Tweaking the juice bar concept

The capital to put up Lush Enterprises Corp. in 2001 came from the partial proceeds of a 70-cart pearl shake franchise business that Lester Yu put up and closed down in less in two years.

The company initially bought Filipino delicacies like shrimp paste (bagoong) and rice cakes (kakanin) from producers in the provinces and sold these to malls. In 2002, it branched out by putting up a fresh fruit juice cart measuring less than three square meters called Fruitas at SM City Manila. With an investment of P150,000, Lush Enterprises distributed fliers to mall goers and, through word of mouth of consumers made up of students and office workers, business picked up.

Today, the company has 17 Fruitas stalls, seven of which are franchisees. By the end of the year, the number of outlets is expected to double to 40. The aggressive target takes into account two factors. One, the total investment package of P180,000 covers everything from the fruit inventory, cart, equipment, training and site selection. Two, potential sites are not limited to high-rental malls but also cover school and office canteens and sari-sari stores, particularly those operating near churches and markets.

Fresh

"Like the pearl shake business, I got the idea to put up a fresh fruit business during a trip abroad. I saw this juice bar in Taiwan where the customer pinched and sniffed and then selected the fruit that he wanted. The fruit was sliced in front of the customer and then made into a juice," said Yu.

To ensure the availability of fresh fruits, which peaks in summer and the Christmas season, Lush Enterprises has established its own network of suppliers. For example, the company sources strawberries from Baguio, calamansi or Philippine lime from Zamboanga, and mangoes from Dumaguete, Davao, and Batangas while imported fruits such as oranges are bought in Divisoria.

"Considering that fruits are highly perishable, we use an optimum inventory strategy which minimizes wastage to a tolerable 3%," said Yu.

Geared towards the A-B-C market, prices range from P15 for bottled calamansi juice to P50 for a made-to-order fruit juice in a grande (or extra large)-sized cup.

"Surprisingly, we have had customers from the D-E markets as well. Our carts cater to the growing desire among Filipino consumers to drink healthy without the inconvenience of preparing it themselves," said Yu.

Even as it opens more outlets through franchising, Lush Enterprises is coordinating with the Department of Science and Technology to go into the preservation and puree business.

"This way, we can ensure availability of inventory year-round and keep our prices steady," said Yu.