Smoothie Franchise Mixes Beverages, Food

Tropical Smoothie Cafe to open three state sites this summer and have 60 in the next five years.

(Tuesday, July 03, 2007) - Craig LeMieux wants Michiganians to grab a smoothie in one hand and a sandwich or wrap in the other without having to travel to two restaurants.

The area developer for Tropical Smoothie Cafe in Michigan plans to open three franchise units this summer and 60 total in the next five years.

Based in Florida, the chain has five locations in Michigan, 245 nationwide with another 130 under development.

The new Tropical Smoothie Cafes are scheduled to open in Clarkston, Dearborn and Shields, which is near Saginaw, by September, said LeMieux, who's looking for potential franchisees who can invest between $235,000 to $325,000 to open a site.

"Michigan, for Tropical Smoothie, is a wonderful place to be," he said. "We have three of our five stores in the top 20 in sales. With every store we've opened, we've been met with long lines."

The restaurants offer 35 smoothies that can be augmented with protein powders, energizers and other enhancements. The 24-ounce smoothies cost from $3.99 to $4.59.

In addition, the restaurants also feature wraps, sandwiches and salads for around $6 apiece, and are open for breakfast, lunch and dinner.

"Some people have replaced their morning cup of coffee with a smoothie," LeMieux said.

Offering smoothies and sandwiches sets Tropical Smoothie Cafes apart from chains, such as Jamba Juice and Planet Smoothie, that focus primarily on beverages, said Darren Tristano, executive vice president at Technomic, a food service information firm in Chicago.

"They're a hybrid," Tristano said. "It's hard to tell whether they are a sandwich or smoothie shop. They're right in the middle of two of the highest trending categories with smoothies in beverage and sandwiches."

And even though McDonald's is considering adding smoothies to its menu at more than 14,000 restaurants, Tristano said Tropical Smoothie Cafes can succeed and grow.

"They are very well-positioned and they can get the sandwich people in and the smoothie people in," he said.

Diversifying the menu has been the key to the chain's success, said Jim Valentino, chief operating officer for Tropical Smoothie Cafes.

The founders decided to mix smoothies and meals when they took the concept national from its Florida base a decade ago. The chain is looking to open 65 stores this year and have 3,000 in operation in 10 years, he said.

Smoothies account for about 55 percent to 60 percent of the business and that ratio seems to work for the chain that expects sales to reach $100 million this year compared to $75 million in 2006.

"I think we've created a niche market," Valentino said. "You either have sandwich guys or smoothie guys. But we've been doing the food and smoothie business for 10 years."

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