Bruegger's franchisee co-brands units with Jamba Juice

A Bruegger’s Bagels franchisee in Connecticut has signed an agreement to open five locations that will be dual-branded with Jamba Juice.

David Katz, principal of Five Star Equity Partners LLC, said he opened the first Bruegger’s/Jamba Juice location in Orange, Conn., about a year ago. It was the first Jamba Juice location in the state, and the first dual-branded operation for the Emeryville, Calif.-based smoothie chain. Katz said his goal was to fill out the roughly 3,000-square-foot space that was too big for the bagel outlet alone.

Though the Jamba Juice side was run as a separate area with shared seating, Katz said bagel sales grew by double digits with the addition of the smoothie menu.

The concepts also work together because they drive traffic throughout the day, with bagel sales trending higher earlier in the day and smoothie sales bringing customers in for lunch and throughout the afternoon.

Katz said Connecticut’s cold winters also make smoothies a more seasonal product. “We’re still educating consumers about smoothies on the East Coast, especially in places like Connecticut,” he said.

Under the agreement with Jamba Juice franchisor Jamba Inc., Katz has a commitment to open five more dual-branded units, but he envisions opening as many as eight to nine locations within the next five years, he said. The next unit is expected to open in May 2013.

Jamba Juice has been growing in nontraditional locations, including schools, where the company is projecting to reach about 1,500 locations by the end of next year with a self-serve JambaGO format. The company has said 40 to 50 traditional locations are also expected to open this year in the U.S., with another 15 internationally.

As of July, Jamba operated or franchised 783 locations globally.

James White, Jamba chair, president and chief executive, said the company is open to exploring more dual-branded opportunities, as well as joint ventures and licensing.

“These help us to accelerate growth in conjunction with our store development plans and flexible formats,” White said. “Combined, these all provide us with many more options, and thus the ability to reach more consumers in more places.”

Burlington, Vt.-based Bruegger’s Enterprises Inc. operates or franchises more than 300 Bruegger’s bakeries in 25 states, as well as the District of Columbia and Canada.

Contact Lisa Jennings at [email protected].
Follow her on Twitter: @livetodineout