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Tropical Smoothie Cafe posts 11.4-percent comp growth in 2014

Tropical Smoothie Café wrapped up 2014 with 11.4-percent sales comps, a 28-percent increase in new franchise agreements, 55 new stores and AUVs of $526,000.

January 13, 2015

Atlanta-based Tropical Smoothie Café wrapped up 2014 with 11.4-percent sales comps and a 28-percent increase in new franchise agreements.

Highlights:

• Tropical Smoothie Cafe opened 55 new stores in 2014 and expanded the brand to several new markets, including Philadelphia, Atlanta and Dallas.
• The brand's average unit volume (AUV) surpassed $526,000 — the highest in the company's 17-year history — with the top 50 percent reporting an AUV of $669,000.

"This past year marked Tropical Smoothie Cafe's transition from an emerging fast casual brand to a true industry leader," said CEO Mike Rotondo in a company press release. "Currently, 65 percent of our new-store development comes from existing franchisees, which is a testament to the strength of our business model and the satisfaction of our operators. I'm thrilled with the year we had and am incredibly optimistic we will continue to lead the competition with our unparalleled growth."

This year, Tropical Smoothie Cafe plans to exceed 500 stores nationwide and sign franchise agreements for an additional 150 new locations. The brand is targeting growth in markets such as Atlanta, Houston, Dallas, Charlotte and Columbus, Ohio, among others. By 2018, Tropical Smoothie Cafe plans to have 800 stores open across the U.S.

"With eight consecutive quarters of positive comp sales, Tropical Smoothie Cafe has experienced growth that has outpaced the fast casual industry. In fact, while others within our segment have grown, no one has seen traffic growth like we have," Rotondo said in the release.

Tropical Smoothie Cafe has committed $20 million to franchise expansion through a financing program that provides qualified existing franchise owners with loans to cover 80 percent of store development costs, including franchise fees, equipment, signage and other expenses related to opening. Since the program's launch in 2014, Tropical Smoothie Cafe has approved $2.6 million and funded $1.7 million to develop 10 locations.