Orange County is getting juicier.
Four juice and smoothie chains—two of them based here—are using new fresh juice offerings, more locations, or both in bids for growth here and beyond, including:
• Irvine-based Juice It Up!, which plans to add 15 restaurants for a total of 95, with most in Southern California. The chain wants to double its sales of juice drinks, which now account for about a quarter of its estimated $30 million in annual sales.
• Santa Ana-based Nekter Juice Bar Inc., which projects $24 million in sales this year, says it will add six locations to its 13 in OC by year-end.
• Los Angeles-based Robeks Corp., with more than 100 stores nationwide and estimated sales of $41 million, plans to add nine to 15 locations in OC, where it currently has three.
• Emeryville-based Jamba Inc.’s Jamba Juice—which had $229 million in revenue last year from locations around the U.S. and in several markets overseas—has added a new juice line at its 37 OC locations.
The juice drinks based on the perceptions of market potential are high-end, starting around $3 and going to $6 or more.
Nekter’s average ticket is $9.41, the company said.
Raw juices can cost less to make than smoothies.
Observers differ on the potential each of the chains is chasing.
“Mainstream America isn’t screaming for fresh-pressed juices,” said Mary Chapman, director of product innovation for Chicago-based restaurant industry consultant Technomic Inc. “These operators are serving a niche.”
OC
They seem to have their focus right when it comes to expansion plans in Orange County. Juice drinks appeal to educated and affluent customers in metro areas and coastal regions, a profile that fits to some degree in large parts of OC.
The segment is hard to pin down. It can include “fresh-pressed,” juice squeezed from whole fruit; “cold-pressed,” a process using no heat to protect nutrients; or 100% fresh juice, not from concentrate.
Each company wants to capitalize on what it sees as an expanding market for offerings it considers healthier than sodas or even smoothies, which generally include processed ingredients.
“There is customer-driven demand for a product that enhances health and functionality, as well as taste,” said Paul Schmidt, chief operating officer of Juice It Up!
He said the chain’s stores recently added juice drinks that retain fiber and pulp. It also has 16 raw juice ingredients—including beets, carrots, cucumber and ginger—available in 10 menu items.
The recent addition of raw juices is based on company research showing growth in personal at-home juicing, he said.
Juice It Up! reported same-store sales growth of 26% in the first quarter.
The Business Journal estimates the company’s 2014 sales at $28.9 million.
The chain has 19 restaurants in Orange County.
Nekter has 29 locations in three states and plans to have 52 in five states by year-end, said Chief Executive Steve Schulze.
The Business Journal estimates Nekter’s 2013 sales at $12 million.
Robeks has 110 units systemwide and 90 more planned.
It has three in OC: Fullerton, Costa Mesa and Huntington Beach.
Chief Marketing Officer Chad Bailey said three multiunit franchisors, each of whom plans three to five locations, are scouting OC sites.
“We will have some identified before the end of the year,” he said.
He said Robeks has increased its use of raw and natural ingredients, including kale, spinach and cucumber. It’s more than doubled the number of raw, fresh juice menu items.
“We’re throwing chunks of cucumber into the blender,” he said.
Jamba Juice added new juices to 500 stores, including its 37 OC locations, after a test at 100 locations last year.
It will have its new Fresh Juice line in nearly all of its 800 locations by year-end, said Chief Executive James White.
Jamba Juice had a 3% to 4% sales increase shortly after introducing new juice menu items, according to White. He calls it a return to the company’s juice-based roots.
The results continued during the wider roll-out.
“The dabbling is done,” he said.
