A juice bar, a full-blown café, or somewhere in between…what is right for your club? In the many years that I’ve been counseling folks, I’ve learned there are factors that must be taken into consideration so that your dream doesn’t become a nightmare.
I can tell you from first-hand experience, when I opened my first juice bar at the University of Pennsylvania (U of P), I had a vision of what I thought the students and faculty wanted in their new state-of-the-art health club. I wanted to bring them everything imaginable from fresh-squeezed carrot and ginger juice to Lavazza coffee to smoothies to Panini sandwiches. Boy, I wish I had done my homework. I could have saved thousands of dollars in design work and equipment; not to mention my sanity. Okay, chalk it up to experience; my mistakes are your gain. First, what are the factors to consider?
Based on my experience, here are some factors that I’d suggest you consider:
Your personal tolerance level: Understand that juice bars and cafés are retail operations and should be considered separate entities within your club. This means that your attention will be required. Do you have the time and energy to focus on this new endeavor? If not, do you have someone with who you can trust to manage this business? Keep in mind, if it is the latter, by opting for leasing to an outside provider, you will never realize the profits that are possible by having full responsibility over the operation. That said, it may not be profits that drive you, but offering your members a value-added service may be most important. Either way, know who you are and know your tolerance level.
Space Consideration: The location of your juice bar or café is important and it will help drive sales, but there are other factors that can help to overcome this obstacle. For instance, we have a juice bar in Harlingen, TX that is located in the very back of the club, as far from the front door as possible, but they do extremely well. Could they do better if they were located somewhere between the lockers and the front door? Probably, but they’ve tailored the products to their demographics, and they market them properly too. Their members now go out of their way to grab a shake after a workout.
The space that you designate – whether it is at the front counter, a stand-alone kiosk, or a complete build-out – will help you to determine the kinds of products you will be serving. For instance, if you do not have room for a prep sink (often required by most health departments) you won’t be making any sandwiches or wraps.
Please note: if you are thinking of making it easy on yourself by bringing in already prepared salads and sandwiches from an outside purveyor, you may want to think again. It has been my experience that this approach rarely succeeds. About seven years ago, I partnered with Fresh Fields, now owned by Whole Foods, and developed great recipes for all kinds of healthy, whole food products. We supplied clubs in San Francisco, Chicago and Miami with the tastiest and healthiest foods imaginable, and we did it on a daily basis. The products were made fresh and with the best ingredients, but the program failed. Not because the product wasn’t good; on the contrary, our salads, wraps and sandwiches were superlative. It was because it was impossible not to have waste at the end of the day. Anything pre-wrapped has a less than healthy appeal, so there were always products that didn’t sell. The reality was that folks wanted to see their meal made fresh – which brings me back to the importance of the space.
If you are going to create food products, you will need to make sure that your space will accommodate prep work, and the equipment approved by the health department. Reverse-engineer back into the space where you would like to place a juice bar, and design the “best case” scenario for what you would like to offer. The last thing you will want is a surprise or a space that won’t allow you to do what you want when you want to do to it.
Demographics: Know your customers. Who are they and what do they like? In the case of my juice bar at U of P, I ended up eliminating the $2,200 Nutrifaster and $6,000 Conti espresso machine. (Boy, that was $8,200 buckaroos I could have used). I eventually just expanded the shake offerings and installed an organic grocery store. After that, we rocked. The point is to know your customer, and be willing to adjust.
Will there be children and if so, what percentage? How about Baby Boomers and their parents? Each demographic may require different products. Lastly, do you have an outside audience – meaning, can you pull folks in from the street? I have clubs that actually pull half of their customers from shopping centers and malls. If you advertise and market right, it is possible, so plan accordingly.
Initial Expense: Remember, you are investing in a business. A juice bar or a café could cost you as little as $100 or as much as $100,000. Like all businesses, you will want a return on your investment. How quickly do you want to see a return and at what margins? Create a business plan and take into account everything that I’ve just mentioned. Follow the proper protocol for educating your customers, and you will see your sales percentages increase dramatically. You may have to forgo some equipment initially (that is until you have ramped-up to the next level) but make sure that when you do, you have designed ahead.
Juice bars and cafés are a great way to provide value-added services to your members while increasing your bottom line. Just do your homework. Put it all together and there isn’t a scenario that can’t work. Good luck and Eat Well!
Dan Young is the President of Performance Food Centers, Corp. He is accomplished in juice bar concept and design as well as being certified in personal training and sports nutrition. He can be contacted at 888.PFC.9151, or visit www.performancefoodcenters.com.
