Robeks, a chain of juice bars known for its smoothies and avocado toast, with 84 franchised locations and one company-owned outpost, is expanding despite the effects of the pandemic. In 2021, it expects to open 15 locations, a 20% growth rate, no easy achievement during a global health crisis.
Several of the new Robeks are located in its home state of California in Los Angeles and San Diego, but it’s also expanding to Cleveland, Denver, Chicago, Phoenix and Newton, Connecticut.
Indeed Robeks are located in eleven states and the District of Columbia, ranging from the west in California, Colorado and Arizona, the east in Connecticut, and Midwest in Illinois and Kansas.
By providing a healthier alternative, with an emphasis on off-premises sales, Robeks has managed to be resilient.
Its president David Rawnsley acknowledged that sales dipped in March, April and May 2020 due to the devastating effects of the health crisis and temporarily shuttering many of its locations. But in the second half of 2020, its double-digit revenue gains erased much of the early sluggishness. It ended 2020 down by a modest 3.2%.
Rawnsley attributed Robeks’ resiliency to the fact that “Our customers have always taken our product to-go and that was certainly the case during COVID.” Moreover, its’ mobile app ordering for grab and go dining and delivery tripled, helping to offset initial losses.
“Nearly 30% of our sales now originate digitally outside the four walls of our stores for either pick-up or delivery,” he explains.
Its original owners still operate it. They obtained an initial round of funding in the late 1990s and early 2000s from private investors, and raised additional capital in 2006 including some private equity funding.
Its target market tends to be health-conscious consumers, aged 25 to 45, and its audience skewers slightly more women than men. Some of its most popular items include its strawanana berry smoothie and acai bowl; its average check is $12.50 per visit.
Franchisees Mariam and Kevin Aivazian opened their first Robeks in Los Angeles in April 2019 in a mostly residential area and their second one is slated to debut later in May in the financial district, about seven blocks from the first.
During the pandemic, Kevin Aivazian observed consumers gravitating toward choosing healthier food to minimize their chances of getting sick. He senses that the pandemic is subsiding, and “we’re floating into an environment where everyone can be more health conscious than before.”
And yet Kevin Aivazian is concerned that, at this point, most of the financial businesses are deserted and most people are working from home, though he senses, again, that this is in transition. His landlord has offered concessions until occupancy hits 50% or more.
“People are getting tired of working from home and want to get back to work,” he says.
Though revenue at its initial Robeks declined initially, he said that off-premises sales including via third-party delivery rebounded at a steady pace. It never offered much indoor dining to begin with and was mostly grab and go, which fits for a pandemic.
Many customers are attracted to Robeks’ products such as ginger and turmeric shots to boost their immunity, Kevin Aivazian explains.
In fact, the Aivazians are so optimistic that Robeks is a franchise primed for growth that they’ve signed a contract for a third franchise in the Mar Vista area between Santa Monica and Culver City.
The married couple describes the keys to Robeks’ future success as: serving fresh products, providing superior customer service, making sure employees are well-trained and responding to any customer complaints.
A year from now, Kevin Aivazian says, “We’re hoping for stability in the business world and in our business. Everyone’s guessing when will the pandemic end?” And a year from now, he expects that answer will be clearer.