Operations

Smoothie King boasts healthy Q3 sales growth

Provided

October 8, 2021

Smoothie King enjoyed a 5% sales increase in the third quarter of 2021 after a 14.8% sales increase in the third quarter over 2019, according to a company press release.

The brand ended the third quarter positive 18% year-to-date. Smoothie King opened 21 stores for the quarter, totaling 92 store openings year-to-date. In addition to strong sales numbers, the brand has welcomed 26 domestic franchisees this year and signed 158 domestic store commitments to date. Looking ahead, Smoothie King expects to open 240 store commitments by the end of 2021.

Smoothie King also achieved a record $834,562 AUV for the top 25% of franchised units in operation. This store-level success is partly attributed to the strong digital performance the brand has seen which includes the healthy rewards app, online ordering for pickup and delivery, multiple third-party delivery partners, and the introduction of tablet devices for drive-thru locations. Smoothie King also reported store-level EBITDA at 20%. This is a result of tools to help franchisees control their costs as well as the work done to lower food costs during a challenging time.

"In the wake of the global health crisis we are facing, inspiring people to live healthy and an active lifestyle has proven to be instrumental to our growth and has helped introduce our brand to new guests," Wan Kim, CEO and chairman of the board of Smoothie King, said in the release. "As we head into 2022 our focus is on helping our franchisees attain higher unit volume and EBITDA through operational efficiency and new technology and to stay dedicated to our mission and vision through new product launches and system-wide initiatives. I am proud of my team and our franchisees' hard work getting to where we are today and look forward to the future growth of Smoothie King."

Founded in 1973, the Dallas-based franchise has more than 1,300 locations worldwide.

"There has never been a better time to invest into a Smoothie King franchise," Kevin King, chief business development officer, said in the release. "The fourth quarter will surely bring more wins for our franchisees and we look forward to finding even more qualified franchise candidates to expand our brand into new and existing markets across the country."