Dlush

It’s taken seven years, but Dlush Beverage Joint is ready to take on the world. A cross-category beverage concept that specializes in deluxe fruit smoothies, coffee frappes and other blended concoctions, Dlush is poised for major expansion.

"We’re at an exciting tipping point," said Jeffery Adler, founder and CEO, Dlush Beverage Joint, San Diego, which has three locations in Southern California (including Hollywood & Highland Center, Hollywood), and one each in Kuwait and Dubai. "We just signed a new partnership to expand in the Middle East, and we’re gearing up to expand here."

Dlush expects to open six U.S. locations in 2009, eight in 2010, and will launch a more aggressive rollout in 2011. It is being courted by developers nationwide, and averages about $1,600 per square foot in sales, according to Adler.

So what took Dlush so long to start growing? Adler said the company was more interested in building an enduring brand than in rushing to open more locations.

"From an operator’s perspective, the quick-service space is a nightmare, so operational excellence is critical at this early stage of our business," he explained. "We spent the past few years doing all sorts of things from an infrastructure standpoint to support new stores coming to market at a consistent level of excellence."

There were changes along the way, including editing the menu from an original 40 drinks to 24.

"We’re moving to 16— less is more," Adler said.

Dlush, with beverages that go for about $5 a pop, is positioned as a trendy lifesyle brand. It has a young, hip vibe. The stores, which average 500 sq. ft. and have a sleek circular-design, pulsate with music and avtivity. Flirty, super-friendly employees raise the engery level even higher.

Originally, Dlush was targeted at the youth market. Now it is casting a wider net.

"Our target is more psychographic than demographic," Adler said. "More than teens and tweens, it’s the young at heart."

Adler sees the potential for an eventual 500 units, with center-court mall locations high on the list of ideal real estate. He wants to grow the company organically.

"I’m inundated with requests, but I have very little interest at present in franchising," Adler added. "I’m not willing to make those compromises."