Joe & The Juice, a Copenhagen-based international chain of juice bars and coffee shops, has apparently stopped using Square for its payments processing. Instead, the restaurant, which caters to a health-conscious and “edgier” clientele, is using Adyen, a Dutch payments processor that’s on the rise.
In its shareholder letter for the first half of 2019, Adyen listed Joe & The Juice, which has more than 300 locations, among its “wins.”
Losing Joe & The Juice is unlikely to hurt Square’s bottom line too badly—the San Francisco-based company reported $563 million in earnings for the second quarter of 2019—but it could shake confidence in Square’s ability to attract and retain larger customers, especially outside the US.
“As Square enters this market [for larger businesses], it is not only competing on price, but also on hardware capabilities and breadth of offerings,” wrote James Faucette, an analyst for Morgan Stanley. Per Bloomberg, Faucette also observed that Square used to cite Joe & The Juice as a “key customer case.”
Square can still count large companies, like Ben & Jerry’s and Blue Bottle (a coffee company), among its customer base, but shares in Square have fallen precipitously since its last earnings report—from about $80 to the low $60s. Even with the dip, Square is up nearly 10% year-to-date.
Adyen declined to comment on Joe & The Juice’s business.