This week we have a guest post about the state of the frozen yogurt industry with a focus on franchises from Franchise Chatter. Franchise Chatter, through its Fro-Yo Files section, has been monitoring the growth of the frozen yogurt sector since 2011 with comprehensive reporting and rankings of the leading brands. Be sure to take advantage of the IFYA discount on a Franchise Chatter subscription by May 31, 2004.
By Brian Bixler
Brian Bixler is a freelance journalist and blogger for several business-oriented Web sites, including FranchiseChatter.com, a membership site devoted to reviewing franchise earnings claims.
The frozen yogurt franchise sector may find itself in a state of flux by the end of 2014 if some analysts’ predictions are correct. Many believe that it will be the year of consolidation in the industry with the bigger players swallowing up smaller and independent brands.
Industry watchers have predicted consolidation would occur as the number of frozen yogurt brands ballooned over the past five years. U-Swirl seems to be the company to watch as it targets smaller chains for acquisition in the fragmented market.
It began the process last year when Rocky Mountain Chocolate Factory, with its own Aspen Leaf Yogurt brand, became a majority owner of U-Swirl. After that, U-Swirl began acquiring several other regional brands, including Yogurtini, Josie’s Frozen Yogurt, CherryBerry, Yogli Mogli, Gracie Bleu and Fuzzy Peach Frozen Yogurt. As a result, U-Swirl has increased the number of franchised and company-operated stores in its network by more than 200 percent in just over a year.
Consolidation is just one of the developments industry watchers and potential investors should look for in the near future as additional trends swirl around the frozen yogurt industry. The most prevalent one is as inevitable as industry consolidation: Brands that have not yet switched to a self-serve model may find it necessary as customization and weigh-and-pay become the standard.
Frozen yogurt has traditionally been seen as a summertime treat, but seasonal sales dips are becoming less of a concern, which is also important to investors in any brand. Franchisees are now able to pull in customers year-round, even in the dead of winter. Companies are offering incentives such as special seasonal flavors and theme flavors for holidays. Others are diversifying their menus to include such things as frozen yogurt cakes, smoothies and baked goods to increase sales.
Franchisors such as Let’s Yo! and Red Mango have already included smoothies in their lineup, but Red Mango has taken the trend a step further in expanding healthy offerings to include fresh-squeezed juices. Consumers will begin to see moreRed Mango units co-branded with Smoothie Factory Juice Bar under one roof.
One of the more innovative trends in the industry will depend on consumer tastes as the industry explores savory flavors of frozen yogurt. Pinkberry is already the trend-setter, having introduced a Greek yogurt called Pinkberrygreek with flavors such as Sunflower Cucumber—a bowl of Pinkberrygreek topped with cucumber, sunflower seed bites, olive oil and chili powder.
Frozen yogurt flavors incorporating vegetables may be next. Red Mango is testing an avocado froyo flavor, while Yogurtland had the Marvin the Martian flavor Kosmic Fruit Kaboom sorbet which had spinach.
The 2014 Frozen Yogurt Franchise Report prepared by FranchiseChatter.com explores these trends and more in a comprehensive overview of the industry informed by numerous authoritative sources, including the International Frozen Yogurt Association. The all-encompassing guide to industry developments provides a snapshot of all the major players in the market with the most current information available about sales growth, differentiators, strategies and other data. A look at the industry as a whole completes the picture.
Those interested in reading the 2014 Frozen Yogurt Franchise Report are invited to subscribe at FranchiseChatter.com.
Exclusive Offer for IFYA Members and Supporters
Use the coupon code “FROYO” to get 15% off your subscription. Offer expires May 31, 2014.
The views and opinions expressed herein are those of the author and do not necessarily reflect the views of the International Frozen Yogurt Association.
