Tropical Smoothie Cafe Project

Topics: Shopping mall, Target market, Fast food Pages: 17 (4231 words) Published: November 24, 2014
Tropical Smoothie Café

Team One

Project Consultants:
Brenna O’Regan,
Amanda Newsome,
Kemper Jones,
Chris Nguyen,
Jeffrey Joyce,

Table of Contents

Executive Summary3

Franchisor Background Information4

Product/ Service Description5

Situation Analysis6

Target Market9

Site Location11

Marketing Strategy14



Executive Summary

Tropical Smoothie Café is a casual restaurant offering a variety of smoothies, as well as food items, such as wraps, sandwiches and salads. It attracts health- conscious people and this consultant team is considering whether or not is has potential in the New River Valley.

Among thorough research into Tropical Smoothie Café’s history, a collection of information has been researched as to how well this restaurant would fit in with not only the New River Valley’s consumers, but with the existing restaurants. It has been found that Tropical Smoothie’s clientele and target market is healthy, younger people, who are focused on healthy living. It has also been found that Tropical Smoothie holds many strengths and opportunities, such as its differentiation as being both fast food, and healthy food. It also has a lot of growth potential and could possibly do well in an area like the New River Valley. There is not much competition from existing restaurants because the types of food and smoothie items are unlike many other menu items of restaurants in this area. Information was gathered on the characteristics of the populations of the towns in the New River Valley to better pick a potentially successful site in which Tropical Smoothie Café would do well. The trade areas and the habits of the existing populations of the towns were also taken into account. In all, the consultant team concluded that Tropical Smoothie Café would do well in the New River Valley, and more specifically, in the town of Christiansburg. This decision was reached after careful consideration and research. The team believes that Tropical Smoothie will not only be a good fit for the New River Valley, but that the New River Valley will also be a good fit for Tropical Smoothie. Franchisor Background Information

Tropical Smoothie Café is an upscale smoothie and deli café. It offers an assortment of smoothie options as well as gourmet wraps, sandwiches, and salads. All food items are made with only Boar’s Head brand meat and cheeses. There are currently 195 franchise outlets in the United States and 4 foreign franchises. Tropical Smoothie originated in Tallahassee, Florida in October 1997. In 1998, they started serving gourmet wraps with coffee, in addition to smoothies. It was renamed from Tropical Smoothie to Tropical Smoothie Café in 2000 to accommodate the full menu.1 Individual franchises as well as multi-unit franchises are available. It typically takes about 60-90 days between the time the site is identified and the lease is signed before the store is opened. Tropical Smoothie, Inc. trains franchisees in operations as well as the marketing and management of the business. Location requirements include highly dense areas with high traffic count, good visibility, and easy accessibility. 1 Each location is approximately 1,400 to 2,400 square feet in size. The requirements for opening a Tropical Smoothie Café franchise is typically $75,000 in liquid assets and your total investment will be between $200,000 and $300,000. There is a continuing fee of 6% of gross receipts, excluding sales tax. 1 The cost breakdown for starting the franchise is shown below:

Franchise Fee

References: 1. Tropical Smoothie Café. 2006. Retrieved October 2006 from
7. Wikipedia. October 17, 2006. Christiansburg, Virginia. Retrieved October 29,
2006 from
8. Wikipedia. September 16, 2006. Blacksburg, Virginia. Retrieved October 29, 2006
9. Wikipedia. October 1, 2006. Radford, Virginia. Retrieved October 29, 2006 from
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