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How one brand is keeping the juice market fresh

Sarah Stowe

The healthy eating marketplace can be an exercise in branding but one franchise is backing itself on authenticity, flexibility and its “see it, taste it, buy it” philosophy.

Back in the 1990s, Lebanese immigrant Ali Sawan started up his own business, a fruit and veg shop in Sydney’s upmarket suburb Double Bay. In these early days customers were treated to a selection of juices, cut fruit and yogurts, as well as the traditional greengrocery stock.

Over the years Sawan built up a portfolio of stores, and in 2000 signed up to run the fruit and veg concession in selected David Jones outlets – and a juice bar was added to flagship stores.

The Top Juice brand appeared for the first time in 2008 when Sawan took on a free standing kiosk in a level below the Myer store in central Sydney.

At this stage there were no plans to franchise and the business took a conservative growth trajectory. Four years later the model was tested in the suburbs, and, explains general manager Barry Barber, “it confirmed strong support across all demographics”.

Since then a slow and steady approach has been the modus operandi for the business which now has 35 outlets in New South Wales and two in Melbourne, with 23 of these stores franchised.

Barber says Top Juice has a target of another 10 to 15 openings this year, evenly spread between Sydney and Melbourne suburbs, with two stores to take the brand into the Queensland market.

So what’s the appeal of this fruit and veg business? “It’s an authentic product offer, no gimmicks,” says Barber. What the customer sees is fresh fruit and veg ready to be juiced, ready-made salads, yogurts with a choice of toppings, and chocolate dipped fruit.

It’s a business driven by seasonality, so specials reflect the market availability of ingredients. Head office is just minutes from the Flemington wholesale markets at Homebush in Sydney. “We’re in the markets every day, and we’re also working with local growers,” explains Barber.

Help on hand for franchisees

The foundation of the fruit and veg business has set it apart, he suggests. It has allowed for the development of an efficient supply chain and the central kitchen model so franchisees receive their fresh merchandise daily. An easy, time-saving option for franchisees  is to get deliveries of prepped ingredients ready for juicing. 

“We do all the tedious work for them,” says Barber, “allowing franchisees to focus on presentation and customer service.”

But when franchisees are ready to undergo appropriate training, and if they want to boost their bottom line by reducing the cost of goods, they can choose to take delivery of whole fruits from the kitchen and undertake the preparation themselves.

Purple carrot juice, soursap granita, finger limes, gooseberries are typical seasonal additions that come out of the kitchen.

There’s no direct competitor for this franchise but Top Juice touches on other markets: “we do salads, but we’re not Sumo Salad, we do shakes but we’re not Boost Juice,” says Barber.

What is common is the appeal of healthy food to an increasingly broad customer base. “They’re all moving in the same direction, meeting the demand for healthy products.”

Beyond the food court

Flexibility in the model and location is serving the brand well. While the majority of outlets are located in either, and sometimes both, the food court or the fresh food market of a shopping centre, Top Juice has felt the style vibe at Sydney’s Macquarie Centre and pitched a kiosk in the fashion area in addition to its food court store.

What is vital to any location is good footfall and accessibility, and Barber admits that a conservative site selection is the company’s philosophy.

Kiosk sites range from 16 to 30 sq m, inline outlets have a footprint of between 35 and 70 sq m. A typical 20 sq m kiosk requires a $350,000 investment – that’s turnkey, and with franchise fees included.

“In terms of ROI and a payback period, it’s competitive. We tend to align the term to the lease and typically we’re signing seven year leases now, giving a bit longer on the first lease for the franchisee to extract a return from the business.

“Franchisees need to have a passion for the work we do,” says Barber.

“We look to engage our customers at a grassroots level,” he explains. So brand building is achieved through both social and traditional forms of media, for both potential franchisees and customers.

“In our franchise model we don’t levy a brand marketing fee. We agree with franchisees that they will allocate a percentage to their own activities, and we work with them on that.”

The brand has potential he believes, because of its wide appeal, and the capacity to tailor the offer  to feature more combination purchases in price-conscious locations.

 “We are nimble and can expedite new product to stores – and innovate – very quickly.”