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.