How to Start a Juice Bar Business

Juice bars are all the rage, providing fruit juices and smoothies that offer a tasty, healthy alternative to sugar-based drinks. Even after pandemic shutdowns, the US juice bar industry is still worth more than $2 billion. Now could be the perfect time to start your own juice bar business, grab a slice of that vast market and put a nice chunk of change in your pocket. Sounds like a juicy proposition, right?

Of course, you’ll face challenges when starting a juice bar. You’re off to a great start, though, by jump-starting your learning process, so read on to find out all you need to know to develop and launch a successful juice bar in this step-by-step guide.

Step 1: Decide if the Business Is Right for You

Pros and cons

Starting a juice bar business has pros and cons to consider before deciding if it’s right for you.

Juice bar industry trends

Industry size and growth

• Industry size and past growth – The US juice and smoothie bar market is worth $2.5 billion and returning to growth after pandemic-driven shutdowns.((https://www.ibisworld.com/industry-statistics/market-size/juice-smoothie-bars-united-states/)) 
• Growth forecast – The US juice and smoothie bar industry expects further expansion through 2026 as consumer spending increases.((https://www.ibisworld.com/united-states/market-research-reports/juice-smoothie-bars-industry/))
• Number of businesses – There are more than 5,000 juice and smoothie bars in the US.((https://www.ibisworld.com/industry-statistics/number-of-businesses/juice-smoothie-bars-united-states/)) 
• Number of people employed – US juice and smoothie bars employ almost 65,000 people.((https://www.ibisworld.com/industry-statistics/employment/juice-smoothie-bars-united-states/)) 

Trends and challenges

Trends in the juice bar industry include:

• “The healthier the better” is all the rage, making organic juices and smoothies increasingly popular. More vegetable based juices with less fruit are also in demand.
• Exotic and unique flavor combinations are also trending, such as fruit juices with turmeric, ginger, or chia seeds added. Juices with a kick of spice are also in vogue. 
• Juice bar trucks, just like food trucks, are starting to trend, creating an opportunity beyond a brick-and-mortar juice bar.

Challenges also exist within the juice bar industry, including:

• Tastes and trends in the types of juices and smoothies that people want continuously change, creating a constant need for juice bars to update their menus.
• Inflation is increasing the prices of ingredients, reducing profit margins or forcing higher prices on fruit juice and smoothies.

Consumer spending

• Average consumer spend – The US juice industry revenue per person is $74.49.((https://www.statista.com/outlook/cmo/non-alcoholic-drinks/juices/united-states))
• Potential customer base – A person consumes an average of 18 liters of juice a year.((https://www.statista.com/outlook/cmo/non-alcoholic-drinks/juices/united-states))
• Average prices – The average price for juice is $6. 

How much does it cost to start a juice bar business?

Startup costs for a juice bar range from around $10,000 to a little over $20,000. The largest costs are for a deposit on your juice bar space, equipment, and furniture.

You’ll need a handful of items to successfully launch your juice bar business, including: 

• Refrigerator
• Ice Machine
• Juicers and blenders
• Dishwasher
• Knives and cutting boards
• Cups, napkins, and other supplies
• Tables and chairs

Start-up Costs	Ballpark Range	Average
Setting up a business name and corporation	$150 - $200	$175
Business licenses and permits	$100 - $300	$200
Insurance	$100-$300	$200
Business cards and brochures	$200 - $300	$250
Website setup	$1,000 - $3,000	$2,000
Deposit on rental space	$2,500 - $5,000	$3,750
Juice bar equipment and furniture	$5,000 - $10,000	$7,500
Initial inventory of ingredients	$1,000 - $2,000	$1,500
Total	$10,050 - $21,100	$15,575

How much can you earn from a juice bar business?

The average price for juices and smoothies is about $6. After the cost of ingredients, labor, and overhead, you should expect a profit margin of about 25%. 

In your first year or two, you could sell 50 juices and smoothies a day, 7 days a week, bringing in almost $110,000 in annual revenue. This would mean over $27,000 in profit, assuming that 25% margin. As your brand gains recognition, sales could climb to 150 a day. With expected annual revenue of nearly $330,000, you would make over $80,000.

From there you could launch a juice bar franchise and start building your juice and smoothie empire. 

What barriers to entry are there?

There are a few barriers to entry for a juice bar business. Your biggest challenges will be:

• Financing the startup costs for the business
• Finding a location with a lot of foot traffic that is affordable

Step 2: Hone Your Idea

Now that you know what’s involved in starting a juice bar business, it’s a good idea to hone your concept in preparation to enter a competitive market. 

Market research will give you the upper hand, even if you’re already positive that you have a perfect product or service. Conducting market research is important, because it can help you understand your customers better, who your competitors are, and your business landscape.

Why? Identify an opportunity

Research juice bars in your area to examine their products, price points, and customer reviews and what sells best. You’re looking for a market gap to fill. For instance, maybe the local market is missing an organic juice bar.

This could jumpstart your word-of-mouth marketing and attract clients right away. 

What? Determine your products or services

You will need to come up with a menu of juices and smoothies. Look at what flavors are currently trending in other juice bars. You can also decide if you want to offer food as well. 

How much should you charge for juices?

The average price for juice bar drinks is about $6. You’ll want to research the prices of other juice bars near you to be competitive. Your ongoing costs are labor, overhead, and ingredients. You should aim for a profit margin of 25%.

Once you know your costs, you can use this Step By Step profit margin calculator to determine your mark-up and final price point. Remember, the price you use at launch should be subject to change if warranted by the market.

Who? Identify your target market

Your target market will be health-conscious people, which is a very broad market. You should market on a variety of sites including TikTok, Instagram, and Facebook. You could also distribute flyers at local gyms.

Where? Choose your juice bar location

You’ll need to rent out a storefront, preferably in a location that has a lot of foot traffic and ample parking. Although there is also the possibility of starting out in a food truck and renting a space later. 

Find commercial space to rent in your area on sites such as Craigslist, Crexi, and Instant Offices. When choosing a commercial space, you may want to follow these rules of thumb:

• Central location accessible via public transport
• Ventilated and spacious, with good natural light
• Flexible lease that can be extended as your business grows
• Ready-to-use space with no major renovations or repairs needed

Step 3: Brainstorm a Juice Bar Name

Your business name is your business identity, so choose one that encapsulates your objectives, services, and mission in just a few words. You probably want a name that’s short and easy to remember, since much of your business, and your initial business in particular, will come from word-of-mouth referrals.

Here are some ideas for brainstorming your business name:

• Short, unique, and catchy names tend to stand out
• Names that are easy to say and spell tend to do better 
• Name should be relevant to your product or service offerings
• Ask around — family, friends, colleagues, social media — for suggestions
• Including keywords, such as “fresh juice” or “juice bar”, boosts SEO
• Name should allow for expansion, for ex: “Juice House” over “The Detox Bar”
• Avoid location-based names that might hinder future expansion
• Use online tools like the Step by Step Business Name Generator. Just type in a few keywords and hit “generate” and you’ll have dozens of suggestions at your fingertips.

Once you’ve got a list of potential names, visit the website of the US Patent and Trademark Office to make sure they are available for registration and check the availability of related domain names using our Domain Name Search tool. Using “.com” or “.org” sharply increases credibility, so it’s best to focus on these. 

Finally, make your choice among the names that pass this screening and go ahead with domain registration and social media account creation. Your business name is one of the key differentiators that sets your business apart. Once you pick your company name, and start with the branding, it is hard to change the business name. Therefore, it’s important to carefully consider your choice before you start a business entity.

Step 4: Create a Juice Bar Business Plan

Every business needs a plan. This will function as a guidebook to take your startup through the launch process and maintain focus on your key goals. A juice bar business plan will also enable potential partners and investors to better understand your company and its vision:

• Executive Summary: A concise summary of your juice bar business plan, highlighting its key points and objectives.
• Business Overview: An introduction to your juice bar, including its name, location, and a brief description of the concept.
• Product and Services: Details about the specific juices and services you offer, such as fresh fruit blends and smoothies.
• Market Analysis: Information about your target market, including demographics, preferences, and trends in the juice industry.
• Competitive Analysis: An assessment of your competitors in the local area, including their strengths and weaknesses.
• Sales and Marketing: Strategies for promoting your juice bar and generating sales, including pricing and marketing channels.
• Management Team: Profiles of key team members and their roles in running the juice bar.
• Operations Plan: Information on the day-to-day operations, including hours of operation, suppliers, and equipment.
• Financial Plan: Projections for revenue, expenses, and profit, including startup costs and financial forecasts.
• Appendix: Additional supporting documents, such as resumes, permits, or market research data.

If you’ve never created a business plan, it can be an intimidating task. You might consider hiring a business plan specialist to create a top-notch business plan for you.

Step 5: Register Your Business

Plus, registration is exciting because it makes the entire process official. Once it’s complete, you’ll have your own business! 

Choose where to register your company

Your business location is important because it can affect taxes, legal requirements, and revenue. Most people will register their business in the state where they live, but if you are planning to expand, you might consider looking elsewhere, as some states could offer real advantages when it comes to juice bars. 

If you’re willing to move, you could really maximize your business! Keep in mind, it’s relatively easy to transfer your business to another state. 

Choose your business structure

Business entities come in several varieties, each with its pros and cons. The legal structure you choose for your juice bar will shape your taxes, personal liability, and business registration requirements, so choose wisely. 

Here are the main options:

• Sole Proprietorship – The most common structure for small businesses makes no legal distinction between company and owner. All income goes to the owner, who’s also liable for any debts, losses, or liabilities incurred by the business. The owner pays taxes on business income on his or her personal tax return.
• General Partnership – Similar to a sole proprietorship, but for two or more people. Again, owners keep the profits and are liable for losses. The partners pay taxes on their share of business income on their personal tax returns.
• Limited Liability Company (LLC) – Combines the characteristics of corporations with those of sole proprietorships or partnerships. Again, the owners are not personally liable for debts.
• C Corp – Under this structure, the business is a distinct legal entity and the owner or owners are not personally liable for its debts. Owners take profits through shareholder dividends, rather than directly. The corporation pays taxes, and owners pay taxes on their dividends, which is sometimes referred to as double taxation.
• S Corp – An S-Corporation refers to the tax classification of the business but is not a business entity. An S-Corp can be either a corporation or an LLC, which just need to elect to be an S-Corp for tax status. In an S-Corp, income is passed through directly to shareholders, who pay taxes on their share of business income on their personal tax returns.

We recommend that new business owners choose LLC as it offers liability protection and pass-through taxation while being simpler to form than a corporation. You can form an LLC in as little as five minutes using an online LLC formation service. They will check that your business name is available before filing, submit your articles of organization, and answer any questions you might have.

Step 6: Register for Taxes

The final step before you’re able to pay taxes is getting an Employer Identification Number, or EIN. You can file for your EIN online or by mail or fax: visit the IRS website to learn more. Keep in mind, if you’ve chosen to be a sole proprietorship you can simply use your social security number as your EIN. 

Once you have your EIN, you’ll need to choose your tax year. Financially speaking, your business will operate in a calendar year (January–December) or a fiscal year, a 12-month period that can start in any month. This will determine your tax cycle, while your business structure will determine which taxes you’ll pay.

It is important to consult an accountant or other professional to help you with your taxes to ensure you are completing them correctly.

Step 7: Fund your Business

Securing financing is your next step and there are plenty of ways to raise capital:

• Bank loans: This is the most common method but getting approved requires a rock-solid business plan and strong credit history.
• SBA-guaranteed loans: The Small Business Administration can act as guarantor, helping gain that elusive bank approval via an SBA-guaranteed loan.
• Government grants: A handful of financial assistance programs help fund entrepreneurs. Visit Grants.gov to learn which might work for you.
• Friends and Family: Reach out to friends and family to provide a business loan or investment in your concept. It’s a good idea to have legal advice when doing so because SEC regulations apply.
• Crowdfunding: Websites like Kickstarter and Indiegogo offer an increasingly popular low-risk option, in which donors fund your vision. Entrepreneurial crowdfunding sites like Fundable and WeFunder enable multiple investors to fund your business.
• Personal: Self-fund your business via your savings or the sale of property or other assets.

Bank and SBA loans are probably the best option, other than friends and family, for funding a juice bar business. You might also try crowdfunding if you have an innovative concept.  

Step 8: Apply for Juice Bar Business Licenses and Permits

Starting a juice bar business requires obtaining a number of licenses and permits from local, state, and federal governments.

You may need the following, depending on the requirements in your area:

• Food service license
• Food handler’s permit
• Building health permit

Federal regulations, licenses, and permits associated with starting your business include doing business as, health license and permit from the Occupational Safety and Health Administration (OSHA), trademarks, copyrights, patents, and other intellectual properties, as well as industry-specific licenses and permits. 

You may also need state-level and local county or city-based licenses and permits. The license requirements and how to obtain them vary, so check the websites of your state, city, and county governments or contact the appropriate person to learn more. 

You could also check this SBA guide for your state’s requirements, but we recommend using MyCorporation’s Business License Compliance Package. They will research the exact forms you need for your business and state and provide them to ensure you’re fully compliant.

If you feel overwhelmed by this step or don’t know how to begin, it might be a good idea to hire a professional to help you check all the legal boxes.

Step 9: Open a Business Bank Account

Before you start making money, you’ll need a place to keep it, and that requires opening a bank account.

Keeping your business finances separate from your personal account makes it easy to file taxes and track your company’s income, so it’s worth doing even if you’re running your juice bar business as a sole proprietorship. Opening a business bank account is quite simple, and similar to opening a personal one. Most major banks offer accounts tailored for businesses — just inquire at your preferred bank to learn about their rates and features.

Banks vary in terms of offerings, so it’s a good idea to examine your options and select the best plan for you. Once you choose your bank, bring in your EIN (or Social Security Number if you decide on a sole proprietorship), articles of incorporation, and other legal documents and open your new account. 

Step 10: Get Business Insurance

Business insurance is an area that often gets overlooked yet it can be vital to your success as an entrepreneur. Insurance protects you from unexpected events that can have a devastating impact on your business.

Here are some types of insurance to consider:

• General liability: The most comprehensive type of insurance, acting as a catch-all for many business elements that require coverage. If you get just one kind of insurance, this is it. It even protects against bodily injury and property damage.
• Business Property: Provides coverage for your equipment and supplies.
• Equipment Breakdown Insurance: Covers the cost of replacing or repairing equipment that has broken due to mechanical issues.
• Worker’s compensation: Provides compensation to employees injured on the job.
• Property: Covers your physical space, whether it is a cart, storefront, or office.
• Commercial auto: Protection for your company-owned vehicle.
• Professional liability: Protects against claims from a client who says they suffered a loss due to an error or omission in your work.
• Business owner’s policy (BOP): This is an insurance plan that acts as an all-in-one insurance policy, a combination of the above insurance types.

Step 11: Prepare to Launch

As opening day nears, prepare for launch by reviewing and improving some key elements of your business. 

Essential software and tools

Being an entrepreneur often means wearing many hats, from marketing to sales to accounting, which can be overwhelming. Fortunately, many websites and digital tools are available to help simplify many business tasks.  

You can use industry-specific software, such as Café Cartel, EffiaSoft, or GoFrugal, to manage your inventory, purchasing, costs, and waste management.

Accounting

• Popular web-based accounting programs for smaller businesses include Quickbooks, Freshbooks, and Xero. 
• If you’re unfamiliar with basic accounting, you may want to hire a professional, especially as you begin. The consequences for filing incorrect tax documents can be harsh, so accuracy is crucial. 

Develop your website

Website development is crucial because your site is your online presence and needs to convince prospective clients of your expertise and professionalism.

You can create your own website using website builders. This route is very affordable, but figuring out how to build a website can be time-consuming. If you lack tech-savvy, you can hire a web designer or developer to create a custom website for your business.

They are unlikely to find your website, however, unless you follow Search Engine Optimization (SEO) practices. These are steps that help pages rank higher in the results of top search engines like Google. 

Marketing

For your juice bar, the marketing strategy should focus on showcasing the health benefits, freshness, and delicious taste of your juices and smoothies. Emphasize the quality of your ingredients, any unique or signature blends you offer, and how your products cater to a healthy lifestyle. Here are some powerful marketing strategies for your future business:

Kickstart Marketing

• Professional Branding: Your branding should convey freshness, health, and vitality. This includes a vibrant and appealing logo, in-store design, and packaging for take-away items.
• Direct Outreach: Partner with local gyms, yoga studios, and health clubs to promote your juice bar. Offering samples or discounts to their members can be effective.

Digital Presence and Online Marketing

• Professional Website and SEO: Develop a website that highlights your menu, nutritional information, and any special offers. Use SEO best practices to rank for local searches related to juice bars, health drinks, and smoothies.
• Social Media Engagement: Utilize platforms like Instagram and Facebook to showcase your products, share customer testimonials, and post about health tips and recipes.

Content Marketing and Engagement

• Health and Wellness Blog: Share blog posts about the benefits of juicing, superfoods, and maintaining a healthy lifestyle. Include recipes and tips for making juices at home.
• Email Newsletters: Keep your customers informed about new menu items, seasonal specials, and upcoming events or promotions.
• Video Content: Create engaging videos that show the process of making your juices and smoothies, customer testimonials, or health and wellness tips.

Experiential and In-Person Engagements

• In-store Events and Tastings: Host tasting events or health and wellness workshops in your juice bar to attract customers and provide a memorable experience.
• Participation in Local Health Fairs and Events: Engage in local health fairs, farmers’ markets, and community events to increase brand visibility and connect with potential customers.

Collaborations and Community

• Collaborations with Fitness Influencers and Nutritionists: Partner with fitness influencers or nutritionists who can endorse your products and expand your reach.
• Community Health Initiatives: Participate in or sponsor local health initiatives to align your brand with community wellness goals.

Customer Relationship and Loyalty Programs

• Loyalty Rewards Program: Implement a program offering discounts or free drinks to repeat customers.
• Referral Discounts: Encourage word-of-mouth marketing by offering discounts to customers who refer friends.

Promotions and Advertising

• Targeted Local Advertising: Use local advertising in community newspapers, health and fitness magazines, and online platforms to reach health-conscious consumers.
• Seasonal Promotions: Offer special promotions during New Year’s resolutions, summer fitness seasons, or other times when people are more health-focused.

Focus on USPs

Unique selling propositions, or USPs, are the characteristics of a product or service that sets it apart from the competition. Customers today are inundated with buying options, so you’ll have a real advantage if they are able to quickly grasp how your juice bar meets their needs or wishes. It’s wise to do all you can to ensure your USPs stand out on your website and in your marketing and promotional materials, stimulating buyer desire. 

Global pizza chain Domino’s is renowned for its USP: “Hot pizza in 30 minutes or less, guaranteed.” Signature USPs for your juice bar business could be: 

• Pure organic juices for your pleasure and health
• Exotic juices and protein-enhanced smoothies to give you a boost
• Rent a juice truck for your next outdoor bash!

Networking

You may not like to network or use personal connections for business gain. But your personal and professional networks likely offer considerable untapped business potential. Maybe that Facebook friend you met in college is now running a juice bar, or a LinkedIn contact of yours is connected to dozens of potential clients. Maybe your cousin or neighbor has been working in juice for years and can offer invaluable insight and industry connections. 

The possibilities are endless, so it’s a good idea to review your personal and professional networks and reach out to those with possible links to or interest in juice bars. You’ll probably generate new customers or find companies with which you could establish a partnership 

Step 12: Build Your Team

If you’re starting out small from a home office, you may not need any employees. But as your business grows, you will likely need workers to fill various roles. Potential positions for a juice bar business would include:

• Store Clerks – take orders, make juices 
• General Manager – staff management, scheduling, ordering, accounting
• Marketing Lead – SEO strategies, social media, other marketing

At some point, you may need to hire all of these positions or simply a few, depending on the size and needs of your business. You might also hire multiple workers for a single role or a single worker for multiple roles, again depending on need. 

Free-of-charge methods to recruit employees include posting ads on popular platforms such as LinkedIn, Facebook, or Jobs.com. You might also consider a premium recruitment option, such as advertising on Indeed, Glassdoor, or ZipRecruiter. Further, if you have the resources, you could consider hiring a recruitment agency to help you find talent. 

Step 13: Run a Juice Bar Business – Start Making Money!

Americans are more health-conscious than ever in these pandemic times, and juice bars offer a healthy alternative to other sugary soft drinks. Juice bars are a $2.5 billion industry in the US and expected to continue to grow in popularity.

A juice bar can also be a fun business – you’ll meet lots of people, spread good nutrition, and make good money at the same time. After absorbing all the info in this article, your creative juices should be flowing as you prepare to begin your entrepreneurial adventure!