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Ones to Watch | By Sabrina Davis

Tropical Smoothie Café

The sandwiches come with a bag of chips or a banana. For those who might find food and a standard-size smoothie too filling, combo meals with a half sandwich or a half salad and a smoothie are available. For the smallest appetites, the kids’ menu includes wraps, quesadillas, and smoothies.

Tropical Smoothie Café is putting new emphasis on its catering menu, which features lunch boxes, salads, and trays stacked with wraps or sandwiches. “We are finding that our most successful operators really embrace catering,” Valentino says. “We’re really trying to grow catering sales. This push is part of our new vision rolled out last October.”

Valentino herself was also part of that new vision. She and her husband, chief operations officer Jim Valentino, were hired to plan for and manage rapid growth. “We were with Cold Stone Creamery in the early development stages,” she says. “Now we’re hoping to develop this young, but strong brand into a large national player.”

Although Tropical Smoothie has five stores in India and plans for more international stores in the distant future, the immediate focus is on domestic growth. There are stores in 28 states, but with the largest concentration in the Southeast and mid-Atlantic, the company wants to strengthen its presence in the west. There is particular interest in California and Nevada. Las Vegas already is proving successful, with 15 stores open and 15 more under development.

Tropical Smoothie
CEO: Eric Jenrich
HQ: Destin, Florida
Year Started: 1997
Annual Sales: $80 million
Total Units: 250
Franchise Units: 249
Why it bears watching: Tropical Smoothie Café has been a competitive smoothie player from the start, perhaps because it diversified with food so early. Several smoothie concepts are moving in that direction now. “We’re aware that folks are deciding to join us, but we’re not worried about competitors,” Valentino says. “We’re focused on our own strategy and goals.”
Escalating growth to open more than 1,000 stores in the next five years could make Tropical Smoothie Café the segment leader. But that’s not the company’s chief goal.
With an average of 150 visits to the mostly inline stores between the hours of 8 a.m. and 10 p.m., and a $7.50 average check, increasing same-store sales is another focus. Three other key objectives are increasing brand awareness, contributing toward greater profitability for the franchisee, and improving two-way communication. “Those focus areas help us triage things,” Valentino says.
“We publish a newsletter for franchisees and have good e-mail communication,” Valentino says. “We encourage franchisees to share best practices and what motivates their crew. It’s important to us to listen and find out what their challenges are and what they want us working on.”
Perhaps that franchisee support will help Tropical Smoothie Café accomplish one other goal: to break into Entrepreneur magazine’s top 100 on its Franchise 500 list.
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