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

Tropical Smoothie Cafe is getting a makeover as it prepares for its 'next 3,000' locations. Source: Tropical Smoothie CafeTropical Smoothie Cafe on Wednesday unveiled a new look as the restaurant chain prepares to continue its streak of rapid growth under Blackstone's ownership.

What happened

Tropical Smoothie Cafe unveiled new branding as it grows rapidly under the ownership of private equity firm Blackstone. Tropical Smoothie Cafe's new packaging will highlight its frond icon. "The redesign comes as Tropical Smoothie prepares to introduce itself to more consumers, both in the U. Tropical Smoothie has also been trying to improve its cafe operations. Outside of the cafes, Tropical Smoothie has also invested in what Wetzel called "the digital front door" of the brand.

Source: Tropical Smoothie CafeWellness winnersIn 2024, Blackstone bought Tropical Smoothie Cafe for a reported $2 billion, including debt. "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," CEO Max Wetzel told CNBC.

The wider picture

Wetzel said that Tropical Smoothie is not currently working on an initial public offering, but "over time" the company will evaluate its options. Tropical Smoothie has plans to expand outside of the U. Tropical Smoothie last tinkered with its logo a decade ago. Tropical Smoothie has been working on the new branding for more than a year. " In late 2024, Tropical Smoothie consolidated national and local media budgets into a single advertising fund. Tropical Smoothie's $80 million marketing budget is now deployed "much more effectively," according to Wetzel.

Blackstone is Tropical Smoothie's third private equity firm owner. In fiscal 2025, Tropical Smoothie reported net income of $115.

What has been reported

With just one company-operated location, Tropical Smoothie makes the majority of its revenue from franchising the brand. As a chain that began on the East Coast, Tropical Smoothie sees the most growth opportunities out west, particularly in the Midwest and Southwest. Based on both system sales and number of restaurants, Tropical Smoothie is larger than its older rival Smoothie King, which has also grown rapidly recently. By the end of the year, it is projecting it will exceed 1,800 locations nationwide, up 50% since the end of 2022.

"The color palette is entirely created by the ingredients that you can find in our cafe," Wetzel said. Last year, Smoothie King sold a minority stake to private equity firm Main Post Partners to accelerate the chain's growth. But both smoothie chains are seeing similar trends boost their sales. "We're a beverage-led concept, and beverage has gone from being the sidekick to the main event," Wetzel said, adding that about 85% of the chain's transactions include a smoothie, but the fruity drinks only account for about half of sales.

What happens next

"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. The chain, which also sells bowls and wraps, surpassed $1. 6 billion in system sales over the 12 months ended in June. 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. 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.