DESTIN FLA. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Tropical Smoothie, which offers healthful smoothies, wraps, salads and soups in an atmosphere intended to evoke a tropical vacation, expects to open 78 units before the year is out, officials said. The chain, whose units are located in 34 states, is almost entirely franchised, with only one store corporately owned. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
“2008 is going to be an outstanding year for us,” said Jim Valentino, chief operating officer of Tropical Smoothie Cafe. “I have high expectations.” —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The privately held company’s systemwide sales for fiscal 2007 were a little more than $100 million, and officials expect 2008 revenues to grow 30 percent. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Tropical Smoothie, based in Destin, was founded in 1993 by the husband-and-wife team of Eric and Delora Jenrich, whose instincts led them to believe that healthful smoothies could find a wide following. In 1999, their menu was broadened to include wraps, soup, gourmet sandwiches and high-quality salads, and the word “Cafe” was added to the concept’s name. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The company sold its first franchise in 1997 and continues to attract franchisees of all sizes and experience levels to its fold, Valentino said, adding that he has seen research estimating the sales potential of the healthy niche of the fast-casual segment at $1.6 billion. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
According to an October 2007 report by Koncept Analytics, the U.S. smoothie market has grown rapidly since 2002, driven by an increase in snacking among Americans and a growing interest in more healthful treats. Given the convenience and portability of smoothies, Koncept Analytics projects the market to grow at a rate of 10 percent to 13 percent in the next five years. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Other players in the smoothie segment include Emeryville, Calif.-based Jamba Juice, which earlier this year opened its 700th unit, and Covington, La.-based Smoothie King, which opened its 500th store at the end of 2007. Tropical Smoothie Café officials plan to have 1,100 units by 2011. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Existing franchisees are leading at least 40 percent of TSC’s new-store development, Valentino said. Many of the newcomers are multi-concept franchisees of other, non-competitive foodservice brands, he said. He added, however, that Tropical Smoothie has no plans to add another concept to its portfolio. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
“This business was built on mom-and-pop operators who wanted to do something on their own,” Valentino said, “and while that remains an important market for us, we are also benefiting from entrenched restaurant franchise groups that want a new opportunity for growth and who see committing for four or five new outlets at the outset. Those kinds of operators have really been the key to the success of our growth strategy.” —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The company requires prospective franchisees interested in opening one store to have $75,000 to $100,000 in liquid assets and $235,000 to $325,000, depending on a host of factors such as location, remodeling costs and which of the three prototypes in Tropical Smoothie Café’s arsenal the franchisee wants to develop: in-line, food court or stand-alone, all of which range in capacity from 45 to 60 seats. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The concept’s dining areas are designed to look like beachfront bungalows in the tropics. So just as Darden Restaurants’ Bahama Breeze concept used to market itself as a two- to three-hour vacation to the tropics without buying a plane ticket, TSC taps into the same fantasy, said Delora Jenrich, co-founder and executive vice president. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Regardless of the prototype being developed, all interiors feature brilliant tropical-accented colors as well as broad use of bamboo and cane in fixtures, on table-tops, wainscoting and even wall coverings. The effect is like being in a cozy thatched hut on the beach of a Jamaican resort. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
“Cane and bamboo are renewable resources,” Delora Jenrich said. “So we think we are being environmentally correct and green.” —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The tropical hues and use of authentic tropical decorative woods are all derived from artist Bob Stedman’s painting “Nervous Bananas,” Delora Jenrich continued, noting that Stedman works with the chain’s real estate and development staff in design and decor matters. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Like the decision to franchise just a few years after founding the company, the decision to serve up hot menu items also came early on in the development of the company, said Eric Jenrich, the company’s co-founder, chief executive and president. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Tropical Smoothie serves three distinct dayparts, and several units are open 24 hours a day, said Eric Jenrich, who noted that the concept considers its high-quality ingredients another point of differentiation from other smoothie players. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Eric Jenrich added that the typical unit has from four to six blenders. Customers’ smoothie requests are blended only after ordering in front of guests, providing an entertainment element. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Because few guests finish their smoothies on site, the company noted that it enjoys a lucrative takeout business, especially at lunch. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
CHAIN FACTS NAME: Tropical Smoothie CafeHEADQUARTERS: Destin, Fla.MARKET SEGMENT: Fast casualMENU: Smoothies, wraps, gourmet sandwiches, salads and soupsTOTAL NO. OF UNITS: 260SYSTEMWIDE SALES: $100 millionLEADERSHIP: Co-founders Eric and Delora JenrichYEAR FOUNDED: 1993 —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Smoothie sales are strong throughout the year—even in the dead of winter at franchised units in Michigan, said Barbara Valentino, director of marketing and Jim Valentino’s wife. The chain has 40 different smoothie offerings listed on a separate smoothie menu under such headings as “low-fat smoothies,” “dessert smoothies” and “power smoothies.” Most smoothies include a natural, low-calorie brown sugar turbinado and a blizzard of assorted supplements, like Vitamin C, whey or soy protein, that guests can select as optional ingredients. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
With the menu tag line “eat better, feel better,” Tropical Smoothie’s hot soups, sandwiches and wrap offerings are a broad mix of the familiar and proprietary. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Breakfast items can include a bagel with eggs, ham and cheese, or a Western Wrap, made of scrambled eggs, ham, red and green bell peppers, ripe tomatoes, and pepper Jack cheese wrapped in a white tortilla. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
Popular lunch and dinner items include an assortment of gourmet sandwiches, such as chipotle chicken breast strips with Parmesan cheese, romaine lettuce and tomatoes on focaccia bread; the “Cool Tuna” wrap, consisting of albacore tuna salad, American cheese, diced tomatoes, onions and balsamic vinegar wrapped in white tortilla; and a number of salads including a sesame chicken salad with almonds, crunchy won tons, sesame seeds and sesame dressing. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
The average check is about $7.75, just the place to be in an economy that many expect to be heading for recession, Barbara Valentino said. —Last year, Tropical Smoothie Cafe declared June 21 the first annual National Flip Flop Day, a celebration of summer, flip flops and fun. This year, the 260-unit fast-casual chain is planning another celebration: passing the 300-unit mark.
