Jamba, Inc. (NASDAQ:JMBA), the owner of smoothie company Jamba Juice, announced on Wednesday that it will move its headquarter from Emeryville, California, to Texas, due to the lower costs and taxes.
“We explored a number of location options that would offer us competitive operating costs, a region with extensive access to skilled restaurant talent, an attractive cost of living to our current and future team members,” Chief Executive David Pace said. “The State of Texas meets all of these criteria and Frisco is a community committed to healthy living that aligns closely with our overall mission.”
Jamba had 818 stores across the U.S, and it has 1,000 company employees in California and franchisee partners have more than 5,000 employees in 407 stores in the state. This move will affect 120 employees in California, and the company said it is going to hire around 100 employees in Texas, consisting of workers of California and new workers in its new area.
One of the reasons of Jamba’s moving is the high costs in the Bay Area. It is costly both in hiring new workers and living. Due to the high wages in the Bay Area, hiring new people is costly. In addition, the rental prices in California is also really high because it is a really attractive and popular place to live in. Compared to the Bay Area, Texas has lower taxes, which will benefit the company.
Pace also said that Jamba’s current lease in Emeryville will expired at the end of 2016, and Jamba also announced to restructure the overall organization and make changes in leadership.
"Jamba has pursued our vision to inspire and simplify healthy living for 26 years, starting with a single juice shop in San Luis Obispo, but as we continue to spread our healthy living mission globally, it has become increasingly clear that a relocation of our support center will better position the company to extend our brand and continue to support our franchise partners for the long term." Pace said.