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Is the Playa Bowls Franchise Cost Worth it to Invest?

Have you always wanted to know the Playa bowls franchise cost? You are in the right place for your answers. Carefully read through this article to find out.

playa bowls franchise cost

“People don’t have to feel bad about indulging in pleasure eating.” The Acai bowl manufacturer Playa Bowls adheres to this philosophy. 

This 6-year-old New Jersey Original Acai Shop has been serving customers with its many creamy concoctions.

It is made of some of the healthiest ingredients on Earth at 73 franchised locations worldwide and 23 company-owned eateries.

The bowl of superfruit delight is called “A piece of summer, anytime.” 

Acai bowls, chia pudding bowls, oatmeal bowls, coconut bowls, smoothies, and many other options are available on their menu. 

Sounds like something that might make anyone’s day better, don’t you think?

Requirements for Spending on Playa Bowls

But is it still worthwhile to spend money on Playa Bowls? You will require an investment of between $168,675 and $435,058 as well as at least $35,000 for the franchise fee. 

You must also have between $10,000 and $40,000 in working capital to be eligible. 

A Playa Bowl franchisee may make up to $2,400,000 a year with a strong profit margin of $1.25 million, according to reports. 

Those sales promises are amazing, but are they true? In this article, we assess the Playa Bowls Franchise’s investment potential. 

To find the right franchise opportunity based on your money and experiences, read through carefully.

Who Owns Playa Bowls?

Playa Bowls was established in 2016 by longtime surfers Robert Giuliani and Abby Taylor in New Jersey. 

They made the decision to recreate the acai and pitaya bowls they had tried and add their own twist after seeing exotic surfing villages. 

With a temporary popup booth, they launched their customized acai bowl shop and smoothie company. 

Six years later, they have more than 120 locations countrywide and are one of the small chains with the quickest growth.

What are Playa Bowls Valued at?

It's Value

In 2021, Playa Bowls had over 120 outlets across the country and was worth $65 million. 

Since 80% of its franchisees signed the multi-unit development agreement and ran several locations, they were essential to the business’s success.

Additionally, Tamarix Equity Partners and Pacific General Holdings made a 60/40 split majority interest in the company. 

Taylor and Giuliani hope to expand to 500 locations by 2024 thanks to this chance.

Financial Requirements and Fees

After you have saved enough money to invest, the next stage in becoming a franchisor is to allocate your funds wisely toward the costs associated with running a franchise. 

The liquid capital, net worth, total investments, franchise fees, and other continuing costs are displayed in the table below.

  • The total quantity of cash you will need to have on hand and be able to use at any moment is referred to as liquid capital.
  • The value of all your financial and non-financial assets less the total amount of your unpaid liabilities is your net worth.
  • The franchise’s total investment is the sum of all the capital or cash you will need to invest in it over time to get it up and running.
  • Last but not least, a franchise fee is a sum you must pay to the franchisor in order to use its name and resources.
FINANCIAL REQUIREMENTS AND FEESAMOUNT
Liquid Capital$10,000 – $40,000
Net Worth$2,400,000
Total Investment $168,675 – $435,058
Franchise Fee$35,000

In addition to the expenses already mentioned, you also need to worry about the royalties, which account for 6% of sales, and the brand development fees, which are each worth 1% of sales. 

Make sure you’re comfortable with paying 7% of these fees altogether. As you can see, it costs $35,000 to obtain a Playa Bowls franchise

However, if you fall in love with the idea and sign the Multi-Unit Development Agreement, you may be able to save up to 50% of the initial franchise fees on each additional restaurant you open. 

Ten years are covered by the franchise agreement. happy news After the initial contract expires, you can always renew it for an additional 10 years.

How Much Profit Does a Playa Bowls Franchisee Make Per Year?

Number of Units98 (as of 2020)
Average Gross Revenue Per Store$495,918
Projected Annual Profit Per Store$198,912
Company revenue/Sales Per Year$48,600,000 (as of 2020)
Industry Average Profit Margin40%

The Playa Bowls is a smoothie shop with a summery vibe that offers its clients incredible fruit bliss in a bowl or a cup. 

Only the freshest, highest-quality ingredients are created for the customers in order to accomplish the “a slice of summer, anytime” treat. 

A franchisee may generate a 40% gross profit with this expense. $495,918 is the average gross revenue per store. 

A franchisee can make a $198,912 profit yearly from this income.

With this firm, there is also potential for growth. One of the Playa Bowl franchisees made as much as $3,650,000 in 2020. 

The franchisee made a profit of $2,400,000 after deducting expenses of $1,250,000, representing a profit margin of nearly 60%. 

These are promising income figures for a franchised restaurant.

Things You Need to Know About Playa Bowls

Things to know

It’s important to assess the pros and cons of the company now that you are aware of how much it will cost to run a Playa Bowls franchise.

Although Playa Bowls has given the impression to be a franchise worth investing in in the preceding sections, no business is perfect. 

Here are the company’s advantages and disadvantages in my opinion.

Advantages

Healthy Options: Playa Bowls offers a variety of bowls on its menu, all of which are produced with the finest and most recent ingredients. 

Acai, pitaya, coconut, green, banana, chia pudding, and oatmeal are some of them. Customers can personalize each bowl to suit their preferences. 

These delicacies are a welcome change from all the fast food that many Americans consume.

This is because they not only satisfy the palate but also promote healing and general health gains.

Generous Portions: The big quantities of their Playa Bowls order have become a customer favorite. 

Customers can simply replace their entire meal with one dish.

Inviting Ambiance: The walk-in store or restaurant of Playa Bowls takes pride in embodying its slogan, “a slice of summer, whenever.” 

Customers who come in to eat or pick up orders are cheered up by the vibrant decor and atmosphere. 

The shops and bowls are “Instagram-worthy,” which helps the business with free advertising.

Two Great Advantages

Simple Product Preparation: With their eyes closed, anyone can create a smoothie and a fruit bowl, and that is the beauty of how this business is run. 

Playa Bowls can run with just a few blenders, freezers, cutting boards, food containers, bowls, cups, and utensils.

But other concepts need a lot of equipment like ovens, deep fryers, and other culinary equipment.

Environment-friendly franchise: Playa Bowls, which had previously used plastic containers, made the decision to change to eco-friendly bowls and cups.

They also decided to change to friendly cutlery across all of their locations after hearing from their ecologically aware patrons. 

To reduce their environmental impact and make recycling simple, they have also teamed up with neighborhood waste management firms. 

The company’s values are demonstrated by this adaptation

Weaknesses

Expensive Products: Both a strength and a weakness can be found in expensive goods. A flaw given that families with lower incomes won’t be your target market. 

The cost of a Playa Bowl ranges from $9 to $14 per item. 

If you take into account the fact that this is the price of a lunch at a fast-casual restaurant, this is a rather high price point.

Longer Waiting Time: Customers have observed that their branches are congested.

This has in turn indicated that all of the recently made orders must be prepared one at a time. 

Customers at Playa Bowls have recommended taking advantage of the company’s online ordering system.

Also, simply stopping by the location to pick up the treat since waiting is not their favorite part of going there.

More Weaknesses

High Calories: Playa Bowls pack a lot of highly nutritious ingredients into their bowls and cups, but the abundance of food also means that they are high in calories. 

For instance, the Nutella Banana Acai Bowl has 814 calories per serving, which is much more than the suggested amount.

Labor Shortage: Customers have been dissatisfied with the lengthy wait times for order pickup. 

The inability to cater to all of the freshly-made orders at once is one of the causes of this. 

Playa Bowls doesn’t actually require a large workforce to operate, but with the increase in demand, you should be aware of this efficiency flaw and plan how to fix it. 

Sadly, specialized bowls require more work than some other ideas. 

When clients have so many options, there are fewer ways to optimize the ordering process.

Opportunities

Perennial demand: One of the minor chains with the fastest expansion rates in 2020 was Playa Bowls. 

As they blend “healthy” and “pleasure” in one treat, their products are highly appealing to the general public. 

Younger people, particularly millennials, have made a substantial contribution to its appeal. 

Their voracious appetite for acai bowls will cause demand to increase by 353% in 2020, and more growth is expected in the following years. 

If you own a franchise, you can expand the demographics of your target market and sell acai bowls and smoothies to the elder generation.

Generous profit margin: As was previously said, Playa Bowls’ gross revenue and profit exceed the whole investment you make to run its franchise. 

A franchisee may make a profit margin of 40% or more, depending on the region.

More so, depending on the level of demand, and the success of the management and marketing tactics. 

With these revenues, you can generously tip yourself as the business’s owner while maintaining the pay of your employees and still set aside extra money for new business endeavors. 

In other words, even if costs rise in the near future, you still have financial wiggle room.

Human Capital Development: One should not take the demand for Playa Bowls for granted. The goods are profitable in and of themselves. 

The level of customer service, however, is yet another important aspect of its success. 

Although poor customer service has unfortunately been identified as a problem.

You should be aware that there is space for change here that you may exploit. 

By providing workers with the proper training and upskilling, you can build a welcoming environment.

This will inspire customers to submit more favorable reviews and return to your business.

Threats

Records of Bad Customer Service

Every franchise performs differently depending on the caliber of the management. 

In several evaluations, customers have expressed dissatisfaction with the establishment’s staff. 

Lack of time management, erroneous and sloppy order preparation, and occasionally a lack of responsiveness are some of the frequent problems. 

These observations are not necessarily indicative of the brand and can be prevented by developing a more effective system. 

As a franchisee, you’ll want to stay on top of these difficulties.

Cheaper Options in the Market

Playa Bowls has a price range of $9 to $14, which is definitely on the high end. 

The cost of a smoothie at Playa Bowl is $10.99. This is far more expensive than the $5 to $7 range that smoothies typically sell for. 

With its high-quality ingredients and generous serving size, Playa Bowls has proven that its price point is reasonable. 

However, this allows rival brands to enter the market and engage in price competition.

Procurement of Base Ingredients

Acai and pitaya are imported by Playa Bowls directly from Brazil. 

The restrictions put in place to stop the virus from spreading may have an effect on the trading relations between the two nations as a result of the pandemic. 

This implies that the company might have an Acai and Pitaya shortage, which would result in a rise in their pricing. 

One must raise the price of their products if the business’s expenses rise. 

Playa Bowls is already extremely expensive, so if this problem arises, the business would have to find innovative ways to solve it.

Is the Playa Bowls Worth the Cost to Invest?

playa bowls franchise cost

Playa Bowls has already demonstrated the upward potential. 

This rapidly expanding Acai bowl business boasts a generous profit margin of 40% and, for some owners, a gross profit of $2.4 million. 

Compared to a franchise network like Subway, which only produces an average gross sales of $422,000 per unit, revenue estimates are lower. 

Playa Bowls is seeking a businessperson who is committed to building a sustainable society where people actively live better lifestyles.

Additionally, they are excited to meet motivated team members who are willing to take chances with their limited beginning funding. 

If you identify with these sentiments, you ought to think about making an investment in Playa Bowls.

More Reasons

Although this is an idea with a lot of potentials, it is not a long-standing franchise with decades of performance history. 

Other ideas that gain popularity rapidly and then go out of favor with customers have been seen. 

One illustration is the idea of fro-yo shops, which appeared on every corner approximately ten years ago. 

Unfortunately, the majority of these kinds of stores have already closed. 

Review the FDD for this company and confirm your belief in the long-term viability of the business model.

Conclusion

Even though Playa Bowls was only founded in 2016, it has quickly expanded its franchise network, opening 65 new shops in the past three years.

The market for healthy food options is a new one that Playa Bowls is in. 

However, as more businesses capitalize on the current trend toward healthy eating and lifestyle, this industry is beginning to gain appeal. 

Examples include Juice it Up, Jamba Juice, and Smoothie King.

To better understand the financials, we strongly advise you to speak with at least five Playa Bowls franchisees.

Do you believe Playa Bowls is the best franchise for you, or are you considering alternative franchises in the healthy cuisine sector?

Frequently Asked Questions

$15,000 per year for Barista to $200,000 per year for Server.

 $65 million

Rob Giuliani

Your Acai bowl company may easily achieve financial success depending on your marketing strategy.

$7-15 dollars

From Brazil

Coconut Cold Brew

Over 150

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