How to Start a Juice Bar

Start a juice bar by following these 10 steps:

1. Plan your Juice Bar
2. Form your Juice Bar into a Legal Entity
3. Register your Juice Bar for Taxes
4. Open a Business Bank Account & Credit Card
5. Set up Accounting for your Juice Bar
6. Get the Necessary Permits & Licenses for your Juice Bar
7. Get Juice Bar Insurance
8. Define your Juice Bar Brand
9. Create your Juice Bar Website
10. Set up your Business Phone System

We have put together this simple guide to starting your juice bar. These steps will ensure that your new business is well planned out, registered properly and legally compliant.

Exploring your options? Check out other small business ideas.

STEP 1: Plan your business

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What will you name your business?
• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?

Luckily we have done a lot of this research for you.

What will you name your business?

Choosing the right name is important and challenging. If you don’t already have a name in mind, visit our How to Name a Business guide or get help brainstorming a name with our Juice Bar Name Generator

If you operate a sole proprietorship, you might want to operate under a business name other than your own name. Visit our DBA guide to learn more.

When registering a business name, we recommend researching your business name by checking:

• Your state's business records
• Federal and state trademark records
• Social media platforms
• Web domain availability.

It's very important to secure your domain name before someone else does.

What are the costs involved in opening a juice bar?

Opening a juice bar business can be done with less than $10,000 including the necessary business licenses, permits and insurance. The cost depends on whether your juice bar will be a part of another business such as a fitness center, or whether it will be a stand-alone store. You will need to rent space that includes a sink for washing and preparing the fruits and vegetables. The cost for a basic juicer is approximately $100, while cold-press machines cost about $300. Vegetable juicers are more expensive, starting at $2,400. You will also need a supply of cups, preferably biodegradable, which, if ordered in bulk, can cost less than twelve cents each. Straws are also a staple item at most juice shops.

What are the ongoing expenses for a juice bar?

• Rent for retail space
• Utilities
• Cost of Ingredients
• Staff salaries
• Equipment maintenance
• POS/ Inventory software service

Who is the target market?

Preferred clients include health conscious people with a desire to increase their energy levels.

How does a juice bar make money?

A juice bar business makes money by charging customers for fresh, quality juice-based beverages. Pricing depends on the ingredients, time, skill, and expertise it takes to purchase and prepare these drinks. Many juice bars partner with health food stores to provide other healthy food products as well.

How much can you charge customers?

Most juice bar owners try to keep the cost of ingredients down to about 30 percent of the retail price to be able to cover ongoing expenses and realize a profit. A juice drink containing several ingredients can cost anywhere from $6.00 to $16.00, depending on the cost of ingredients and the local economy. Organic ingredients command a higher price.

How much profit can a juice bar make?

Well-established, successful juice bar businesses have reported profit margins from 30% to 40%.

How can you make your business more profitable?

Adding extra healthful ingredients such as bee pollen or spirulina for an additional charge can increase profits. Providing healthy foods, such as salads, which are made from the raw ingredients of your juicing products can also be lucrative. Some juice bar owners also contract with local event coordinators to provide food and beverages for community and sporting events.

STEP 2: Form a legal entity

The most common business structure types are the sole proprietorship, partnership, limited liability company (LLC), and corporation.

Establishing a legal business entity such as an LLC or corporation protects you from being held personally liable if your juice bar is sued.

You can form an LLC yourself and pay only the minimal state LLC costs or hire one of the Best LLC Services for a small, additional fee.

STEP 3: Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for an EIN. It's really easy and free!

There are specific state taxes that might apply to your business. Learn more about state sales tax and franchise taxes in our state sales tax guides.

STEP 4: Open a business bank account & credit card

Using dedicated business banking and credit accounts is essential for personal asset protection.

When your personal and business accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued. In business law, this is referred to as piercing your corporate veil.

Open a business bank account

Besides being a requirement when applying for business loans, opening a business bank account:

• Separates your personal assets from your company's assets, which is necessary for personal asset protection.
• Makes accounting and tax filing easier.

Get a business credit card

Getting a business credit card helps you:

• Separate personal and business expenses by putting your business' expenses all in one place.
• Build your company's credit history, which can be useful to raise money later on.

STEP 5: Set up business accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Make LLC accounting easy with our LLC Expenses Cheat Sheet.

STEP 6: Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your business to be shut down.

State & Local Business Licensing Requirements

Certain state permits and licenses may be needed to operate juice bar business. Learn more about licensing requirements in your state by visiting SBA’s reference to state licenses and permits.

In particular, most states also require retail businesses to obtain a seller’s permit. A seller’s permit allows states to record and collect taxes from goods (and sometimes service) sales.

Certificate of Occupancy

A juice bar is generally run out of a small retail location. Businesses operating out of a physical location typically require a Certificate of Occupancy (CO). A CO confirms that all building codes, zoning laws and government regulations have been met.

• If you plan to lease a retail location:
• It is generally the landlord’s responsibility to obtain a CO.
• Before leasing, confirm that your landlord has or can obtain a valid CO that is applicable to a juice bar.
• After a major renovation, a new CO often needs to be issued. If your place of business will be renovated before opening, it is recommended to include language in your lease agreement stating that lease payments will not commence until a valid CO is issued.

• If you plan to purchase or build your juice bar:
• You will be responsible for obtaining a valid CO from a local government authority.
• Review all building codes and zoning requirements for you business’ location to ensure your juice bar business will be in compliance and able to obtain a CO.

STEP 7: Get business insurance

Just as with licenses and permits, your business needs insurance in order to operate safely and lawfully. Business Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Another notable insurance policy that many businesses need is Workers’ Compensation Insurance. If your business will have employees, it’s a good chance that your state will require you to carry Workers' Compensation Coverage.

Is this Business Right For You?

A juice bar is a great business for high-energy, health conscious people who want to contribute to the overall health of their communities.

What happens during a typical day at a juice bar?

Some of the daily activities of a juice bar business owner include purchasing ingredients, developing new recipes, pricing drinks, updating your menu, training new staff, and of course keeping your books up to date.

You will also want to set aside time for promoting your business.

What are some skills and experiences that will help you build a successful juice bar?

This business also requires a wide knowledge of fruits and vegetables, including which are in season and when, their nutritional value, and taste combinations. Communication skills are essential since you will be working with vendors, employees, and customers on a daily basis. Negotiation skills are also in high demand in this business, since produce must be purchased daily to maintain freshness.

What is the growth potential for a juice bar?

Jamba Juice, one of the most well-known juice bars, earned 62.35 million in revenue in the first three quarters of 2016, of which 26.335 million was profit. The store boasts 800 locations in 26 states as well as several international locations. Of those locations, approximately 287 are company-owned, while about 517 are franchise-operated.