How to Start a Smoothie Business

In recent years, the health and wellness industry has exploded in popularity, with more people actively searching for nutritious and easy-to-grab food options.

Smoothies, with their blend of fresh fruits, vegetables, and other healthy ingredients, have become a favorite choice for those looking to boost their daily nutrition.

If you’re an entrepreneur with a passion for wellness, starting a smoothie business can offer an exciting opportunity to tap into this growing market and create a venture that’s both rewarding and profitable.

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Industry Overview

The global smoothie market — which was valued at approximately $16.5 billion in 2023 — is experiencing remarkable growth, and is expected to reach $24.6 billion by 2032 (with a robust CAGR of 4.4%).

This surge is part of a broader trend in the health and wellness sector, where individuals are increasingly prioritizing foods that offer both convenience and high nutritional value. Smoothies, in particular, have become a preferred choice due to their versatility, allowing for a wide range of customization options to fit various dietary preferences, from vegan to high-protein or low-sugar alternatives.

Additionally, the rise of what’s known as functional ingredients — such as superfoods, probiotics, and adaptogens — has further contributed to the smoothie market’s expansion.

Startup Costs

If you’re considering whether a smoothie business is right for you, the first thing you’ll need to know is whether it’s a) affordable, and b) worth the investment. I mean, how much can you actually make running your own smoothie business?

Well, it depends. The initial investment for a smoothie business varies widely based on factors such as the location, equipment, and scale of your operation:

• Lease or Vehicle Costs: Leasing a storefront in a prime location can range anywhere from $2,000 to $10,000 per month, depending on the city and size of the space. If you’re opting for a mobile smoothie truck instead, you can expect to spend anywhere between $50,000 and $150,000 for the vehicle and setup.
• Equipment: You will need to invest in commercial-grade blenders, refrigerators, freezers, and juicers to efficiently run your smoothie business, with the costs varying between $10,000 and $25,000 depending on the quality, brand, and quantity of the equipment required.
• Ingredients and Inventory: You will need to stock fresh fruits, vegetables, proteins, and other essential smoothie ingredients, with initial inventory costs varying between $2,000 and $5,000 depending on the volume and types of ingredients you choose to offer.
• Permits and Licenses: You’ll likely need to get food handling permits, business license(s), and health department certifications, which can cost anywhere between $500 and $2,000 depending on your location.
• Renovations and Interior Design: If you’re opening a physical store, you will need to invest in creating an inviting and functional space, which may include painting, flooring, lighting, and installing counters or seating areas. The costs can vary widely, ranging from $5,000 to $50,000, depending on the extent of the renovations, your design choices, and whether you need to make structural changes to the space.
• Staffing: Depending on the size of your smoothie business, you will likely need to hire two to five employees to manage daily operations such as customer service, order preparation, and inventory management. To comfortably cover these staffing needs, it’s important to budget around $1,000 to $3,000 for initial training and between $5,000 and $15,000 for the first month’s payroll.

Note: You will also need to establish a strong brand presence by setting up a professional website, running targeted social media campaigns, and investing in digital advertising through platforms like Google Ads or Facebook Ads, as well as forming local collaborations with gyms, wellness centers, or health-focused events to expand your reach within the community.

Earning Potential

The earning potential of a smoothie business is strong due to its relatively low operational costs, with profit margins typically ranging between 20% to 30% — allowing for healthy profits.

For example, selling 100 smoothies per day at an average of $7 each generates around $700 in daily revenue, or approximately $21,000 per month, translating to $252,000 annually.

With proper management of expenses such as rent, payroll, ingredients, and utilities, a well-operated smoothie business can net annual profits ranging from $60,000 to $100,000. Moreover, expanding revenue through add-ons such as protein boosts, supplements, or smoothie bowls can further increase profitability.

And that’s without even taking into account the inherent operational advantages of running a smoothie shop compared to more complex establishments like cafes or restaurants.

With a smoothie shop, you’ll (generally speaking) deal with fewer headaches, as capital expenditures are lower, spoilage is significantly less compared to perishable food items in cafes, and training staff is relatively quick and inexpensive.

These streamlined operations allow smoothie businesses to maintain lower overhead and adapt quickly to market trends, making them more profitable and easier to scale in comparison to many other food-service competitors.

8 Steps to Starting a smoothie business

In order to start a smoothie business business, you’ll need to complete the following steps:

1. Planning Your Smoothie Business
2. Registering Your Business
3. Choose Your Business Model
4. Secure Funding (If Applicable)
5. Finding and Securing the Right Location
6. Setting up Business Accounting
7. Getting all Applicable Licenses and Permits
8. Obtaining Business Insurance

We’ve broken each one of these down in more detail below.

Still exploring your options? Check out other small business ideas.

Step 1: Plan Your Smoothie Business

Before diving into your smoothie business, you’ll need to spend some time conducting thorough market research.

You can start by evaluating the demand for smoothies in your area, identifying your target demographic, and understanding local competition.

What types of smoothies are popular? How much are people willing to pay for a smoothie? Are there any gaps in the market that you can capitalize on, such as offering vegan, low-sugar, or protein-rich options?

This research will help you determine the best model for your business, such as whether it should be a storefront, mobile truck, or delivery model.

It will also help you refine your menu, identify trends in ingredients or dietary preferences, and establish your pricing strategy.

Finding a Suitable Name

Choosing the right business name is both important and challenging. 

This is because your name will need to be eye-catching, memorable, and (at least somewhat) related to your industry.

If you don’t already have a name in mind and need help, you can visit our How to Name a Business guide.

If you do have a name in mind, we recommend researching the following:

• Your state’s business records
• Federal and state trademark records
• Social media platforms

You will also need to make sure that your business’s name is available as a domain — this is your website’s URL address.

Note: If you’re planning to operate a sole proprietorship, you might want to operate under a business name other than your own name — known as a “Doing Business As” (DBA) name. Keep in mind that this is not recommended for a smoothie business. else does.

Pricing Your Menu

One of the most important things that you will need to do prior to launching your smoothie business is design and price your menu.

Typically your menu should be structured to appeal to different tastes and dietary needs, while also ensuring profitability through strategic pricing and high-margin add-ons.

Keep in mind that most successful smoothie businesses use a price anchoring strategy, which means offering higher-priced items that make mid-range options seem like better value, subtly encouraging customers to spend more while feeling they’re getting a good deal.

For example, you could price your basic smoothie at $5.99 and offer a premium option at $7.99. This pricing structure makes the premium option seem like the best value, encouraging customers to spend more without feeling like they are overpaying.

You’ll also want to think about offering add-ons like boosters (e.g., vitamins, protein supplements, chia seeds) or seasonal options to keep your menu fresh and dynamic.

Note: Another strategy that can set your business apart is having a few signature smoothies that highlight unique flavors or incorporate local ingredients.

Step 2: Register Your Business

One crucial aspect that cannot be overlooked when starting your smoothie business is the importance of establishing a solid business foundation. While sole proprietorships and partnerships are the most common entity types for small businesses, they’re a far less stable and advantageous option than LLCs.

This is because unincorporated business structures (i.e., sole proprietorships and partnerships) expose you as an owner to personal liability for your business’s debts and legal actions, while LLCs protect you by keeping your personal assets separate from your business’s liabilities.

In practice, this means that if your smoothie business were to face a lawsuit or incur any debts, your savings, home, and other personal assets could not be used to cover these costs. On top of this, forming your business as an LLC also helps it to appear more legitimate and trustworthy.

Note: If you’re interested in more information before getting started, we recommend having a look at our state-specific How to Start an LLC guide (DIY) or our in-depth Best LLC Services review (for those opting for a professional service).

Step 3: Choose Your Business Model

Before proceeding any further, it’s important to decide whether you want to start an independent smoothie business or become a franchisee of an established brand.

Franchising provides several advantages, such as leveraging established brand recognition, a proven business model, and ongoing support from the franchisor in areas like marketing and training.

However, this path often comes with higher initial costs due to franchise fees, ongoing royalty payments, and less flexibility in making business decisions or customizing your menu.

In contrast, starting independently offers complete control over your brand, allowing you to craft a unique identity according to your preferences.

While the potential for higher profits exists without the burden of franchise fees or royalties, it requires more effort in building brand awareness from scratch, taking on full responsibility for all aspects of the business, and managing higher risks.

Ultimately, your choice between franchising and independent ownership will depend on how much control you want over your business, how comfortable you are with taking on risk, and what your long-term goals are.

Step 4: Secure Funding (If Applicable)

Securing funding is a critical step in starting your smoothie business. Financing options include bank loans, Small Business Administration (SBA) loans, private investors, and crowdfunding.

Each option has its pros and cons, and the best choice will ultimately depend on your financial situation and business plan.

One key factor to keep in mind is that similarly to many businesses in the food and beverage industry, smoothie shops often take time to become profitable.

To prepare for this, it’s generally recommended to secure enough funding to cover at least three to six months of operating expenses.

This buffer will allow you to maintain your operations during the early stages, when profits may not yet holistically cover rent, payroll, and inventory.

Step 5: Find and Secure the Right Location

The next step you’ll want to take is to find (and secure) the right location for your smoothie business.

While many factors come into play when making this decision, you will generally want to choose a high-traffic area where your customer base is active, such as near gyms, shopping centers, or office districts.

The goal is to position your business close to where potential customers will naturally gather, making it easy for them to stop in for a smoothie as part of their daily routine.

At the same time, you should obviously keep cost in mind. You might find the perfect location, but if it’s not fairly priced, it can be a sure way to burden your business with unnecessary expenses.

Generally speaking, finding the “right” location is all about finding a balance between a high-traffic spot and a price that won’t overstretch your budget.

Note: You will also need to make sure that your prospective property is zoned for commercial use and complies with all applicable local and state regulations (discussed in more detail in Step 7).

Step 6: Set up Business Accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your business.

You can categorize specific accounts related to smoothie business operations into the following categories:

• Fresh fruits and vegetables (key ingredients for smoothies)
• Dairy and non-dairy milk alternatives (options for diverse dietary preferences)
• Protein powders and supplements (nutritional add-ons to boost value)
• Ice (essential for smoothie texture and preparation)
• Disposable cups, lids, and straws (necessary for takeout convenience)
• Rent or lease payments (fixed monthly expense for your location)
• Utilities (electricity, water, gas needed to run your business)
• Equipment maintenance and repairs (ensuring equipment operates smoothly)
• Marketing and advertising (to promote your business and attract customers)
• Employee wages (staffing costs for daily operations)

In addition to tracking operational expenses, you’ll also need to closely monitor your different revenue streams to maintain a clear understanding of your overall profitability:

• Smoothie sales (by type or size)
• Add-on sales (e.g., protein boosters, vitamin supplements)
• Merchandise (if applicable, like branded cups or t-shirts)

This should provide clear visibility into your business’s financial performance and aid in accurate cost analysis.

Step 7: Secure All Required Licenses And Permits

The applicable licenses and permits that you’ll need will largely depend on your state and local regulations.

Even so, we’ve compiled a list of some of the common licensing regulations that you’ll likely need to satisfy in order to operate legitimately.

Weights and Measures License

If your smoothie business uses scales to measure ingredients, such as in portioning fruits or powders, you may need a Weights and Measures License.

This license ensures that your scales are accurate and comply with local regulations, guaranteeing that customers receive the correct amounts of ingredients.

Depending on your location, you may be required to renew this license periodically or have your scales regularly inspected to maintain compliance and accuracy.

Sales Tax Permit

Since you’ll be selling smoothies, which are subject to sales tax, you’ll need to apply for a Sales Tax Permit to legally collect and remit those taxes.

You can do this by registering your business with the state’s revenue department, providing your EIN (Employer Identification Number), and completing the required application.

Having said that, the specific requirements for obtaining this permit will also depend on your state’s regulations, as some states may have additional steps or conditions you need to meet to ensure compliance.

Sign Permit

If you plan to display a business sign, most local governments will require you to obtain a sign permit.

This permit ensures that your signage complies with regulations regarding size, placement, and any lighting that may be used.

These regulations are typically in place to maintain safety standards and ensure your sign does not interfere with visibility or safety around your shop.

Food Handler’s Permit

To legally prepare and serve smoothies, you and your employees will likely need to obtain a Food Handler’s Permit.

This permit ensures that everyone involved in food preparation understands proper safety practices, including hygiene, food storage, and handling procedures.

In most states, obtaining this permit requires completing a food safety course and passing an exam, which covers topics like preventing cross-contamination and maintaining proper food temperatures.

However, be sure to verify your local requirements, as specific rules may vary depending on your location.

Zoning and Land Use Permits

Before establishing a smoothie business, you’ll need to ensure that the land is zoned appropriately for commercial or food service use.

Zoning regulations vary by locality and dictate the types of activities that can be conducted on a piece of land. In some areas, you may need to obtain a special use permit or a variance if the land is not already zoned for your intended use.

We recommend consulting with your local zoning authorities in order to understand the specific requirements and restrictions that will be applicable to your smoothie business.

Alternatively, you can consult with a business attorney if you want someone else to take care of this for you.

ADA Compliance

The Americans with Disabilities Act (ADA) requires all public facilities, including smoothie businesses, to be accessible to individuals with disabilities.

This includes providing accessible routes, ensuring that slopes and landings meet specific gradient requirements, and removing any barriers that could impede access.

Keep in mind that compliance with ADA standards is not only a legal requirement but also ensures that your facility is inclusive and welcoming to all patrons.

Note: If you’re running a mobile smoothie truck, you’ll probably need a mobile vendor permit to operate legally. Since each city has its own rules about where and when you can set up, it’s important to check the applicable local regulations ahead of time to avoid any issues.

Step 8: Secure Business Insurance

In addition to securing the necessary permits and licenses, you will need to obtain the right business insurance.

Note

Even if you form an LLC, purchasing business insurance is still a good idea. This is because an LLC structure protects your personal assets, not your business’s.

While specific coverage needs may vary based on factors such as location, size, and unique risks, there are several key types of insurance that most smoothie businesses should consider.

We’ve briefly outlined these below.

Product Liability Insurance

Since you will be selling consumable goods, you should strongly consider obtaining product liability insurance.

This type of insurance protects your business if a customer claims they were harmed or became ill after consuming your smoothies, whether from an allergic reaction, contamination, or any other unforeseen issue.

In the event of a customer complaint, product liability insurance can cover legal defense costs, settlements, or judgments, helping protect your business from significant financial losses.

The average cost of product liability insurance ranges from $25 to $60 per month, or $300 to $720 annually, depending on your location, the size of your business, and the potential risks involved.

General Liability Insurance

General liability insurance is a foundational coverage that’s essential for smoothie business because it protects against claims of bodily injury, property damage, and personal injury that may occur on your premises.

The average cost for general liability insurance according to recent data is $42 per month, or $504 annually, though costs can vary based on your business’s specific needs and risks.

Workers’ Compensation Insurance

If your smoothie business will have employees, workers’ compensation insurance is likely going to be a legal requirement depending on your state.

This insurance policy provides coverage for medical expenses and lost wages to employees who are injured during work.

The average cost of workers’ compensation insurance ranges between $45 per month, but this can vary based on factors such as payroll, location, and (once again) your business’s specific risk profile.

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How to Start a Smoothie Business FAQs

Is the smoothie business profitable?

Yes, a smoothie business can be quite profitable.

With typical profit margins between 20% and 30% and a strong demand for healthy beverages, you could potentially net between $60,000 and $100,000 annually after covering expenses like rent, payroll, and ingredients.

This doesn’t even account for additional profits from high-margin add-ons like protein boosts or supplements.

How much does it cost to start up a smoothie business?

Starting a smoothie business typically costs between $50,000 and $350,000, depending on factors like location, equipment, and scale of operations.

This includes expenses for leasing or buying a space or truck, equipment purchases, initial inventory, permits, renovations, staffing, and marketing.

What do you need for a smoothie shop?

To start a smoothie shop, you’ll need commercial-grade equipment like blenders, refrigerators, freezers, and juicers, along with a steady supply of fresh fruits, vegetables, protein powders, and other ingredients.

You will also need to secure the necessary permits and licenses, design an inviting space, hire and train staff, and build a strong brand presence through marketing and local partnerships.

How much does it cost to make a smoothie?

The cost to make a smoothie is generally low, usually between $0.50 and $3 per serving, depending on the ingredients you use.

Since smoothies are typically sold for $5 to $10, this allows for a significant profit margin even after accounting for overhead costs like labor and rent.