Is weightless pricing the new thing at self-serve froyo shops? Prices have been on the rise at frozen yogurt shops and other chain restaurants thanks to rising food costs. They could increase further with minimum wage increases and technology investments. Many frozen yogurt shops have closed, particularly on the East Coast, which leads to decreased price competition.
Some self-serve frozen yogurt customers like paying by the cup size because it still gives them control over what goes into their cup while removing the element of surprise about how much the cup costs. With frozen yogurt per ounce prices hovering near 50 cents an ounce, it’s easy to spend more than $5 for a cup of frozen yogurt.
Per cup flat rate pricing particularly attractive if you (or the kids you’re paying for) get a lot of frozen yogurt. The flat fee per cup price encourages customers to overconsume, since the cost per ounce declines with the number of ounces served. It’s not attractive for people who only want a little frozen yogurt.
Is it good for the shop though? Margins per ounce will most likely fall and if customers really pile it on, it could become unprofitable. Also, consuming large amounts of frozen yogurt may lead to fewer trips to the frozen yogurt shop. On the other hand, shops can rely on a minimum spend/ticket of the smallest flat rate cup price.
Many shops only offer the flat rate per cup pricing periodically, as a special. Menchie’s, Yogurtland, Yogurtini, Y’opa, High Five, Olo, Just a Dream, Yumberries, and sweetFrog have been offering $5 flat rate cups as specials while maintaining their per ounce pricing during non-promotional periods. Orange Leaf Woburn and Hamilton have been offering $4.99 flat rate pricing every Sunday since November 2015. Other Orange Leaf locations are currently testing a flat rate per cup pricing scheme with 3 cups and 3 prices.
Offering both pricing options at the same time could be confusing for consumers. Flat rate per cup pricing has appeal but we think it’s best as an occasional special, e.g., Flat Rate Fridays or Weightless Wednesdays. Adopting flat rate pricing as a limited time special will appeal to those who want flat rate pricing while reducing exposure to the risk of customers who pile on the froyo.
Doesn’t having a set date for a Flat Fee (Weightless Wednesdays) discourage customers from coming in on other days? I always felt is best to have a Flat fee offered once in a while – but not as a regular part of your calendar. Unless you convert totally over to a flat fee per cup size I would think doing this only one day each week would further reduce customer traffic on other days.
Hi Tina,
Thanks for your comment! I think having the flat fee per cup once a week could reduce traffic on other days but it depends on the type of customers the shop has.
Most people don’t go to frozen yogurt shops multiple times a week or even once a week, so having the flat fee option could increase their overall yogurt purchases. Or some people who don’t put much in their yogurt cup might prefer the per ounce pricing and avoid the flat fee day. I’d say monitor the traffic and see if the per cup weightless pricing seems to be having an impact.