News

Tropical Smoothie Café’s AUVs surpass $526K

June 10, 2014

Tropical Smoothie Café today reported its average unit volumes increased to $526,403 in 2013 — a more than 5-percent jump since 2012. The AUV represents the average gross sales of 283 Tropical Smoothie Café locations that were open at least 12 months as of Dec. 31, 2013, the company said in a news release.

Much of the brand’s recent sales growth can be attributed to its 2012 acquisition by private equity firm BIP Opportunities Fund. With the financial support of the new owner, Tropical Smoothie Café invested heavily in menu innovation and marketing, the release said.

Highlights from this strategy include the use of vegetables in the smoothie industry, leading to the creation of the brand’s top-selling Island Green Smoothie, which is made with spinach and kale. The company also expanded its menu with limited-time food offerings, such as Fish Tacos and Spicy Mongolian Steak Noodle Bowls.

“Momentum is definitely on our side,” CEO Mike Rotondo said in the release. “From a marketing and menu innovation standpoint, the plan we put into place over the past two years is coming to fruition, and we’re not taking our foot off the pedal.”

To continue the momentum this year, Tropical Smoothie Café has increased its national advertising fund by 100 percent, and launched its first national television advertising campaign in March. Tropical Smoothie Café is on pace to almost double the number of limited-time offerings this year, as well.

In 2013, Tropical Smoothie Café added 40 new locations while same-store sales rose 6.4 percent. Through May of this year, same-store sales are up more than 9 percent. By year’s end, the brand plans to add 55 new locations through franchise agreements with new and existing franchisees, bringing the total store count to 415.