Frozen yogurt is flourishing in the recession. Could it have something to do with summer?

July 21, 2009 – 11:01 am – No Comment

While there are several stores all across the country going out of business and leaving our shopping and strip malls barren, you can find a frozen yogurt store flourishing in the current economy, even if the price is usually as much (if not more) than a Starbucks drink.

Frozen yogurt is a relatively new idea in stores. Sure, there’s “always” been TCBY, but the recent emergence of stores like Pinkberry in California has led to a rediscovery of the (sometimes) low calorie frozen treat. There are new stores popping up now that let customers choose how much (or how little) of the frozen yogurt they want. Yogurtland and Menchie’s are two of the stores that offer self serve as part of their offerings. At the store, you can control the quantity of yogurt you get and can mix flavors and toppings in.

The self serve stores do charge per ounce, which is typically 30 to 50 cents an ounce. With a charge like that, the average cup-sized serving comes out to around $3. That is, of course, unless you are my husband, who would likely have at least two cups in there and every fruit topping in the store.

The idea of having self service yogurt stores is a hit for some that would not be getting that much ice cream to begin with. If you can only eat so much, why not be able to pay per ounce when you will actually get what you will eat rather than having to pay for something you can’t eat and will end up wasting?

The companies that supply the stores with their frozen yogurt goodness are also having a great summer. YoCream International had a sales increase in 2008 of 52% and in the first half of 2009 – 70% boost when compared to last year.

It costs about $400,000 on average to open a frozen dessert franchise according to FRANdata. As a comparison, it costs almost a million to open a sit down restaurant and about $200,000 to open a party supplies store. With the insane growth that frozen yogurt has seen, it is no wonder the stores are popping up all over the place, with the relative low cost to open and high return.

With self serve options available, you can also save on staffing which is pretty appealing to people who want to open stores around places like a college campus.

MSNBC