Tropical Smoothie Vs. Smoothie King, Which Is The Better Franchise?

With health being a higher priority among individuals following the pandemic, healthy food franchises are on the rise and competition is fierce. Within the healthy food industry exists the popular niche of smoothie franchises. Industry giants Smoothie King and Tropical Smoothie Cafe are among some of the most successful and most recognizable smoothie brands in the country. So what sets them apart from each other, and which is the better investment for potential franchisees?

The Brands

Smoothie King has been making nutritious smoothies since 1973. In 1989, it became the first smoothie franchise in the United States. The brand prides itself on creating smoothies that help people achieve specific goals, whether the focus is weight management or nutrition. Consumers can also add powdered “enhancers” to their smoothies such as extra protein, energy or collagens. Smoothie King has expanded over the years to sell energy bars and vitamin supplements too. In July of 2012, Wan Kim purchased Smoothie King after finding success with the brand as a franchisee. He has since opened over 100 stores in South Korea. 

Tropical Smoothie was established in 1997 in Florida, with the first franchised location opening just a year later. The brand, which promotes a stress-free beach vibe, serves up healthy smoothies, with optional supplements such as whey protein, vitamins and probiotics. The menu also features a wide range of food options, including sandwiches, wraps and flatbreads. 

The Investment

Smoothie King

Initial Investment: $311,601 to $1,379,150

Unit Count: 1300

The initial investment required to open a Smoothie King franchise depends on the model a franchisee chooses. An endcap or inline location requires an initial investment ranging from $311,601 to $638,465, whereas a free-standing location with a drive-thru requires an initial investment of $762,400 to $1,379,150.

Potential franchisees must also have a net worth of at least $350K, a minimum liquidity of $150K and a minimum credit score of 700.

Tropical Smoothie

Initial Investment: $296,500 to $661,500

Unit Count: 1,197

To open a Tropical Smoothie franchise, the initial investment is between $296,500 to $661,500, with an average cost of $440K. Franchisees must also pay an ongoing royalty fee of 6%, as well as a 3-4% national marketing fee and a 2% local advertising cooperative contribution.

Potential franchisees are also required to have a minimum net worth of $350K, including $125K in liquid assets.

Potential Profitability 

Smoothie King

The average net sales of a Smoothie King location in 2022, according to the brand’s 2023 Franchise Disclosure Document (FDD), was $590,935. For the two previous years, the average net sales are provided below.

• Average Net Sales in 2021: $609,753
• Average Net Sales in 2020: $521,461

Tropical Smoothie

Tropical Smoothie Cafe has provided its earning data in the form of revenue. The average revenue of a Tropical Smoothie Cafe location in 2022, according to the brand’s 2023 FDD, was $992,613. For the two previous years, the average net revenue is provided below.

• Average Net Revenue in 2021: $1,009,803
• Average Net Revenue in 2020: $836,218 

Wellness Franchises Are Trending

While healthy lifestyles are trending, smoothie franchises are reaping the benefits. 

Both smoothie franchise opportunities offer entrepreneurs something different. Smoothie King has a long history with an established customer base, and Tropical Smoothie has lower startup costs and a wider variety of food offerings. Smoothie King’s products align with consumer’s health goals and provide them a tool for achieving them. Meanwhile, Tropical Smoothie offers healthy options in a casual, tropical-themed restaurant. 

Either way, both franchise opportunities are situated in an industry that is growing, making both opportunities worth your consideration.