Dive Brief:
- Smoothie King opened 28 stores in Q3 2024, its largest number of new units in a quarter in six years and the second highest in its history, the company said in a press release Wednesday.
- The brand also signed 38 store commitments across 12 states, equivalent to a roughly 3% increase on its roughly 1,200-unit system.
- The new openings and commitments included two new market entries — Delaware and New Hampshire — as well significant expansion of its Colorado presence and the resumption of development in Austin, Texas, after a three-year growth hiatus.
Dive Insight:
Existing franchisees accounted for about 70% of signed new commitments, which Chief Development Officer Chris Bremer said was indicative of operator confidence in its business model.
“Franchisees are reinvesting in the brand, and we're breaking into new markets, positioning ourselves for continued success into the next quarter and beyond,” Bremer said in a statement.
The Q3 store growth followed a strong second quarter during which Smoothie King opened 18 new stores and signed 34 commitments.
Smoothie King saw same-store sales growth of 11.6% in fiscal 2023, according to its franchise document, reversing the modest 3.2% decline it experienced in fiscal 2022. That translated to significant growth in its average unit sales, which grew from $590,000 in 2022 to $660,000 last year.
Some of the brand’s success may be due to menu changes. In 2023, Smoothie King launched smoothie bowls based on acai and dragon fruit bases to capitalize on consumer demand for healthier snacks. From April to November 2023, the chain sold over 4.5 million bowls helping drive sales and traffic. In August of this year, the chain added coconut smoothie bowls to follow up the success of its first permanent bowls.
