Healthy Eating On Americans

This movement brought more attention to the idea of eating healthier and allowing Americans to see the many health-conscious options that are available, including smoothies. Over the course of the next ten years, smoothies became more and more popular, leading to its first smoothie store opening up in the 1970’s. In 1973 a young gentleman named Steven Kuhnau opened up a healthy food store, one that we know of today as “The Smoothie King”. Steven’s idea of opening up a smoothie store was such a hit that as of today, The Smoothie King has more than 600 running stores across the U.

S. His invention was so iconic that it is still one of the leaders in the smoothie industry to date. Since the 1900’s the health and smoothie industry has continued to grow.

In 2017 alone the net sales for natural and organic foods, as well as supplements and personal care has earned more than 79 billion dollars. After studies have been done, it was discovered that as of 2017 consumers are willing to pay more for foods that are “healthier”, weather organic or just fresh and never frozen.

The studies have indicated that nearly 68% ruled in favor of paying an upcharge for foods that contain no preservatives or undesirable ingredients. Additionally, the studies have narrowed down the target consumer age range to individuals 34 years old and younger. The studies indicate that the younger generations are more inclined to spend additional funds on food that are more nutritious and healthier for the body. While the definition for “nutritious” can vary, the concept being used in this study is foods that are “better for you” than the fast food alternative.

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Given how the Smoothie and health industry has continually grown since the start of Smoothie King in the 1970’s, making it a $5 billion-dollar business, it is projected that the smoothie industry will continue to grow anywhere from 4-8% each year. Smoothies have grown to become a meal alternative for many Americans including students, business professional as well as health and fitness gurus. Smoothies have allowed individuals to cut down on bad nutrition options, as well as replaced heavy meals with a lighter one (smoothie) allowing people to maintain more energy throughout the day.

Smoothies are an industry that does not require a large amount of startup: the general overhead cost being, blenders, coolers, freezers, ice, and the produce of choice. Studies have shown that fresh ingredients typically yield 50% of smoothie stores expenses, which leaves them with an average of 40% gross profit margin. Taking a look at one of the top competitors’ financial trends in the past few years, its been proven that the smoothie industry is ever growing. Through viewing Smoothie Kings financial for 2017, it has been discovered that the average gross sales of their top 25% franchises earned nearly $681,724. Taking a deeper dive, it has been discovered that the same top 25% Smoothie King franchises have had a minimum yearly sale increase of 5% since 2011.

Additionally, in viewing another competitor, Jamba Juice’s restaurant operating income for the years of 2016 and 2017, it has been discovered that Jamba Juice has increased their restaurant-level income by nearly $.2 million over the course of a year (from $3.9 to $4.1 million). Top Smoothie’s market mix is focused on the vision of having the urban smoothie experience. A health-conscious place where individuals can come to and enjoy a drink with friend and family or spend time working doing some studying, all while embracing the welcoming atmosphere. Top Smoothie customer base is made up of 5 segments, locals, tourist, professionals, students, and nearby residents.

Locals: Houston, Tx is comprised of roughly 2.3 million people. Making it the fourth largest city in the united states. Additionally, City Centre is located roughly 4 minutes (driving distance) from Houston’s second largest mall; Memorial City Mall. Given the above information, locals are known to visit the City Centre area, bringing it a large amount of business. Tourist: Houston, Tx had nearly 21 million domestic and international tourists visit in 2017. With an expected 25 million to visit in the year of 2020. The City Cente area is comprised of several different hotels. Many tourists spend time exploring the shopping centers as well as restaurants during their stay. Professionals: In addition to the hotels in the area, City Centre is also comprised of a variety of office buildings in the surrounding areas. City Centre is a place where professionals can come during their breaks to eat lunch as well and grab their afternoon snacks.

Students: There are on average six different schools within a .25-mile radius of City Centre according to Google Maps. Students have a tendency to find new places to study or host group outings. Similar to a well-known coffee shop Starbuck, business professionals, and students can come to Top Smoothie to enjoy the free Wi-Fi, refreshing beverages and urban atmosphere. Nearby Residents: The surrounding neighborhoods of City Centre are comprised of nearly 53,227 residents. This area is known for its many shopping centers, restaurants, coffee shops and more. Many Houstonians move to this area of town because of the endless amounts of shops and convenience. These five segments make up our potential consumers. The ability to have a variety of different market segments gives Top Smoothie the ability to gain an advantage in the local smoothie industry. Each of these different market segments also affords Top Smoothie the opportunity to bring about versatility, and the potential to grow by reaching other markets in the future.

There are quite a number of competitors in our environment. Although most of them seem to focus more on the smoothie and juice part of the business than having a wider combination of service offering like we do. Our top competitors are; Jamba Juice Post Oak -Strong online presence courtesy of a Responsive website that is virtual appealing. Customers have the option to order ahead perhaps, before getting to their shop or while doing “door-step-delivery.” -It’s an old brand. They are getting lackadaisical about their service offering. They have an increasing number of displeased customers. Top Smoothie would like to say that, her competitors have gone farther than her and she can only catch up with strong advertising strategy. In product comparison, we could classify these competitors to as indirect competitions.

Here at Top Smoothie, our product offering is wide, but it spans from smoothies to cookies, juice, and assortment pack of healthy snacks. Our competitors are at an advantage because of their longtime presence in the industry. They have been in the business before them and us as a matter of fact, captured a larger percent of the existing market. Top Smoothie will be located at the City Centre shopping mall Houston, Texas. Houston is researched to be the most populous city in the United States of Texas and the 4th most popular city in the United States, with an estimated population of over 2 million by the 2017 census. Houston is industrious with a growing economy, which made the city a viable business center for our kind of business.

Top Smoothie will, however, be located at City Centre Shopping Mall, which is rated to be one of the biggest, most busy malls in the city, with an average daily walk-in of 5,000 people.Generally, people come to the mall for shopping, could be grocery, wear, appliances hence, they will always need a salve to their taste after walking round the mall especially if they had come in from the sun. Hence, the need for our smoothies is unquestionable; it is a consumable that will always be in demand, especially in places like the mall.