Jamba kicked-off a new brand and consumer message centered around “Whole Food Nutrition,” which encompasses blending juices and whole fruits and vegetables into convenient beverages for breakfast, lunch, or snack on the go. Early results show this initiative will be key in driving Jamba’s leadership in this category.Leverage an Innovative In-Store Experience Jamba will continue to provide a superior customer experience that will build loyalty across the enterprise. The highlight will be the rollout of whole food blending and juicing to over 300 system wide stores in 2014. In conjunction with the rollout, Jamba will continue to develop integrated programs that deliver excellent customer service and superior product knowledge to the Jamba workforce across the system. Expand Retail Footprint Over the past three years, the Company has had significant accomplishments in transitioning to a franchise-oriented organization. At the close of the fiscal year, 535 of 803 domestic stores/stations were franchise-owned; 268 were company-owned and operated stores. Internationally, Jamba experienced accelerated growth, ending the year with 48 franchise stores in four global markets. In addition, the Company just announced an agreement for 80 stores over the next 10 years in the Middle East. This will bring the total number of international stores to 480 over time. Jamba embarked on significant refresh of company stores that provide a more contemporary and fresh experience for the guest, and importantly, includes the whole food blending and juice platform, which will expand into several hundred additional company and franchise locations by year end. New Product, Partners, Channels, and Markets Jamba will continue to build upon new markets and channels in 2014. In 2013, Jamba also expanded its flexible format solution, JambaGO, that will facilitate rapid growth of healthy menu options into K-12 schools, retail and convenience venues. As a result, the Company partnered with Target to add JambaGo units to over 1,000 Target store locations, bringing Jamba’s installations to 1,800 by the end of the year. In 2014, Jamba also will extend the product portfolio into new channels and markets through the CPG license program that was started three years ago and includes the Jamba branded frozen smoothie kits and naturally boosted energy drink.
Design Effective and Efficient OrganizationA primary focus will be relentlessly pursuing ways to reduce costs, drive productivity and increase engagement across the enterprise. At the close of 2013, the Company identified cost savings across the enterprise that will increase margin by 100-200 basis points. Jamba will continue to explore and leverage existing and new partnerships to drive greater efficiencies and effectiveness. Improving store economics, including labor, COGS, distribution, occupancy, and store operations, through disciplined cost control and outlier management, will be an ongoing focus for the Company. Outlook for 2014 The Company expects to achieve the following results for fiscal 2014:
- Deliver positive Company-owned comparable store sales of 2%-4%
- Deliver store-level margin of 18% to 19%;
- Achieve income from operations of 2.0% to 3.0%;
- Add 1,000 JambaGO™ machine sites.