Thanks for Visiting!

Register for free to get the full story.

Sign Up
Already have a Placer.ai account? Log In

Tropical Smoothie Expands, But What Are The Risks?

by 
Ethan Chernofsky
 on 
January 30, 2020
Tropical Smoothie Expands, But What Are The Risks?

Who doesn’t love a good smoothie?

Tropical Smoothie Cafe is banking that the answer is very few. With plans to open over 600 stores in the coming years, the brand is looking to embark on a major expansion a year after a record-setting year in terms of locations opened and franchise agreements signed.

Widespread Growth

And the numbers display the type of impressive growth one would expect from such an aggressive expansion. The summer months, clearly the ideal time for a smoothie, show significant year-over-year improvement. The summer months of June, July and August 2018 brought in visits that were 6.0% above, 0.8% below and 4.8% above the baseline for the period from January 2018 through December 2019. This was followed by 2019 numbers that spiked at 19.9%, 18.4% and 18.9% above the baseline, showing tremendous growth in this key period. 

Cannibalization Risks?

Yet, as important as the overall growth, is the way this expansion is executed. Looking at three locations in Southern Florida shows a tremendous overlap of True Trade Areas. This indicates that the locations are not just competing with other food options, but with each other, limiting the overall impact in the region. Looking at the trend data further bears this out as there is a strong inverse relationship between the locations - when traffic is high at one, it drops for the others.

Yet, the picture is not all bad. Looking at three locations in Georgia shows an excellent divide of True Trade Areas, indicating that when customers want to visit Tropical Smoothie Cafe, they know exactly which location to go to. This type of optimization helps the brand maximize its impact in the region, increasing the overall value for each location.

Takeaway: Optimize Positioning

Is it possible that the cannibalization risk caused by overwhelming an area with multiple locations is offset by a surge of overall popularity for the brand? Certainly. 

It is unlikely that such an approach leads to an optimized footprint? Equally certainly.

The surge in locations for Tropical Smoothie Cafe could help the brand position itself as one of the top rising players in QSR in the US. Yet, as important as the number of openings is the positioning of each new location in order to maximize the expansion. Should True Trade Areas reflect the situation in Georgia, Tropical Smoothie Cafe will end up with a fleet well-positioned to drive maximum value on a per-store basis. Alternatively, growth that doesn’t effectively address cannibalization could lead to a far smaller return for the brand and its franchisees.
How will the company’s expansion plan impact specific locations? Visit Placer.ai to find out.

Get 3 brand & industry
breakdowns every week

Subscribe to the newsletter

Great! Prepare your inbox for data-driven insights...
Oops! Something went wrong while submitting the form.

Get a Demo

Please enter your first name
Please enter your last name
Please provide a valid email
Please enter your email
Please enter company name

Thanks for reaching out!

One of our experts will be in touch soon

Try Placer.ai Free
Oops! Something went wrong while submitting the form.
Placer.ai Office Index: January 2023 Recap
Focusing On Fitness: Q4 and January Recap
Placer.ai Mall Index: January 2023 – Returning Mall Normalcy?
Location Intelligence Insights Into Concert Attendance
Winning Dining Strategies for 2023
In-N-Out Burger: What to Expect as the Brand Moves East
Location Intelligence Breakdown: Coffee Caps-Off 2022
Digitally Native Brands Lean Into Brick & Mortar
Washington, D.C. Population Changes & Migration Trends
A Location Intelligence Perspective on Macy’s Rightsizing
Amazon-Powered Shopping: The Future of Brick-and-Mortar Grocery?
Cold Weather, Hot Visits: Diving into Winter Resorts
Wawa and 7-Eleven: Leaning Into the “Slurpee Effect”
2022 and Beyond: Catching Up With McDonald’s & Chipotle
Let’s Have Some Fun! Going Out Is In
Placer.ai’s Q4 2022 Quarterly Index
Placer.ai Adds Industry Executives to Leadership Team To Drive Company's Next Phase of Growth
5 Emerging Retail Formats: 2023’s Brick-and-Mortar Evolution
Grocery Update: Zooming in on the Lone Star State
2022 Office Recap: The Year of the TGIF Work Week
What Lies Ahead for Brick-and-Mortar Luxury in 2023
Placer.ai Mall Indexes: December 2022 Recap
Looking Back on 2022’s Holiday Shopping Season
Post-Pandemic Migration Trends in New York
Top Retailers for 2023
The Live Sports Advertising Opportunity
Domestic Migration to the Mountain States: Small Shifts with Big Implications
New Year, New Food: 5 Dining Trends For 2023
Announcing Placer.ai’s COVID RECOVERY DASHBOARD
This is Why Shop-in-Shops Are Everywhere
Super Saturday 2022 Recap
The San Francisco Shift
Grocery Year-End Update: Publix in the Spotlight
Three Ways Retailers Can Think Small to Increase Store Impact
Offline Beauty Is on an Upswing
The Evolving Migration Patterns of New York’s Florida Snowbirds
Placer.ai Office Index: November 2022 Recap
How Viral Social Media Trends Can Drive Offline Engagement
Are You Ready for Some Football? Experiential Marketing Shows Promise
Mall and Shopping Center Trends For 2023
Retail Corridors and Indoor Malls: A Holiday Head-to-Head
Placer Bytes: Nike, lululemon, and GameStop Update
Placer.ai Mall Indexes: November 2022 Update
Black Friday 2022: Consumers Hear the Call
Digitally Native Brands: Taking Off, Offline
Discount and Dollar Stores Leading the Pack
Turkey Wednesday 2022
Retail’s Evolving Holiday Season
Placer Bytes: Starbucks and Department Stores Ahead of Black Friday
Ulta: A Force to be Reckoned With
College Towns Drive Dining Growth
Foot Traffic Trends Reveal Consumers Ready for Holiday Cheer
How Retailers Can Win Big By Going Small
How Are Consumers Feeling Ahead of Black Friday 2022?
Off-Price, Hibbett, and Dick’s Pre-Holiday Check-in
Ho, Ho, Wholesale: Costco, Sam’s Club, and BJ’s
October 2022’s Retail Rebound
Target and Walmart Ahead of the Holidays
Home Improvement: Leave it to the Pros
Despite Inflation, Holiday Season is Off to a Good Start
Placer.ai Office Index: October 2022 Recap
Placer.ai Mall Indexes- October 2022 Update
Americans Double Down on Fitness
The State of Grocery
CVS and Walgreens: The Wave Continues
Coffee Chains Brewing Up Visits
Placer.ai Spotlight: Pizza Players
What Drove COVID-Era Urban Migration Trends?
Kroger and Albertsons: A Merging of Strengths
Texas Roadhouse Innovations Dishing Up Success
Holidays on the Horizon: Mid-Range and Luxury Shopping
McDonald's and Chipotle's Post-Pandemic Success
Announcing Placer.ai’s Q3 2022 Quarterly Index
5 Hot Restaurant Brands for 2023
Target Finds a Winning Deals Day Formula
Five Trends to Watch for 2022’s Holiday Shopping Season
September 2022 Analysis: A Difficult Month and Time for Optimism
Inflation’s Retail Winners
Five Apparel Retailers to Watch Ahead of the Holidays
Placer.ai Spotlight: Wawa’s QSR Pivot
Placer.ai Mall Indexes: September 2022 Recap
Placer.ai Office Indexes: September 2022 Recap
The Impact of Population Growth on Commercial Real Estate 
Starbucks' New Makeover
There's Somethin' About Pumpkin
Expanding Offline Reach
Breakfast Restaurants are Rising in Popularity
The Power of Labor Day 2022
Tourism in Miami Heating Up
Citi Trends on the Rise
Reaching Rural Consumers Through Retail Media Network
Darden Restaurants Cooking Up Success
The Home Improvement Sector: A Sign of Consumer Confidence
QSR Is Having a Northeastern Growth Spurt
Domestic Migration’s Ripple Effects
A Look Back at Back To School 2022
Kroger Digital Tell-All
The Return of In-Person Networking
The Reinvention of the American Mall  
Placer.ai Office Building Indexes: August 2022 Recap