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Tropical Smoothie Cafe is getting a makeover as it prepares for its 'next 3,000' locations

CNBC Finance
Tropical Smoothie Cafe is getting a makeover as it prepares for its 'next 3,000' locations

Tropical Smoothie Cafe on Wednesday unveiled a new look as the restaurant chain prepares to continue its streak of rapid growth under Blackstone's ownership.

"We are a company and a brand that has evolved significantly over the last few years and really over the last 10 years," CEO Max Wetzel told CNBC. "We're thinking about what our next 3,000 cafes look like, and so it's a perfect time for us to roll this out."

The redesign comes as Tropical Smoothie prepares to introduce itself to more consumers, both in the U.S. and internationally. The chain, which also sells bowls and wraps, surpassed $1.6 billion in system sales over the 12 months ended in June. By the end of the year, it is projecting it will exceed 1,800 locations nationwide, up 50% since the end of 2022. Tropical Smoothie has plans to expand outside of the U.S., too.

But its bold plans come during a tricky time for the restaurant industry. Diners have been eating out less frequently, trying to save money while paying more for gas, groceries and other necessities. As a result, eateries have been battling for a smaller pool of customers and often leaning on discounts to win them over.

Tropical Smoothie last tinkered with its logo a decade ago. The new design, which will be found everywhere from packaging for its wraps to its mobile app interface, uses brighter colors and a uniform font, in part to try to set it apart from quick-service competitors.

"The color palette is entirely created by the ingredients that you can find in our cafe," Wetzel said. "All these ingredients are very different than a category that's really dominated by browns and beiges and fried food."

It also introduces the "Palm T," a frond-shaped icon that will represent the brand in "shorthand," particularly on digital platforms, according to Wetzel.

Tropical Smoothie has been working on the new branding for more than a year. But it is just one step toward what Wetzel called his ultimate goal: "building a best-in-class company."

In late 2024, Tropical Smoothie consolidated national and local media budgets into a single advertising fund. Franchisees pay 5% of their gross sales in marketing fees, meaning that the fund will grow as system sales — lifted by successful marketing initiatives — increase.

Tropical Smoothie's $80 million marketing budget is now deployed "much more effectively," according to Wetzel. As a result, its national brand awareness has increased from 34% of consumers a year ago to 42%, he said.

Tropical Smoothie has also been trying to improve its cafe operations. Earlier this year, it started to rearrange its food and bowl assembly lines for better speed and accuracy.

Outside of the cafes, Tropical Smoothie has also invested in what Wetzel called "the digital front door" of the brand. By the end of the year, the company will roll out an improved version of its mobile app and website, all with the new unified look. It is also testing self-ordering kiosks.

Original Headline

Tropical Smoothie Cafe is getting a makeover as it prepares for its 'next 3,000' locations