Well, frozen yogurt businesses are very popular right now – one of the hottest category in franchises in 2011. Are frozen yogurt businesses profitable? Is frozen yogurt just a short-term fad?
We will analyze some of the positives and negative aspects below. But, overall, yes – a frozen yogurt business is a great business especially when ran right.
1 – Simplicity
A frozen yogurt business plan is relatively easy to run. There are no complicated technological processes. But even better, the menu is very simple just yogurt and toppings – pretty easy to manage. The frozen yogurt store site is generally small and relatively easy to maintain.
2 – Great Product
Frozen yogurt is very popular right now – everybody seems to be raving about it and wanting more. Even better, the product is generally healthy for you especially when compared to fatty ice cream. Many customers feel like an artist creating their own masterpiece. People love to try and mix different flavors and toppings.
3 – Low Overhead
The average square footage needed is only 1,200 feet. That is very small in the retail world. That keeps overhead low. You could even get away with about 1,000 sq. feet. Once the yogurt machines are purchased or rented the additional costs are minimal. Your frozen yogurt mix is pretty cheap – or should be. Employee cost should be pretty inexpensive as the stores are a fun place to work.
1 – Is the current frozen yogurt craze just a fad?
Sure the recent growth of frozen yogurt has been a bit faddish but I don’t see any signs of slow down yet. Is there a possibility that the trend slows significantly in the next few years? Yes, but I’m still seeing several smaller cities without a frozen yogurt footprint as of yet. In fact, most people have not even heard of Pinkberry or Yogurtland.
I love frozen yogurt and could eat it everyday. And I don’t see myself slowing down anytime soon. I feel good when I eat frozen yogurt – well, except for when I put snicker bits in there.
2 – Is frozen yogurt seasonal?
I would like your opinion here as I would eat frozen yogurt in the snow and I don’t personally see much slowdown during winter months in Utah and certainly don’t see any slowdown in California where it never gets too cold. Yes, it does slow down slightly in areas with cold winters but I believe that it’s still manageable. Frozen yogurt is healthy so it’s another excuse to eat even during the winter months.
Please, please don’t open a yogurt shop across the street from another yogurt shop. I have seen that too many times in California and Utah. Even if your branding, store experience, and product is superior. There just isn’t enough brand differentiation to allow that.
You must think about differentiation. There is a huge difference in stores like Menchies and small non-franchise stores that are just trying to capitalize on the tremendous growth of frozen yogurt. If your store doesn’t have friendly staff, great branding, and a welcoming/fun environment it doesn’t matter how great your yogurt tastes – it will not survive when the trend slows down.
Frozen Yogurt Store Franchise – Business Plan| Open a Frozen Yogurt Store?