Tropical Smoothie Cafe Franchise Owner Salary & Profit 2024

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.

How Much Does a Tropical Smoothie Cafe Franchise Owner Make

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?

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:

YearStoresMedian net sales% change
2019570$737,847
2020661$783,7116.2%
2021768$961,96922.8%

((https://www.tropicalsmoothiefranchise.com/our-process/faqs/))

Tropical Smoothie Cafe Franchise Average Revenue & Profit

Franchise PerformanceNet Revenue Per YearProfit Margin Per Year (15%)
Average$992,613$148,891
Highest Earning$1,245,078$186,762
Lowest Performing$351,400$52,710

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 $148,892 annually.

This is how we calculated the net profit of Tropical Smoothie Cafe franchise:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%992613.00
Rent10.63%(105465.13)
Insurance5.31%(52732.57)
Salaries21.25%(210930.26)
Franchise Royalty Fees5.31%(52732.57)
Utilities2.13%(21093.03)
Cost of Goods Sold (COGS)26.56%(263662.83)
Labor (Variable)13.81%(137104.67)
Total (Expenses)85.00%(843721.05)
Net Profit15.00%148891.95

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Tropical Smoothie Cafe Franchise Failure Rate

To determine the failure rate of the Tropical Smoothie Cafe franchise, let us look at the following data:

System-wide Outlet Summary

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019718833+115
2020833913+80
20219131038+125

For the Franchised outlets:

  • In 2019, the growth rate was (115)/718×100≈16.01%
  • In 2020, the growth rate was (80)/833×100≈9.60%
  • In 2021, the growth rate was (125)/913×100≈13.69%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019110
2020110
202111

For the Company-Owned outlets:

  • In 2019, the failure rate was (1)/1×100≈0%
  • In 2020, the failure rate was (1)/1×100≈0%
  • In 2021, the failure rate was (1)/1×100≈0%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019719834+115
2020834914+80
20219141039+125

For Total outlets:

  • In 2019, the growth rate was (115)/719×100≈15.99%
  • In 2020, the growth rate was (80)/834×100≈9.59%
  • In 2021, the growth rate was (125)/914×100≈13.67%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Tropical Smoothie Cafe grew from 2019 to 2021, showing a growth rate between 16.01% and 13.69%. On the other hand, for company-owned outlets, the failure rate of Tropical Smoothie Cafe was quite high, which is 100% for the same period of time.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Tropical Smoothie Cafe franchise has expanded in the years 2019-2021, showing a total growth rate between 15.99% and 13.67%.


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
AVERAGE PROFIT PERCENTAGE15%
MINIMUM PROFIT PER YEAR$126,000
AVERAGE PAYBACK PERIOD3.5 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 minimum 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?

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 on an upward trajectory for the last few years now.

In fact, in the year 2020, it showed a +6.2% increase in revenue and a +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.


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.


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.

How Many Tropical Smoothie Locations Are There?

As of 2024, there are over 1150+ Tropical Smoothie locations across the United States.

Who is the owner of Tropical Smoothie Cafe?

Tropical Smoothie Cafe is owned by Mike Rotondo and the Waypoint Restaurant Group, which owns and operates over 300 restaurants throughout the United States.

Where is Tropical Smoothie Cafe Headquartered?

The headquarters of the Tropical Smoothie Cafe is in Atlanta, Georgia.

Who founded Tropical Smoothie Cafe?

Eric and Delora Jenrich and David Walker are the founders of the Tropical Smoothie Cafe.

Leave a Comment