• by Teresa Buyikian , November 5, 2024

As temperatures (finally) drop across the U.S. as we head into winter, signaling the end of summer meal deals, there’s one QSR category that’s thriving in a space that’s already frozen: smoothie chains.

According to “Smoothies Market Size, Share, and Trends 2024 to 2033” by Precedence Research, the global smoothie market size surpassed $12.54 billion in 2023, and is estimated to hit around $30.63 billion by 2033. 

North America dominated the market with the largest share of 46% in 2023, with the growth likely fueled by the “U.S. functional beverage market experiencing significant expansion, with heightened interest in energy, hydration and protein-enhanced offerings,” which smoothie QSRs supply. “Smoothies …enable individuals to effortlessly incorporate a variety of fruits, vegetables and dairy or plant-based proteins into their diets."

A closer look at two of the largest smoothie chains by foot traffic firm Placer.ai confirms the increase in smoothie consumption. In its report, “Playa Bowls and Tropical Smoothie Cafe: Berry Big Business,” the company found both chains experienced consistent growth in visitor numbers.

During Q3 2024, visits at Playa Bowls were up 6.3% year-over-year, and up 4.6% at Tropical Smoothie Cafe. During Q2 2024, visits were up 3.2% at Playa Bowls, and 8.5% at Tropical Smoothie Cafe. These numbers increased as the chains both grew in number units: in the last two years, Tropical Smoothie Cafe has opened almost 450 new locations in the U.S. Playa Bowls has added 75 new locations thus far in 2024.

A key driver to the two chain’s consistent increase in foot traffic per the Placer.ai report includes calendar-driven promotions, with Playa Bowls seeing a nearly 123% increase in traffic on April 6 (National Acai Day), and Tropical Smoothie Cafe seeing a 94% increase on May 29 (National Flip Flop Day). The report also points out that another big reason for traffic is that smoothie QSR visits are speedy and a good go-to option for busy consumers who want to eat healthy but do not want to dine in-store. Both chains are finding success at “leaning into the growing demand for convenient off-premises dining options,” per the report.

“With high food prices still weighing on consumers, and health still top of mind for many, brands that provide nutritious, affordable indulgences are poised to win. Those that do so while meeting the rising demand for quick and convenient dining options are especially well-positioned to thrive.” said Lila Margalit, author of the Placer.ai study.

Both chains were also acquired this year. Playa Bowls, with 250 locations, was recently acquired by Sycamore Partners, and Tropical Smoothie Cafe, with almost 1500 stores, was also acquired by Blackstone in 2024.

And perhaps another good indicator of future growth is the talent the chains bring on board. This week Tropical Smoothie Cafe announced the hire of QSR industry heavyweight Max Wetzel as CEO. He joins the chain from serving as CEO of CKE, parent to both Carl’s Jr and Hardee’s, with a combined store count of 3800 in the U.S. and internationally. Earlier in his career he worked as CEO of Papa John's International.