RoboJuice is a kiosk with a human-like robot that makes juices and smoothies.
We currently have a working prototype. Our next step is to finish developing a version of the robot that we can install at our first location at Stanford University this Summer. This will help us develop the next version of the robot that we will use for all of our future locations and allow us to rapidly scale.
Our traction so far is inquiries for over 150 franchise locations from around the world.
Top 3 companies in our industry:
> Orange Julius: 5,700 locations
> Smoothie King: 1001 locations (as of 2018) with revenue of $415.7m annually
> Jamba Juice: 850 locations (with each store generating about $700,000 in annual revenue) - $229m annually.
> Global Market is $15 billion, US market $5 billion. The market is growing because a healthy lifestyle is becoming very popular.
> CAGR 2019-2024:
- Organic Food and Beverages: 16.4% (https://www.marketwatch.com/press-release/organic-food-and-beverages-market-to-touch-327600-million-by-2022-to-incur-high-value-growth-at-164-cagr-during-2016-2022-2019-07-24)
- Fruit & Vegetable Juice Market: 3.17% (https://www.marketwatch.com/press-release/fruit-and-vegetable-juice-market-2019-global-industry-size-share-growth-increasing-demand-business-overview-case-studies-opportunities-and-future-trends-2024-2019-08-22?mod=mw_quote_news)
Problem or Opportunity
1. Cost: It's extremely expensive to open a new location, Jambo Juice costs around 300k to open a single location. Maintenance & employee wages make it an extremely expensive process.
2. Food quality: Because it's expensive to use organic fruits, companies like Jambo Juice resort to using non-organic fruits to be able to keep prices low.
3. Speed: It takes anywhere between 5-7 minutes per drink at a Jamba Juice & 2-5 minutes at an automated juice bar (Blendid).
4. Problems with existing automated solutions: Still expensive (Blendid costs 70k), slow (2-5 min) and unattractive (it's just a robotic arm or a vending machine).
Solution (product or service)
We're building a robot that will make juices and smoothies in under 30 seconds and offer 15 different flavors. And we will offer our robot at 65k per location.
RoboJuice will not only automate the drink preparation but will also develop an emotional connection to customers through communication. We’ll use AI and Machine Learning to analyze user preferences and give users suggestions based on their health goals.
Advantages or differentiators
Our main direct competitor is Blendid.
In the previous section ("What's new about what you're making?"), we've talked about our main advantages.
Here are some highlights:
- 2-5x cheaper - because we use hydraulics instead of servo motors, which drastically reduces the cost of each franchise location.
- 3-6x faster - we eliminated lots of unnecessary movements and developed our own blended which saves a lot of time.
- 3-5x better maintenance. Our robot doesn't spill drinks and is easier to maintain.
B2C: Installing our own kiosks.
Price for 1 cup: $5
Daily sales: 250 cups ($1,250/day)
Annual revenue: $456k
1000 locations will bring $456M every year.
B2B: Selling franchises. Collecting 10% royalty fees. Our plan to install 3000 franchise locations worldwide in the next 3-5 years.
Annual revenue: $1,360 Million
Our annual royalty is $136M
To calculate sales, we used existing competitor data.