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Rapidly growing chain aims for nationwide reach
Smoothie King is rapidly becoming a national chain, and already has locations in more than half of U.S. states. So why not advertise like one?
The New Orleans-based operator, basking in the success of its naming rights deal with the New Orleans Pelicans NBA team, this week kicked off its first national cable campaign.
“Smoothie King has been gaining momentum pretty significantly over the past couple of years,” said Katherine LeBlanc, director of brand marketing. “This is the next step, to be in front of a national audience.”
And it won’t be the last step. Smoothie King has 863 locations, including 100 international units, and expects to have 1,000 locations within the year.
The chain is on a steep, upward trajectory. Domestic system sales in 2016 were 2.9 million, up more than 21 percent, according to NRN Top 200 data. Average unit volume grew 11 percent, to nearly 0,000.
Smoothie King was founded in 1973. Wan Kim, master franchisee for the brand in Korea, acquired the company in 2012. It proceeded to rebrand while expanding at an aggressive rate.
“When we look at the map, we’re in 33 states, plus the [District of Columbia],” said Tom O’Keefe, president and chief operating officer. “We want to be accepted as more than just a regional brand.”
The ads push the chain’s Slim-N-Trim line of smoothies, which Smoothie King redeveloped with fewer calories and more protein and fiber. The smoothies are already popular among customers who want to lose weight or are looking for a meal replacement.
Smoothie King has run regional television ads in the past, but this is its first national campaign, which required an increase in the ad fund contribution from the company and its franchisees.
“I think we are cautiously optimistic about the results that we’ll see by going national,” LeBlanc said. “We’re anxious to see how the national buy impacts our sales for 2017.”
In 2014, Smoothie King inked a deal with the New Orleans Pelicans to name their arena the Smoothie King Center in a 10-year deal. The announcement quickly gave the burgeoning chain big exposure: That year, the NBA played its All-Star Game in that arena.
This year, Smoothie King got some bonus exposure when the NBA moved the All-Star Game from Charlotte, N.C., to New Orleans, in response to North Carolina’s so-called “bathroom law,” which requires people to use bathrooms according to their born gender.
“We’ve been fortunate to have that game here twice in three years,” O’Keefe said.
The naming rights deal required a long negotiation, O’Keefe said. But much of the time was spent not on actual negotiations, but on the NBA looking at Smoothie King’s menu to ensure that the smoothies didn’t include any performance-enhancing ingredients banned under the NBA’s collective bargaining agreement with players.
“The deal came together quickly on business terms,” O’Keefe said. “But there was an intense vetting process. That took six months.”
The naming rights not only gave the chain exposure among NBA fans, but those who attend concerts and other events at the Smoothie King Center.
“There are twice as many non-basketball events,” he said.
After the deal, he said, the national ad campaign was a natural progression, giving Smoothie King even more exposure.
“This was the right time to strike,” O’Keefe said.
Contact Jonathan Maze at [email protected]
Follow him on Twitter: @jonathanmaze
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