I want to drink fruit juice... Where is the store?

Smoothie King Closes 23 Locations in One Year, Sales Halved Since COVID-19
Jamba Juice Also Down 2 Stores... 10% Sales Increase YoY, Plans for Additional Stores Within the Year

[Asia Economy Reporter Moon Hyewon] Once hailed as the two major players in the domestic healthy fruit beverage market, Smoothie King and Jamba Juice are losing their competitiveness amid rapidly changing consumer trends and aggressive low-cost brand competition.

According to the distribution industry on the 26th, the number of Smoothie King stores nationwide stood at 287 as of September (7 directly operated stores, 280 franchises), with 23 stores closing in the past year. Smoothie King is a fruit beverage franchise wholly owned by Shinsegae Food. At the end of 2015, it acquired the Korean distribution rights of the overseas Smoothie King for 18 billion KRW and has been operating it since. At the time of acquisition, its low-calorie smoothies and protein drinks were popular among athletes and those trying to lose weight due to their high satiety but low calorie content.

However, it began to falter after being hit hard by COVID-19. Sales, which reached 15.1 billion KRW in 2019, dropped to 12.5 billion KRW in 2020 and further plummeted to 8.16 billion KRW last year. Although the number of stores nearly reached 300 by continuing operations through Emart24 and shop-in-shop formats, the increase in store count did not directly drive sales, according to analysis.

Jamba Juice, brought to Korea by SPC Group from the U.S. in 2011, operates 31 stores in Seoul and major metropolitan areas but has not shown significant results. The number of stores decreased by two compared to last year. To improve profitability, Jamba Juice has held several franchise business briefings, but the results were not favorable. Due to the nature of smoothies made by blending ice, sales peak in summer but decline in winter, which is the off-season, causing prospective franchisees to be reluctant to open stores. Although various alternative menus such as warm coffee, fruit teas, salads, and sandwiches are sold alongside to reduce sales fluctuations caused by seasonal changes, the additional operational costs may burden prospective franchisees. Currently, nine Jamba Juice franchise stores are in operation this month.

An SPC representative stated, "We are not simply focusing on increasing the number of franchises but are strategically maintaining test stores in the form of directly operated outlets," adding, "Despite the COVID-19 period, sales increased by 10% compared to the previous year, and we plan to open several more stores within this year."

An industry insider commented, "The winter off-season and menu competitiveness have always been challenges in the industry, leading to various attempts and trial and error," and added, "However, with increased interest in health due to COVID-19, the growing number of consumers seeking fresh fruits and vegetables is a positive factor that could expand the market itself in the future."

This content was produced with the assistance of AI translation services.