Verdict Food Service

Daily Newsletter

08 August 2023

Daily Newsletter

Smoothie King signs 15-unit development agreement in Texas, US

The deal was signed with Mohammed Azaz of HIBA-SK, who purchased six Smoothie King locations last year.

US-based smoothie chain Smoothie King has signed a multi-unit development agreement to open 15 new locations in Dallas-Fort Worth, Texas.

The deal was signed with Mohammed Azaz of HIBA-SK, who acquired six Smoothie King locations in 2022.

Azaz said: “I've been actively searching to further diversify my portfolio and Smoothie King immediately stood out for its strong company mission, category leadership, products and the ongoing support it provides franchisees.

“It's also inspiring to learn more about Wan Kim's journey from franchisee to CEO and the dedication that each corporate team member has for the brand.

“It's something I chose to be a part of and I'm excited to develop new locations with Smoothie King and build my existing portfolio with the brand.”

As part of efforts to support its franchisees, Smoothie King is focusing on menu innovation with an objective to improve profitability for its franchisees across the system while increasing traffic and building guest loyalty.

Smoothie King chief development officer Chris Bremer said: “We welcomed Mohammad to the Smoothie King family last year and we're privileged that he'll be expanding his presence with our brand through multiple new store builds.

“We're always looking to partner with experienced franchisees that are not only eager to grow but also passionate about making a positive impact in their community.

“Mohammed has exemplified this passion throughout his franchising career and we are proud that he will be growing his portfolio further with Smoothie King.”

Generative AI remains an untapped potential across the consumer industry

GlobalData estimates the total AI market will be worth $909 billion in 2030, growing at a CAGR of 35.2% between 2022 and 2030. The consumer goods, foodservice, and packaging sectors are undergoing digital transformation, accelerated by the COVID-19 pandemic and changing consumer preferences. AI can help companies operating in these sectors by significantly reducing costs and production times. In Nestlé's 2022 full-year results, the company announced a renewed focus on digitalization to drive growth. Financial and reputational pressures associated with supply chain disruptions and sustainability concerns are also driving interest in the digitalization of supply chains. Data science and ML are strong investments across all areas. However, the sectors cannot stop at AI-powered data analytics applications. They must also explore computer vision (CV), smart robots, AI sensors that automate manufacturing and distribution logistics, and generative AI tools that increase efficiency across corporate departments and customer service operations and enable innovation in product design. For the most part, the consumer goods, foodservice, and packaging sectors will not play a significant role in creating and developing AI hardware or platforms. Instead, these sectors will help scale up the adoption of AI technologies, such as CV, conversational platforms, and smart robots. This adoption will be driven by the financial benefits and potential cost savings AI automation delivers across global supply chains.