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FDD Talk 2016: The Robeks Franchise Opportunity (Financial Performance Analysis, Estimated Costs, and Other Important Stuff You Need to Know)

by Franchise Chatter on May 12, 2016

in FDD Talk 2017: Food Franchises, Franchise Earnings, Juice Franchise, Smoothie Franchise

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Robeks Fruit Smoothies and Healthy Eats Store by maxfisher

In this FDD Talk 2016 post, you’ll learn the following:

  • Section I – Background information on the Robeks franchise opportunity, including relevant news updates
  • Section II – Estimated initial investment for a Robeks franchise, based on Item 7 of the company’s 2016 FDD
  • Section III – Presentation and analysis of Robeks’ financial performance representations, based on Item 19 of the company’s 2016 FDD, including information on the:
  • 2015 average net sales for the top 20%, top 40%, top 60%, top 80%, and all 71 Robeks traditional stores in the U.S. that were in operation for the entire 52 weeks ended December 27, 2015
  • 2015 average product cost, labor cost, and occupancy cost for the top 20%, top 40%, top 60%, top 80%, and all 62 Robeks traditional stores in the U.S. that were in operation for the entire 52 weeks ended December 27, 2015 and submitted period profit and loss statements during the year ending December 27, 2015

Section I – Background Information

Robeks Undergoing Farmers Market-Style Redesign

Robeks, a national juice-and-smoothie chain that stresses fresh, simple ingredients, has launched a redesign of its stores to reflect its focus on authenticity and nature. The light, distressed wood elements and cool colors are meant to convey the look of farmers markets or natural food cooperatives.

By April 2016, three stores had been remodeled with the new design, with six others closely following. Fifteen percent of existing stores are planned for remodeling by the end of 2016. Three tiers of remodeling packages are available.

Rawnsley Moves Into President Role

Company president David Rawnsley said the redesigned locations had performed well in sales. Rawnsley, who helped fuel the company’s expansion in Los Angeles, was promoted from chief financial officer to president in March 2016. He is touring the country to meet with franchisees as part of developing strategies to grow the company.

Prior to working with Robeks, Rawnsley was a corporate CPA with a long commute. He joined the company as a regional director for northern Los Angeles, where he helped bring the region up to 17 stores. He became a franchisee in 2008 with a location in Sherman Oaks, California, that he still owns. Rawnsley was named CFO in 2014.

Chain Celebrating 20 Years

Robeks Fresh Juices & Smoothies, headquartered in Los Angeles, California, was founded by former investment banker David Robertson in 1996. Robertson, a Harvard graduate, opened his first location in Los Angeles to deliver smoothies with high-quality natural ingredients to customers who wanted quick service. The company started franchising in 2001.

The chain, which is celebrating its 20th anniversary in 2016, is down in numbers with fewer than 100 stores. The chain had more than 160 locations in 2008, but numbers have dropped steadily since that time. With emphasis on its new design and the increased focus on juices, Robeks hopes to accelerate growth.

The company is seeking franchisees both in the United States and in numerous international locations.

Juice Takes Center Stage With Product Launch

Robeks launched a pair of juices in February 2016 in its first juice-only promotion. The chain, which is increasing its focus on juices, introduced Green Zing, a sweet, crisp juice combining cucumber, kale, red grapes, celery, parsley and lime, and Red Revival, a bold flavor featuring romaine lettuce, spinach, beets, carrots, parsley, apple, cucumber and lime. The two juices are high in vitamins K, A and C and antioxidants.

Customers can add Fruit Flex, an add-in made from pineapple and banana, to either beverage for a smoothie-type creaminess without adding dairy to the mix. That’s good news for those who avoid dairy products, and the sweet add-in is only an extra 50 cents.

In addition to juices and smoothies in both traditional and trendy flavors, the menu also features Robeks Bowls, featuring frozen blends of fruit, yogurt and sherbet with healthy toppings.

Customers Can Create Their Own Flavors

Robeks introduced a “Build Your Own Juice Bar” in July 2015 to capitalize on the demand for fresh juices and smoothies packed with healthy fresh fruits and vegetables.

Customers can hand-select their fruits and vegetables and watch as they are transformed into personally designed juices. Some stop in simply to enjoy healthy juice, while others who are into juicing may consume large quantities. Juicing is popular among people who want to cleanse their systems, get better nutrition, focus on health, and/or lose weight.

The company projects increases in sales due to the heightened interest in juicing and the focus on consuming fresh juices with healthy produce.

Section II – Estimated Costs

  • Please click here for detailed estimates of Robeks franchise costs, based on Item 7 of the company’s 2016 FDD (updated).

Section III – Financial Performance Representations (Item 19, 2016 FDD) and Analysis

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