STRATEGIC PARTNERS
Tropical Smoothie Café has signed 83 franchise agreements during the third quarter of 2015, and more than 160 development agreements.
October 16, 2015
Tropical Smoothie Café has signed 83 franchise agreements during the third quarter of 2015, and more than 160 development agreements, according to a company press release. Additionally, the food and smoothie franchise will open its first café in California in the next year. Tropical Smoothie's year-to-date, same-store sales continue to eclipse 11 percent, well above the industry norm. The company is currently celebrating 15 consecutive months of double-digit comp sale growth, said Mike Rotondo, CEO of Tropical Smoothie Café.
"I'm extremely proud of where we are today," he said. "Tropical Smoothie Café is on pace to not only meet, but also exceed the big goals we set for ourselves at the beginning of the year,"
Tropical Smoothie Café currently has nearly 200 cafés under development and slated to open in the next two years. In 2015, the brand opened 45 locations and is on pace to open 70 more. The company's goal to expand west will come to fruition within the next six months thanks to new franchisee RanaKaran "R.K." Sidhu. Sidhu has recently become a franchise owner with Tropical Smoothie Café with agreements to open 20 Tropical Smoothie Café's in the state, specifically 10 locations in Orange County and 10 locations in the Greater San Diego area, Rotondo said.
"The exceptional product, passionate franchisees and dedicated corporate staff are the driving force behind our success," Rotondo said. "And the success we are seeing is phenomenal, including strong same-store sales that far outperform our competitors in the smoothie and fast-casual industries," he said. "All of this is contributing to our franchise growth as more small business owners want to be part of Tropical Smoothie Café's success."
This year, the food and smoothie franchise plans to exceed 475 stores nationwide and has franchise opportunities across the U.S. in markets such as Houston, Dallas and San Antonio, Texas, as well as Los Angeles and San Francisco, Calif., among others. By 2018, the café plans to have 800 stores open across the U.S., said Rotondo, who is looking to add qualified franchisees with business experience; $100,000 in liquid assets and a minimum net worth of $300,000; and an initial investment of between $165,940 and $414,685.
The chain boasts an average unit volume of more than $578,000 — the highest in the company's 18-year history — with the top 50 percent reporting an AUV of $734,000, Rotondo said.
