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Jamba Juice's Strategies for Store Success

A copy of one of the company's memoes to its managers.

February 27, 2000
Related Topics: Behavioral Training
Store success is your success. This is a fundamental truth under the J.U.I.C.E. Plan. Working to build your business and improve your bottom line will result in a win-win situation for both you and the company. We have looked to the collective wisdom of the five J.U.I.C.E. Plan test managers for their thoughts as to how to be most successful with the plan. They have been experimenting with new approaches to how they run their businesses and do their jobs. Here are the thoughts they have to share:

Be an Excellent Operator....There is no substitute for consistently positive customer experiences. Studies have shown that dissatisfied customers will tell between five and ten of their friends about a poor experience. The same studies also show that satisfied customers will often say nothing at all to their friends. If one bad customer experience results in losing ten regular customers, that could cost you and the company thousands of dollars each year!! Remember, every regular customer spends roughly $1000 each year in our store!!

Build Your Business Within the Four Walls of Your Store...The customers who come into your store are an important source of business. Building check averages is an extremely effective way of building your sales. Consider this example: Your store has current sales of $15,000 per week with a check average of $4. This equates to 3,750 customers each week. If you raise your check average to $4.50 each week your sales increase to $16,875. This can be easier than trying to bring in the additional 469 customers it would take to generate this additional volume at the $4 check average. Attractive merchandising, suggestive selling, knowledgeable team members, creating a fun environment and special offers all make for driving sales within your four walls.

Drive Sales....When you decide to market your store in your trade area and tie yourself to your community with local store marketing, you empower yourself to succeed in the J.U.I.C.E. Plan. Jamba has always believed in the General Manager as the primary catalyst in driving sales. This plan takes that one step further with the following thought:

Behave as if you own the business, and we will pay you like you own the business... Driving sales through spending time in your community and using all of the available marketing tools clearly demonstrates your attitude toward an ownership mentality. Start thinking about how you will bring new customers into your world today!!

Develop the Team Members around You...Developing your Team Members enhances their experiences with Jamba and in the end provides improved customer service. People who feel they're learning on the job and have upside potential are motivated and happy, the kind of Team Members customers love. The longer you can retain you staff, the better your business will be. There is nothing like shopping in a store where someone knows your name and how you like your order.

Meticulous Inventories and PAR Levels...Controlling food cost is one of the key ways of maximizing your cash flow. Through effective inventory management you will be able to identify waste and abuse which if not corrected can lead very quickly to the erosion of your cash flow.

Review Your P&L Statements...A thorough review of your financial statements will help you to better understand how you spend your money. You may not be aware just how much you are spending on things that may not be absolutely necessary. You will find that you are able to come up with creative ideas for controlling these expenses. Occasionally, expenses can be accidentally passed to you in error, which will have an impact on your cash flow. Close scrutiny of your financials will allow you to report these errors to our finance department.

Learn From Each Other...Your fellow General Managers are an invaluable source of information. Remember that you’re all trying to figure this out together. A systematic approach to sharing ideas and strategies will help to improve the cash flow in all of your stores.

Motivate Your Team Members....There are many ways to motivate people. Try a few of these on for size:

The Emotional Bank Account...Much like your ATM, people have account balances that you hold for each individual. It’s important that you make regular deposits to their accounts to ensure there are enough funds for you to make withdrawals. Common withdrawals come in the form of working holidays, cleaning the restroom, picking up the needed shift. Common deposits would include a simple thank you for a job well done, recognition in front of peers and granting special schedule requests from time to time. The end result of having a large account balance is a happy team member who is motivated and will help you out in a pinch.

The Team Member Experience...Strive to ensure that the team members experience is not exceeded by the customers experience. If your team members are happy they will make sure your customers are just as happy as they are.

The Beach Ball Theory...This reminds us that everyone has their own point of view. Imagine a huge beach ball bigger than you, that is divided into three sections, each with a different color. Now imagine that you are in front of one color, your assistant is in front of another color and a lead is in front of the last. You are unable to know what each of their points of view is unless you ask. Everyone has a valuable point of view...Listen!

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