A drop in disposable income and escalating competition depressed demand for products in the Juice and Smoothie Bars industry over the past five years. In particular, competition increased from fast-food chains and frozen yogurt shops, many of which recently added smoothies and juices to their menus. In response, small juice and smoothie bars have been franchising in order to consolidate marketing costs. Over the coming years, these trends are forecast to continue, with franchising remaining a key driver of industry growth. To stay competitive and drive revenue growth, companies will expand offerings and look to markets overseas. At the same time, companies will downsize stores to cut on costs and reduce the number of employees at each establishment. For these reasons, industry research firm IBISWorld has added a report on the Juice & Smoothie Bars industry to its growing industry report collection.
A drop in disposable income and escalating competition depressed demand for products from the Juice and Smoothie Bar industry in the past five years. IBISWorld industry analyst Agata Kaczanowska says competition increased from fast-food chains and frozen yogurt shops, in particular, many of which recently added smoothies and juices to their menus. In response, small juice and smoothie bars are franchising in order to consolidate marketing costs. Likewise, large franchise operations are selling their locations to franchisees as a way of earning capital and cutting operating expenses.
The Juice and Smoothie Bars industry revenue is estimated to decline 0.4% annually on average since 2007 to $1.8 billion by 2012. Continue reading.