From the rise of GLP-1 medication to backlash towards synthetic elements, present wellness traits are fueling development for Smoothie King.

“There are important business tailwinds behind what we’re doing,” stated Gavin Felder, the chain’s president and CFO. “What we have discovered is individuals are much more acutely aware about what decisions they’re making. Lots of people are specializing in protein now and on fiber and all these good issues.”

Based greater than 50 years in the past, the privately held chain takes credit score for inventing the phrase “smoothie” and popularizing the well being drinks. CEO Wan Kim, beforehand a franchisee for the model in South Korea, has owned Smoothie King since 2012. Final yr, the corporate offered a minority stake to personal fairness agency Foremost Publish Companions and stated the deal would assist Smoothie King speed up development and innovation.

“In case you begin the clock [in 2012], we have been rising system gross sales at a compound charge of double digits since then,” stated Felder, who joined the corporate two years in the past after spending 16 years with KFC proprietor Yum Manufacturers.

Over the previous 5 years, Smoothie King has grown its variety of places by about 23%, the corporate advised CNBC. The chain’s system-wide gross sales have elevated roughly 64% over that interval.

In 2025, the corporate recorded income of $66.16 million, up 4% from the prior yr, in response to franchise disclosure paperwork. Its internet earnings, nonetheless, fell about 6% to $14.84 million. On the finish of the yr, Smoothie King had greater than 1,200 places. Franchisees function greater than 96% of the chain’s shops.

Now, as shopper tastes shift extra towards maximizing vitamins, protein and fiber, the chain sees a possibility to each enhance its current places and construct new ones.

In April, Smoothie King introduced a brand new retailer design with what the corporate known as extra “heat” and “approachability” — a shift away from its present “stark, purposeful aesthetic” — and plans to steadily introduce it throughout its footprint.

And extra shops are on the best way: the chain stated that franchisees have dedicated to opening greater than 200 new places within the coming years. It is also planning to develop additional into meals with flatbreads, constructing off its current choices of smoothie bowls, yogurt bowls and loaded toasts.

Smoothie King and its franchisees will open about 90 new places this yr, in response to Felder.

Whereas Smoothie King was rising earlier than the present frenzy for protein and fiber, the traits have boosted its gross sales at a time when many restaurant chains are struggling to draw frugal shoppers.

The rising adoption of GLP-1 drugs, like Ozempic and Wegovy, are partially accountable for shoppers’ curiosity in upping their protein and fiber intakes. Then there’s the rising push from each shoppers and regulators away from so-called ultraprocessed meals and synthetic flavors and dyes, fueled partially by the Make America Wholesome Once more motion led by Well being and Human Companies Secretary Robert F. Kennedy Jr.

Smoothie King was considerably forward of the curve; in 2019, the chain completed its “Clear Blends Initiative,” which eliminated preservatives, synthetic flavors and colours and genetically modified fruits, whereas including natural greens.

“Now we have a ‘no-no’ checklist that’s longer than Panera’s, that is longer than Chipotle’s,” Felder stated.

Shifting ahead, in tandem with its retailer redesigns, Smoothie King plans to share extra of its story, from its founding to its banned elements.

“A whole lot of our friends, they’re all about well being and wellness,” Felder stated. “They wish to be sure that they’re monitoring every thing they’ll. They’re very focused on transparency and the extent of knowledge that they’ll get on our model and our merchandise … It is an awesome tailwind for the class.”

As common nationwide gasoline costs hit $4 a gallon, shoppers are displaying indicators that they’re rising extra price range acutely aware. Quite a few restaurant corporations, from Domino’s Pizza to Chipotle, have reported that gross sales softened in March, after the U.S.-Israeli battle with Iran started.

There’s additionally extra competitors than ever within the restaurant area for health-conscious diners and protein-rich snacks and meals.

Nonetheless, Felder is optimistic that customers would nonetheless purchase a FiberMaxxing Smoothie or Energy Meal Spinach Pineapple Smoothie, somewhat than skipping the drink or making it at residence.

“We consider — and I’ve seen this — that when clients are stretched, they’re extra more likely to spend on issues that make them really feel good, somewhat than issues that make them really feel responsible.”