Juice Or Smoothie Bar Labor and Product Costs Crossover

How much attention do you focus on your labor and product costs?

Have you timed all your processes?

We all know that your labor and product costs are the most expensive elements of running this business.

Because you have people making the product, you always have to equate what is the greater expense. 

Sometimes you could invest more labor into extracting more juice, for example, but depending on how much time it takes, the value of more juice might actually be costing you more in labor! 

In order to calculate your costs accurately, you need to time each process that is taking place in your business and then quantify what the differences are between how much you are gaining or losing in product costs.

The same thing goes for equipment. Using a citrus juicer as an example, you might not extract as much juice using an automatic citrus press than using a manual machine, BUT it is a lot faster so you will save yourself a lot of money on labor. 

Granted the automatic machine costs more upfront, but again, you need to do the math and work out how much you are saving in labor costs to figure out if it’s a worthwhile investment. If the machine pays itself off within 6 months to a year, the return on this investment will be significant and great for your bottom line! 

This is the case for all the equipment you invest in. A lot of times it’s going to be a little bit more expensive up front, but the intention is that it’s going to save you on labor, and hopefully, increase your product yields to make it worth it in the long run.

The most important thing to remember is that you don’t want to focus on all these elements in isolation, you have to always look at these things in relationship with each other.

We do understand that sometimes these things can be really tricky to measure because it takes time and a very intense focus on the details of your business.

It is important to understand the principle and philosophy behind how to measure these things as this really is the difference between running your business with excellence rather than just hoping that it works out. 

We cannot emphasize enough the impact and importance of having attention to detail as this can make or break your business. 

Having a clear, dynamic, and mature approach to executing your business will massively help your store become a great success.

Want to discuss your product and labor costs in more detail to ensure you are maximizing your revenue? Reach out to us.