Jamba Appoints New Chief

EMERYVILLE, Calif. (Blue MauMau) - Jamba, Inc. announced on Monday the appointment of James White as president, chief executive officer and member of the board of directors. He begins his new position on December 1, 2008.

In connection with Mr. White's appointment, Mr. Steven Berrard will be stepping down as the Company's interim chief executive officer and president, but will remain as the company's chairman of the board of directors.

Mr. White was most recently the senior vice president of consumer brands at Safeway, Inc. He began his career at the Coca-Cola company.

In its third quarter, Jamba lost $12.4 million. Its 200 plus franchises and some 300 company-owned stores have struggled as same-store sales have fallen 10.3 percent compared to the same quarter last year. With losses and dropping sales, the firm has also experienced turnover in its top ranks. CEO Paul Clayton quit in August. Steven Berrard took over as the chain's interim CEO and president.

"While there are clearly challenges ahead, I feel that Jamba is a world-class brand with unique growth and extension opportunities," stated Mr. White.

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Jamba Challenges

"I hear the train a-comin'. It's comin' down the tracks." - Johnny Cash

McDonald's plans to offer smoothies. At that point its 30,000 outlets will directly compete with Jamba Juice.

"[Vandalla McDonald's will offer new products]. . . like Mocha, Latte, Cappuccino and Espresso. In the not-too-distant future, customers will also be able to enjoy various types of Smoothies." - Vandala Drummer

Dunkin has Smoothies

Don't forget Dunkin Donuts offers great low sugar smoothies. Very competitive market though and dairy product is quite costly. Problem with Jamba is that is all they have in terms of product line. Can't take the entire family to Jamba for lunch or dinner know. McDonald's offers food for all meals something that Jamba and Dunkin does not so I guess Mcdee's wins again. Jamba is breakfast/lunch and possibly a snack. DD is breakfast and possibly a snack for a coffee break. McD. breakfast/lunch/dinner. Jamba needs to expand to egg/tuna/chickensalad sandwich something still thought of as quick and healthy meal. McDee's can't go there b/c of how their grills and restaurants are set up. Jamba can definitely make the switch and that would be a great edge and one up Subway/Quiznos/Blimpies. How is that for competition b/c we all know Jamba is healthy

I doubt Juice and Smoothies were ever a good long term -

life of the franchise agreement investment. One product operations where the product is something any multi poroduct other system can just plug into their operations are not what anyone with analytical skills would consider.

But whatever these Juice/Smoothie/Soup/etc one product systems ever were at one time - THEY ARE NOW FRANWHACKS!

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Richard Solomon, FranchiseRemedies.com,  has over 45 years experience with franchise litigation and crisis management. He is a graduate of The Citadel and The University of Michigan Law School

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