A rendering of Smoothie King’s new retailer design
Supply: Smoothie King
From the rise of GLP-1 medication to backlash towards synthetic elements, present wellness tendencies are fueling progress for Smoothie King.
“There are important business tailwinds behind what we’re doing,” mentioned Gavin Felder, the chain’s president and CFO. “What we have realized is individuals are much more acutely aware about what selections they’re making. Lots of people are specializing in protein now and on fiber and all these good issues.”
Based greater than 50 years in the past, the privately held chain takes credit score for inventing the phrase “smoothie” and popularizing the well being drinks. CEO Wan Kim, beforehand a franchisee for the model in South Korea, has owned Smoothie King since 2012. Final 12 months, the corporate offered a minority stake to personal fairness agency Most important Submit Companions and mentioned the deal would assist Smoothie King speed up progress and innovation.
“Should you begin the clock [in 2012], we have been rising system gross sales at a compound fee of double digits since then,” mentioned Felder, who joined the corporate two years in the past after spending 16 years with KFC proprietor Yum Manufacturers.
Over the previous 5 years, Smoothie King has grown its variety of areas by about 23%, the corporate advised CNBC. The chain’s system-wide gross sales have elevated roughly 64% over that interval.
In 2025, the corporate recorded income of $66.16 million, up 4% from the prior 12 months, in accordance with franchise disclosure paperwork. Its internet earnings, nevertheless, fell about 6% to $14.84 million. On the finish of the 12 months, Smoothie King had greater than 1,200 areas. Franchisees function greater than 96% of the chain’s shops.
Now, as client tastes shift extra towards maximizing vitamins, protein and fiber, the chain sees a chance to each enhance its current areas and construct new ones.
In April, Smoothie King introduced a brand new retailer design with what the corporate known as extra “heat” and “approachability” — a shift away from its present “stark, purposeful aesthetic” — and plans to progressively introduce it throughout its footprint.
And extra shops are on the best way: the chain mentioned that franchisees have dedicated to opening greater than 200 new areas within the coming years. It is also planning to develop additional into meals with flatbreads, constructing off its current choices of smoothie bowls, yogurt bowls and loaded toasts.
Smoothie King and its franchisees will open about 90 new areas this 12 months, in accordance with Felder.
The wellness enhance
Whereas Smoothie King was rising earlier than the present frenzy for protein and fiber, the tendencies have boosted its gross sales at a time when many restaurant chains are struggling to draw frugal shoppers.
The rising adoption of GLP-1 drugs, like Ozempic and Wegovy, are partially answerable for shoppers’ curiosity in upping their protein and fiber intakes. Then there may be the rising push from each shoppers and regulators away from so-called ultraprocessed meals and synthetic flavors and dyes, fueled partly by the Make America Wholesome Once more motion led by Well being and Human Companies Secretary Robert F. Kennedy Jr.
Smoothie King was considerably forward of the curve; in 2019, the chain completed its “Clear Blends Initiative,” which eliminated preservatives, synthetic flavors and colours and genetically modified fruits, whereas including natural greens.
“We’ve a ‘no-no’ listing that’s longer than Panera’s, that is longer than Chipotle’s,” Felder mentioned.
Transferring ahead, in tandem with its retailer redesigns, Smoothie King plans to share extra of its story, from its founding to its banned elements.
“A whole lot of our visitors, they’re all about well being and wellness,” Felder mentioned. “They wish to ensure that they’re monitoring every little thing they will. They’re very desirous about transparency and the extent of knowledge that they will get on our model and our merchandise … It is an important tailwind for the class.”
As common nationwide gasoline costs hit $4 a gallon, shoppers are displaying indicators that they’re rising extra finances acutely aware. Plenty of restaurant firms, from Domino’s Pizza to Chipotle, have reported that gross sales softened in March, after the U.S.-Israeli battle with Iran started.
There may be additionally extra competitors than ever within the restaurant area for health-conscious diners and protein-rich snacks and meals.
Nonetheless, Felder is optimistic that buyers would nonetheless purchase a FiberMaxxing Smoothie or Energy Meal Spinach Pineapple Smoothie, reasonably than skipping the drink or making it at house.
“We imagine — and I’ve seen this — that when clients are stretched, they’re extra prone to spend on issues that make them really feel good, reasonably than issues that make them really feel responsible.”
