The Year in Froyo, 2020 Edition

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For our last post of the year, we’d like to recap the froyo events of 2020 and talk about key trends in froyo. Thanks to the worldwide pandemic, it was a tough year full of fear and uncertainty for just about everyone. Governments issued new mandates restricting business operations and recommending that people stay home except for essential activities. Many froyo shops were closed for months and reduced their hours of operation. Some chose to not open for the season this year or close for the season sooner. Offering self-serve proved problematic for many shops. Shops that normally relied on catering, gym members, tourists, indoor mall shoppers, and students had to scramble to adapt to a major change in their customer base.

The largest foodservice show in the world, the National Restaurant Association Show, was cancelled. Many other trade shows and product shows (e.g., Western Foodservice Expo, Florida Restaurant & Lodging Show, Natural Products Expo) were also cancelled. Show operators offered online webinars focused on pandemic related issues, including safety, technology, delivery and takeout operations, etc.

Most Large Froyo Chains Shrink, Where Growth is Occurring

The top 10 largest frozen yogurt chains accounted for approximately 2,552 locations in 2020, down from 2,816 locations in 2019 and 3,020 locations in 2018. The number of frozen yogurt stores continues to decline, undoubtedly aided by the global pandemic, though a few chains like llaollao managed to grow. Most of the growth has occurred outside the US, in countries like Ecuador, Mexico, Colombia, Indonesia, and Malaysia. The largest froyo chains in 2020 are #1 Yogen Fruz, #2 Menchie’s, and #3 Yogurtland.

Looking at California, the state with the most froyo shops, there were 19 froyo shop openings this year and 37 froyo shop closures. Of the closures, 48% were part of a large frozen yogurt chain. Several older shops (over 10 years old) also closed. There were more seasonal froyo closures in California than in previous years. The number of new California openings has been on the decline since peaking in 2016. We did not see many froyo shop openings in the US this year.

We found five new froyo trucks this year vs. 14 in 2019, including two in the US.

Plant-Based, Healthy/Fruity Flavors Were the Most Popular

Of the 55 new flavors introduced in 2020, 50% were froyo and 50% froyo alternatives. Of the froyo alternatives, vegan soft serve was the most popular, accounting for 36% of the new flavors. Interestingly, 16 Handles’ new flavors were all dairy-free and they were the first larger chain to introduce oat milk vegan flavors. In terms of specific flavors, fruit flavors led the way in popularity, accounting for 38% of the new flavors.

Ones to Watch: New Concepts Launched

This was a year when many froyo shops started offering non-froyo items. Pinkberry Nigeria introduced Pinkberry Kafe, which offers healthy salads and sandwiches. Yogurtland rebranded an existing location in Huntington Beach, CA as Holsom by Yogurtland. Holsom by Yogurtland offers hot and cold beverages, savory toasts, sweet toasts, grain bowls, acai bowls and Yogurtland soft serve froyo, ice cream, and sorbet. Yogurtland locations may be given the option of adding those new menu items in the near future.

IFYA News

This fall, we surveyed froyo shop owners and froyo consumers in the Fourth Annual National Frozen Yogurt Survey. We altered the online survey questions to account for the coronavirus pandemic.

While the 2019 consumer survey results were quite similar to the 2018 results, the 2020 results showed some interesting differences. Some of the changes are likely attributable to the coronavirus pandemic. For example, cleanliness was rated the most important froyo shop attribute for the first time. When asked what froyo shops might do to increase visit frequency, the most popular write-in response was safety. Approximately 86% of people reported consuming less froyo during pandemic.

Froyo shop owners reported higher levels of concern than previous years about costs, finding employees, finding customers, etc. This year, the #1 concern was keeping employees and customers safe. The impact of COVID-19 has been devastating, with almost half reporting sales are off over 50% in the first nine months of 2020 (vs. first nine months of 2019).

During the summer, we held our annual contest. This year’s theme for the photo contest was Froyo at Home. We were looking for the best picture of at home froyo style. The winner, IG @_dashthedachshund, won an Orange Leaf sweatshirt and t-shirt for his human parents.

We welcomed Easy Breezy Frozen Yogurt’s Corte Madera, CA shop to our Swirl of Honor program. While the Corte Madera location is the first for Easy Breezy in Marin County, it’s the fourth Easy Breezy shop to earn three swirls from us.

Froyo in the News