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Tropical Smoothie Cafe reports strongest growth in 19-year history

The franchise reported same-store sales of 11.25 percent — its sixth consecutive quarter of double-digit positive comp sales — and signed franchise agreements to develop nearly 200 new cafes across the U.S.

January 12, 2016

Tropical Smoothie Café announced today that is saw its strongest year of growth in its 19-year history. The franchise reported same-store sales of 11.25 percent — its sixth consecutive quarter of double-digit positive comp sales — and signed franchise agreements to develop nearly 200 new cafes across the U.S., including about two dozen locations in Southern California, according to a company press release. The brand's first cafe in California will open this week in Lake Forest. 

"Over the last six years, Tropical Smoothie Cafe has experienced incredible growth that's taken our brand from 200 franchised locations to more than 465, and our average unit volume has grown by 44 percent. Coupled with some of our most successful limited-time menu items to date, such as the Avocolada Smoothie, Super Grain Bowls and Chia Banana Boost Smoothie, traffic and sales were up by 7.8 and 3.5 percent, respectively, over 2014," said Mike Rotondo, CEO of Tropical Smoothie Cafe. "In 2016, consumers and prospective franchisees can expect even more exciting things from our fast-growing brand, including a more modern store design and testing a new, completely customizable menu."

This year, the brand will open 100 restaurants nationwide and currently has franchise opportunities across the U.S. in markets such as Miami, Philadelphia, Boston, Houston, Dallas-Fort Worth, Atlanta, Columbus and Charlotte, North Carolina, among others. By 2018, Tropical Smoothie Cafe plans to have 800 stores open across the U.S, Rotondo said.

Tropical Smoothie Cafe is looking to add qualified franchisees to its growing brand. Candidates should have business experience; $125,000 in liquid assets and a minimum net worth of $350,000; and an initial investment of between $165,940 and $414,685. The healthy fast food franchise currently boasts an average unit volume of more than $578,000 — the highest in the company's 19-year history — with the top 50 percent reporting an AUV of $734,000, Rotondo said.

Tropical Smoothie Cafe's aggressive franchise growth is backed by the entrepreneurs at the BIP Franchise Accelerator, a division of venture capital firm BIP Capital, which invested in the brand in 2010. In addition to Tropical Smoothie Cafe, the BIP Franchise Accelerator's portfolio includes Tin Drum Asiacafe, which has grown to 13 locations in Georgia and Florida.