Food & Beverage

Smoothie King posts record growth in 2020 despite pandemic

Image courtesy of Smoothie King.

January 6, 2021

Smoothie King, the world's largest smoothie brand, opened a record 263 stores globally in 2020, despite the challenges of the global pandemic, according to a press release.

The figure includes 71 in the U.S. — which allowed the franchise to surpass 1,000 stores domestically and more than 1,300 worldwide. The U.S. stores grew comp sales for the ninth consecutive year and closed out the second half of 2020 posting an unprecedented 12.2% sales growth year-over-year. In addition, Smoothie King hit record-setting new store annualized average sales of $627,922 for 2020 openings.

"When you have a year like 2020 where health and wellness come to the forefront unlike ever before, our franchise opportunity becomes even more attractive," CEO Wan Kim said in the release. "Not just because we're constantly improving and effectively answering today's guest trends with innovations like curbside pickup, online ordering and delivery; there's also an incomparable emotional attachment to a brand that genuinely cares and supports guests' healthy lifestyles."

After tapping into its connections in Korea early in the year to get a forecast on how the pandemic might affect its U.S. stores, Smoothie King rolled out a strategy that included fast tracking its website and mobile ordering platforms. This was done at the onset of the pandemic to provide guests with another convenient ordering option while also creating an additional revenue stream for franchise owners. This aided the implementation of a safe, contactless curbside pickup service systemwide followed by a major delivery partnership with DoorDash.

The company also supported franchisees in other ways, including launching weekly franchisee webinars to communicate best practices for managing COVID-19 challenges; waiving some fees and deferring some royalties during the worst financial months of the pandemic, and lowering the cost of goods versus 2019.

The company also closed out the year accepting 91 franchise agreements domestically — topping last year's total number of accepted agreements.

Those 91 deals are projected to produce 111 future stores in markets like Chicago, Northern Virginia and Rio Grande Valley, Texas. Additionally, the 2020 agreements are a result of 26 new franchisees joining the system and 65 current owners reinvesting in Smoothie King.

Smoothie King is targeting 125 signed franchise agreements by the end of 2021.