Smoothie Business Plan: How It Works, Costs, and Profit
Taking the leap into smoothie business ownership is an involved process. It takes hard work, passion, research, planning, and a solid understanding of your investment risk and potential income. Don’t make a move without viewing our handy guide about how to start a smoothie business.
How It Works
There are two ways to start your smoothie business. First, you can learn from scratch and spend your time and money researching, planning, and hoping it works. The second option, which we will focus on, is investing in a smoothie franchise like SoBol. Investing in a SoBol franchise gives you a profit-making business model to follow while having all the advantages of business ownership. With nearly 7,000 smoothie restaurants in the country, it’s a relatively new industry but becoming very competitive. Utilizing a proven business model is advantageous.
Smoothie Business Plan
Having a detailed plan of action is critical to business ownership. Your smoothie business plan objective is to provide healthy, customizable smoothies and acai bowls to customers who want quick-service meals with an emphasis on wellness. SoBol is distinctive in the market because we provide fresh fruits from local farms and top our bowls with a “secret sauce,” our homemade granola. Our services include providing delicious, customized, filling, wholesome bowls and smoothies to our health-conscious customers. Our target audience includes folks who are looking for healthy, quick meals. Perhaps those interested in fitness, those who focus on nutrition, or those with dietary restrictions. This includes every age group, and typically those with higher disposable income since price points are higher for profitability.
It’s important to know all your upfront and ongoing costs associated with your SoBol smoothie business. Your initial investment and the costs necessary to begin operating a single SoBol could range from $240,800–$450,600. Actual costs will vary for each café depending on a number of factors, including market conditions and the geographic location of your restaurant, as well as the amount of construction work necessary for the site to be built out. The minimum financial requirements for a SoBol café are:
- Liquid assets of at least $200,000
- A net worth of $350,000
- Willingness to make a commitment to this venture
The following list is your estimated initial investment, so you have an idea of how much it costs to open a smoothie shop.
- Franchise Fee: $30,000
- Construction, Leasehold Improvements : $85,000–$150,000
- Construction Management: $5,000-$30,000
- Prepaid Rent and Lease Deposits: $5,000–$14,000
- Furniture/Fixtures and Equipment: $45,900–$99,500
- Signage: $7,000–$8,000
- Computer, Software and Point of Sale System: $3,000–$4,000
- Grand Opening Marketing Expenses $5,000
- Initial General inventory: $1,000–$13,000
- Initial Product inventory: $4,000–$7,000
- Utility Deposits: $900–$1,800
- Insurance Deposits: $2,000-$4,000
- Travel for initial Training: $700–$4,400
- Professional Fees: $5,500–$15,000
- Business Licenses and Permits: $3,000
- Stationery and Office Supplies: $500–$1,000
- Additional Funds (Initial period of three months): $37,300–$60,900
Total Estimate $240,800–$450,600
Remember, some of your initial start-up costs will also be in the “ongoing” expenses category. Those expenses include:
- Employee salaries
- Equipment repair/replacement
At SoBol, part of your ongoing expenses include a royalty fee of 5 percent of net sales and brand development which is 1 percent of net sales.
You make money through sales of bowls and smoothies. Price points are set but difficult to average for this discussion since our menu is customizable. SoBol will help guide you through the ongoing expenses like ordering supplies and food. We use high-quality foods from vendors who give us good rates in all our franchise locations. We equip you with the training to calculate expenses, including inventory and payroll. We even help you as you search for the best staff for your store.
In return, hard work pays off. Our average store revenue is $594,000 annually even with the financial downtown brought on by Covid-19 in 2020.
The value-added bonus of working with a brand like SoBol means you are not going at this alone. SoBol has a six-step process that walks you through every part of the journey, from consideration through your grand opening.
SoBol provides franchisees with support like ongoing marketing, technology, and site selection. There is extensive business training. Once you open your doors, you are fully equipped with the knowledge of how to operate your store. We provide a two-week training, teaching you the ins and outs of the business. Our 15-member restaurant success support team makes sure you understand every aspect of the business as an employee, manager, and owner. You will spend time in our corporate office, meeting with our team whose job is to ensure your success. While a background in retail, sales, real estate, QSR, or business is helpful, it is not required. We teach point of sale functionality, marketing, technology, third-party delivery, accounting, and bookkeeping.
In return, we are looking for dedicated, passionate entrepreneurs who share our vision to provide super cool food and awesome experiences with a mission to improve people’s days. Our franchisees reflect our values of being a positive force, caring for others, and being passionate.
If our SoBol smoothie business plan is just what you’ve been looking for, sign up and be part of our family, providing high-quality products that you can be proud to serve at your SoBol location!