QSR June 2023

fresh ideas | GROWTH AND DEVELOPMENT |

THERE IS NO SHORTAGE OF GROWTH

OPPORTUNITIES IN THE SMOOTHIE CATEGORY.

Smoothie Success Doesn ’ t Rest Doesn t Rest From menu updates to new store prototypes,

innovation is key to winning in the increasingly crowded segment.

BY SAM DANLEY

T he demand for smoothies is higher than ever, at least that’s what dollar signs say. The market, valued at $27.2 billion in 2023, is expected to reach $52.5 billion in 10 years, according to research firm Fact. MR. That’s a CAGR of 6.8 percent. Smoothie King was well-positioned to capitalize on the COVID driven health and wellness craze. In 2019 the company completed a years-long menu overhaul that saw it swap out nearly every ingredient with better-for-you options. Coming out of the pandemic in 2021, same-store sales were up 16.5 percent. Chief marketing officer Marianne Radley says the legacy smoothie chain has managed to maintain its momentum since, but it isn’t resting on its laurels. As the category matures and the competition from smaller players intensifies, Smoothie

King ramped up innovation on multiple fronts. It recently embarked on its largest menu launch. The company this spring debuted a new smoothie bowl platform, serving up menu items with a spoon instead of a straw for the first time in its 50-year history. It also opened its first drive-thru-only prototype. The design stands at 800 square feet and features a traditional drive-thru lane on one side of the building, with a lane dedicated to online ordering and third-party delivery on the other. Smoothie King last year opened 77 new stores and grew its footprint to more than 1,400 units. It also signed franchise and area development agreements to add over 160 stores to new and existing markets. It plans to open at least 100 new locations this year, and Radley says the drive-thru-only design will help fuel that ongoing national expansion.

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www.qsrmagazine.com | QSR | JUNE 2023

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