They Just Opened Their 1,700th Cafe and Have 900 More Signed. Here’s the Strategy Fueling This $1.5 Billion Franchise.

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Two years after Blackstone acquired Tropical Smoothie Cafe for a reported $2 billion, the numbers are breaking records. The chain surpassed $1.5 billion in systemwide sales last year, opened its 1,700th cafe in April, and has more than 900 signed commitments in its development pipeline, according to QSR. First-quarter sales grew 10% year-over-year, brand awareness rose 19%, and loyalty membership climbed 25% to 12 million members. Nearly half of all new franchise agreements are being signed by multi-unit operators — the strongest confidence signal in the industry.

The secret, according to CEO Max Wetzel, is food. While smoothies appear on 85% of checks, they represent only about half of total sales. Guests who buy food become significantly more loyal, and loyalty members visit three times more often than non-members and account for roughly one-third of system sales.

The chain is also riding a broader wellness wave. “What’s growing? Protein’s growing, fiber’s growing, nutrient-dense drinks are growing,” Wetzel told QSR. “That’s all the things that we’re offering.” With 1,800 locations targeted by year-end and a number one Franchise 500 ranking in its category six years running, Tropical Smoothie Cafe is betting the wellness boom has plenty left in the blender.