How to start a juice center in India?
Juice center is one of a kind small business in India. The majority of juice centers in India do not have high profits. It is a kind of business that does not require high capital however, there are some exceptions.
Juice or specifically fruit juice is a healthy refreshment liked by people from ages. In India, people generally drink orange, sweet lime, and lemon juice and hence you can find a lot of juice centers (juice selling stations) sell these majorly along with juices of pineapple, grapes, and muskmelon.
Let us see in a step by step process what are all the important factors for starting a successful juice center.
How much Initial Capital to start a Juice Center?
Juice center is one business where your investment can be as low as Rs. 50,000 to a maximum of Rs.15 lakh. However, there are a few scenarios where you can invest more. You can run a juice center using a food truck or a kiosk or a small shop.
For a small juice center (kiosk), You need to buy a juice extractor along with necessary utensils. You would be needing an insulating thermocol box to store ice. Other required items to be bought as per the need. Generally, small juice centers gain profits the most when placed beside any local restaurant or any place where there is an abundance of food businesses. So, combining all the cost of initial equipment, rent of the place, and stock, you might need an initial investment of Rs. 50,000 – Rs. 2,00,000.
For a food truck, you need to buy multiple juice extractors along with a refrigerator. You might need to learn a few juice-making and mocktail-making techniques and hence can increase your menu size as well as purchase the necessary equipment. Rent may or may not be an expense when you run a food truck. Combining all the equipment cost along with the initial stock, possible rent, and other factors (company registration fee if you register your business, employee salary, etc) you might need an initial investment of Rs. 6 lakhs to Rs. 10 lakhs.
For a Juice shop, you might want to level up and spend a lot of initial investment as having a shop would give you the advantage of attracting a lot of customers. This way of approach for a juice shop may not be suggested. A high-standard neighborhood, healthy lifestyle maintaining the neighborhood, lack of any juice center within 5km radius, unique juice menu, etc are some of the factors you might want to consider before opening a juice shop. You can use regular equipment or any customized equipment, however, it is suggestible to buy multiple types of equipment and have a wide variety of juices available. An initial investment of Rs. 10 lakhs to Rs. 15 lakhs is expected which includes the cost of equipment, stock, employee salaries, store exterior, and interior design, business registration cost, etc.
If you register your business, you also have to obtain the food license, trade license as well as labor license.
You can register your company with GST by clicking on this link https://reg.gst.gov.in/registration/ .
You can apply for the food license https://foodlicensing.fssai.gov.in/index.aspx. Labor and trade licenses can be applied through respectable state portals. If you are unaware and skeptical about applying online, you can always contact Chattered Accountants who take some commission and help you apply for these licenses.
Products in your Juice Center
For a juice center, it is obvious that the product you produce is the juice of fruits. However, if you start a food truck and juice shop, you can also provide different mocktails along with other drinks. You can also make juices of rare/imported fruits. If you are an experienced chef/bartender, you can always make your own unique juice menu.
Buy stock intelligently. Since your stock is fruits that have a very small shelf-life, buy stock very limited in the beginning. You might have to experience a lot of stock wastage initially. Having a big refrigerator can improve the longevity of the stock. You can buy your stock from local farmer markets. If you want to get imported fruits you can always google for the suppliers.
Don’t over-complicate the nomenclature of the juices on the menu.
Effective Operation of Juice Center
A small juice kiosk is not going to be profitable for you if you are hiring an employee when successfully run, the expected profit would be Rs.7000 to Rs. 15,000 and if you hire an employee you will be left with either loss or very low amount. It peaks in summer and falls in winter. Generally, small juices kiosks are run by a person whose whole source of income is the juice kiosk itself.
However, it is a different matter for food trucks and juice shops. The price you charge should enclose all your repetitive expenditures. It is very important that your product should be of high quality, satisfactory quantity, and very pleasing in its looks. For this, it is important to get good quality stock. You may have to build your brand if necessary but not mandatory initially.
You need to make sure that the customer is satisfied and for this, make sure you and your employees know how well to deal with customers. Spend time to learn more about nutrition in fruits as well as food-related information. Use useful tools that help you with managing your business. Tools like Zohobooks, Toolny, Quickbooks, etc help you with inventory management, billing, and maintaining accounts. You can register with Swiggy, Zomato, Foodpanda, and other food delivery apps along with building your website (can be done using WordPress, Toolny, etc), this helps you have an online presence as well as maximize your profits.
Try to use plastic as less as possible. If using alternatives is not viable on your behalf, at least provide an option to the customer to choose the alternatives by paying a little extra.
There will be a lot of organic waste from your business. You can sell this waste to dealers available as this waste can be recycled for several purposes. Separate organic waste with plastic and its alternative waste.
Fruits attract a lot of insects, houseflies, and also mosquitoes. Make sure you clean the store/truck/kiosk regularly using disinfectants.
Marketing your Juice Center
A small kiosk wouldn’t need any marketing at all, you just have to place the kiosk in a proper location where there is a heavy flow of people.
In the case of food trucks and shops, you might have to design your interior and exterior to attract customers.
Before starting the business, check with local food businesses about their profitability and as well as the inflow of customers. Find out about the standard of living of the neighborhood as well as their health standards. This helps you decide the price of your product as well as the limit of the initial investment.
Traditional marketing techniques that could be useful to you can be newspaper pamphlet distribution, door to door publicity, big launch with music and celebrations to let people know about the business, etc. However, online marketing is quite important. Make sure you make accounts, pages, and profiles in all social media like Facebook, Instagram, Twitter, Tiktok, etc. Post your unique products and your offers regularly in them. You can also pay local social media influencers to promote your store/truck. Make a juice shop website, it improves your credibility, trust, legitimacy, and also helps you improve your branding. Conducting health campaigns, inviting local leaders and locally famous people would also get your store’s attention.
In conclusion, the juice business is not a hugely profitable business and has more risks. Risk in stock maintenance, weather changes, variable flavor, etc. are some of the additional problems other than regular business risks. But if maintained perfectly and patiently, you can build your juice center a successful business.
If you are thinking of starting a juice center, know about how to choose the right location for the business by clicking here.