EMERYVILLE CALIF .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
The quick-service focus on breakfast and beverages is expected to help boost traffic in a sector still struggling against weak consumer spending. Jamba Juice in particular is looking to its new breakfast lineup to help turn around first-quarter same-store sales results that fell 4.2 percent at corporate locations and 5.6 percent at units in the company’s home market of California, a state hit hard by housing woes. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
(To view financial charts featured on this week's print pages, click here.) .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Jamba Juice first introduced breakfast in late February, midway through its first quarter, which ended April 22. The offerings include granola-topped smoothies, a “chunky” smoothie eaten with a spoon and baked goods. Officials at Jamba Inc., which operates and franchises the chain, said the company has tried to differentiate its breakfast offerings by keeping a focus on the concept’s “healthy attribute.” .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
“Early results indicate the breakfast platform is being well-received,” chief executive Paul Clayton said in a conference call with investors May 27. “Since its introduction … the breakfast daypart mix has grown from 18.6 percent of sales to 21.3 percent of sales.” .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Clayton said breakfast daypart comparable sales had increased 3.2 percentage points, and in markets that have offered breakfast the longest, like New York and Los Angeles, full-day comparable sales also have increased, although the company did not detail by how much. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
“We’re confident this exciting new opportunity, particularly with the introduction of toppings and a spoon, allows us to continue to develop Jamba as a credible, healthy meal,” Clayton said, according to a conference transcript provided by the investor-focused website Seeking Alpha. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Hot breakfast items, which Dunkin’ Donuts has successfully introduced this year, are being tested in New York and Los Angeles, but Jamba said it was still refining the items and provided no timetable for a rollout. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
While the smoothie chain’s foray into breakfast boosted sales, it also introduced some labor and cost issues that Jamba said it still needed to work out. Securities analyst Jeff Farmer at Jefferies & Co. said Jamba’s restaurant-level margins were cut in half during the latest quarter, to 6.8 percent from 13.6 percent last year, affected mostly by increases in labor costs. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Farmer said Jamba Juice needs to “catch its breath,” address declining new-unit productivity and “tighten up operations, potentially arresting the concept’s softening margin trends.” .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
To that end, Jamba said last month it would open fewer locations this year, close 10 underperforming stores, terminate leases at seven planned locations and reduce the company’s workforce by 53 positions. Those moves are expected to reduce expenses by between $7 million and $8 million on an annualized basis, the company said. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Late last month Jamba debuted another sales driver, a new line of packaged Jamba Smoothies and Jamba Juices, available in grocery locations, convenience stores and select Jamba Juice units in eight Western states. The retail products are the fruit of a partnership with Nestlé USA that was announced late last year. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Using a best-case scenario, analyst Farmer said royalties from the new retail products could add $1.5 million to Jamba’s revenue and 3 cents to per-share earnings in fiscal 2009. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
For the latest quarter, Jamba recorded a net loss of $6.4 million, or 12 cents per share, which was down significantly from a year-ago profit of $11.9 million, or 20 cents per share. Revenue rose 13.6 percent to $101.6 million. .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
Lisa Jennings contributed to this article .—As many quick-service chains rush to add smoothies to their menus in time for summer, Jamba Juice, the 726-unit smoothie-centric chain, is working to reverse a significant sales slump by adding breakfast offerings, including hot items, to its menu.
