Nékter Juice Bar Has Used Technology to Fuel a Surge in Growth — Here’s How

1851 Franchise spoke with Steve Schulze, president, CEO and general visionary behind Nékter Juice Bar, about the brand’s tech-driven evolution, from its early adoption of advanced technology to the present day (where it has surpassed 2 million users on its app).

Schulze highlighted the convenience factor for customers, emphasizing how the app has streamlined the ordering process. However, he also pointed out that the data gathered from app can be useful for the franchisor.

"Now I can jump out of the shower, put in my order, pull in, grab it, and it's ready to go. The technology of having the app, the amount of data that you can gain from it, and how you data-mine that information is obviously very important," Schulze said.

Fine Tuning Processes With Technology Saves Money (Loads of Money)

Even simple technology advancements can have a huge hand in business growth. Data collated from Point of Sale (POS) systems, for example, can save a company tens of thousands of dollars. How? By providing an accurate guide to how many employees are actually required at different times of the day, which can decrease unnecessary labor costs.

Schulze explained that most companies used to schedule full staff for each day every week resulting in days with a cumulative 50 hours of labor. However, POS data provides specific data on customer and sales volume; whereas Mondays may be very busy and require a cumulative 50 hours of labor, Tuesdays may only require a cumulative 27 hours of labor and Wednesdays may require 32. 

“You do that weekly, times 200 locations, and you are talking about tens of thousands of hours in labor saved,” said Schulze.

Technology = Selling More With Every Order

Beyond cutting costs, technology can actively improve sales and profits. A pivotal moment in Nékter's tech journey was the shift to Qu, a POS system that brought significant improvements. 

"The difference between our previous vendor and Qu is the back-end data and the efficiencies that it provides for us on operations," said Schulze. The ability to integrate various technologies through Qu's offerings has allowed the brand to significantly improve the customer experience. 

The incorporation of kiosks that offer order-for-yourself technology, for example, have improved sales immensely. Kiosk orders, in addition to app orders, make up about 50 percent of all Nékter orders, according to Schulze. Why is this significant? Because app and kiosk orders make more money for the brand.

"The average order is about $1.50 higher because of the app. This is because you're forced to answer various questions," Schulze noted. “When you order a smoothie, you’re asked ‘Would you like protein powder for a dollar more?’”

The prompts incentivize customers to make additional choices about items that they’re likely to want to add, leading to increased revenue without significant effort on Nékter's part.

AI as a Driving Force Behind Business Growth

Behind the kiosks and app use is valuable data waiting to be analyzed and put into actionable growth strategies. Enter Artificial Intelligence (AI).

AI has so many more capabilities than many people realize, especially when it comes to creating improved and personalized customer experiences. Nékter, for example, uses AI to analyze data from a vast user base, segmenting preferences into different categories. 

“We are able to access something like a million users’ information from our app. AI analyzed all that data and it came back with around 12 or 18 different buckets of what someone is most likely to order,” said Schulze.

Schulze gave an example using Starbucks as a reference. 

“Maybe people who order an americano are more likely to order Egg Bites,” he said.

For Nékter, this means the marketing strategy can be tailored to each user’s preferences. When the brand sends out a blast via email, text or notification in the app, you could get a different ad than your friend, depending on what you’ve ordered in the past and what people who’ve ordered the same thing tend to be drawn to. 

“If you’re a juice person, but you hate acai bowls and I send you an offer for an acai bowl – what’s the point?” said Schulze. 

This allows for targeted marketing messages and promotions tailored to individual preferences. The ability to understand and predict customer behavior has become a powerful tool in Nékter's arsenal and a big contributor to the brand’s development.

AI doesn’t just analyze the consumers, however. Schulze explained how helpful AI can be in streamlining training for employees across a franchised concept. With AI recording and analyzing cashier interactions, subtle tweaks in language can be identified to enhance customer satisfaction. 

"It's so helpful because everybody's a little bit different, and I think the more insightful they can be about themselves and how that's received on the other end is very important," Schulze explained.

Technology Is Here to Stay

Steve Schulze's insights underscore the transformative impact of technology on Nékter's journey. From the initial skepticism of franchise partners to the seamless integration of apps, POS systems and AI, Nékter's success story is a testament to the power of embracing and adapting to technological advancements. Schulze's advice to other businesses is clear — embrace technology, stay current, test, and integrate it into your business for an enhanced customer experience. 

“Technology is here to stay. I think that people have to embrace technology. It doesn't matter what the brand concept is,” he said.

As the business landscape continues to evolve, the role of technology in driving growth and efficiency cannot be overstated.

Interested in learning more about growing your business? Check out these stories and resources:

• 1851 Growth Club
• 10 Strategic Tools Franchises Can Implement to Grow Quickly
• Coffee & Analytics: The Tools You Need to Grow Your Franchise Business Are Here