Operations

Smoothie King sees solid growth despite pandemic

Provided

January 8, 2021

In a year that was a struggle for most restaurant brands, Smoothie King managed to grow, opening 263 stores globally, including 71 in the United States, allowing it to surpass 1,000 stores domestically. 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 new-store 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 a company press 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 quickly 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 its franchise owners. This aided the implementation of a safe, contactless curbside pickup service systemwide followed by a major delivery partnership with DoorDash, Kim said.

In addition to operational innovations, Smoothie King supported franchisees by launching weekly franchisee webinars to communicate best practices for managing COVID-19 challenges in stores; waiving some fees and deferring some royalties during the worst financial months of the pandemic and lowering the cost of goods versus 2019.

Because of its efforts, the company closed out the year accepting 91 franchise agreements to open 111 stores in the U.S. — topping last year's total number of accepted agreements.

Additionally, the 2020 agreements were a result of 26 new franchisees joining the system and 65 current owners reinvesting in Smoothie King.

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

"As a franchisor, our owners drive our success, and we are constantly focused on what we can do to best support them," Kim added. "In a time when many other companies and businesses had to shut their doors, we are proud to say we helped our owners stay open and get through the pandemic. Now, their businesses are thriving, and we are very excited for what next year has in store. We believe it's going to be another record-setting year for us, and we look forward to welcoming new owners to help continue our growth at Smoothie King."

Founded in 1973, Smoothie King Franchises Inc. is a privately-held, Dallas-based franchise company with 1,300 global units.