Executives anticipate reduced costs to franchisees as a result of economies of scale
Main Squeeze Juice Company acquired I Love Juice Bar, a 23-unit chain based in Tennessee. I Love Juice Bar operates in Tennessee and Texas. The 28-unit juice bar and smoothie chain will integrate I love Juice Bar under the Main Squeeze Juice Co. system and brand.
Both brands offer healthy juices, bowls and smoothies. There is little overlap in their markets, which sets the stage for purposeful expansion.
This acquisition is expected to increase our market share, which increases our customer base.Thomas Nieto, Main Squeeze Juice
As part of its growth strategy, Main Squeeze Juice and partner Conscious Capital Growth identified I Love Juice Bar as a natural, next-step partner. Through the merger, growth will accelerate. Furthermore, the two healthy-oriented beverage brands should, together, improve economics.
Franchisees should also benefit from the acquisition of I Love Juice Bar, according to an announcement.
Thomas Nieto, chief executive of Main Squeeze Juice, commented, “We are thrilled to welcome I Love Juice Bar to our family. The move comes with huge benefits for both brands, as well as our customers. This acquisition is expected to increase our market share, which increases our customer base. Not only that, but this new buying power and leverage will improve unit level economics at all locations to the benefit of all franchisees.”
Indeed, the companies expect to leverage economies of scale. Main Squeeze Juice franchisees have an opportunity to increase profitability within their stores. This will come through greater buying power, and presumably, reduced cost.
“I made this decision because it’s what’s best for the franchisees,” said Cortland Finnegan, chief executive of I Love Juice Bar and former NFL cornerback. “I want them to get the top support and experience sooner rather than later with the benefits of a larger system and brand.”
Another benefit of the acquisition of I Love Juice Bar will come in the form of new equipment. Main Squeeze will pilot a new small cold-pressed juicer countertop machine. Executives expect it to be a model for cost reduction.
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