10 of UK’s ‘best’ socially-minded digital start-ups selected for Wayra UnLtd incubator programme

Written by The Startups Team
Published on 16 August 2013

Digital social incubator Wayra UnLtd has today announced the 10 digital businesses that will be joining its academy this year.

The 10 start-ups were selected from a group of 20 socially-minded businesses following two days of ‘intensive’ pitching to a panel of business experts in order to gain a place on the scheme.

The winners, which include interactive toy site Karisma Kidz, featured in the 2012 Startups Top 20, will start at the academy in September and will receive approximately £40,000 funding each, mentoring and work space in its new London offices, situated above sister   scheme Wayra.

Sponsored by Telefonica and UnLtd, the accelerator seeks to reward businesses that have innovative solutions to social problems with help and funding to grow their ventures.

Earlier this year Wayra UnLtd raised £2.7m to fund the initiative, with £1.2m backing from the government’s £10m Social Incubator Fund and a further £1.5m from Telefonica.

Focused on a range of areas, the 10 winning start-ups are:

  • Discoverables
  • DNAdigest
  • Karisma Kidz
  • Know Maths (pictured)
  • Lingoing
  • MySupportAssistant
  • Provenance
  • Skin Analytics
  • StudentFunder
  • The DoNation

Minister for civil society, Nick Hurd commented: “There is no shortage of social entrepreneurs in the UK with the ideas to create successful businesses that improve lives and help people get ahead.

“We also have a talented and growing technology community in the UK. Wayra UnLtd is helping these two come together, harnessing the power of technology to create real change for people and communities.”

The announcement also marks the new addition of renowned angel investor Sherry Coutu to the academy’s board.

Coutu discussed her new position: “I am passionate about working with great entrepreneurs to solve problems that matter, and believe serving on the board of Wayra UnLtd will give me plenty of opportunity to indulge this.”

To find out more about the winners and Wayra UnLtd click here.

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Papa John’s extends network further with Sevenoaks franchise outlet

Written by The Startups Team
Published on 16 August 2013

Pizza delivery company Papa John’s has announced the opening of its latest franchise outlet in Sevenoaks, acquired by serial Papa John’s franchisee Jas Singh.

The Kent-based outlet is the fourth such store operated by Singh, who also owns outlets in Wellend, Sidcup and Belvedere.

Founded in 1984, US-based Papa John’s now has more than 200 stores across the UK and offers franchise opportunities for between £175,000 and £225,000, with particular opportunities in its key locations of Yorkshire, Manchester, West Midlands, East Midlands, South West, North East, Wales and Scotland.

The Sevenoaks outlet marks the 21st store opened in the UK this year, which has also seen Papa John’s begin a nationwide television advertising campaign to support its franchisees.

Anthony Round, business development manager for Papa John’s, said: “We are delighted Jas Singh has added Sevenoaks to his Papa John’s franchise operation.

“As a franchisee Jas is hands on, hardworking, and driven by customer service and standards.  Sevenoaks is prime territory with an excellent demographic, good market awareness and household count. Jas is now keen to serve-up top quality pizza and his thriving business into the area.”

For further information about Papa John’s franchises, click here.

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Domino’s franchise reports record growth with major increase in UK store and online sales

Written by The Startups Team
Published on 16 August 2013

Domino’s Pizza franchise group has today released a report that shows record figures for the first six months of 2013.

The report highlights strong UK growth with like-for-like sales up by 6.4% and a 10.3% increase on profits before tax, taking the total to £25.7m for January to June 30.

The leading pizza franchise, which operates over 10,000 stores across 73 countries, including new sites in Germany and Switzerland, has witnessed rapid expansion of its UK franchise sites. Offering franchise packages for £280,000, the chain has opened 22 new outlets across the country, taking the total to 825.

The pizza firm also recorded a boost in its online systems sales of almost 30%, growing from £121.2m up to £156.7m.

Lance Batchelor, CEO of Domino’s Pizza Group, discussed the results:

“The core UK and Ireland businesses  have shown strong like-for-like sales growth against challenging comparatives.

“Our franchise system leads the leisure sector and, with the majority of our business coming via a web and mobile platform, we are now truly an online retailer.”

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Managing sickness leave in the workplace: complete guide for employers

We explain how to write an empathetic, and legally-compliant, sickness absence policy to help employees with health problems stay in, or return to, work.
Grosvenor Birmingham office space
Written by The Startups Team
Published on 16 August 2013

You can’t expect workers to have a clean bill of health every day. Employees get ill – sometimes seriously. As an employer, you have certain obligations you must fulfil to ensure you are prioritising the health and safety of the workforce, and this can be one of the most delicate aspects of HR management to understand.

UK workers are among the healthiest in Europe. Research has shown we take an average of just 5.8 days of sick leave per year. But employers shouldn’t crack out the celebratory champagne just yet.

Behind this ‘low’ figure hides a concerning statistic. The average small business with a team of five is losing just under 30 days each year to staff illnesses – impacting productivity and cash flow at a time when SMEs are already struggling with limited resources.

Below, we’ll go through the causes, costs, and considerations for managing sickness leave. We’ll tell you how to make a sickness policy – including how to calculate Statutory Sick Pay – and offer tips on how to support and reduce the number of staff taking sick days.

This article will cover:

What is sick leave?

Sick leave is where an employee takes time off work because of sickness or ill health. In low doses, it is often barely a concern. But, when occurring frequently, it can signal an underlying issue that needs to be addressed.

Because sick leave tends to be an unauthorised absence – unlike leave for holidays, care duties, or training – it is arguably the most damaging to startups. The unpredictability has the potential to throw your carefully-laid growth plans off course.

Repeated absences can impact your team’s ability to work together, stalling productivity and output. Projects may be delayed or left unfinished, potentially causing missed deadlines and backlogs.

In industries with shift patterns, such as hospitality or manufacturing, staff absences might even disrupt the whole production line. Likely, this will increase the workloads for colleagues, leading to decreased morale and potentially elevated stress levels.

Long-term vs. short-term sickness

HR experts typically divide sickness leave into two distinct categories: short-term absences and long-term absences.

Short-term sick leave refers to employees taking odd days off due to common, non-threatening colds and flus.

Long-term sick leave is a different matter. This is for employees who are off work for more than four weeks in a row due to a health issue, such as if they are dealing with a cancer diagnosis.

These two cases are important to distinguish between. Those with long-term sickness may count as having a disability in law, which means they will have legal protections against discrimination at work.

How to craft an effective sickness leave policy

The first step to managing sickness absence is to design a sickness leave policy that considers both short-term and long-term sick leave.

This should be clearly laid out in your employee handbook, so staff can see the rules and procedures for managing, recording and reporting sickness leave, and include the following four elements:

  • Reporting procedures
  • Medical certification requirements
  • Payroll information
  • Return-to-work protocols

What to include in a sickness absence policy1. Reporting procedures

An employee who is off work due to sickness must notify their line manager or another relevant member of staff as soon as possible on the first day of leave.

Companies might specify a time of day that the employee must inform managers, for example before 9am. However, it’s best to be lenient when it comes to enforcing this rule, as you don’t want to be perceived as forcing an ill employee to come into work.

The employee should, however, provide a reason for absence, and (where possible) give an indication of the date they expect to be back at work.

Ensure that all personnel are aware of what communication channel they should use to send and receive sick leave requests. For example, you may choose to let them report via a messaging tool like Slack, or through a dedicated employee portal in your HR software.

2. Medical certification requirements

If an employee on short-term sick leave has been off work for more than seven days in a row (including non-working days like bank holidays or weekends) their boss is legally entitled to request medical evidence to confirm their leave.

If the employee will be paid Statutory Sick Pay, the employer should ask them to confirm they’ve been off sick. This is called ‘self-certification’ and can be done using the government form SC2.

If the employee is on long-term sick leave (they need or have had more than four weeks off work) the process looks different.

“Often long-term absences are related to a serious medical condition, surgery or illness,” says Sarah King, Employment Partner at Excello Law.

“As a result, it is more usual for employers to obtain a medical report to ascertain what support an employee will need when they return and also how long they may be off for. This is usually an occupational health referral and report.”

3. Payroll information

Statutory Sick Pay is the minimum amount employers must pay to staff members while they are away on sick leave. It is only given to employees who are unable to work because of illness for over four days in a row (including non-work days like weekends).

Some employers might choose to pay workers more than the statutory amount, and from the first day of leave. Information on what the employee can expect to be paid during their time off must be written into their contract or workplace policy.

It should also say in the contract or the organisation’s policy whether the first three days of sickness absence will be paid or unpaid.

4. Return-to-work protocols

You may wish to include guidelines on when employees on short-term sick leave should return to work. For example, specify they should do so only when they are physically and mentally capable of performing their role effectively.

The policy should also outline the procedure an employee needs to follow when returning to work after a long term sickness leave. This might involve a return-to-work interview with their manager or HR, confirming fitness for work, and any necessary accommodations.

Take note of what a person on long-term sick leave might have missed while away, and provide any necessary training or refreshers to help them catch up.

Legal rights for addressing excessive sick days

Sick leave is an inevitability when you’re running a business. The idea that you can stop your workforce from getting sick is just wishful thinking. If the COVID-19 pandemic has taught us anything, it’s that employers have to prepare for sickness absences to occur at any moment.

Occasionally, however, a time will come when a staff member begins to take an excessive amount of sick leave and action must be taken by management.

How many is ‘too many’ sick days?

There is no legal upper limit to the number of days an employee can take off from work due to short-term sick leave. That makes defining ‘excessive’ sick leave a tricky task for HR managers.

However, teams can create their own explanation of what is ‘acceptable’ sick leave using the Bradford Factor formula. This is a mathematical formula used in HR to measure and understand patterns in employee unplanned absences.

To use the Bradford Formula, you should times the total number of absences (not including statutory leave like carer’s leave) for an individual in a year (S) by two. Then, multiply this figure by the total number of days absent (D).

For example, if the employee is absent twice in 52 weeks, each period lasting for five days, their Bradford factor score would be 40, because (2 x 2) x 10 = 40.

When defining what makes a ‘good’ Bradford factor score, versus a ‘bad’ score, HR teams should work from the basis that:

  • Over 100 = threshold for concern
  • Over 150 = managers should begin monitoring the situation
  • Over 200 = action should be taken

Can I fire an employee for taking too many sick days?

Businesses do have certain rights and options when addressing excessive sick leave. But they must approach the situation carefully and within the boundaries of the law.

As we’ve explained above, employers have the right to ask for evidence, like a medical certificate, if an employee is off sick for more than a certain number of days. Staff who take regular sick days without a fit note or disability could be in breach of an employment contract if it is felt they are not genuinely unwell.

You can instigate formal disciplinary procedures if an employee appears to be misusing sick leave benefits. Sometimes, this may even lead to termination of a contract. However, bosses should exercise caution before taking such extreme steps.

“Dismissing an employee for long-term sickness or frequent absences is possible,” says Mike Smith, Head of Public Relations at BusinessExpert.

“Still, you must ensure the decision is fair and justified and that all possible accommodations or adjustments have been considered. Make sure to also seek legal counsel when considering such decisions.”

Another key point to remember is that all discussions with employees must be fully documented. Ensure that whatever warnings made or feedback given are paper-trailed so that the employee understands the process and to prevent disputes arising down the line.

Dismissing a long-term sick employee

In some cases, the employer will not be able to sustain the long-term sickness absence of an employee indefinitely, and a return to work will become impossible.

In this scenario, managers should seek to dismiss the employee for medical capability. However, make clear in the sickness absence policy that dismissal will only be considered once all reasonable attempts have been made to facilitate a return to the workplace.

Not to do so risks the employee choosing to take their case to an employment tribunal if they think they’ve been unfairly dismissed.

What is Statutory Sick Pay (SSP)?

Statutory Sick Pay (SSP) is a payment made by the employer when a staff member goes off work because of ill health. SSP is paid out in the same way as wages – just as with other statutory leave payments like maternity pay and paternity pay.

As of April 2023, employees claiming SSP will get up to £109.40 per week, up to 28 weeks, if they are too ill to work.

As an employer you’re responsible for paying SSP to staff members who meet certain conditions (although many businesses choose to offer full pay as a perk for staff).

To qualify for SSP, the employee must:

  • Be an employee (or an employed agency worker) at your company
  • Be incapable of working for at least four days or more in a row – also known as the ‘period of incapacity for work’ (PIW)
  • Work at least one Qualifying Day (QD) in each week
  • Earn at least as much as the lower earnings limit (LEL) for National Insurance contributions (NICs), currently £123 a week.
  • Have self-certified as sick – either within your own time limit or within seven days of the first day of sickness

When do I pay SSP?

An employee telling you they are sick is the starting point for SSP. However, you won’t start to send SSP straight away.

The first three QDs that a person is off sick are called ‘Waiting Days’. SSP is payable from the first QD after the three Waiting Days.

Statutory Sick Pay SSP when to pay

Remember that if an employee has worked for even one minute before they go home sick – even if they just log on to send an email before signing off early – then you cannot count this as their sick day. Sick leave will instead begin the day after.

How to check eligibility for SSP

To check if the employee is eligible for SSP, HR teams need to first work out their ‘relevant period’. All earnings made in this time will be divided by the number of days, weeks or months in that ‘relevant period’.

Regulations define the ‘relevant period’ as the period starting eight weeks before the first complete day of sick absence.

For an employee who is paid weekly, the employer should work out Average Weekly Earnings (AWE), by dividing their total earnings during this time by eight (the number of weeks in the relevant period).

Example: an employee is paid weekly every Friday. Their first full day of sick absence 07/11/23. The relevant period is therefore from 08 September to 2 November.

£1,500.00 (total earnings) ÷ 8 = £187.5

For an employee who is paid monthly, the employer should work out Average Weekly Earnings (AWE), by dividing their total earnings during this time by two (number of months in the relevant period), multiplying by 12 (number of months in the year), and then dividing by 52 (number of weeks in the year).

Example: an employee is paid monthly on the last working day. Their first full day of sick absence 11/11/17. The relevant period is therefore 1 September to 31 October.

£1,500.00 (total earnings) ÷ 2 = £750.00

£750.00 x 12 = £9,000

£9,000 ÷ 52 = £173.07

In both of the above cases, the employees would qualify for SSP as they have earned at least £123 a week.

How to calculate SSP

Once you know if the employee is eligible for SPP, it is time to calculate how much their payment will be. This can be done using two calculations:

SSP weekly rate ÷ total qualifying sick days = SSP daily rate

SSP daily rate x eligible sick days = total to pay in SSP

Example: an employee has a total of seven days off sick from work. They can be paid SSP for four of those days. In total, they will receive £62.48 in SSP. Here’s how we worked that out:

£109.40 ÷ 7 = £15.62

£15.62 x 4 = £62.48

Payroll teams should treat SSP just like any other wage payment, and make deductions for PAYE, NICs, pension contributions, and Student Loan deductions.

When do I stop paying SSP?

SSP usually stops being issued once the employee returns to work. Calculate if any SSP is still owed to them for days of sickness before they return to work and pay it on their next normal payday.

If your employee is long-term sick, and still off work when you have paid SSP for 28 weeks, fill in form SSP1. Send it to your employee no later than seven days after the day on which their entitlement ended.

Your employee will need to use form SSP1 to claim Employment and Support Allowance (ESA).

How do I record SSP?

Businesses do not need to keep records of SSP paid to employees, but you can do so if you wish. Record keeping may prove helpful if there’s a dispute over payment of SSP, as HMRC may ask to see evidence of any sick leave payments made.

🚨 Employers failing or refusing to issue statutory payments to staff could incur a civil penalty of up to £3,000.

How to support employees on long-term sick leave

Employees facing serious and ongoing health concerns will likely feel stressed about the impact on work, or anxious about how their employer may respond to their period of absence.

Here are four examples of measures that a company could introduce to help support employees struggling with long-term sickness

  1. Design clear policies and a communication plan: a thorough and supportive sickness absence policy that outlines the requirements, expectations, and available support, will help to keep information transparent and ensure long-term sick employees feel supported.Third-party support partners, such as Kiteline Health, can help employers to better support the wellbeing of their most vulnerable staff, by accessing training for line managers and distributing expert information from a professional health coach.
  1. Health and wellbeing initiatives: Implement programs that promote physical and mental wellbeing such as wellness workshops, stress management seminars, and access to an Employee Assistance Program (EAP). Request regular medical updates (with the employee’s consent) to stay informed about their condition and progress, which can help in planning for their return.
  1. Maintain an open dialogue: An open and supportive work environment will ensure employees feel comfortable discussing health concerns with their managers or HR. Managers should engage in regular communication with the employee to show concern. Ensure the individual still feels connected to the workplace, and don’t exclude them from invites to company events, newsletters, or team updates.
  1. Introduce new working arrangements: The employer should also make changes to an employees’ work environment or pattern in order to accommodate their return. Known as ‘reasonable adjustments’, the most common tweaks include introducing flexible work arrangements, or adapting equipment employees use at work.

If necessary, collaborate with the employee’s healthcare provider to develop a plan that outlines necessary accommodations, adjustments to workload, and a phased reintegration.

Tips for reducing short-term sick days amongst staff

According to official government figures, an increasing number of sick days are due to mental health, including depression and anxiety, as growing levels of workplace stress lead to poor employee health and wellbeing.

Rob Fisher is Managing & HR Director at Strategi Solutions. Fisher advises: “Managing absence should always be seen as remedial not punitive. Creating an environment where people are supported will mean that people feel more likely to want to attend work regularly.”

Here are four measures you can take to reduce the risk of staff taking excessive short-term sick days:

  1. Review employee workloads: Bosses and managers should adopt an empathetic leadership style when managing sickness absence. If you are concerned an employee may be taking excessive leave, review their workload before taking any formal action. Encourage them to raise concerns if they feel under too much pressure.
  2. Encourage holidays: All employees can get up to 5.6 weeks’ paid holiday pro-rata. Encourage workers to use this time, and take regular rest breaks throughout the year to ensure they do not feel burnt out or overwhelmed by their workload.
  3. Review your benefits package: Stephen Woodhouse, an employment law solicitor at Stephensons, recommends teams seek to introduce employee benefits and perks to alleviate the problem.“Introduce a mental health day that an employee can use at some point in the year. Agile working may help employees to juggle other commitments, health needs, or a gruelling commute. Even small changes can make a significant difference,” says Woodhouse.
  4. Invest in ergonomic furniture: This might sound like a curveball, but labour market figures also show that musculoskeletal problems caused 10.5% of sickness absences in 2023. Purchasing health and safety conscious furniture – particularly for home workers – could have a positive impact on reducing sickness absence.

Discouraging presenteeism in the workplace

One challenge for small employers is to avoid combating sickness absenteeism in the workplace by encouraging presenteeism. This is where staff don’t take time off because they feel like they’ll be in trouble or will affect their future career prospects.

Presenteeism is an issue because it does not lead to a more productive workforce. Staff may be turning up at their desks, but if they feel ill or burnt out, they could end up doing more damage by taking a longer amount of sick leave down the line.

Organisational culture is a factor here. Employees working within a supportive environment where managers seem to care about their wellbeing will be much less likely to misuse their sick leave allowance.

“An engaged and motivated workforce will have a healthy sense of loyalty to the business,” explains Mandy Watson, Managing Director at Ambitions Personnel. “In return, the business values their health and wellbeing and that they won’t be penalised for genuine time off.”

Conclusion

Sickness absence is a delicate issue for employers to handle. No-one wants to be seen as penalising staff for ill health, but the risks of repeated absenteeism – such as reduced productivity and heightened stress for colleagues – are too great for employers to ignore.

As industries struggle with a tightened labour market, employers need to strike a delicate balance between their productivity demands and the wellbeing of personnel.

Approaches should encompass clear communication, adaptable policies, and a genuine empathy for the individuals involved. This will foster an environment where both employee rights, and business continuity, are protected – building a healthier, more resilient workforce.

Sickness leave FAQs
  • Can a manager refuse a sick leave request?
    As the employer, you cannot stop an employee from taking sick leave. However, if they do not comply with their requirements for reporting sickness, as laid out in your sick leave policy, then you can take disciplinary action against the individual for breaching the terms of their employment contract.
  • Can an employer sack me for being off sick?
    If you are suffering from a long-term illness that makes it impossible to do your job, your employer can terminate your contract. However, before this, they must provide evidence that they have made all reasonable attempts and adjustments to facilitate a return to the workplace, or they could be found guilty of employee discrimination.
  • Can you get sacked for lying about being sick?
    If an employee is found to have been dishonestly taking sick leave at work, this will usually amount to misconduct or gross misconduct. This likely end result is an investigation and disciplinary measures.
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International tool distributor extends network with three new franchisees

Written by The Startups Team
Published on 16 August 2013

Mark Willgoose (pictured), Andy Flynn and Chris Wood are the newest franchisee recruits to join mobile tools franchise, Mac Tools, part of the £7bn global organisation Stanley Black and Decker.

The new franchisees are now providing tool specialist services to Chesterfield, Stroud and Darlington, joining an existing network of over 115 UK franchisees.

Former sales manager Willgoose, of the Chesterfield territory, made the decision to join the brand after becoming a father and seeking a career change to support his new circumstances:

“The Mac Tools package is a great opportunity to earn a good living. The training was very good and the on-going support is just brilliant.”

Similarly ex-army diesel fitter, Flynn of Mac Tools Darlington, along with field service technician, Wood of the Stroud territory, were also looking for new career paths and are now enjoying being their own boss.

Currently achieving 25% year-on year growth, Mac Tools has franchise packages available for £50,000 which includes a fully-fitted van, starter stock and working capital.

The brand also provides franchisees with an on-going training programme which includes support from its regional franchise manager as well as continuous on-the job training and advice.

Commenting on his new venture with Mac Tools, Flynn said:

“It really fitted my profile and I knew the products were great. It was like starting a new era when I picked up my van last week.  I am out on the road at the start of something new and exciting.”

Wood added:  “As a mechanic I always used the Mac Tools brand so I believe in the product I’m selling 100%.”

To find out more about becoming a franchisee for Mac Tools, click here.

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Original Poster Company franchisees acquire new site

Written by The Startups Team
Published on 16 August 2013

Franchisees Michael and Claire Welham of greeting card distribution chain the Original Poster Company (OPC) have acquired a second territory adjacent to their current Twickenham/Kingston site.

Based in South West London, the husband and wife duo claim the new site will enable them to build on the success of their first franchise.

With backgrounds in fashion management and motorisation, the couple originally became franchisees for the greetings card franchise in 2010 with the aim to utilise their merchandising and commercial skills and gain a better work-life balance.

Established in 1991, OPC claims to be the world’s largest greetings card franchise providing its franchisees with a home-based working system and business development managers to provide sales support and advice.

Franchise packages are currently available for £33,000 plus a £3,000 licence fee in 75 sites across the UK and Ireland.

Commenting on the purchase, Claire Welham said:

“The South West London territory has a lot of development potential and it has a really big border with our current territory in Kingston. So it made a lot of sense for both of us to buy the territory to further expand our business.

“With our new territory it’s now all about building relationships and trust with the national account managers in the area to start stocking our cards in more stores.”

To find out more about becoming a franchisee for OPC, click here.

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Johnson and Johnson Innovation call for digital health start-ups to join new programme

European scheme offers 20 businesses the chance to win a share of €50,000
Written by The Startups Team
Published on 16 August 2013

Johnson and Johnson Innovation has launched a new mentoring programme, the Digital Health Masterclass, with places available for 20 digital health start-ups across Europe.

Created in partnership with Janssen Healthcare Innovation and led by wellness experts, the scheme is looking for disruptive companies with solutions for the healthcare sector.

Kicking off with the first of three workshops on September 18, the programme claims to provide a springboard for online health businesses to grow, with a second workshop in Barcelona and the culmination of the programme in London.

Successful applicants will receive mentoring and advice through targeted seminars led by a group of ‘international influencers’ and will have access to networking opportunities with potential business partners.

The 20 chosen start-ups will also be invited to pitch their business models to a panel of investors at the final London event and the three most convincing entrepreneurs will receive prizes of £30,000, £15,000 and £5,000 to accelerate growth.

The scheme follows industry giants Johnson and Johnson’s campaign for innovation which aims to advance healthcare on an international scale by collaborating with experts and entrepreneurs in science and technology.

Applications for the Masterclass close on August 9, to apply click here.

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Marston’s Pub Franchise: The franchise opportunity

Written by The Startups Team
Published on 16 August 2013

Franchise: Marston’s Pub Franchise
Description: Marston’s franchise opportunities are established pubs located in the heart of thriving communities
Started in: 2011
Founders: Marston’s PLC (Public Limited Company)
No. of franchises: 50-100 available in 2017
Coverage: National
Average cost per franchise: £25,000 franchise fee + £20,000-£25,000 working capital required
Website: www.marstonsfranchise.co.uk

With an average annual turnover of £680m and a total estate value of over £2bn, Marston’s are the UK’s leading independent pub retailer and brewer. A truly national operator, the chain has over 1,500 pubs situated throughout the UK, of which over 60 are currently franchised. With over 130 years of successful pub retailing and a solid track record in transparent and ethical franchising, they are the only pub company to hold full membership status of the British Franchise Association.

Offering a fully inclusive start-up and on-going support package from day one, which includes rent free, on-site accommodation, Marston’s is a franchise opportunity with plenty of potential. You’ll take over the reins of an established pub business equipped with a full inventory package, and Marston’s will provide you with a comprehensive induction and training programme to ensure that you hit the ground running.

Here, Marston’s tell Startups.co.uk more about their innovative franchise model, the attributes of a perfect franchisee, and their plans for continued growth.

Moving into franchising

So how did Marston’s move into franchising?

Following on from the successful development of an innovative new Retail Agreement in 2009, Marston’s was awarded full member status of the British Franchise Association in 2011 which has resulted in this exciting proposition for potential franchisees. It was a natural step in the evolution of the business, demonstrating our novel approach and continuing commitment to the food and drink industry. In short, it enables us to take the real and genuine prospects offered by the licensed trade to a whole new prospective audience.

The franchise opportunity

What makes the franchise different / unique?

To start with it is innovative and straightforward. Franchisees are encouraged to focus on the really important things – like building the reputation of their business and driving sales – as they are not expected to carry out the day to day chores such as paying utility bills, building repairs and the sourcing of suppliers. And with an income that based on an agreed percentage return on turnover and in some cases, profit – we think it’s a formula that’s hard to beat.

What services do you offer?

Good quality food and drink, combined with fantastic service, served in friendly and welcoming surroundings. Our franchisees will have a unique opportunity to place their pub and themselves at the hub of the community.

How big is the market opportunity?

The market opportunity in our opinion is very significant, which is substantiated by the level of time, commitment and expenditure we are continuing to invest in our franchise estate.

How is the brand marketed?

As you’d expect with a leading company, all of the parameters and budgets are in place to continuously promote and market our brand. National, trade and local advertising is complemented by sole and joint sponsorship agreements with major organisations, ensuring the Marston’s brand maintains a highly visible profile and presence. On a very local level this is supplemented by a range of individual promotions designed to increase footfall and sales.

The perfect franchisee

What is Martson’s looking for in potential franchisees?

Our franchisees are the single most important factor in determining our success as a business and in cultivating our brand – but there’s no such thing as the perfect model for one of our franchisees. Just like our customers, our franchisees vary in terms of their backgrounds, although they all share the same qualities – namely a genuine customer focus and true service ethos, coupled with a real entrepreneurial spirit and the desire to succeed. However, over and above this, they all have one outstanding characteristic in common, which is the realisation that the more effort they put in, the more they can take out. The prospective earnings figures speak for themselves – it really is as simple as that.

Our unique proposition means that not only do our franchisees have the opportunity to run a successful and profitable business; they can also build a fun and fulfilling lifestyle in which strong customer relationships, involvement in local events and activities, entertainment, socialising and a busy, vibrant atmosphere all play a key role!

Is it home-based? Part-time / full-time?

Many of our franchises provide live in accommodation and it would be a full-time role.

How are franchisees vetted?

We have a robust recruitment process in place that can take between three to six months. Candidates are expected to meet with a range of people from our senior franchise team and produce a thorough business plan based on detailed research.They also have the opportunity to attend one of our Discovery Days and meet with some of our current franchisees. Alongside this, we offer a business experience course at one of our centres of excellence which provides an insight into what running a Marston’s Franchise is all about and allows candidates to decide if life in a busy community pub is definitely for them.

What do you offer franchisees that sign-up?

Marston’s franchisees will receive:

  • Five year renewable term in an established community pub business
  • Fully equipped inventory package including kitchen equipment and EPOS system
  • Robust induction and training provision
  • Comprehensive operating manual
  • Dedicated area operations manager to support you with all aspects of planning, promoting and running your business
  • Operating audits and mystery shopper visits to ensure your business is on track
  • Twice yearly menu development
  • Marketing materials for all central promotions
  • Utility bills, building repairs, consumables and business rates all paid for by us (you pay only for your council tax, telephone line and business insurance)
  • Advice and support to build an online presence for your business
  • Ability to sell the business on at any time (subject to certain criteria)
  • Access to a range of online support mechanisms including payroll system, print shop and our comprehensive business support tool ‘My Marston’s’.

How much do franchisees pay and what are the ongoing franchise fees?

Franchise costs are as follows: £25,000 franchise fee + £20,000-£25,000 working capital required.

How do franchisees finance the purchase – what arrangements does Marston’s have in place with banks?  

Franchisees are required to organise their own funding.

Success and growth

How is the brand looking to grow?

We anticipate that our franchised estate will continue to thrive and expand, and hope to support our franchisees to progress from single sites to owning territories.

What is the potential of the business?

The potential of any individual business is as big as our franchisees want to make it. They will have the benefit of a famous brand and all the resources of a publically quoted company behind them, giving them every opportunity to grow both the customer base and the business on a local and wider basis.

What will the challenges be in achieving that?

Like the challenges many businesses face in today’s economic climate, the key to success will be for our franchisees to differentiate their proposition from the competition. By combining our support, guidance and knowledge, with their undoubted drive and hospitality skills, we believe together we can deliver a fantastic customer experience and ultimately build a successful franchise business that will provide a good living and income.

What awards has the business won?

Marston’s have consistently received recognition and won many accolades on a national and regional basis for our practices, products, people and training measures, which was highlighted by our success in winning the coveted ‘Pub Company of the Year’ award in 2011.

Finally, is the company a British Franchise Association (BFA) member?

Yes, full membership (first company in the pub industry to obtain this level of membership).

Click here to register your interest in Marston’s franchising.

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Costa Coffee expands franchise network across North West England

Franchisee Optimum Coffee Group aims to increase turnover by £1m in next 12 months
Written by The Startups Team
Published on 16 August 2013

Global coffee franchise Costa Coffee has opened three new stores in the Merseyside area following a £1m investment by Yorkshire Bank into existing franchisee Optimum Coffee Group.

Optimum, who has been a franchisee of the coffee chain for seven years, will be opening the new outlets in St Paul’s Square and Allerton in Liverpool as well as Sale in Manchester.

It claims the expansion will increase its £6m turnover by £1m and will create over 50 new jobs.

Running 17 Costa stores across the Merseyside area, the new sites follow the franchisee’s aim to open further outlets in the region over the next year.

Launched in 1971, Costa now has 1,300 stores across the UK with continual plans for expansion. The coffee brand is looking to grow its market presence with corporate and international franchising opportunities available.

Managing director of Optimum, Mark Bryan commented on the opening:

“Our strategic objective is to become the country’s largest Costa Coffee franchisee in the next five years.

“Our group has seen total sales increase by 28% in 2012/13 due to organic growth, and we are confident in our strategy to take the business to even higher levels.”

Mike Scott, relationship manager at Yorkshire Bank’s Liverpool Banking Centre added:

“The branded coffee retail sector continues to present significant opportunities for further profitable growth and the bank was keen to help Optimum take another major step along the route to sustainable expansion.”

To find out more about Costa’s franchise opportunities, click here.

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Quantock Brewery exceeds target with £120,000 Crowdcube funding

Written by The Startups Team
Published on 16 August 2013

Somerset-based Quantock Brewery today completed a successful round of Crowdcube investment, beating their original funding target of £100,000 to raise a total of £120,000 through the crowdfunding platform.

The brewery, founded in 2007 and based in Somerset’s Quantock Hills, brews real ales for cask and bottle using traditional techniques. The company’s proposition proved popular with Crowdcube users, receiving backing from 129 investors.

Quantock’s backing brings the total invested through the site to £9.6m through 56 funded pitches.

Food and drink remains the most popular sector for investment on the platform, accounting for £4.1m of investment through 18 funded pitches with drink brands making up £3.2m of this amount.

Rob Rainey, founder of Quantock, commented on the investment: “In the past getting money to grow the business has been a tedious process using traditional routes and it’s so refreshing to discover crowdfunding.

“We are delighted that the bid has attracted so much interest that we’ve ended up with an extra £20k and a great loyal following. This will help us to expand the brewing capacity and our sales and marketing territory. We have initial enquiries for retail and export which are exciting opportunities.”

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New crowdfunding platform InvestingZone launches with City backing

Written by The Startups Team
Published on 16 August 2013

Influential City investors today announced the launch of new crowdfunding service InvestingZone, which they claim will address the funding gap left by banks and professionalise the crowdfunding sector.

Developed by E-Synergy founders Jean Miller and Richard Brockbank and backed by high-profile City figures including Better Capital chairman Jon Moulton, the launch of the platform marks the UK’s first venture capital service where the directors have direct venture capital expertise.

The service will be built around a mobile and tablet app which will allow private investors to buy shares in unlisted early-stage companies on the go.

InvestingZone will also allow participants to take advantage of lucrative tax incentives including the Enterprise Investment Scheme (EIS) and Seed Enterprise Investment Scheme (SEIS).

The service is intended to provide a more ‘professional’ alternative to platforms such as Crowdcube and Seedrs, which focus their marketing more on ‘armchair investors’ from the general public.

Founders Jean Miller and Richard Brockbank are experienced in the investment field having founded start-up focused venture capital firm E-Synergy, which has now financed more than £100m of deals over ten years.

E-Synergy will vet and approve the companies seeking to use InvestingZone to raise finance which it claims will ensure that firms with a misleading, unclear or unfair business proposition are not featured.

Jon Moulton, chairman of venture capital firm Better Capital and one of the backers of the platform, said: “The market is ripe for crowdfunding.  A real opportunity for a new method of raising money at a sensible cost has appeared.

“Poor returns on savings, coupled with great tax incentives, can make unlisted equities an attractive proposition. Good UK prospects are going unfunded. InvestingZone can bridge this gap to connect investors with opportunities.”

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Mac Tools expands reach with four new franchisees

Written by The Startups Team
Published on 16 August 2013

Tool distributor franchise Mac Tools has announced the addition of four new franchisees to its UK network in territories across the state.

Franchisees Alex Wray, James McMurdo, James McCue and Steve Davis have completed their initial training with the Mac Tools network, in which franchisees sell a range of tools and equipment to trade businesses in their territory.

Mac Tools is part of US trade equipment giant Stanley Black and Decker, which employs more than 30,000 people worldwide and is valued at more than £7bn.

Over the last three years Mac Tools claims it has achieved year-on-year growth of 25% in a sector largely considered to be a flat market.

A Mac Tools franchise costs £50,000 which incorporates the cost of the stock as well as business and marketing training and continuing support from a business development manager.

Steve Davis, new Mac Tools franchisee for Worksop, said: “The initial training was very informative and has really increased my confidence in my abilities to run my own business.

“The ongoing support has also been very good. My business development manager is really helpful, he comes out on the road with me and we get along really well.”

James McMurdo, new franchisee for Dunbarton, added: “I was made redundant from my last job and so I applied for a variety of jobs but also looked into running my own business.

“When I found out about Mac Tools and learned more about the business model, I knew that’s what I wanted to do. I know that with the backing of Mac Tools and a lot of hard work I will be successful.”

For more information on becoming a franchisee call 08450 6000 60 or email franchise@mactools.co.uk.

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Papa John’s extends network with two new franchise outlets

Written by The Startups Team
Published on 16 August 2013

Pizza company Papa John’s, which claims to be the third largest in the world, has added two new franchise outlets in the West Midlands to its growing network.

The openings in Birmingham Central and Brown Hills, Walsall form part of the pizza chain’s plans to expand its brand across the UK having recently recruited a new franchisee in Southend.

The pizza chain expects to open more than 100 new stores in the next few years following its recent $2m incentive which offers franchisees launching this year a free oven and point of sale system plus a £10,000 marketing package.

Opportunities are available for potential franchisees throughout the UK, with prices starting from £175,000 to £225,000, across its key sites of Yorkshire, Manchester, West Midlands, East Midlands, South West, North East, Wales and Scotland. Franchisee for the new Brown Hills store, Tony Kular, who already owns four other Papa John’s outlets commented:

“We are delighted to have been able to open our fifth outlet in Brown Hills to supply top quality pizza to the local community.

“From a business point of view the franchise offers an excellent opportunity to run an expanding business and we are looking forward to further growth through new outlets in the future.”

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Scottish property lettings chain seeking franchisees

PHP Lettings expanding UK franchise network to meet “growing demand” for rental properties
Written by The Startups Team
Published on 16 August 2013

Scotland-based property lettings franchise PHP Lettings is looking to recruit a series of new franchisees to support its UK expansion.

Founded in 2002 by Kim and Gary Harrison, the lettings franchise says high-demand from landlords and tenants for rental properties has prompted the move.

Accredited by the British Franchise Association, the rental franchise specialises in matching its tenant clients to it database of landlords and says franchisees experience high levels of recurring income and repeat business.

With established offices in the Scottish cities of Moray, Inverness and Edinburgh, the chain is looking to extend its offices outside of Scotland.

With the option for franchisees to choose from a home-office based model, a serviced-office model or a shop-front office, franchise packages are available from £5,995 to £10,000 plus VAT and start-up and back office support, training and specialised software and IT systems will also be provided.

Existing franchisees, Alex Macleod and Kerry Nicholas, who joined the chain in 2011, opened their Inverness site in 2012 and have already achieved their annual target for year one, increased employee numbers and are now planning to purchase another PHP franchise territory.

Kim Harrison, who recently became a licensed member of the Association of Residential Lettings Agents, commented:

“The UK rental market is currently booming so there has never been a better time to consider starting a property lettings business.”

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Global IT training specialist announces franchise opportunities

Written by The Startups Team
Published on 16 August 2013

Global IT training chain New Horizons has announced UK-wide franchise opportunities.

Founded in 1982, the training franchise currently has 300 centres in over 60 countries. After recent success with its flagship London franchise, the brand is looking for highly qualified and experienced business professionals to further develop its presence within Britain.

The franchise specialises in providing small and medium-sized businesses as well as established firms with IT advice, guidance and career development.

Franchisees will be given an exclusive territory in a major city within the UK and units are available for a minimum of £20,000, with total capital needed estimated at £96,000.

Franchise packages offer an award-winning training programme, including access to various e-learning resources, as well as free training for any franchisee’s employees.

The company also offers ongoing support via online events and annual conferences where franchisees are encouraged to develop their skills.

Scott McDaniel, international development director for New Horizons commented:

“New Horizons’ UK expansion provides an excellent opportunity for those looking to develop a franchise business. It also means new jobs for communities in each new training centre, which we are particularly pleased to be supporting.

“We’re looking to partner with like-minded companies and professionals who are passionate about growing their business and achieving financial freedom whilst at the same time helping others to succeed.”

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Dragon Peter Jones launches Tycoon in Schools 2013

Written by The Startups Team
Published on 16 August 2013

The Tycoon in Schools competition led by BBC Dragon’s Den Peter Jones CBE and the Peter Jones Foundation has opened for its second year.

Run last November and backed by the Department for Business, Innovation and Skills (BIS), the competition aims to promote enterprising activity in children and schools. Pupils aged 11 to 18 will once again be challenged to start a business and make as much profit as possible within one month.

Applicants must register online where they will then pitch ideas to their tutors and the best business plans will be submitted to the Peter Jones Foundation with the chance to gain a £1,000 loan to launch their business models.

Jones launched the competition after Tenner Tycoon, which started as Make Your Mark with a Tenner, was suspended last year. It follows last year’s success where over 500 children and 100 teams competed, with the overall prize for Ultimate Tycoon in Schools awarded to 14 year old Eleanor Bullough for her eco-friendly paper garland business at the ceremony held at Buckingham Palace. This year there is an increased emphasis on getting more school children to take part with new funding of £50,000 from the BIS.

Winners will be assessed in five areas; profit, the business concept, leadership, sustainability and community engagement.

‘Trading’ will begin from November 4 to November 29 with the overall Tycoon in Schools winner announced in January 2014.

Peter Jones CBE commented on the launch:   “Last year’s Tycoon in Schools competition was a huge success, and I am more determined than ever to ensure that enterprise and entrepreneurship remains a key focus of Britain’s education system.”

He added:   “I was thrilled with how many teams got involved last year and hugely impressed by their enthusiasm throughout the competition – I can’t wait to see the new businesses and young entrepreneurial talent that emerges this year.”   Entries close on September 9.

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UK franchise Baguette Express announces global opportunities

Sandwich franchise looking to expand on a national and international level
Written by The Startups Team
Published on 16 August 2013

The sandwich chain Baguette Express, which has a network of over 70 stores in the UK, has announced global opportunities for potential new master franchises.

Aiming to develop its international presence, the sandwich business is looking to expand into Europe, Asia, Russia and South Africa.

Claiming to provide fresh, healthy, high quality food products, Baguette Express are offering country master franchise licences from £150,000 to £350,000 with additional working capital required to grow the business.

The franchise also has various opportunities for new franchisees in the UK in areas such as Greater London and Liverpool, ranging from £81,000 to £131,000.

New franchisees will be offered training and operational and marketing support.

Founded in 1999 in Scotland by brothers Robin and Billy Stenhouse, the announcement follows the baguette company’s recent growth having opened new stores within Surrey, Liverpool and Preston and appointing master franchisees in the Republic of Ireland and Dubai.

The franchise has also recently developed a concession model within shopping centres and business parks and has invested in a new till system that enables analysis of takings and shop trends remotely.

Robin Stenhouse commented:

“Since establishing our first shops in 1999 we have proven the Baguette Express business model is sustainable and profitable.

“Having appointed master licensees recently in Republic of Ireland and Dubai we are now ready to take our business to new international markets and we are looking for well-motivated, ambitious and determined partners to become master franchisees.”

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What is asset finance?

Written by The Startups Team
Published on 16 August 2013

Startups.co.uk is reader supported – we may earn a commission from our recommendations, at no extra cost to you and without impacting our editorial impartiality.

In order for your business to grow, it is likely that you will need to make a significant investment in a new asset. This could include the purchase of new computer systems and software, new machinery and equipment, or a new motor vehicle such as a van.

As a start-up or small business you are probably looking at the price of your new asset and wondering how you are going to afford the one off, large payment required to make your purchase. This is where asset finance can help.

With asset finance packages such as leasing and hire purchase, you can break down the payment of your assets into monthly bite-sized chunks through small business invoice factoring. This makes the investment much more affordable and has less of an impact on your cashflow.

What is leasing?

Ownership:

With leasing, you are paying for use of the asset and do not own it at any point.

Deposit:

You are not usually required to provide a deposit. Leasing is simply paying monthly to make use of an asset. You will be tied in for a certain period of time, anything from one month to two years.

By paying monthly, you are avoiding the one-off cost of having to purchase the asset as a whole. With leasing, you never actually own the asset yourself as you are simply paying to use it.

Advantages of Leasing:

  • At the end of the contract you can simply renew the lease contract, or you may be offered to purchase the asset so you become the owner.
  • You will be able to always stay up to date with the latest version of your asset, for instance after an 18 month contract, when your machinery is out of date and the contract comes to an end, you can take out a new lease with the latest machinery that is available. This may significantly impact on the quality of your product/service you can offer to your customer.
  • Some leasing agreements also offer a full service package which can include repairs and replacements, saving you money and time when things go wrong as the leaser will have responsibility for the asset’s upkeep.

What is hire purchase?

Ownership:

Once the contract is fulfilled, you are the owner of the asset.

Deposit:

You will likely be charged a 10-20% deposit of the asset’s value. Hire purchase is similar to leasing in the sense that you make monthly payments, however there is one major difference – you own the asset at the end of the contract. This breaks down the cost of your investment so that your cashflow can cope more comfortably by spreading out the cost.

However, you will need to consider that the cost of the monthly repayments, plus the interest, will result in you paying back as much as 25% more than the asset is worth. You will also need to have access to the deposit money required up front.

Advantages of hire purchase:

  • You do not need to take out a loan, overdraft or favour from your family to find the cash lump sum you require up front to pay for an asset – you will be able to pay for the asset in affordable monthly repayments.
  • You do not require any security or collateral to secure an asset finance deal such as hire purchase.
  • Once the contract is paid off, you will be the owner of the asset. This means you can later sell the asset for a lump sum. Remember though, the price will likely be less than you paid throughout the entire hire purchase facility as depreciation occurs and new models of the asset will subsequently have been released. However, you will at least receive some return for your investment in the asset, unlike leasing.
  • Finance charges for assets are tax deductable which effectively means that the tax man is financing some of the asset for you.

What are the costs involved in asset finance?

As highlighted previously, leasing usually only consists of a single cost – the monthly lease. This makes it simple to calculate in your accounts. Hire purchase, on the other hand, consists of a deposit of around 20% of the cost of the asset, plus an interest charge which will be calculated and included in your monthly payments.

Hire Purchase Example

To provide a rough estimate on how much a hire purchase agreement may cost you, have a look at this example for a company van.

Asset: Company Van
Value: £10,000
Deposit Required: 20%
Repayment Period: 36 months (three years)
Monthly repayment: £35 per thousand

With a 36 month repayment period on an asset such as a van worth £10,000, you are looking at paying around £35 per £1,000 per month for the 36 months. This makes payments more manageable as you are not required to make a significant investment in cash right away.

The standard deposit amount you may expect to be paying will be about 20% of the entire value. In this case, 20% of £10,000 would be £2,000 – so we take that away from the overall cost as you have already made that payment upfront.

Now we are ready to calculate the total repayment cost to see how much the hire purchase company is charging you for the finance.

With £8,000 left remaining to pay (as the deposit value has been taken off), there are eight £1,000 chunks in the repayment.

This means you will be expected to pay eight times the £35 per month.

£10,000 minus 20% deposit = £8,000
£8,000 / £1,000 = 8
8 X £35 = £280 per month
£280 per month is much more manageable than £10,000 upfront.

However, if you now multiply the monthly repayments by the amount of months you will be paying for, you can see that the total repayment after the three years (36 months) will come to £10,080.

£280 X 36 months = £10,080
Total Monthly Repayment: £10,080 (minus deposit)

Remember, this doesn’t include the £2,000 deposit you’ve already paid.

£10,080 + £2,000 (deposit) = £12,080
£12,080 – £10,000 (van value) = £2,080
Cost of using the facility = £2,080

Similar to the costs above, if you want longer terms such as four and five years, you will be expected to see the following costs.

36 term contract – £35 per month per £1000 financed after the deposit is taken off.
48 term contract – £25 per month per £1000 financed after the deposit is taken off.
60 term contract – £21 per month per £1000 financed after the deposit is taken off.

The overall cost of a facility will not necessarily be greater or less if you choose to take financing over longer periods, as the guideline costs above suggest.

There are a few variables which affect the cost of the monthly charge for leasing and hire purchase and will be checked by the lender to establish whether you are right for asset finance. These checks may include:

  • The type of asset you are purchasing/leasing.
  • The value of the asset after the contract is fulfilled (residual value).
  • The deposit amount.
  • The contract length.
  • Your companies credit score.

Generally, the cost difference between hire purchase and leasing is difficult to assess without knowing the above information. You may find that a lease could be more or less expensive than hire purchase as leasing largely depends on the residual value of the asset after the contract ends.

Summary

Hire purchase allows you to pay monthly for an asset so that you do not have to pay a significant sum upfront to finance necessary new equipment, software or any other asset which you may require.

Leasing offers a similar monthly payment however you do not own the asset after the contract is complete. To find out exact prices for your particular asset, you will want to visit an asset finance lender or a business finance broker.

Either will be able to offer you further advice on whether leasing or hire purchase may be right for you.

Startups.co.uk is reader-supported. If you make a purchase through the links on our site, we may earn a commission from the retailers of the products we have reviewed. This helps Startups.co.uk to provide free reviews for our readers. It has no additional cost to you, and never affects the editorial independence of our reviews.

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Mark Whitaker’s Queensbury opening marks sixth franchise for The Dog Walker

Written by The Startups Team
Published on 16 August 2013

Yorkshire’s largest pet care and well-being specialist has taken on a new recruit for its Queensbury franchise; former logistics director Mark Whitaker.

The dog walking company, which formed in 2006, currently has a network of five existing franchises with the new opening in Queensbury marking a sixth franchise for the Yorkshire-based business.

Over the next couple of years, the company has plans to grow and develop the business on a national level, moving away from its current Yorkshire core.

Prospective franchisees can join The Dog Walker with an initial investment of £14,000, plus an additional £250 intellectual property protection charge per year from the second year of trading.

Whitaker chose to become a franchisee for the pet care company as his passions lie with animals and their welfare. He and his wife also offer home boarding services to care for animals.

He commented on the launch:

“Having spent the last 20 years working in the monotonous world of logistics, I was very much ready for a change.

“A franchise with The Dog Walker was the perfect solution – a proven business model that puts the needs of clients and their pets first.”

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How to start a juice bar business

Thinking of opening a smoothie shop or maybe starting a milkshake business? Read on...
Written by The Startups Team
Published on 16 August 2013

Before starting a business running your own juice bar, there are a few key steps to consider:

  • 01 | Do some juice bar market research
  • 02 | Outline the costs of all your ingredients
  • 03 | Consider equipment, premises and insurance costs
  • 04 | Evaluate pricing and potential earnings
  • 05 | Write your juice bar business plan
  • 06 | Test your juice bar idea
  • 07 | Develop a marketing strategy
  • 08 | Start selling!


“We are thinking of starting a Milkshake Bar also selling smoothies, waffles, ice cream, coffees etc. in a popular seaside town in Devon,” says Startups member MikeJ. “Looking at doing a cashflow forecast but I’m struggling to come up with realistic figures. My wife is going to run the business but will be giving up her current job in the process, so it has to make a justifiable profit. How can I estimate a sensible turnover figure?”

Member Keith McConnell responds: “The business plan is all about market research and market knowledge. Remember you will likely be a seasonal business meaning in summer you will have more business than in winter. In your smoothie business plan you should include a break-even analysis, profit forecast and start-up costs.”

The business plan

How much does it cost to start a juice bar business?

Essential costs:
– the costs of the ingredients for making a smoothie, juice or milkshake
– the cost of equipment and materials
– the cost of premises (will you have ongoing advance lease rent costs or an upfront van/stall cost plus stall pitch costs?)
– the cost of insurance

Additional costs to think about for your smoothie business plan are marketing and branding items.

Next, work out your potential sales (firstly thinking about sales needed to break even). Think about your target market and potential footfall along with the pricing of the milkshakes or smoothies. A Startups member adds “build in what else you can sell over these cold months (whether you sell other things like ice cream/coffee/food). We are based in a UK seaside town so trade definitely drops to almost zero Jan-March. Be realistic in your cash flow forecast. You could consider converting to a ‘cafe’ type offering over the colder months.” (see our guide to how to start a cafe)

This is no quick route to big sales revenues or profit. A Startups member reports “I have spent the last month doing my market research and working out costs etc. I’m pretty sure I’ve included all costs and I have found that in order to break even, I would need to sell 96 milkshakes a day. This seems like a lot, just to break even… ”

Bear in mind that the more you forecast to sell, the more additional costs you might have to consider. A member responds: “I would say that 96 is definitely in 2 staff territory.. there is just too much jug cleaning and money taking as well as blending required.”

You may find it useful to look at our free business plan template

The marketing strategy

Research if there is a smoothie bar or juice bar in your location – if there is one, what’s your point of difference and, if there isn’t one, why not?”

Identify who your target market is (take a look at our guide to calculating the size of your target market) and how you will sell to them. A Startups member notes that they
“are anticipating the slower months with a specific marketing strategy for the local population which should help us through and we are out on the streets this weekend asking opinions from local school children and residents just to verify this.”

Once you’ve identified your target market, think carefully about suitable milkshake bar names or smoothie/juice bar name ideas. Can you come up with an innovative juice bar design concept to make your business stand out?

How to set up a juice bar

Running a milkshake shop isn’t complex – its the time required that’s the problem, if you’re not that busy then you end up working all hours yourself, which is physically draining” – Startups member MikeJ

What do you need to open a juice bar?

  • Physical premises
    You could test your fruit juice making business idea or milkshake business idea in market (take a look at our guide to starting a market stall) or perhaps you could consider a pop-up shop as you look to go more permanent. If you’re ready to get premises, think about what you may be able to negotiate, but also what will be involved to make it ‘shop-ready’: A Startups member says “we negotiated three weeks free rent and also 10% off during the term of the lease – the unit was in a real state though and subsequently had to be completely gutted and replastered.”
  • Appropriate licenses and insurance
    A Startups member shares their insight that “The premises we are after is already a cafe so there should be no problem with the local authority on change of use issues, or outside seating and “A” boards.” It’s worth considering if there are any restrictions on what you are able to do with the premises, plus what obligations you have in terms of providing customer toilets, reasonable ventilation. In addition, you will need to obtain a Food Hygiene Certificate, a Food Premises Approval (if you handle any dairy products) and public liability insurance.
  • Equipment
    Startups member Blooey believes “The third single biggest expense (after the shop and advance rent payment) will be equipment..blenders,tea/coffeee machines, fridges, cold displays etc.” Another member adds, “we’re having air-con put in now. “Think about where to get smoothie equipment for commercial use (such as an industrial smoothie maker or milkshake machine). This is likely to be something you won’t want to scrimp on! Finally, you will need to offer ways of making payment: take a look at our guide to the best card machines and mobile card readers.
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