A smoothie business and a burger restaurant may seem like apples and oranges, but not necessarily in terms of franchising potential. Learn how a Tropical Smoothie Cafe franchise stacks up to a Wayback Burgers franchise so you can make the best investment choice for you.
Blending up Business with Tropical Smoothie Cafe
The global smoothie market size was valued at $7.09 billion in 2022 and is estimated to reach $12.42 billion by the end of 2028. Smoothies have grown in popularity over the last couple decades as versatile, flavorful, healthy food options for anyone seeking a meal on the go or a midday boost.
Franchising since 1997, Tropical Smoothie Cafe (TSC LLC) has capitalized on this blended drink trend and also offers other menu items such as sandwiches, wraps, salads, and bowls. All of the franchise’s smoothies are handcrafted from fresh ingredients with a focus on health and nourishment.
As of 2022, there are over 1,000 Tropical Smoothie Cafe franchise locations nationwide, and the brand is actively seeking new investors. The initial franchise fee is $30,000, plus a grand opening marketing contribution of $10,000. If you qualify to develop and operate multiple Tropical Smoothie Cafe franchise units, you will then pay $20,000 for each additional unit you decide to open. The estimated total investment necessary to open a TSC franchise ranges from $277,000 to $584,000, with a $350,000 net worth and $125,000 liquid capital requirement. The brand also charges an ongoing royalty fee of 6% gross sales, plus a combined national and local advertising fee of 5% gross sales. According to the brand’s 2020 Franchise Disclosure Document (FDD), based on a midpoint investment of $409,000 with estimated profits of $126,000, it should take franchisees a little over four years to recoup their initial investment.
Tropical Smoothie Cafe boasts a range of location types from end cap to in-line to free-standing, with or without drive-thru capabilities. TSC locations are on the larger side (1,200-1,800 square feet) for this of business, meaning that overhead costs might be higher than that of a simple kiosk or drive-thru only model. If you’re going to invest in a franchise of this size, you’re better off going with a concept like Wayback Burgers that has broader appeal.
And because TSC offers a menu beyond smoothies, inventory costs will also be higher than that of a standard smoothie shop.Fresh fruit, the main ingredient of most of TSC’s smoothies, has a short shelf-life, so if your business experiences a slow week, you may be forced to throw out a significant portion of your inventory. Also, during times of economic turmoil or a recession, smoothies are typically seen as more of a luxury purchase than other types of food items, so you may face leaner periods when consumers are trying to save money by making their smoothies at home.
Wayback Burgers: A Way Better Opportunity
Burgers are not a fad or food trend dependent on a niche market or the abundance of disposable income. As legend goes, the first American burger was served at Louis’ Lunch sandwich shop in 1895, and the beloved food has only grown in popularity and variety since then, making it an essential part of our food story. With the fast-casual restaurant market projected to reach $209 billion by 2026, burgers continue to be an American favorite and are the perfect source of inspiration and success for hungry entrepreneurs.
While burger franchise opportunities abound, Wayback Burgers is world-renowned for our honest and uncomplicated approach to delicious, authentic food and a simple yet ambitious business model that works well for prospective franchisees from all different walks of life.
The initial franchise fee to own a Wayback Burgers franchise is $35,000, which may be discounted for any additional units thereafter. The total estimated initial investment ranges between $209,000 and $633,000, with a royalty fee of 5% gross sales and an advertising fee of 2%. Wayback Burgers franchisees benefit from unparalleled training and ongoing support with everything from site selection to advertising campaigns, menu development, and operational guidelines.
Burgers are here to stay, and Wayback Burgers can provide you with all of the tools and support to build a business that lasts. To learn more about our “way better” franchising opportunities, get started today.