Smoothie Business Overview

Smoothie businesses offer fresh-made beverages that are convenient and often healthier than other fast food options available. A business may specialize in healthy smoothies or may opt to focus on more decadent smoothie drinks. Most businesses blend ingredients such as ice cream, acai bowls, yogurt, fresh produce, etc., right in front of the customer, offering a custom-made product with prompt service.

The most common business models in this industry include:

• Retail Store Operation: A physical location dedicated to serving smoothies and related products to walk-in customers
• Mobile Smoothie Service: Trucks or carts that bring smoothie service to different locations and events
• Franchise Operation: Running an established smoothie brand location with proven systems and procedures in place
• Kiosk Model: Small-format operations inside malls, gyms, or other high-traffic venues

Related: Checklist To Start A Business

How Do Smoothie Businesses Make Money?

The foundation of a smoothie business’s revenue stems from selling individual drinks, with prices typically ranging from $5 to $9. The cost of ingredients for a standard smoothie usually amounts to 25-35% of the selling price, allowing for healthy profit margins.

Common ways businesses in this industry make money include:

• Smoothie sales: The main revenue source is selling smoothies, typically made-to-order and customized with various fruits, vegetables, and other ingredients.
• Add-ons and upgrades: Customers can enhance their smoothies with extra ingredients like protein powder, superfood boosters, or extra fruits, providing additional revenue per sale. These upsells are an easy way to increase the value of each transaction.
• Packaged snacks and beverages: Selling complementary items such as granola bars, bottled water, or cold-pressed juices adds to the overall income while providing customers with more choices.
• Loyalty programs: Some businesses offer prepaid plans or loyalty cards where customers receive discounts or free smoothies after a certain number of purchases. These programs generate upfront revenue and encourage repeat business.
• Pre-packaged smoothie kits: Selling ready-to-blend smoothie kits allows customers to recreate the shop’s offerings at home, opening an additional revenue stream.
• Catering and event services: Offering smoothies for corporate events, fitness classes, or parties can generate extra income while promoting the business to new customers.
• Gift cards: Selling gift cards provides immediate revenue and encourages recipients to visit the business, potentially becoming regular customers.

Industry Statistics

Smoothie businesses fall under NAICS code 722515: Snack and Nonalcoholic Beverage Bars. This sector includes businesses primarily engaged in preparing and serving nonalcoholic beverages for immediate consumption.

Here are some numbers that illustrate the current state of the smoothie industry:

Smoothie Industry Size & Growth: Over 90 million people consume smoothies annually, representing industry revenue of $5.07 billion last year. The market shows strong momentum, with a projected annual growth of 7.1% through 2030, reaching an estimated $8.18 billion. This expansion reflects increasing consumer preference for healthy beverages and nutritious on-the-go options. (Grand View Research)

Smoothie Business Profit Margins: A typical smoothie operation maintains gross profit margins between 65-75% on beverage sales. After accounting for overhead costs, including labor, rent, utilities, and marketing, net profit margins typically average 5.8%.

Costs To Start a Smoothie Business

Starting a smoothie shop could range from $25,000 to $125,000. The lower end represents a small kiosk or basic shop with minimal equipment, while the higher end includes a full store with extensive equipment and build-out.

Here are the main costs to consider when starting a smoothie shop:

Equipment ($12,000 – $45,000): Commercial blenders, refrigeration units, ice machines, and prep equipment form your core equipment. Quality blenders range from $400 to $1,000 each, with most shops needing multiple units. Additional equipment includes freezers, refrigerators, sinks, and food prep stations.

Location Setup ($8,000 – $50,000): First and last month’s rent plus security deposit starts your lease. Renovations include plumbing, electrical work, counter space, and seating areas. Health department requirements need specific sinks, drainage, and food-grade surfaces. Finding a previous food service space can reduce costs.

Initial Inventory ($3,000 – $15,000): Starting inventory includes fruits, supplements, protein powders, cups, lids, and straws. Additional supplies like cleaners, utensils, and storage containers support daily operations. Proper storage solutions help maintain fresh ingredients.

Furniture and Fixtures ($2,000 – $15,000): Service counter, menu boards, point-of-sale systems, and seating areas create the shop atmosphere. Small equipment like scales, storage bins, and prep tools complete your operational needs.

These cost estimates are approximate, and actual expenses will vary based on your business model and scale of operations.

Additional Resources
National Juice Bar Association