Dreaming of launching your own vibrant juice bar? Are you ready to transform fresh ingredients into delicious, healthy profits? Discover the essential steps to kickstart your entrepreneurial journey and build a thriving business with our comprehensive guide, including a powerful juice bar financial model to ensure your success.
Steps to Open a Business Idea
Embarking on the journey to open a juice bar requires a systematic approach, moving from conceptualization to operational readiness. The following table outlines the key stages involved in transforming a business idea into a thriving juice bar, covering essential aspects from planning and funding to staffing and menu design.
Step | Description |
Develop A Comprehensive Juice Bar Business Plan | Create a detailed roadmap outlining vision, market analysis, operations, and financial projections. This plan is crucial for guiding your startup and attracting potential investors. |
Secure Funding For Juice Bar Startup | Identify and secure necessary capital through personal savings, loans, crowdfunding, or investors. Initial costs for a small juice bar can range from $50,000 to $150,000. |
Find A Strategic Location For Juice Bar | Select a high-visibility location with strong foot traffic or easy accessibility, ideally in urban centers or health-focused neighborhoods. Rent should ideally be 6-8% of projected gross revenue. |
Obtain Licenses And Permits For Juice Bar | Acquire all federal, state, and local licenses and permits, including business licenses, health permits, and food handler certifications. Compliance is essential to avoid fines. |
Procure Juice Bar Equipment And Suppliers | Invest in commercial-grade equipment and establish reliable relationships with suppliers for fresh produce. Sourcing locally can reduce costs and appeal to consumers. |
Design Your Juice Bar Layout And Menu | Plan an efficient and aesthetically pleasing layout and develop a diverse menu of juices, smoothies, and healthy food options. A well-designed space can improve service efficiency. |
Hire And Train Staff For Juice Bar | Recruit passionate individuals and provide comprehensive training in product preparation, customer service, and health regulations. Well-trained staff are key to excellent service and reduced errors. |
What Are Key Factors To Consider Before Starting Juice Bar?
Starting a juice bar requires careful planning across several critical areas. A strong foundation is built upon a comprehensive business plan, a strategic location, a clear understanding of your target customers, and securing sufficient financial resources. The global market for healthy beverages, which includes juice bars, is substantial and growing. In 2023, this market was valued at approximately $3.09 trillion and is anticipated to expand to $5.12 trillion by 2032. This growth trajectory highlights the significant opportunity for new entrants in the healthy beverage sector.
A well-crafted juice bar business plan is not just a formality; it's a roadmap to success. This document should thoroughly detail your market analysis, outline your operational strategies, and present realistic financial projections. Research indicates a powerful correlation between having a detailed business plan and achieving funding success. Businesses that develop a comprehensive plan are reportedly 25 times more likely to secure funding and experience growth compared to those without one. This underscores the importance of investing time into this foundational step when you start a juice bar.
Choosing the right location is paramount for any retail business, and a juice bar is no exception. Ideal spots are those with high foot traffic. Consider areas near gyms, yoga studios, bustling office parks, or busy urban centers where health-conscious individuals congregate. The cost of securing such a prime location can vary significantly. Rent for a suitable space in a metropolitan area might range from $2,000 to over $10,000 per month, depending on the specific location and the size of the premises. This rental expense is a major factor that directly impacts the overall profitability of your juice bar startup.
Understanding who your customers are is vital for tailoring your offerings and marketing efforts. For a business like 'The Daily Squeeze,' the target demographic likely includes wellness-focused consumers, typically aged 25 to 55. This group values health and is often willing to invest in quality products. Consumer insights reveal that around 60% of individuals express a willingness to pay a premium for products that are healthy and natural. This consumer preference aligns well with the typical pricing structure of a juice bar, especially one focusing on fresh, local ingredients.
Essential Considerations for Your Juice Bar Business Plan
- Market Analysis: Identify your competitors and unique selling propositions.
- Operational Strategy: Detail your sourcing, preparation, and service models.
- Financial Projections: Include startup costs, operating expenses, and revenue forecasts.
- Target Demographics: Define your ideal customer profile for effective marketing.
- Location Analysis: Assess foot traffic, visibility, and accessibility for your chosen site.
When considering how to open a juice bar, it's important to research various aspects of the industry. For example, the cost to start a small juice bar can range widely, often between $50,000 to $300,000, depending on factors like location, equipment, and whether you choose a franchise or independent model. Understanding these initial investment requirements is crucial for securing adequate funding. This aligns with the advice found in resources detailing the cost to open a juice bar.
Securing the necessary permits and licenses is a non-negotiable step before you can legally launch a juice bar. These requirements are in place to ensure public health and safety. Typically, you will need a business license, a food service permit, and health department certifications. Specific regulations can vary significantly by city, county, and state. For instance, health department regulations for juice bars often involve strict guidelines on food handling, storage, and sanitation. It's essential to consult your local health department early in the planning process to understand all legal requirements for opening a juice bar.
Is A Juice Bar Business Profitable?
Yes, a juice bar business can indeed be profitable. For a small juice bar, annual revenues often fall between $150,000 and $300,000. The net profit margins typically range from 10% to 20% after all expenses are accounted for. This profitability is heavily influenced by how well the business is run, from managing ingredient costs to customer volume.
The gross profit margins for individual beverage sales are quite strong, often sitting between 70% and 80%. This is because the cost of ingredients, like fruits and vegetables, is generally much lower than the price at which they are sold. For instance, using $2 worth of ingredients could result in an $8 sale price for a single juice.
Key Factors Influencing Juice Bar Profitability
- Managing Food Waste: Minimizing spoilage is crucial. For example, implementing smart inventory practices can reduce waste by up to 10%.
- Optimizing Labor Costs: Labor typically makes up 25% to 35% of total operating expenses. Efficient scheduling and training can keep these costs in check.
- Effective Marketing: Strategies for new juice bar ventures are vital to attract and retain customers, directly impacting sales volume.
Implementing subscription models can significantly boost a juice bar's financial health. Businesses like 'The Daily Squeeze' offer flexible plans that enhance recurring revenue and increase customer loyalty. Data indicates that subscription services can improve customer retention rates by 15% to 20% when compared to businesses relying solely on one-time purchases. This consistent revenue stream provides a more predictable income.
What Equipment Is Essential For A Juice Bar?
To successfully start a juice bar business like 'The Daily Squeeze,' having the right equipment is fundamental. The initial investment in essential juice bar equipment can range significantly, typically falling between $15,000 and $40,000. This figure reflects the need for commercial-grade machinery designed for high volume and durability.
High-quality juicers are the heart of any juice bar. For a business focusing on nutrient-dense offerings, a commercial cold-pressed juice machine is crucial. These machines can command prices from $5,000 to over $20,000, but they produce superior quality juice with less oxidation, allowing for premium pricing. For instance, a Hurom or Kuvings commercial model offers efficient extraction for cold-pressed juice.
Beyond juicers, commercial blenders are vital, especially for a juice bar that also serves smoothies. Brands like Vitamix or Blendtec offer robust models that can handle continuous use and create smooth textures. Each commercial blender can cost between $500 and $1,500. Investing in at least two of these ensures speed and consistency, which are key for customer satisfaction.
Refrigeration is another significant cost but is non-negotiable for food safety and freshness. This includes units for storing fresh produce and pre-made beverages. Depending on the size of your operation, you might need multiple commercial refrigerators or even a walk-in cooler. The cost for these units can range from $3,000 to $10,000+. Proper temperature control is essential to maintain the quality of ingredients and meet health department regulations.
Key Juice Bar Equipment Checklist:
- Commercial Juicers: Cold-pressed juicers ($5,000-$20,000+), centrifugal juicers ($200-$1,000).
- Commercial Blenders: High-speed blenders for smoothies and acai bowls ($500-$1,500 each).
- Refrigeration: Commercial refrigerators, display refrigerators, walk-in coolers ($3,000-$10,000+).
- POS System: Point-of-sale system for order processing and inventory management ($500-$3,000+ for hardware and software).
- Ice Machine: Essential for cold beverages ($1,000-$5,000).
- Prep Tables and Sinks: Stainless steel work surfaces and handwashing/dishwashing sinks ($1,000-$5,000).
- Storage Containers: Food-grade containers for ingredients and finished products.
- Cleaning Supplies: Sanitizers, brushes, and cleaning cloths.
A reliable Point of Sale (POS) system is critical for managing sales, inventory, and customer data. Modern POS systems can range from $500 to $3,000+, depending on features and whether you opt for hardware and software packages. For a juice bar business plan, allocating funds for a robust POS system like Square or Toast is a wise investment for efficient operations and tracking sales, which can contribute to the overall profitability of a juice bar business.
What Permits And Licenses Are Needed For A Juice Bar?
Starting your juice bar business, like 'The Daily Squeeze,' requires navigating a landscape of permits and licenses to ensure legal operation. These are non-negotiable steps to launch your healthy beverage business. The specific requirements can vary significantly by state, county, and even city, so thorough local research is paramount. Generally, expect a mix of federal, state, and local registrations.
A foundational requirement is a general business license. This is often obtained from your city or county government. Following that, you'll need specific permits related to food service. These are critical for any establishment that prepares and sells food or beverages. The cost for obtaining these various permits and licenses can range from $500 to $3,000 annually, depending on your location and the number of permits required.
Securing a food service establishment permit from your local health department is mandatory. This permit signifies that your juice bar meets stringent health and safety standards. These regulations cover everything from how you handle and store ingredients to the cleanliness of your equipment and premises. Health department inspections are typically conducted annually to ensure ongoing compliance with juice bar health department regulations.
Beyond operational permits, you'll also need to consider business structure registration. If you're forming an LLC or corporation, you'll need to register with the state. Additionally, if you plan to hire employees, you'll need to obtain an Employer Identification Number (EIN) from the IRS for tax purposes. This is a federal requirement for most businesses.
Key Permits and Licenses for a Juice Bar
- Business License: General permission to operate a business in your jurisdiction.
- Food Service Establishment Permit: Mandated by the local health department for any food or beverage preparation and sale.
- Health Department Certifications: Demonstrates compliance with sanitation and food handling standards.
- Seller's Permit: Required if you collect sales tax.
- EIN (Employer Identification Number): For tax identification purposes, especially if hiring staff.
- Signage Permits: May be needed for exterior signage, depending on local ordinances.
Compliance extends to zoning laws and accessibility. You must ensure your chosen location for 'The Daily Squeeze' is zoned for commercial use, specifically for a food service business. Furthermore, adherence to the Americans with Disabilities Act (ADA) accessibility guidelines is crucial. This ensures your juice bar is accessible to all customers, preventing potential legal issues and fines. Understanding and meeting these legal requirements for opening a juice bar is vital for long-term operational success.
How Do I Market A New Juice Bar?
Launching a new juice bar like 'The Daily Squeeze' requires a strategic marketing plan to build buzz and attract your first customers. A multi-channel approach is key. This often includes leveraging social media, forming local partnerships, implementing customer loyalty programs, and hosting a memorable grand opening event. Effective marketing can significantly boost your initial customer base, potentially contributing to a 10-20% increase in the first few months.
Leveraging Social Media for Your Juice Bar
Social media platforms, particularly visually driven ones like Instagram and Facebook, are powerful tools for marketing a juice bar. Focus on sharing high-quality photos of your vibrant juices and content that highlights health and wellness benefits. Businesses with an active and engaging social media presence often report significantly higher conversion rates, with some studies indicating up to 70% higher customer acquisition through these channels.
Building Local Partnerships
Collaborating with complementary local businesses can be a smart way to reach new customers. Think about partnering with nearby gyms, yoga studios, wellness centers, or even large corporate offices. Offering special discounts to their members or employees can create strong cross-promotional opportunities and drive foot traffic to your juice bar. These partnerships can lead to an average 15% increase in sales from these new customer segments.
Customer Loyalty and Retention Strategies
- Implement a loyalty program where customers earn points for each purchase. This encourages repeat business and builds a loyal customer base.
- Studies consistently show that loyal customers tend to spend considerably more; in fact, they often spend 67% more than new customers.
- Consider offering exclusive perks or early access to new menu items for your most loyal patrons to foster a sense of community and appreciation.
Grand Opening Event Strategies
A well-executed grand opening event is crucial for creating initial excitement and awareness when you first open a juice bar. This event can include special promotions, samples of your signature cold-pressed juices, and opportunities for customers to engage with your brand. Driving significant foot traffic during this period sets a positive tone for future business and can help establish your juice bar as a go-to spot in the community. Many successful juice bar startup ventures attribute their initial momentum to a strong launch event.
Develop A Comprehensive Juice Bar Business Plan
The foundational step to successfully start a juice bar business is creating a detailed business plan. This document acts as your strategic roadmap, guiding every decision from concept to launch and beyond. It clearly outlines your vision, mission, target market, and financial projections, ensuring you have a clear path forward for your juice bar startup.
A thorough market analysis is crucial. You need to identify your ideal customer, like health-conscious urban dwellers or busy professionals seeking quick, nutritious options. Understanding your competitive landscape is equally important. For context, the US juice and smoothie bar market was valued at a substantial $32 billion in 2022, with projections indicating a strong 8.5% CAGR from 2023 to 2030, highlighting significant growth potential.
Your operational plan should detail the day-to-day processes necessary to run your juice bar. This includes defining staffing needs—a small juice bar typically requires 3-5 employees, with labor costs often ranging between 25-35% of revenue—and compiling a comprehensive juice bar equipment list with associated costs. Efficient operations are key to managing expenses and ensuring customer satisfaction.
Developing a robust financial plan is non-negotiable. This involves projecting your startup costs, which can range from $50,000 to $200,000 for a small to medium-sized juice bar. It also includes realistic revenue forecasts and a break-even analysis to understand when your business will become profitable. Securing adequate funding for your juice bar startup depends heavily on these projections.
Key Components of a Juice Bar Business Plan
- Executive Summary: A brief overview of your entire plan.
- Company Description: Your vision, mission, and legal structure for your juice bar.
- Market Analysis: Target customer demographics, market size, and competitor review. The market for healthy beverage businesses is expanding rapidly.
- Organization and Management: Your team structure and management philosophy.
- Service or Product Line: Details on your menu, including cold-pressed juice options and smoothie creations.
- Marketing and Sales Strategy: How you'll attract and retain customers for your new juice bar.
- Funding Request: If seeking investment, this outlines your financial needs.
- Financial Projections: Startup costs, revenue forecasts, cash flow statements, and break-even analysis. For instance, initial juice bar equipment can be a significant investment.
- Appendix: Supporting documents like licenses, permits, and resumes. Understanding the legal requirements for opening a juice bar is vital here.
When outlining your product line, consider offering a variety of options beyond basic juices. Think about smoothies, acai bowls, and perhaps even healthy snacks. This variety can attract a broader customer base and increase revenue streams. For 'The Daily Squeeze,' offering a flexible subscription model alongside a diverse menu can cater to the modern wellness-focused consumer seeking convenience and nutrition.
Secure Funding For Juice Bar Startup
Securing the necessary capital is a foundational step when you want to open a juice bar. This initial investment covers everything from equipment to your first few months of operation. Understanding your funding options is crucial for a smooth launch of your juice bar business.
The typical cost to start a small juice bar ranges from $50,000 to $150,000. This budget needs to account for various startup expenses, ensuring you have enough to cover all essential aspects of launching your healthy beverage business.
Common Funding Sources For Juice Bar Startups
When looking to launch a juice bar, several avenues exist for acquiring the needed funds. Personal savings are often the first port of call, leveraging your own resources. Beyond that, small business loans, particularly those backed by the Small Business Administration (SBA), are a popular choice for many entrepreneurs. Crowdfunding platforms can also be effective, especially for businesses like 'The Daily Squeeze' that have a strong community appeal. Finally, seeking out private investors who believe in your vision can provide significant capital.
Key Funding Avenues
- Personal Savings: Utilizing your own funds can demonstrate commitment to lenders and investors.
- SBA Loans: The Small Business Administration offers loan programs with favorable terms. In 2023, the SBA approved over $28 billion in loans, highlighting their accessibility for qualified small businesses.
- Crowdfunding: Platforms like Kickstarter or Indiegogo can help raise initial capital, particularly for businesses with a strong brand story. Successful food and beverage campaigns often raise between $10,000 and $50,000.
- Investors: Angel investors or venture capitalists may provide funding in exchange for equity in your juice bar business.
Understanding Startup Costs for Your Juice Bar
The initial capital for a juice bar startup is multifaceted. A significant portion is allocated to leasehold improvements, which can typically cost between $10,000 and $50,000, depending on the space's condition and your design vision. You'll also need to invest in essential juice bar equipment, such as high-quality blenders, juicers, and refrigeration units. Don't forget the cost of initial inventory – fresh produce, packaging, and other supplies. Lastly, maintaining working capital for the first 3-6 months is vital to cover operational expenses like rent, utilities, and payroll before the business becomes consistently profitable.
Find A Strategic Location For Juice Bar
Choosing the right spot is absolutely critical when you decide to start a juice bar. You need a place that people can easily see and get to, with plenty of foot traffic. Think about areas that are already buzzing with activity, like busy urban centers, neighborhoods known for their focus on health and wellness, or even spots close to gyms and office buildings where people are looking for a healthy boost.
For 'The Daily Squeeze,' understanding who lives and works in an area is key. We'd look for neighborhoods with a high number of health-conscious individuals or young professionals. For instance, research shows that areas where the average household income is over $75,000 are often good indicators that people are willing to spend on premium healthy beverages.
When you're looking at potential locations, don't forget to examine the lease terms carefully. A good rule of thumb is to aim for rent that doesn't exceed 6-8% of your projected gross revenue. Keep in mind that commercial lease rates can vary significantly, often ranging from $20 to $60 per square foot annually, depending on the specific market and location.
Evaluating Local Competition
- Assess the existing competition in your target area.
- While some competition can confirm market demand, too much can make it harder to attract customers.
- Look for areas where a juice bar business is already doing well, but avoid places that are oversaturated.
Obtain Licenses And Permits For Juice Bar
When you decide to start a juice bar business, like 'The Daily Squeeze,' getting all the necessary licenses and permits is a crucial legal step. This ensures you're operating legally and following rules set by federal, state, and local governments. You'll need things like a general business license, specific health permits, and certifications for anyone handling food.
It's smart to connect with your local health department early on. They'll tell you exactly what health regulations apply to a juice bar. These rules often cover how you store food at the right temperatures, your sanitation practices, and how your employees maintain hygiene. For example, many jurisdictions require food establishments to maintain refrigerator temperatures at or below 40°F (4°C) to prevent bacterial growth.
Beyond health rules, you must handle business registrations. This includes getting an Employer Identification Number (EIN) from the IRS if you plan to hire staff, and securing state-level business licenses. Not having these can lead to hefty fines and can really slow down your launch. For instance, failing to register your business properly could result in penalties of up to $1,000 per day in some states.
Insurance Requirements for Your Juice Bar Business
- General Liability Insurance: Protects against third-party claims of injury or property damage.
- Property Insurance: Covers damage to your physical location and equipment.
- Workers' Compensation Insurance: Mandatory if you hire employees, covering medical expenses and lost wages for work-related injuries.
The annual cost for insurance premiums for a juice bar business can typically range from $1,000 to $3,000, depending on coverage levels and your specific business operations.
Procure Juice Bar Equipment And Suppliers
To successfully start a juice bar business, like 'The Daily Squeeze,' you must carefully select the right equipment and establish dependable suppliers. This is a foundational step for efficient operations and delivering high-quality products. Investing in commercial-grade machinery ensures durability and performance, crucial for a busy smoothie shop.
Essential Juice Bar Equipment List
When you open a juice bar, specific equipment is non-negotiable. For 'The Daily Squeeze,' focusing on quality and efficiency means acquiring the right tools. Here's a breakdown of essential juice bar equipment:
- Commercial Juicers: Essential for high-volume juice production. Look for cold-pressed juicers, which are preferred by wellness-focused consumers for their ability to retain more nutrients. A good commercial unit can process approximately 100 pounds of produce per hour.
- High-Powered Blenders: Necessary for creating smoothies and thicker beverages. Commercial blenders are built to withstand continuous use and can handle frozen fruits and ice.
- Refrigeration: Commercial refrigerators and display coolers are vital for storing fresh produce, pre-made juices, and other perishable ingredients. Maintaining proper temperature is key for food safety and product quality.
- Ice Machines: A reliable ice machine is a staple for many juice bar offerings, especially smoothies and iced drinks.
- Prep Tables and Sinks: Stainless steel prep tables and commercial sinks are required for hygiene and efficient workflow.
- POS System: A Point of Sale system is critical for managing orders, payments, and inventory. Many modern POS systems for a juice bar also offer customer relationship management features.
Sourcing Quality Ingredients for Your Juice Bar
The quality of your ingredients directly impacts the taste and perceived health benefits of your beverages. For 'The Daily Squeeze,' sourcing fresh, local produce is a key differentiator. Establishing strong relationships with suppliers is paramount to maintaining consistency and controlling costs. This is a critical part of your juice bar startup.
Establishing Reliable Supplier Relationships
- Local Farmers: Partnering with local farmers ensures access to the freshest seasonal produce. This can also reduce transportation costs by an estimated 5-10% and resonates well with customers who value local sourcing.
- Wholesale Distributors: For items not readily available locally or for non-perishable goods, wholesale distributors are essential. Negotiate terms for consistent pricing and reliable delivery schedules to avoid stockouts.
- Bulk Purchasing: Buying non-perishable items in bulk can offer significant savings, potentially leading to a 5-10% cost reduction. However, ensure you have adequate storage space and manage inventory effectively to prevent spoilage.
Securing these essential juice bar supplies and equipment is a significant investment for any juice bar business plan, but it sets the stage for operational success and customer satisfaction. The cost to start a small juice bar will heavily depend on the quality and quantity of equipment you procure.
Design Your Juice Bar Layout And Menu
Creating a functional and inviting space is crucial when you decide to start a juice bar business. Your juice bar layout directly impacts customer experience and how smoothly operations run. A well-thought-out design can significantly improve service speed, especially during busy periods, potentially reducing wait times by 20-30%.
When planning your juice bar setup, think about distinct zones. You'll need an efficient prep area for ingredients, a dedicated juicing and blending station, a clear serving counter, and a comfortable seating area for customers. Organizing these areas logically helps your staff work more efficiently and reduces bottlenecks.
Developing a compelling menu is just as important as the physical layout. For a business like 'The Daily Squeeze,' this means offering a variety of popular cold-pressed juices and vibrant smoothies. Consider adding healthy food options such as acai bowls or nutrient-dense wellness shots. Highlighting the specific health benefits of your offerings, like antioxidant-rich ingredients or vitamin C content, can attract health-conscious customers.
Menu Ideas for a Juice Bar
- Cold-Pressed Juices: Offer classic combinations like green juices (kale, spinach, cucumber, apple) and vibrant fruit blends (beet, carrot, orange).
- Smoothies: Include options with various bases (almond milk, coconut water) and add-ins (protein powder, chia seeds, berries).
- Wellness Shots: Small, potent shots of ingredients like ginger, turmeric, or wheatgrass are popular for a quick health boost.
- Acai Bowls: A visually appealing and nutritious option, topped with granola, fruits, and seeds.
- Healthy Snacks: Consider offering pre-packaged healthy snacks like energy balls or overnight oats.
To boost recurring revenue and customer loyalty for your juice bar startup, explore a flexible subscription model. Similar to 'The Daily Squeeze' concept, offering regular juice deliveries can increase your business's predictable income. Studies suggest that subscription models can potentially increase recurring revenue by 10-15%, providing a stable income stream.
Hire And Train Staff For Juice Bar
When you are looking to start a juice bar business, like 'The Daily Squeeze,' hiring the right team is crucial. You need people who are not only skilled but also genuinely enthusiastic about health and wellness. This passion translates directly into better customer interactions and product knowledge.
Developing a thorough training program is a non-negotiable step. This program should cover everything from the precise preparation of your cold-pressed juice and smoothies to excellent customer service skills. It's also vital they learn to use your point-of-sale (POS) system efficiently and, importantly, understand and adhere to all juice bar health department regulations. Well-trained staff can significantly reduce operational errors, with studies showing a potential reduction of up to 25%.
Clearly defining roles and responsibilities ensures smooth operations. This includes everyone from the individuals expertly operating the juicers to the front-of-house staff managing customer orders. The average hourly wage for a juice bar employee typically falls between $12 to $18, though this can vary based on your specific location and the employee's experience level.
Key Staffing Considerations for Your Juice Bar Business
- Passion for Health: Seek candidates who align with the healthy beverage business ethos.
- Comprehensive Training: Cover product knowledge, customer service, and health compliance.
- Defined Roles: Ensure clarity on responsibilities for each team member.
- Competitive Wages: Offer wages that attract and retain quality staff.
- Positive Work Environment: Foster a culture that combats high turnover rates common in food service, which can reach 50-70% annually. Retaining employees can save between 1.5 to 2 times the employee's salary in recruitment and training costs.