Dive Brief:
- Smoothie King has secured a significant minority investment from Main Post Partners, a private equity firm that targets consumer-facing brands, the chain said in a Thursday press release.
- The investment amount was not disclosed, though Smoothie King confirmed in an email to Restaurant Dive that Main Post Partners is now the second-largest shareholder in the brand. According to the press release, Smoothie King founder and CEO Wan Kim is still the brand's majority shareholder.
- The investment signals continued investor interest in the dynamic QSR smoothie segment, after Blackstone acquired Tropical Smoothie Cafe for $2 billion last year.
Dive Insight:
Smoothie chains, like other beverage-focused concepts, are well-positioned to capture consumer interest in photogenic drinks, off-premise occasions and health-forward menu items. Significant private equity backing could help Smoothie King, which is planning to enter new markets and open 100 stores this year, catch that wave.
Smoothie King said Main Post Partners has extensive experience working with high-growth franchises including Jimmy John's and major franchisees such as Flynn Group.
Jeff Mills, managing partner at Main Post, cited Smoothie King’s product innovation as a factor driving the investment.
The private equity firm will support the brand “in capitalizing on its Clean Blends menu, impressive customer service ranking, 1,200+-unit restaurant base and category leadership,” Mills wrote in the statement. "Smoothie King is well positioned to enter its next phase of growth."
The smoothie brand added a new “Hydration” menu category earlier this summer that features drinks made with fruit flavors and electrolyte-heavy ingredients including coconut water. It also debuted three new watermelon smoothies “focused on post-workout recovery, gut health, or meal replacement.”
Earlier this year, the company promoted CFO Gavin Felder to president and in November hired a Red Robin vet as chief information officer as it looks to set up a comprehensive technology strategy.
A fresh infusion of capital could help improve Smoothie King’s competitive position in the market. Smoothie King and Tropical Smoothie Cafe are closely matched competitors in unit count — Smoothie King has about 1,200, according to its franchise disclosure document, while Tropical Smoothie Cafe had 1,400 when it was acquired late last year by private equity giant Blackstone.
But Smoothie King has a disadvantage in unit economics.The brand’s average net sales in 2024 were about $660,000 dollars, while Tropical Smoothie Cafe’s average net revenue topped $1 million in the same time period and with similar initial investment requirements and square footage, according to the brands’ respective FDDs.
