Playa Bowls Franchise Cost, Profit & Failure Rate 2024

In many countries, the pitaya and acai bowls industry has been getting famous every day. This also creates a massive market behind it, with many brands popping up.

Entrepreneurs also look for easy ways to enter this world, and Playa Bowls’ franchising offer is one of those ways.

After conducting thorough research on the market, it is founded that this franchise opportunity is so excellent that it is also one of the best franchises that one must own. 

If you are considering owning a store that serves acai and pitaya bowls, Playa Bowls are one of the most popular options in the United States nowadays.

This article will discuss Playa Bowls’ franchise system and how it works.

Playa Bowls Franchise

About Playa Bowls and Playa Bowls History

Playa Bowls is a franchise chain famous for its acai and pitaya bowls, serving mostly plant-based cutleries in all their restaurants.

They were founded in 2014 in New Jersey as a pop-up stand right next to a pizza shop. It didn’t take a lot of time for their stand to get popular, and they needed a store.

The first actual location opened in 2015 in Manasquan, New Jersey, and they kept on growing, reaching 175. 

During their journey, they started franchising in 2020 to serve more locations and grow faster. They have been franchising ever since.


Playa Bowls Franchise Model

Cost Or FeesAmount
Initial Investment       $168,675-$435,058
FranchiseYES
Franchising Since2020
Franchise-Fee$35,000
Royalty-Fee6%
Liquidity$10,000-$40,000
Estimated Outlets175

How Much Does It Cost To Open A Playa Bowls Franchise?

How Much Does It Cost To Open A Playa Bowls Franchise

To start a Playa Bowls franchise, you need somewhere between $168,675 and $435,08 on average in total.

This cost covers everything related to the startup cost of one store, including the $35,000 franchise fee. 

Most of the costs associated with opening up your store vary based on several factors.

Depending on your location, store size, number of employees, and many other factors, this number could be well above half a million.

Once you open the store, you must also give a 6% royalty fee from your gross monthly sales to Playa Bowls.


Playa Bowls Franchise Requirements

You don’t need a specific set of personal experiences to be a Playa Bowls franchisee. However, you do need to satisfy some financial requirements to be eligible.

You need to have a net worth of up to $2.4 million and a liquidity of between $10,000 to $40,000.

It’s optional if you have some experience in the restaurant industry, but it’s not necessary. If you can comply with the financial requirements, you have a high chance of being approved as a franchisee.


Playa Bowls Revenue & Profit

Playa Bowls FranchiseAmount
Total Revenue (2020)$48 million
Average Gross Revenues per Store$500,000
Profit Margin40%
Highest Gross Revenue per Franchise$2.4 million

Playa Bowls doesn’t disclose most of its financial information since they are not a public company.

However, some reports give us a glimpse of their total revenue and revenue per franchise store.

A report says that Playa Bowls 2020 revenue was $48 million, with average gross revenues per store standing at almost $500,000.

Playa Bowls has a profit margin of 40%, way higher than most industries and franchises. There are also some franchisees that make about $2.4 million annually in gross revenue.

If we simply take Playa Bowls average revenue of $500,000 and profit margin of 40%, then we can find out that on average a Playa Bowls franchise owner make $200,000 in net profits.

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%500000.00
Rent7.50%(37500.00)
Insurance3.75%(18750.00)
Salaries15.00%(75000.00)
Franchise Royalty Fees3.75%(18750.00)
Utilities1.50%(7500.00)
Cost of Goods Sold (COGS)18.75%(93750.00)
Labor (Variable)9.75%(48750.00)
Total (Expenses)60.00%(300000.00)
Net Profit40.00%200000.00

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Playa Bowl

In the United States, the average salary of Playa Bowls owners is $200,000. So, on the basis of the midpoint investment of $326,867 and a yearly profit of $200,000, we can calculate the payback period of Playa Bowls.

So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $326,867 / $200,000 = 1.6 years

Based on these figures, it will take approximately 1.5-3 years to pay back the initial investment for Playa Bowls. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Playa Bowls

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20205671+15
202171102+31
2022102136+34

For the Franchised outlets:

  • In 2020, the growth rate was (15)/56×100≈26.78%
  • In 2021, the growth rate was (31)/71×100≈43.66%
  • In 2022, the growth rate was (34)/102×100≈33.33%

According to the above data, we can conclude that the number of franchises has been increasing for consecutively 3 years, showing a growth rate between 26.78% and 33.33%.

Therefore, investing in Playa Bowls franchise can be a profitable business.

Entrepreneurs considering a venture into the juice franchise sector might explore options such as Clean Juice franchise and Jamba juice franchises.


Playa Bowls Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Nekter Juice Bar$35,0006%$211,500-$462,600
Bowl of Heaven$35,0006%$161,500-$438,500
Playa Bowls$35,0006%$168,675-$435,085

Conclusion

Playa Bowls is one of the many acai and pitaya bowl places offering franchises.

However, they are one of the most popular ones in the United States, growing quite fast since they were founded in 2014.

You need between $168,675 and $435,085 if you want to open a Playa Bowls franchise, including the $35,000 franchise fee.

They do not require much background from you, so this makes it one step easier to get approved if you have the financials.

The average store owner makes close to $500,000 in gross annual revenue, with a 40% profit margin.

All these details show us that Playa Bowls is an extremely profitable franchise that you should strongly consider.


FAQs

What is the franchise fee of a Playa Bowls franchise?

The franchise fee of Playa Bowls is $35,000. This is per store and paid up-front in a lump sum.

You pay it before you open the store to buy the trademark of the brand. You pay a discounted fee during the renewal.

How safe is it to open a Playa Bowls franchise?

Playa Bowls has some sort of popularity, and their brand recognition helps to succeed in your entrepreneurship journey.

However, it doesn’t mean that the Playa Bowls franchise is a fail-proof business.

The failure percentages are low, but you still need good management to keep the place profitable.

Where is Playa Bowl headquartered?

Playa Bowl is located in Belmar, New Jersey, United States.

Who founded Playa Bowl?

The concept of Playa Bowl is the vision of founders Robert Giuliani & Abby Taylor. The current CEO of Playa Bowl is Dan Harmon, and Abby Taylor is the CMO of Playa Bowl.

How many locations does Playa Bowl have?

Playa Bowl is a franchise chain famous for its acai and pitaya bowls, serving in more than 170 locations worldwide.


Sources

https://www.playabowls.com/franchise/

https://www.playabowls.com/our-story/

https://www.playabowls.com/a-timeline-of-playa-bowls/

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