After changing ownership in a multi-billion dollar deal, several locations of a health-conscious cafe chain quietly shut their doors across the U.S.
Even so, those closures have done little to slow the company’s momentum
Instead, it is opening hundreds of restaurants, signing hundreds more development agreements, and investing heavily in technology, operations, and franchise growth. The contrast reflects a broader trend in the restaurant industry, where isolated store closures don’t always signal broader weakness. In many cases, they are part of normal franchise turnover as brands continue to expand into stronger markets.
Restaurant closures follow major ownership transition Blackstone (BX) acquired Tropical Smoothie Cafe in June 2024 from Levine Leichtman Capital Partners for about $2 billion, according to The Wall Street Journal. The acquisition was intended to accelerate the brand’s long-term growth through continued investment in menu innovation, operations, marketing, and development. At the time of the acquisition, Tropical Smoothie Cafe operated more than 1,400 locations in 44 states, according to the company’s announcement.