Opening a frozen yogurt business is something many people consider doing. With the low start-up costs, high profit margins, minimal staffing requirements, and growing demand for the product, it may seem like an alluring business venture to try out. However, an entrepreneurial endeavor, such as one like this, should not be done impulsively. There are many things to contemplate before you take a leap into the world of froyo, and we are going to discuss the four key planning tips to take into consideration if this is a road you are thinking about going down.
Why are froyo shops so popular?
The first thing to understand is why frozen yogurt shops are such a popular business route to take. People love frozen yogurt shops for many reasons, one of them being the unique business model. It is exciting to go into a place and serve yourself, pick out as many toppings as you want, weigh your dessert, and guess how much your total is going to be. While froyo shops are looked upon as something for younger consumers, the largest market for this swirly treat is actually people aged 18-35. This could be due to the rising “do-it-yourself” market that we see growing annually. Besides the amusing nature of froyo shops, frozen yogurt has been marketed for years as ice cream’s “healthier” cousin. This may be true to a certain extent, since frozen yogurt tends to be lower in calories and fat than ice cream, but it ultimately depends on the ingredients and toppings added to the froyo.
4 Key Planning Tips to Consider
Where you decide to open your frozen yogurt shop is one of the most crucial aspects of planning your business. You must keep in mind that sales will be lower during the winter months if you live somewhere that experiences cold temperatures for large durations of the year. Another thing to consider other than the geographical location, is the actual site of your shop in relation to other storefronts and areas. You most likely want to be located in an area that has a high volume of foot traffic, such as a metropolitan city or downtown area where there are other restaurants and popular retailers. It is also important to keep in mind that you do not want to open a frozen yogurt shop too close to a competitor, because this can lead to unfair business practices and can cause you to have to fight for your customers.
As mentioned previously, the seasons can and will have a drastic effect on your sales. This depends if you’re located in a state with a year-round warm climate such as Florida or California, or a state with four distinct seasons like New York or Connecticut. While the weather is unpredictable and ever-changing, there are things you can do to better prepare your froyo shop for the colder months if you live in a state that experiences extreme weather. With less people visiting your shop, it may be a wise idea to offer less flavors and produce less frozen yogurt during the winter months to ensure you are not wasting excess product. It may also be a good idea to cut down on business hours, which may create more of a demand for your frozen yogurt by giving consumers limited time slots to visit your shop.
Design and Creativity
The design of your froyo shop may make or break your company. To make sure your business runs efficiently, you should probably follow the typical layout for a frozen yogurt shop, which happens to be the most convenient and practical. This may include, but is not limited to, self-serving frozen yogurt machines, an open display of various toppings, a wide range of syrups and sauces, and eye-catching seating, lighting, and decor. Believe it or not, there are psychological reasons as to why froyo shops look the way they do. According to businessinsider.com, there is a science behind the layout of frozen yogurt shops, and the stores are specifically designed to get consumers to spend more money. For example, you may want to consider using the color green, which subconsciously influences consumers to think about their health. Another tactic is to use rounded letters and shapes in your logo and design, which also contributes to the friendly persona of frozen yogurt.
When opening up a froyo shop, it’s also important to think about the labor required to upkeep your store, and how many employees you will need to keep operations smooth. It all depends on several factors such as the size of your store and the busy times, but generally you will need at least two employees there at all times; one employee at the front greeting customers and handling the register, and another in the back taking care of the technical duties, making sure the machines are working properly, cleaning the tables, etc. Labor costs are another aspect you need to factor in to calculate how profitable your business can be.
Frozen Yogurt Machines to Purchase
If your business model is structured appropriately and executed properly, we are sure you could run a successful frozen yogurt storefront, and we would love to be a part of it. We have a large range of soft serve ice cream machines that are suitable for froyo production available on our website. You can check them out here. Some of our models are made to dispense only one singular flavor, while others have the capability of offering two flavors with a twin twist, like the machine seen here.
Opening a frozen yogurt shop requires a lot of key planning and work, but the potential results from joining this industry could very well be worth it. With the right location, customers, design, employees, and business plan, it’s worth a shot to give froyo a go.