Real Estate Pioneer: Franchisee Group Expands the brand with a Standalone Model

Name: Nick Crouch
Title: Co-CEO
Company: Dyne Hospitality Group
No. of units: 118 Tropical Smoothie Cafe
Age: 39
Family: Wife Jessica and daughters, Isabella, 9, and Avilynn, 5
Years in franchising: 13
Years in current position: 13

Nick Crouch is co-winner of the Single-Brand Leadership MVP (Most Valuable Performer) for achieving leadership with a single brand.

Nick Crouch was a successful franchise owner seven years before he formed a deep friendship and bond over similar values with fellow Tropical Smoothie Cafe franchisee Glen Johnson in 2018. They merged their ownership groups to form Dyne Hospitality Group and have become the largest franchisee group in the Tropical Smoothie Cafe system.

The two found that their strengths complemented each other well. Crouch handles operations, marketing, and infrastructure, and he ensures the company operates under a strong culture and set of core values. Johnson’s specialty is finance and real estate, and the two collaborate on company strategy, vision, and growth.

Shortly after partnering together, the two made a major move to help transform the brand. They were the first franchisees in the system to develop a real estate model that called for standalone buildings in prime market locations. Before that, Tropical Smoothie Cafe was primarily an in-line or drive-thru end-cap model.

Crouch felt investing money into building prototypes in good locations with attractive exteriors would lead to success and profitability. That approach led to high average unit volumes for the new locations.

The real estate model fueled an expansion of about a dozen new cafes per year. That growth was vital to Crouch, who centers his mission on creating opportunities for others. He often promotes from within and gives his employees chances for advancement as part of a long-term career path. He says he wants to expose hourly employees to a strong culture and prepare them for careers in the future. To do that, the locations must succeed and grow.

Crouch says his commitment to providing opportunities for his team comes from those who supported him. Shortly after graduating from college, Crouch told his mother that he wanted to buy a business, but he didn’t have the money. He said his parents believed in him so much that they sacrificed their retirement money to help him purchase his first Tropical Smoothie Cafe when he was 25. Without that belief and assistance, Crouch says he doesn’t know where he would be today.

After more than a dozen years with Tropical Smoothie, Crouch says he couldn’t imagine operating another restaurant brand. He appreciates the franchise’s culture, menu, and price point. He says the operational efficiencies of owning a single brand allow him and his team to focus entirely on how to run his Tropical Smoothie locations at a high level.

“I love the tropical vibe, the made-to-order and fresh menu selections, and our customers being health conscious about the quality of the food they eat,” Crouch says. “Tropical Smoothie is a major part of my life, and I have lived and breathed it every day for the past 13-plus years. We have a great infrastructure in place and an amazing leadership team. I’m even more energized than ever before and focused on growth as we look to reach 200 units.”

MVP Questions

Why do you think you were recognized with this award? My partner, Glen Johnson, and I have been laser focused on Tropical Smoothie Cafe development over the past 13 years. We are the largest franchisee group in the system with 118 locations, and we open about 12 cafes per year. We were the first franchisees in the country to establish a proven real estate model, and that has tremendously increased the average unit volume for the brand. We have been committed to Tropical Smoothie Cafe and have been a part of almost 14 years of continuous comp sales growth and innovation.

How have you raised the bar in your own company? We are focused on being exceptional at what we do. We always try to live through our four core values and work hard every day to fulfill our mission of creating opportunities for others. Perhaps our most significant contribution was leading the change to build standalone buildings and fully branded end-cap drive-thrus in prime real estate locations. We were the first to do that, and it greatly increased average unit volumes at those cafes.

What innovations have you created and used to build your company? We have streamlined a lot of our administrative and accounting processes in our support office, which has resulted in a productive office setting, eliminating some of the tedious accounting work. We have also implemented new operational strategies and procedures to help us improve speed and efficiency in our cafes. We are exploring a few innovative AI options this year to continue to improve efficiency and reduce time for our team that can be focused on the guest experience. We have built out a daily KPI list that is used to help us make smart decisions for our company and keep us focused on our key KPIs that drive our business.

What core values do you think helped you win this award? Our mission at Dyne is to “Create opportunities using our God-given gifts.” Our four core values that we live by are: Invest in people, make smart decisions, understand why, and make it happen. I think all our core values apply when receiving this award. They are all important and help shape who we are as people and as an organization.

How important is community involvement to you and your company? This is extremely important to us. We try to help as many schools, churches, and nonprofits as we can and believe that giving back to the communities where we own and operate businesses is a top priority. We also support No Kid Hungry on a national level and raise funds for the program throughout the year through sales roundups and donations in the cafe and on our app.

What leadership qualities are important to you and your team? Gratitude, humility, discipline, optimism, and a strong work ethic are all values that come to mind when we talk about what we want in our leaders. We are always available to our team and work around the clock to make sure our team members feel supported and excited to work for Dyne. It is important to us that we help others reach their goals and dreams, and we believe it’s our job as leaders to help guide our team members and steer them in the right direction.

Personal

First job: A paper route and working at a local restaurant and grocery store when I was 16. I held several other odd jobs before then.

Formative influences/events: I worked at a country club in my early 20s. That’s where I met a lot of very successful entrepreneurs who accumulated their wealth by owning multiple units of what they were passionate about. Several of those members said that it is better to be the expert and laser focused on one or a few businesses rather than stretching yourself and being mediocre at many different things. I found that franchising was a systematic approach to business that I felt comfortable with and understood. I kept that in mind and knew I needed to find the right franchise brand(s) and be the best in the world operating those to find real success. The advice from those entrepreneurs verified to me that I was on the right path and to always dream big and go for it.

Key accomplishments: When I partnered with an amazing friend and business partner, Glen Johnson. I would never be where I am today, both professionally and personally, if it weren’t for God putting him in my life. I have thoroughly enjoyed our partnership and friendship, and I am very thankful for the opportunity to partner with him.

Biggest current challenge: The cost of capital and construction costs. A lot of the real estate deals that were great a year or two ago don’t make as much sense now from a return on capital standpoint.

Next big goal: Creating more opportunities for our team and community is our top priority at all times. Surpassing $200 million in sales within our Tropical Smoothie Cafe portfolio is another milestone that is just ahead of us.

First turning point in your career: When I partnered with Glen. Our skill sets complement each other. It was a perfect business match, and I know we are both thankful for our partnership and friendship.

Best business decision: To build companies based on values and gratitude. Our mission is to create opportunities using our God-given gifts. Every day, we focus on how we can create new opportunities for our team and communities where we operate businesses.

Hardest lesson learned: Sometimes, you believe in someone more than they will ever believe in themselves. It can be hard to grasp that concept and understand that maybe you will never change them. You must know when it’s time to move on to someone more receptive and energized around what you are trying to do for them.

Work week: I am focused on our businesses all day, every day. I love what I do, so it truly doesn’t feel like work. I don’t have a set schedule and end up working on something related to our business every day of the week. However, I think I have a reasonable blend of family time, fun, business, and faith, and I love spending time with family and friends when time allows.

Exercise/workout: Wellness is very important to me. I try to get up at 4 a.m. and begin my routine of wellness and gratitude. I work out for at least an hour every day, and it is what fuels me and brings me energy. My typical week is three days of lifting with a trainer and Peloton and other cardio on the other days.

Best advice you ever got: Trust in God and focus every day on creating opportunities and helping others. The rest will follow. I also believe that if you can outwork everyone and be disciplined in what you do, you will be ahead of most people. I also heard a line from someone more than 20 years ago that I repeat often: “Do things other people don’t want to do, and embrace that you must sacrifice to get where you want to be. There is no other way.”

What’s your passion in business? Helping others and seeing our team succeed and living the life they have always imagined. There is nothing more rewarding.

How do you balance life and work? I think it’s more of a blend than a balance. I love what I do, and my family knows that and supports me. It really doesn’t feel like work to me, so sometimes, it’s hard to shut it off. I try to keep a reasonable blend of family time, faith, fun, and business. I am doing better than I used to, and I cherish the time I spend with my family.

Guilty pleasure: I love a cold drink out on the boat from time to time.

Favorite book: What It Takes by Stephen A. Schwarzman, chairman, CEO, and co-founder of Blackstone.

Favorite movie: I don’t really watch a lot of movies, so it is always hard for me to answer this question. I honestly don’t think I have a favorite movie.

What do most people not know about you? I want to live in The Bahamas one day. The only time I am truly clearheaded is when I am on the water.

Pet peeve: Excuses. Focus on the solution, not the problem. There is always a solution and a positive path forward.

What did you want to be when you grew up? A businessman or a defense attorney.

Last vacation: Paris with my wife for our 10th anniversary in September 2024.

Person you’d most like to have lunch with: Tilman Fertitta or Donald Trump.

Management

Business philosophy: Work harder than anyone, and be willing to sacrifice for the greater good of others. Focus on creating opportunities for others, and provide continuous advancement for our team members personally, professionally, and financially. I try to wake up every day and approach the day with the same intensity, focus, and gratitude that I had on day one.

Management method or style: We have great infrastructure in place, and our leadership team is fantastic. I am thankful for all of them, and we are lucky to have them leading our organization. I try to support our leaders in any way that I can and provide a clear vision, continuous optimism, and relentless positive energy. We focus on operational excellence, and we try to be exceptional at what we do. All the details put together properly provide a fantastic product, fun atmosphere, and great working environment.

Greatest challenge: When you have an intense passion for excellence, sometimes the drive for perfection can get in your way. Our team has helped me slow down and understand each circumstance before making any assumptions. I am always trying to get better, and sometimes, it can’t happen instantly, and we need to follow our proven processes and be patient. The result and outcome we want will eventually come if we’re focused on what we know works.

How do others describe you? Intense, focused, relentless, driven, disciplined, high energy, trustworthy, and passionate. I hope someone would say that I was fun to work for too!

Have you ever been in a mentor-mentee relationship? What did you learn? I have mentored several young people, and I always try to make time for young people trying to figure out what they want to do with their lives and answer any questions they might have. I have also had a mentor or someone I looked up to as we grew our business. I learned to ask a lot of questions and then keep my mouth shut and listen. Surround yourself with people who already have what you want, and listen to them on how they got there. The path will come, and I believe God will put the right people in your life to give everyone the opportunity and knowledge they need.

One thing you’re looking to do better: Understand how I can best support each company and get creative on ways to continue to grow our real estate portfolio.

How you give your team room to innovate and experiment: I am a big believer of sometimes just staying out of the way and letting the other leaders lead. Our team is encouraged to innovate and experiment with ways to improve our business, and we value that type of collaboration.

How close are you to operations? Not as much as I used to be, but I am still very close. I am on the road about 10 days a month, visiting cafes and spending time with our team. I love serving others and being involved in the business. I get energy from that more than anything. We fortunately have an amazing chief operating officer, whom I fully trust, and all our operations leaders and our leadership team report to her.

What are the two most important things you rely on from your franchisor? A great national marketing strategy and brand awareness, menu innovation, and a great supply chain with tremendous buying power.

What you need from vendors: Consistency, timeliness in deliveries, and clear communication when something isn’t going the way we want it. We don’t like surprises because we cannot proactively plan for the solution, and it negatively affects the guest experience.

Have you changed your marketing strategy in response to the economy? How? Yes. Tropical Smoothie Cafe has just moved to a full national marketing strategy. This is our first year moving all local store funds to national. We are excited for a huge year for Tropical Smoothie Cafe and a major increase in brand awareness and our overall media presence across the country.

How is social media affecting your business? We advertise on social media just like any other business. It is a component of our market strategy and can be very successful in most markets.

How are you using technology, like AI, to manage your business? We have a great app that keeps getting better. We have implemented AI alternatives in our support office, and we are working on ways to use AI in the cafes.

How do you hire and fire? We believe in protecting our company culture. If there is someone in our organization who does not represent our values, then that person is not the right fit and should not be in our company. We also believe in giving grace and understanding mistakes. The only way to learn is through making mistakes. We work together to help find solutions and keep our business moving in the right direction. We all try to learn from each other and be grateful for each other’s skill sets and experiences.

How do you train and retain? We have comprehensive training programs at all levels and focus on providing the tools to set up each person for long-term success. We believe in providing opportunities for advancement, support, and encouragement for each team member to reach their goals.

How do you deal with problem employees? We believe that everyone should have the leeway to make mistakes and then learn from them. We coach and develop our team members so that they feel supported and confident in their decisions. If we find out that someone in our organization does not fit our company culture and they are not living out our core values and beliefs, then we believe we must protect the company culture and do what is best for everyone. We usually will then have to decide whether they are the right fit for our company and whether we are the right fit for them.

Fastest way into your doghouse: Punctuality, poor attitude, and excuses. We are optimistic leaders. When you are in a leadership role, you need to set a high-energy and positive atmosphere for everyone and help show a clear path to a successful outcome. Showing up on time and prepared for each situation is the start to a good experience for everyone involved.

Bottom Line

Annual revenue: $150-plus million.

2025 goals: Continue our development with Tropical Smoothie Cafe and focus on our operational processes, throughput, and urgency in all that we do. We are also working on another standalone building prototype that improves our development cost and sets us up for a few different options from a real estate development standpoint. We are also focused on improving individual cafe profitability.

Growth meter: How do you measure your growth? Year-over-year comp sales, year-over-year transactions, overall guest satisfaction, improvements to company profitability, cash flow, and cafe-level EBITDA. Most importantly, our growth is measured by whether we are fulfilling our company mission of creating more opportunities for others using our God-given gifts. We do that through unit-count growth and internal advancement within our organization.

Vision meter: Where do you want to be in five years? 10 years? Five years from now, we will have more than 200 Tropical Smoothie Cafe locations, a substantial real estate portfolio, and close to $300 million in annual sales. Outside of Dyne, we will have started and/or acquired several other businesses, and we will have entered a few other industries that we are exploring.

Do you have brands in different segments? Why/why not? We are 100% focused on our Tropical Smoothie Cafe development in the QSR space. We believe it is an incredible brand, and 2025 is the jump-off point to the best years ahead.

How is the economy in your region(s) affecting you, your employees, your customers? We are competing with some of the large fast-food and QSR concepts that are offering deep discounts and bringing back value meals. We have not seen value meals in quite some time. We believe that Tropical Smoothie Cafe has great made-to-order food and smoothies. We feel we are positioned properly to continue to gain market share and serve guests a delicious, healthy, and fresh product in a fun atmosphere.

Are you experiencing economic growth in your market? Most of our markets are doing well. We are seeing a lot of growth in the Southeast in Florida, Georgia, and Alabama. We are entering Missouri and Kansas in 2025, and we are looking forward to getting a foothold in those markets as well.

How do changes in the economy affect the way you do business? We have increased our focus on providing a great product, exceptional service, and value for our guests. We are taking 2025 to focus on throughput and urgency and tightening up our operational processes and procedures to ensure the guest experience constantly improves. We are operators, and this is a top priority for our team.

How do you forecast for your business? We complete comprehensive forecasting and business modeling for all our businesses. This is done throughout the year, preparing for each year ahead, and the process usually takes about four to six months. We focus on sales trends, seasonality, cost control, automation, comp sales growth, transaction growth, AUV growth, and EBITDA growth.

What are the best sources for capital expansion? We work with a regional bank that we have been with since we started. They have been a tremendous partner, and we are grateful for our relationship with them.

Experience with private equity, local banks, national banks, other institutions? Why/why not? We currently do not work with private equity in this business, but we recently attended a great PE and family office conference in 2024. We learned a lot and now understand a lot of new and interesting financing options. We thought it was a great experience, and we are possibly open to entertaining ideas for PE or family office investment in the future if it makes sense for our company and our team.

What are you doing to take care of your employees? Taking care of our team is important to us. We offer short-term incentive bonuses (STI) and long-term incentive bonuses (LTI). Our LTI program is a profit-sharing, partner program. Director and above leaders are considered partners, and they are included in an LTI program so that they benefit financially from the growth and success of the organization. We also offer great benefits, wellness programs, an internal fund to help those in need, academic scholarships, and several other benefits for our team.

How are you handling rising employee costs (payroll, minimum wage, healthcare, etc.)? We try to proactively plan and manage this increasing expense. It is part of our business modeling, and we understand that these expenses will continue to increase. We adjust pricing where needed and try to manage hourly wages appropriately.

What kind of exit strategy do you have in place? We do not currently have an exit strategy in place. We are operators, and we are focused on growth and creating opportunities for our team.