your members as possible buying smoothies or as we call them “Recovery Shakes” and whole foods from your juice bar.
Will I have enough customers?
This calculation is unique to every club. It’s directly related to your initial investment and ongoing labor expense relative to your overall penetration level. Penetration level is a term that I use to quickly gauge how many members are coming through my doors who are actually buying shakes. Penetration levels of 5% nationally seem to be the norm when there is no real program or focus in driving sales. This is unacceptable in my opinion but there are ways to achieve levels higher than five times this amount. This is critical when you have a finite number of people coming into your gym daily.
Do I have the space to build a juice bar?
The answer to this question is, “Yes.” There are many ways to build-out a juice bar from the simplest carts and kiosks to a total café build-out. All space and economic restrictions can be accommodated. Don’t be discouraged by electrical and plumbing constraints… those issues are easily resolved as well. Generally, focus on the area between the locker rooms and the exit door. Most folks today are in a hurry and may not take the time to go out of their way to access your juice bar – that is, unless it hits them in the face on the way out the door.
What kind of capital investment do I need to make?
Juice bars can vary from a simple blender on a counter with a cooler of ice and a dry erase menu board to a $35,000 franchise. It is best to consult with a company that has experience in a variety of health club environments to determine what level is best for you. This should directly correlate with your projected revenues. Sometimes the costliest option is not the best option for you. A $35,000 franchise will not necessarily do better sales than a $15,000 build-out. Other factors play a large role in determining your profit levels, too. So, when deciding on a company to work with, do your homework and make sure they are going to be there before, during and, most importantly, after your opening!!!
Dan Young is the President of Performance Food Centers, Corp. He is accomplished in juice bar concept and desgin as well as being certified in personal training and sports nutrition. He can be contacted at 866.632.1927, or visit wwwperformancefoodcenters.com.