Tropical Smoothie Café's Average Unit Volume Tops $526,000
Marketing and Menu Innovation Fuel Jump in AUV for Food-and-Smoothie Franchise
ATLANTA - June 10, 2014 - (BUSINESS WIRE) - Tropical Smoothie Café reports its average unit volume (AUV) increased to $526,403 in 2013 – a more than five 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.
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. Highlights from this strategy include Tropical Smoothie Café pioneering the use of vegetables in the smoothie industry, leading to the creation of the brand's top-selling Island Green Smoothie, a smoothie 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," said Tropical Smoothie Café CEO Mike Rotondo. "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."
In continuing its recipe for success, Tropical Smoothie Café doubled down on its marketing efforts this year, increasing its national advertising fund by 100 percent. With the new resources, the company 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 compared to last, reflecting its commitment to menu innovation.
Other key indicators showing the health of the franchise include nationwide expansion and same-store sales. Last year, Tropical Smoothie Café added 40 new locations while same-store sales rose 6.4 percent.
The franchise expects to have another banner year in 2014, and 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. Tropical Smoothie Café is actively seeking franchise partners to develop restaurants in the following markets: Charlotte, North Carolina; Birmingham, Alabama; Houston, Texas; Atlanta, Georgia. Kentucky and Tennessee are also being targeted for development.
Tropical Smoothie Café continues to strengthen its dual focus of flavorful food and freshly prepared smoothies making it an attractive business opportunity for its franchisees. The brand appeals to a broad consumer base seeking better-for-you food options throughout all parts of the day.
For locations and general information, visit www.tropicalsmoothiecafe.com.
About Tropical Smoothie Café
Founded in 1999, Tropical Smoothie Café is a fast-casual restaurant concept whose franchise partners inspire healthy lifestyles in communities across the country. Catering to all day-parts, Tropical Smoothie Café serves breakfast, lunch and dinner, including smoothies, salads, wraps, sandwiches, flatbreads and more. The fast-growing franchise has 380 locations nationwide and has won numerous awards including: Entrepreneur 2014 Franchise 500; Nation's Restaurant News 2013 Top 200; Tropical Smoothie Café is currently awarding franchises throughout the United States. For more information, visit www.TropicalSmoothieFranchise.com.