Author Topic: Frozen Yogurt Trend  (Read 5008 times)

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Offline ryan3230

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Frozen Yogurt Trend
« on: July 18, 2009, 11:13:40 PM »
I?ve recently purchased a frozen yogurt shop (check out our website www.rainbowyogurttexas.com) and I?d like to pose the question of what happens when people get tired of the tart flavor? How do I prevent the past from repeating itself here? I think I have already helped myself by offering 6 different flavors with the ability to increase to 10 and only one of those flavors being tart based, and my concept is self serve so we charge by the weight, putting the customer in total control of cost (to them), portions, and toppings. But will this be enough to survive the ?trend??

original blog post by Ryan Knoll: http://franchisepundit.com/index.php/2008/04/14/tart-frozen-yogurt-a-fad-roll-your-own/

Offline Franchise Pundit

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Re: Frozen Yogurt Trend
« Reply #1 on: July 29, 2009, 02:54:59 AM »
Competitive pressures and dilution is what previously killed the frozen yogurt industry.  These factors are out of your control.  So if Dairy Queen, Walmart, and McDonalds all start offering tart frozen yogurt, the uniqueness of your offering will be gone.  Lets hope that doesn't happen.  There are only a few ways to differentiate, and that is with cult-following because of your superior product (it must be notably better than your competitors and your consumers must be able to notice this on their own) or you can create a truly unique customer experience (not just better service or colored napkins, but the customer feels like they are stepping into another world when they enter your store).

Daron

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Re: Frozen Yogurt Trend
« Reply #2 on: August 20, 2009, 09:07:15 AM »
Ryan,
I live in the Kansas City Area and have been researching the self serve frozen yogurt concept for a while now. Besides being a new trend to the KC area Im wondering how this concept will fare in the winter months, just like any other ice cream shop I guess. My take on this, is your customer experience. If you can make the customer feel at home and want to sit and stay at your location then it would help attract business. But it seems in doing this high end metro type atmosphere that adds a bunch to your build out costs. not to mention this concept needs a very high foot traffic location which is also very costly. This could become a very expensive fad?? But I do like this concept and would like to pursue it but want to study up a bit more.

Offline FuwaFuwaUsagi

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Re: Frozen Yogurt Trend
« Reply #3 on: September 03, 2009, 10:43:22 PM »
I hate to be redundant but what value is a franchise going to bring to this?  I would suggest it will increase your build out cost on a branding that is marginally efficient at best, thus greatly decreasing your ROI (compare functional build out from an operational standpoint and atmosphere vs what many zors require and you will see my point, unless the brand drives revenue it is fool hardy IMNTBMFHO).  For example, of national and regional brands that drives revenue respectively, consider McDonald?s and ?Oberweis? Ice Cream (these are not a recommendations, just an examples, one I these I would certainly not get involved with).

I started both ice cream and frozen custard businesses over the years and they met some people?s measure of success.  Your advertising is getting a sample in the mouths of people along with  a location they can access, simple as that,  Work farmer's markets, socials, church gatherings, schools, malls, park districts, parks, political events, and sidewalks(to create awareness) and if your product is good you will get customers.  I shut down for winter in the Midwest.  My location was a converted house that was in a growing retail corridor and the other a fountain in a small town diner.

You can search around under my name as I mentioned this before, but their is a guy who runs a frozen yogurt shop in Boca Raton FL in the same plaza as Sweet Tomatoes who is very, very friendly and last I knew would pretty much train anyone who was not a jerk and wanted to roll their own and was out of state.   My experience is most successful small business owners of their own start up concept are very generous in sharing their knowledge as long as you will not cut into their piece of pie. 

Heck just a few weeks a go I took an 80 mile detour to visit a Ice Cream shop in Ohio that had a write up in a IL newspaper while on route to Philly (had to get a chicken cheese steak at my favorite hole in the wall).  The owner was a friendly chap and would have willingly chatted the night away but I had to attend to other business so we only yarned on for an hour or two. A chap like that would not hesitate to teach you the business.  Buy a ticket make the intro and then get a hotel in the area for a week and role up your sleeves.

Personally, except for fighting the winter thing I would not hesitate.  This is an awesome business climate for high end, quality, start ups that indulge the taste buds in a economical fashion.  People will spend money on small luxuries.    As long as you are not burdened with a royalty on a plebeian concept that does not truly benefit from branding and you are not shouldering onerous build out costs you should be able to survive and thrive as you pick off the client base of those who were foolish enough to pay for a non-functional build out, an untenable lease arrangement, and royalty payments. 

BTW, if you are not burdened with a franchise, it matters not if it is a fad, you are free to evolve or completely change to another concept.  That is the beauty of being an indy operator: agility.
« Last Edit: October 10, 2009, 01:35:15 PM by FuwaFuwaUsagi »
"Never underestimate the power of stupid people in large numbers"

Daron

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Re: Frozen Yogurt Trend
« Reply #4 on: September 04, 2009, 08:58:22 AM »
FUWA,
Thank you for the information? You seem to be a wealth of knowledge. In doing my research on the self serve yogurt concept, I have come to the conclusion a franchise is not needed unless you want to pay the money for a name like Pink Berry  or Yogutland. My real concern was "LOCATION" and winter months. I have a few high foot traffic locations that Im looking at but they want an arm and leg for rent. Also the build out cost to have the modern high end concept or design really adds to the cost. All in all it's a new concept here in the Midwest and think it would do pretty well. Thanks for your help I really appreciate it.


Offline FuwaFuwaUsagi

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Re: Frozen Yogurt Trend
« Reply #5 on: September 04, 2009, 12:40:14 PM »
I do not know what concept you have envisioned building.  That being stated I would consider a lot lease or purchase, a storage facility, and a trailer concept where I outdoor gazebo the environment, potted trees etc, and simply pack it all up for the winter.  This should lower your build out costs, give you something unique that can be easily altered to suit different themes and parties (rentals) while giving you all the benefits (except rain protection) if other offerings.   

That is just a thought (been there done that ? type of thing).  But I will tell you those closed for the season signs with a periodic sign change, a count down of when you will reopen for the season builds a real desire in a customer base and the perception of scarcity helps you maintain margins while the limited season trims you margins.

In my area this design would save you roughly 21k in property taxes alone.  Of course much depends on the city and county laws as well as the availability of desirable locations.

Just more food for thought.  One last thing, please have a passion for this business is you elect to do it.  This is a fun food, and there are just some niches where you need to be passionate and allow the passion to bubble over into the atmosphere.  Ice Cream, Hotdogs, Gourmet Burgers, Italian food, and BBQ are like that, you need passion for what you do.  That is the secret ingredient. 

Live Large,


FuwaFuwaUsagi
« Last Edit: September 04, 2009, 12:42:13 PM by FuwaFuwaUsagi »
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Offline michael webster

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Re: Frozen Yogurt Trend
« Reply #6 on: September 04, 2009, 01:35:10 PM »
These have always made sense as fractional franchises, from both a regulatory and business view point.

The one thing Fuwa didn't suggest was to partner with a large independent or multi-unit franchisee and offer it in house as an adjunct.
« Last Edit: September 06, 2009, 02:13:51 PM by michael webster »
Michael Webster
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Toronto, Ontario

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Offline FuwaFuwaUsagi

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Re: Frozen Yogurt Trend
« Reply #7 on: September 05, 2009, 03:01:56 PM »
The good Barrister writes:

The one thing Fuwa didn't suggest was to partner with a large independent or multi-unit franchisee as offer it in house as an adjunct.

Wow Michael, I can truthfully say I do not believe I ever considered that.  I like it; I like it a lot, a real lot.   Thank you.

FuwaFuwaUsagi
"Never underestimate the power of stupid people in large numbers"

Offline michael webster

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Re: Frozen Yogurt Trend
« Reply #8 on: September 06, 2009, 02:16:39 PM »
Fuwa;

The franchise regulations uniformly permit the sale of a fractional franchise without disclosure and registration documents, and with the seasonality of this, it makes an excellent add-on.

I know that there are some who run this type of operation out of a mobile truck, twittering to their followers where they will be next.
Michael Webster
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Offline mrfranchiseman

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Re: Frozen Yogurt Trend
« Reply #9 on: March 30, 2010, 02:35:55 PM »
Competitive pressures and dilution is what previously killed the frozen yogurt industry.  These factors are out of your control.  So if Dairy Queen, Walmart, and McDonalds all start offering tart frozen yogurt, the uniqueness of your offering will be gone.  Lets hope that doesn't happen.  There are only a few ways to differentiate, and that is with cult-following because of your superior product (it must be notably better than your competitors and your consumers must be able to notice this on their own) or you can create a truly unique customer experience (not just better service or colored napkins, but the customer feels like they are stepping into another world when they enter your store).

Hello,
This is nice. But I think in the way you define the topic, it is good but not in the way it should be.. You start it good and cover all the things but in the middle you leave the actual topic and did not focus on the specific topic you started.. But over all its good. And I am a student and did different ?????. These are good but taught as well. Hope more topics will be discuss from your side. Have a good day.
--------------------------
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Buyer beware, Frozen Yogurt stores are starting to close in Orange County California. Read the artcle in the OC Register recently
mrfranchiseman.com

Daron M

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Re: Frozen Yogurt Trend
« Reply #10 on: March 31, 2010, 09:07:16 PM »
The frozen yogurt trend has been very popular on the west coast. I would imagine there are so many stores that you will start seeing many close or go out of business.
What do you think about the self serve frozen yogurt concept that is just now hitting the midwest. I'm currently in the planning stages of opening a store. I very curious to knoiw if this concept will take of here in the midwest?

Offline Franchise Pundit

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Re: Frozen Yogurt Trend
« Reply #11 on: April 01, 2010, 12:24:20 AM »
The frozen yogurt trend has been very popular on the west coast. I would imagine there are so many stores that you will start seeing many close or go out of business.
What do you think about the self serve frozen yogurt concept that is just now hitting the midwest. I'm currently in the planning stages of opening a store. I very curious to knoiw if this concept will take of here in the midwest?

I saw the self service style frozen yogurt in the Las Vegas recently when I was at the Intl Pizza Expo.  If it were me, I'd go with the tradition service style.  People eat with their eyes, and the risk is people pump out an ugly yogurt dish, leaving a less than optimal impression. 

sebastian

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Re: Frozen Yogurt Trend
« Reply #12 on: August 21, 2010, 05:00:15 AM »
here is my input. I've been in frozen yogurt business for 6 months.

franchise or non-franchise?
If you have $300k sitting (whether you are in your 20's or retired) and don't want to bother with looking for suppliers, designing the space, training employees, working 80 hours a week or more to run the store,
yes go with franchise.
(BTW, I asked pinkberry and they wanted me to open 3 stores in 2 years and each one would cost $250k. yep only 3 quarter of a million)

If you don't have enough money and are willing to work on build out, you can open the store as little as $50k.
I am trying to open 2nd location by sharing the space with college textbook store. my budget is $20k including 4 taylor machines. (yes, those new guys just opened spent $15k each machine. 8 machine alone would cost them $120k)
so I guess I am going to open the store with the cost of  new 1.5 taylor machine


I



Offline FuwaFuwaUsagi

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Re: Frozen Yogurt Trend
« Reply #13 on: August 22, 2010, 08:45:36 PM »
Sebastian:

I would strongly encourage you to document what you are doing.  And in the event you are successful and able to replicate your success I would suggest you consider sidelining as a frozen yogurt consultant for start-ups. 

The overall business community needs more hands on experienced consultants who also continue to operate concepts. 

Wishing you continued success,

FuwaFuwaUsagi




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Daron M

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Re: Frozen Yogurt Trend
« Reply #14 on: August 23, 2010, 11:56:26 AM »
Sebastian, I would like for you to send me your email address if you could. I have been working on my own independant store for a while now. We might be able to help each other with this process?