Java Juice is a new company,
formed in April 2006. The company is a privately owned S1 corporation. Its CEO
is Mike Splane, an experienced controller and a business lecturer at
The first Java Juice store
opened in September 2006. The store is located at
A foot traffic study showed
an average of 148 pedestrians per hour pass by this location in the daytime. In
the evenings, this number increases to 227 pedestrians per hour. The extra
evening foot-traffic is generated by several theaters and restaurants located
within a five-block radius. The study also looked at the proportion of
pedestrians who enter other restaurants in the area, and found a capture rate
of 23%. Based on this study, we estimated a capture rate of 34 customers per
hour during daytime hours, and 52 customers per hour in the evening. The
average customer was expected to spend between 30 and 45 minutes in the
restaurant. Our experience has closely matched these projections.
Take-out orders are a
significant percentage of early morning sales. The store began offering a
delivery service in March 2007, covering six counties in the
The location is on the
ground floor of a two-story building. The total floor space of the restaurant
is 2000 square feet. Of this footage, only 1200 square feet is available for
customer seating. The seating area contains twelve tables and forty-eight
chairs. Coffee
Shop Floorplan. The remainder is
used for restrooms, storage, and food preparation. Monthly rent to lease the
building is $4.30 per square foot, or $8,600 per month. Java Juice has a
three-year lease on the location, with an option to renew for an additional two
years at the end of year two. The lease allows Java Juice to make alterations
to the property at Java Juice’s expense, subject to approval from the property
owners, SKM Investments Inc. Such approval is not to be arbitrarily withheld
without just cause.
