Tropical Smoothie Cafe is one of the fastest-growing chains in the fitness-related food industry, and if you are an entrepreneur wondering how much does a Tropical Smoothie Cafe franchise owner make, then this guide is all you need!
Here we have discussed what it takes to own this franchise, the investment needed, the payback period, profit potential, pros, and cons, among other things.
So make sure you do not skip anything.
About Tropical Smoothie Cafe
Tropical Smoothie Cafe was founded by David Walker, Delora Jenrich, and Eric in the year 1997 in Destin, Florida.
At first, it was just a smoothie shop along the Florida panhandle, but since the founders had a franchise background, they were able to open their first franchise store in 1998, in Tallahassee, FL.
Ever since then, the company has grown to 1,235 locations in the U.S. and plans to open 1500 locations by 2025.
Tropical Smoothie Cafe has been ranking #1 in Smoothie/Juice category for ten consecutive years now and is growing rapidly.
If you wish to own this franchise, then keep on reading to find out how much does a Tropical Smoothie Café franchise owner make.
How Much Does A Tropical Smoothie Cafe Franchise Owner Make?
According to the data available on the company’s website, a Tropical Smoothie Cafe franchise owner makes $992,613 in average net revenue.
This data is based on the performance of 950 Tropical Smoothie Cafes that were operating in 2022.
Also, during this time, the top 50% of franchises made $1,245,078 in net revenue on average.
So the amount of money that you can make as a Tropical Smoothie Cafe franchise varies based on how well you can manage the business, your location, day-to-day expenses, etc.
Also, over the last three years the sales of Tropical Smoothie Cafe has been increasing as you can see in the table below:
| Year | Stores | Median net sales | % change |
|---|---|---|---|
| 2019 | 570 | $737,847 | – |
| 2020 | 661 | $783,711 | 6.2% |
| 2021 | 768 | $961,969 | 22.8% |
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How Much Does Tropical Smoothie Cafe Employee Earn?
The pay of a Tropical Smoothie Cafe employee varies depending on their level of skills, experience, designation, location, and more.
However, as per the data available on Indeed, on average, the Tropical Smoothie Cafe pays its employees $9.12 per hour for the position of Guest Service Agent to $26.83 per hour for the position of Massage Therapist.
In yearly terms, the average salary for Tropical Smoothie Cafe employees ranges from approximately $20,000 per year for someone with the title of Inventory Control Specialist to $67,787 per year for someone with the title of Catering Coordinator.
Pros & Cons Of Tropical Smoothie Cafe Franchise
Pros Of Tropical Smoothie Cafe Franchise
- Provides in-depth training to new franchises.
- Offers territory protection.
- High profit earning potential.
- Offers multiple franchise models to choose from.
- Fastest-growing franchise.
- Allows absentee ownership.
Cons Of Tropical Smoothie Cafe Franchise
- Long-term commitment.
- Limited global presence.
- Does not offer direct or indirect financing.
Tropical Smoothie Cafe Franchise Average Revenue & Profit
As mentioned, a Tropical Smoothie Cafe franchise owner makes an average of $992,613 in net revenue. With a 15% profit margin, the estimated average profit for the Tropical Smoothie Cafe franchise is $126,000 annually.
The highest-earning Tropical Smoothie Cafe franchises have even made up to $1,245,078 in net revenue, and the lowest-performing franchises have made $351,400.
So a Tropical Smoothie Cafe franchise owner can also make more or less the average profit mentioned. It all depends on how well you manage, handle, and promote your business.
Tropical Smoothie Cafe Franchise Failure Rate
To determine the failure rate of Tropical Smoothie Cafe franchise, let us look at the following data:
System-wide Outlet Summary
| Outlet type | Year | Outlets at the Start of the Year | Outlets at the End of the Year | Net Change |
|---|---|---|---|---|
| Franchised | 2019 | 718 | 833 | +115 |
| 2020 | 833 | 913 | +80 | |
| 2021 | 913 | 1038 | +125 | |
| Company-Owned | 2019 | 1 | 1 | 0 |
| 2020 | 1 | 1 | 0 | |
| 2021 | 1 | 1 | 0 | |
| Total Outlets | 2019 | 719 | 834 | +115 |
| 2020 | 834 | 914 | +80 | |
| 2021 | 914 | 1039 | +125 |
On average, we can see that more than 300 Tropical Smoothie Cafes has opened in the last three years, and there has been a Constant increase in the number of outlets despite Covid-19.
This indicates the company is performing very well and has a very low failure rate.
Tropical Smoothie Cafe Franchise Payback Period
Let us do some calculations to find out the Tropical Smoothie Cafe franchise payback period:
| AVERAGE INVESTMENT | $440,000 |
| AVERAGE REVENUE PER OWNER | $992,613 |
| AVERGAGE PROFIT PERCENTAGE | 15% |
| AVERGAGE PROFIT PER YEAR | $126,000 |
| AVERAGE PAYBACK PERIOD | 3.5 years |
PAYBACK PERIOD = TOTAL INVESTMENT / PROFIT PER YEAR
= 440000/126000 = 3.49 = 3.5 Years based on median
The average investment for a Tropical Smoothie Cafe Franchise is $440,000.
With an average profit percentage of 15%, the average profit per year is $126,000.
This means that the average payback period for a Tropical Smoothie Cafe Franchise is 3.5 years, and the total investment of $440,000 would be recouped within this period.
What Is Tropical Smoothie Cafe Best Known For?
Tropical Smoothie Cafe is known for offering healthy and delicious smoothies and food that are made from fresh fruits, plants, and vegetables.
When most restaurant serves junk food, the Tropical Smoothie focuses on providing healthy and tasty options for their health-conscious customers.
They have a wide variety of items to choose from and also have vegetarian and vegan options available.
If you have never tried Tropical Smoothie Cafe, then here are some healthiest options that you must try once:
- Detox Island Green Smoothie.
- Whey Protein Powder.
- Lean Machine Smoothie.
- Triple Berry Oat Smoothie.
- Acai Berry Boost Smoothie.
- Peanut Paradise Smoothie.
- Island Green Smoothie.
- Chicken Pesto Toasted Flatbread.
Is Tropical Smoothie Cafe Franchise Profitable?
Yes, Tropical Smoothie Cafe Franchise is profitable and has been growing in an upward trajectory for the last few years now.
In fact, in the year 2020 it showed a +6.2% increase in revenue and +22.8% increase in revenue in the year 2021.
This means Tropical Smoothie Cafe Franchise is not only profitable, but even has the potential to make you earn greater profits each year.
Tropical Smoothie Cafe Franchise Earning Potential
The Tropical Smoothie Cafe is a well-known and very popular company with the potential to earn high profits.
As per the performance of 950 Tropical Smoothie Cafe franchises in 2022, the franchises made $992,613 in revenue, but the top 50% of franchises made as much as $1,245,078 in net revenue.
So clearly, the earning potential of Tropical Smoothie Cafe is high, and the money you can generate from this franchise totally depends on your skills as an entrepreneur.
Wrap Up
As we discussed above, Tropical Smoothies Cafe specializes in serving smoothies and is one of the fastest-growing businesses today.
It requires an average investment of $440,000 and, in return, can generate a good amount of profits.
The company has a very low failure rate, and the payback period is 4.5-5 years.
We do not see any major red flags that should deter you from going for this franchise. In fact, we feel that Tropical Smoothies Cafe is one of the best franchise options out there.
Frequently Asked Question
What is the franchise fee to open a Tropical Smoothie cafe franchise?
The franchise fee to open a Tropical Smoothie cafe franchise is:
- $30,000 for the first unit.
- $20,000 for the second and each additional franchise unit.
- $15,000 for qualified veterans.
What is the initial investment amount to open a Tropical Smoothie cafe franchise?
The initial investment to open a Tropical Smoothie cafe franchise lies between $296,500 and $661,500.
What is the royalty and marketing fee of Tropical Smoothie cafe franchise?
Tropical Smoothie Cafe charge 6% royalty fees, a 2% local advertisement fee, and a 3-4% national marketing fee
How many employees do I need to at my Tropical Smoothie cafe?
You will need to employ 15-20 part-time employees at your Tropical Smoothie cafe.
Amit Gupta is the founder of DrFranchises – a digital marketing agency that helps brands rank better on Google Maps through local SEO strategies. Amit has over 11 years of experience in digital marketing, SEO, email marketing, and social media marketing. He’s also the owner of multiple franchises and has helped countless brands achieve success online. When he’s not working, Amit can be found playing with his dog.