Written Analysis and Evaluation of

TABLE OF CONTENTS 1. Title Page…………………………………………………………………….page 1 2. Table of Contents……………………………………………………………page 2 3. History and Background……………...…………………………………..pages 3-5 4. Products and Services………………...…………………………………..pages 6-7 5. Financial Summary………………….……………………………………pages 8-9

History and Background
Kirk Perron, the founder of Jamba Juice, had a desire of self-business since he was very young. At the age of 16 he started to work at Vons, bagging groceries, and ultimately he became assistant manager at Safeway. This process helped him to gain 10 years of valuable retail experience. At the age of 25, he stop his day job and worked late night stocking groceries and started working out and bicycling during the day. Usually after exercising, he would buy a smoothie, which was healthier than frozen drinks. This eventually put the ideas in his mind to open his own smoothie store.
Kirk Perron started to gather his people to help him launch the business. He met his director of research and developer, Joe Vergara, at Safeway store who already was involved in the juice bar business, Kevin Peters who became director of partnership development, and Linda Ozawa the head of marketing. One of the obstacles that Kirk Perron faced at the start of the business was the fact that he could not convince the bank to get loan. Therefore, he had to sell his apartment and borrow money from his mother and his friend, all together he got $115,000. This is how they could get their first location on San Luis Obispo and in April 1990, they opened their first smoothie store, and named it Juice Club. By the end of second year, Juice Club was turning profit and Kirk Peron was ready to expand the business. Since he was unsuccessful with getting a loan, he decided to expand through franchising. Kirk Perron’s second Juice Club opened in Irvine, California. Moreover, by the end of 1994 he had 16 franchises. In September 1994, Kirk Peron meet Bob Kagle, partner of Technology Venture Investors and Benchmark Capital. Kagle believed Juice Club’s smoothies had a chance to grow like Starbucks coffee. Kagle enlisted the CEO of Starbucks, Howard Schultz, in participating in investing $3million and joining the board. With all this change, Juice Club was able to raise $19million from seven more venture groups, like Microsoft cofounder Paul Allen. Therefore, wider groups of investors joined in investing an additional $44million in the Juice Club Business.
In 1995, Jamba changed his corporate location to San Francisco, increase his staff, and changed the name of Juice Club to Jamba Juice. Jamba means to celebrate in Swahili. By mid-1996 the chain had 30 stores in California, 18 of which were owned by the company. In August 1997, Jamba signed a license deal with Whole Food Market of Austin Texas. Whole Food Supermarkets in Boulder, Colorado, and Tempe, Arizona, were the first Jamba Juice outside of California. However, the ultimate goal was to place a juice bar in all 75 Whole Food supermarkets across 17 states.
In early 1999, Jamba negotiated a merger with, Zuka Juice, one of their major competitors. Zuka helped Jamba to enter the Northwest as in Texas and Nevada.
Jamba started to open more outlets with major franchise partners. For example, Jamba’s Hawaii partner opened outlet in Hawaii, and joint Hartland Juice Company created to bring more Jamba Juice in Illinois, Minnesota, and Wisconsin. In January 2000, Jamba brought fast food executive Paul Clayton, to take over as a chief executive officer.
Jamba under Clayton started to offer catering services, with the name of Jamba Go Go, by teaming up with Waiter.com, an Internet ordering and delivery service. By the summer of 2001 Jamba chain had grown to 330 stores. In early 2002 when Jamba signed a licensing agreement with Sodexho, a major food and facilities management company, gave their plan on expansion a bigger boost.
In 2010, Jamba signed an agreement with SPC, a leading food company that has more than 4,500 retail locations, to develop more than 200 stores in South Korea within the next 10 years, and in January 2011 Jamba opened their first store in Korea. In addition, Jamba Juice and International Franchise, Inc. signed an agreement to open 125 stores in Canada over a 10-year period.
Today Jamba has 820 store locations globally, 300 of which are Company-owned 479 franchise in the United States, and 41 international stores in South Korea, Philippine, and Canada.

Products and Services
Jamba Juice has been a company since 1999 and in the last fourteen years Jamba Juice has made many changes in the products and services, which it offers to its customers. Jamba Juice is no longer just a smoothie shop offering smoothies; the company has been able to successfully transform the brand to more than just a one stop smoothie shop. Upon walking into a Jamba Juice, many products and services have changed, and many services have been discontinued as well. In 2007, a partnership with Nestle and Jamba Juice began. This partnership was for Jamba Juice to be able to use Nestle and, “distribute a line of healthy ready-to-drink beverages under the Jamba name.” (Duffy, 2013). This would allow the Jamba Juice brand to not only be able to have their smoothies and products sold in their stores, but also it enabled for the Jamba brand be more accessible and it was also a great tactic for Jamba to be able to raise awareness towards their brand. However, the partnership was a failure. Just a year after the announcement of the partnership was made, another announcement was made that the partnership had come to an end due to manufacturing issues. Rob Case from Nestle USA’s Beverage Divisions stated, “We have faced challenges recently with manufacturing on a consistent basis, resulting in inventory and out-of-stock issues. This is particularly disappointing given the strong reception we have received from consumers and customers alike” (Pulman, 2008). Jamba Juice did not allow this failure to get in the way of the growth of the business.
In 2009, Jamba Juice “used some proceeds from a $35 million stock sale to introduce food items ranging from sandwiches and salads to tea-based drinks” (Baertlein, 2009). These new offerings from Jamba Juice was and still is a part of the Jamba Juice, “Grab and Go” Line. Jamba Juice’s Grab and Go line was an important part of the business however now it’s not marketed as much as when it was launched in 2009. Jamba Juice has another focus in mind with the services in which it offers. It hopes to take over the school districts with the Jamba Go products. The Jamba Go is a self-serve smoothie concept. Since 2011, Jamba Juice according to Nation’s Restaurant News, “has already opened about 30 pilot locations of Jamba Go, which takes up roughly the space of a soda-fountain beverage dispenser. It offers branded packaged products as well as the option of several pre-blended smoothies that White said rival the blended-to-order quality of those made at the chain's retail outlets.” (Buss, 2011). Jamba Go is a great service, which is attempting to get real juice smoothies in school, so our nation’s younger generation can enjoy them. And with Jamba Catering, Jamba Juice enables the delivery of, “Delicious smoothies. Fresh baked goods. Scrumptious snacks”, to any business or even home (Jamba Juice).
In the future we will also be able to see more promotion of freshly squeezed to order Juices in Jamba Juice. Jamba Juice is no longer a smoothie brand. They have grown into more than just smoothies. “When you walk into a Jamba Juice you will see, energy drinks, Jamba Juice Popsicles, At Home Smoothie Kits, Trail Mix, Multi Grain Crisps and off course the Jamba Juice Boosts which can be added to you smoothie, and off course the first boost is free”(Jamba Juice). Jamba Juice is also for the future rolling out a payment via cell Isis and PayPal. Like Starbucks, scan to pay rewards system, Jamba Juice plans on growing its sells with the new payment system it will roll to customers (Heun, 2013). Jamba Juice has excelled throughout the years from their delicious breakfast which can be different bowls, oats or even coffee and a sandwich, to their freshly squeezed juices and smoothies. It is safe to say with the products and services that Jamba Juice is adapting to, they will be around for a long time. A successful business finds a void, and fills it and that is exactly what Jamba Juice has been doing throughout the years.

Financial Summary
In 1990, Jamba Juice started with just one store in California and has grown to over 800 stores globally. Their growth has been quite successful since 2008 when they suffered a huge decline and net loss of $149M. Even with a difficult third quarter in 2013, their growth continues. According to the chairman, president and chief executive of Jamba Juice, James D. White, “We faced a challenging quarter that was atypical of our past performance during which we had more than two years of same store sales growth. But we believe the setbacks will be transient while the growth prospects resulting from our achievements will be long term.” He goes on to tell about new products that will be coming out, the first drive thru store that opened, the JambaGO expansion and the ‘National rollout of the ISIS Mobile Wallet launch’. All of these things will definitely expand Jamba Juice’s reach to more customers and in return, increase revenue. Based on the most recent Jamba Juice (unaudited) financial statements, net income was $2.7 million and total revenue was $61.4 million. Both decreased compared to the prior years, but so did their expenses. Their current ratio is 98.5%. Their debt ratio is 125.5%. Their profit margin is 0.39%. Although these numbers and ratios may not be ideal, the Jamba Juice Company has many plans (as White states above) to turn things around. Along with expanding their menu, they are currently in the process of completing their goal of opening 60 – 80 new stores, including international stores. This year, in Las Vegas, Nevada, the first drive through location was opened. With the launch and continual installation of the JambaGo machines, net profit is expected to rise by $2K per machine annually. By the end of 2014, about 3,000 machines are projected to be installed; yielding an estimated $6M increase in net profit per year. In addition to expanding and increasing revenue, the Jamba Juice Company is also relentlessly looking for new ideas to decrease costs and expenses. From productivity and staffing enhancements to global sourcing and supply chain efficiencies to the use of innovative new technologies this company has a great potential for even more financial success.