Tropical Smoothie Cafe had a successful 2016, reporting positive comp sales of 4 percent in 2016, resulting in comp sales exceeding 26 percent over the last three years. The franchise also signed franchise agreements to develop more than 160 new cafes across the U.S. and closed out the year with 86 new restaurant openings, expanding the brand’s presence in cities nationwide including Charleston, Albuquerque, Dallas and Houston, according to a company press release.
“We’re thrilled that our unwavering commitment to providing consumers with the high-quality, better-for-you products they crave has continually translated to strong results year after year. From the opening of our 500th restaurant to a surge in franchise development, 2016 was an outstanding year that positioned the Tropical Smoothie Cafe brand for tremendous success this year and beyond,” Mike Rotondo, CEO of Tropical Smoothie Cafe, said in the release. “Over the past several years, more and more entrepreneurs nationwide have recognized our business model’s immense potential for success and fueled the growth of our franchise network, and we know that we’re just getting started.”
The chain plans to open 100 restaurants nationwide this year and has franchise opportunities across the U.S. in markets, including Pittsburgh, Indianapolis, Philadelphia, Boston, Nashville, Houston, Kansas City, Minneapolis and Dallas. By 2020, Tropical Smoothie Cafe plans to have 1,000 stores open across the U.S., according to the release.
The chain is looking to add qualified franchisees. Candidates should have business experience, $125,000 in liquid assets and a minimum net worth of $350,000, and an initial investment of between $198,050 and $478,550.
It boasts an average unit volume of more than $634,000 with the top 50 percent reporting an AUV of more than $806,000, Rotondo said.
Tropical Smoothie Cafe’s franchise growth is backed by the entrepreneurs at the BIP Franchise Accelerator, a division of venture capital firm BIP Capital, which invested in the brand in 2010. In addition to Tropical Smoothie Cafe, the BIP Franchise Accelerator’s portfolio includes Tin Drum Asian Kitchen, which has grown to 11 locations in Georgia.
“Tropical Smoothie Cafe continues to greatly exceed our expectations, but I believe we’ve just scratched the surface of its potential,” Scott Pressly, co-founder and managing partner of BIP Capital said in the release. “The brand has tremendous opportunity for growth as it works in all types of consumer markets, from major metropolitan areas to secondary markets and small towns.”
