The Big Chill Outgrowing their trendy phase, smoothies are here to stay.
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When you look up the word "smoothie" in thedictionary, you won't find the definition you might expect:(smooth'e)n.a healthy, refreshingfruit-blended beverage that can be mixed with sherbet or nonfatfrozen yogurt. As a matter of fact, you'll find somethingcompletely different: (smooth'e)n.asmooth-tongued person, one who behaves or performs with deftness,assurance and easy competence, especially: a man with aningratiating manner toward women.
Oookay . . . so how on earth did ourmodern-day definition surface from this antiquated dictionaryentry? Well, none of our experts can put their finger on it, butthe low-fat blended beverage we know and love today had tooriginate somewhere. One guess is that it sprang from the sweet andfrothy variation known as the Orange Julius, invented way back inthe early 1930s. And although this famous precursor hasn'ttaken on the "smoothie" moniker--nor hasWebster's made an effort to alter its outdateddefinition--the now-world-renowned beverage concept has gone fromfad to favorite, garnering $1 billion in 1999 sales nationwide.
Blending In
Though differing opinions exist concerning the pioneer behindtoday's fruit shakes, New York City-based Restaurant SystemsInternational Inc. (RSI) started blending up smoothie franchiseopportunities back in 1981 with a concept dubbed Banana'sUltimate Juice Bar. Smoothie King in Kenner, Louisiana, followed in1989. Innovators Jamba Juice and Surf City Squeeze downrightinvented the "California-style" juice-bar concept,marketing through bright and tropical graphics, securing coastallocations, and tempting passersby with tantalizing fresh-fruitscents that lure the body-conscious to their buffets of nutritionalsupplements.
Today, industry leaders like Smoothie King, Jamba Juice andPlanet Smoothie have garnered premium locations in their homestates, and with establishments like Dairy Queen and Baskin Robbinslaunching their own blended fruit drinks, one might feel thesmoothie industry has reached semi-saturation. But according to DanTitus, founder of Juice Gallery, a publishing and research companyin Chino Hills, California, that's certainly not the case.
"There are 1,800 successful juice bars in the United Statesright now, yet Burger King has more than 11,000 units," saysTitus. "Juice bars are a fledgling industry driven by twothings: They're a healthy meal alternative and a greatconvenience product."
Chris Cuvelier, president of Juice and Smoothie Bar Consultingin San Francisco, agrees, contending the national market isn'teven close to saturation. "Though California and Utah havebecome competitive when it comes to locations, there are [several]marketplaces where the trend is just now taking off," hesays.
Smoothies fill an important niche in today's fast-pacedlifestyle. By supplying a liquid alternative to those whose bodiesjust can't take any more caffeine, they've gainedacceptance by fulfilling the modern day grab-and-go philosophy,while simultaneously increasing sippers' levels of self-esteemabout opting for a low-fat form of nourishment instead of thefamiliar drive-thru artery-blockers. Intent on moving towarduntapped territories and educating the public on theirproducts' nutritional values, smoothie proprietors areembracing the new millennium.
Tight Squeeze
Banana's Ultimate Juice Bar has been riding on the smoothiebandwagon for more than a decade. Franchising since 1981, parentcompany RSI Inc. has at least 100 operators co-branding theBanana's smoothie concept with one or more of the three otherfood concepts RSI provides.
RSI primarily targets the East Coast, where smoothies are seenas more of an impulse buy or a snack item than a destinationpurchase or a meal alternative. Banana's stores are usuallyerected in high-foot-traffic areas such as transportation centersand malls, where consumers embrace smoothies more for theconvenience factor than the health factor. That's whyco-branding is so essential: "In our opinion, you need morethan smoothies," explains Steve Beagelman, RSI's vicepresident of franchise development.
Martin and Maria Mascia, 35 and 33, respectively, bought theirco-branded concept in 1996. Intrigued by the surge in smoothiepopularity, they bought an existing Everything Yogurt, SaladCafé and Banana's franchise at Ocean County Mall inTom's River, New Jersey, with $150,000 in savings.
The Mascias had sales of $400,000 last year and, at press time,were planning to open a Treat Street concept--RSI's latestdevelopment--to sell a variety of impulse snack items in one kiosk.Primarily selling smoothies, the Treat Street kiosk will be set upin another section of the same mall. "There's plenty offoot traffic," says Martin, "so there's definitelyroom for two."
Fruits Of Labor
Visual presentation is paramount for juice bars, with décorranging from spirited, bright and colorful logos to mesmerizing anduplifting wall murals contributing to their appeal. It was this funand appealing image that attracted David and Jill Williams, 33 and35, respectively, and Jill's mother, Kathy Horne, to buy a ZukaJuice smoothie bar in Salt Lake City in 1997. The partners weresoon itch-ing to grow and expand, but there was a bigproblem--their area was full of company-owned Zuka stores."The [franchisor] really wanted me to go to Texas or somewhereelse to open more," explains David.
Last December, intrigued by a concept called Jabooka Jooce,based in Maui, Hawaii, the partners purchased the corporate entityand trademark registration. They now offer Jabooka Jooce franchiseagreements for freestanding locations at costs ranging from$102,000 to $192,000. Aside from the product, the marketing imageis a big part of what sets them apart from competitors. Colorfulsurf scenes and ripe-fruit graphics create an attitude that makesit cool to be in a Jabooka Jooce store, says David. "Ourgraphics and presentation help bring the customers back again andagain."
Chill Out
In addition to co-branding, another fresh trend in the smoothieindustry is decreasing in-store square footage or implementingkiosk and cart concepts. For 17 years, Maui Wowi Marketing Inc.,based in Englewood, Colorado, has offered tropical-themed,maintenance-free kiosks that can be rolled into any special event,festival or venue. "We provide everything you need to make ago of this," says Michael Haith, 37, president and CEO of MauiWowi. "We teach the business from the ground up, like how todeal with all the administration, and we connect you with thepeople who will help you locally."
Maui Wowi franchisees have taken their carts up and down thesun-drenched coasts of Australia, selling smoothies on the beaches;college students have set them up in their student unions,operating the kiosks with friends. The idea is to go where peoplegather. Using the Internet as its main marketing tool, Maui Wowi isslowly expanding nationwide, offering entry-level investments (onecart, unprotected location) as low as $12,950 and standardfranchises (three carts, protected territory and events) at$54,450. The franchise fee and equipment add to the cost of aninitial start-up.
Kris Nieb in Denver discovered Maui Wowi while working for acatering company at an event where one of the kiosks was located.Nieb's boss was so impressed with the concept, he became partowner of Maui Wowi, and Nieb began working at one of the kiosks. Hefound it so fun and easy, he wanted to do it on his own. In 1998,with personal savings and some financial assistance from Maui Wowi,Nieb purchased his own kiosk.
Now with three carts, Nieb travels nationwide, working weekendsand spending his weekdays being a 21-year-old kid. Without a suitand tie or a 9-to-5 routine, Nieb generated $75,000 in sales lastyear. "I've always told myself that if I could have a jobwearing shorts and Birkenstocks, I'd be happy," says Nieb.He had no business background, but Maui Wowi taught Nieb the insand outs of operations, from finding good locations and producemanagers to finding the best bananas for the best price.
In the new millennium, do smoothies have a place on the upperechelon of the fast-food ladder? You betcha. "Consumers want aplace they can swing by and get a product that's convenient,healthy and great-tasting," says Martin Sprock, 34, presidentand CEO of franchisor Planet Smoothie Inc. in Atlanta. And thatdemand has thus far been fulfilled only by the smoothie--afulfillment that will surely alter future dictionary editions,solidifying a proper term for the much-loved blended fruitbeverage.
Smoothie Operators
- Banana's Ultimate Juice Bar
1000 South Ave.
Staten Island, NY 10314
(718) 494-8888
Cost: $87.7K-192.5K
Number of Units: 76
- Frozen Fusion
8900 E. Chaparral, #1000
Scottsdale, AZ 85250
(480) 367-5579
Cost: $140.5K-258K
Number of Units: 22
- Jabooka Jooce
2371 E. Lindsay Wood Ln.
Sandy, UT 84092
(801) 453-0361
Cost: $80.4K-192.7K
Number of Units: 2
- Jazzie Smoothie
14 Rue Royale
Metairie, LA 70002
(504) 780-8429
Cost: to $1K
Number of Units: 24
- Juice CaBana
222 N. Sepulveda Blvd., #2000
El Segundo, CA 90245
(310) 364-5220
Cost: $97.4K-151K
Number of Units: 3
- Juice It Up!
1 Corporate Pk., #150
Irvine, CA 92606
(949) 475-0146
Cost: $150K-225K
Number of Units: 31
- Juice Kitchen Inc.
1050 17th St., #B-195
Denver, CO 80265
(303) 573-7060
Cost: $138.6K-216K
Number of Units: 33
- Maui Wowi Smoothies
39 Viking Dr.
Englewood, CO 80110
(888) 862-8555
Cost: $24.4K-54.6K
Number of Units: 39
- Planet Smoothie
3060 Peachtree Rd., #340
Atlanta, GA 30305
(404) 239-0009
Cost: $82K-136K
Number of Units: 92
- Smoothie King
2400 Veterans Blvd., #110
Kenner, LA 70062
(800) 577-4200/(504) 467-4006
Cost: $150K-207K
Number of Units: 203
Contact Sources
- Juice Gallery, (909) 597-0791, http://www.juicegallery.com
- Juice and Smoothie Bar Consulting, (415) 331-6304,http://www.juiceconsult.com
- RSI Inc, (718) 494-8888
