Frozen yogurt franchises are currently experiencing enormous hikes in popularity. Brands like Red Mango, Yogurtini, Fuzzy Peach and Pinkberry are expanding at extremely high rates paralleled to Starbucks franchise growth some years back. Their success is attributed to a number of factors, some of which include innovative new flavors and a trend towards diet-friendly treats. For these reasons, frozen yogurt franchises are some of the best to open at this time. If you are an entrepreneur interested in opening your own franchise, consider opening a frozen yogurt franchise. Here are the benefits of frozen yogurt franchises.
Frozen yogurt chains are opening all over the United States. New York City, in particular, has seen at least 16 different chains open in the last decade. Consumers flock to these stores because they are seeking healthier, diet-friendly treats. Frozen yogurt is low in fat and sugar. This makes it an attractive alternative to ice cream. Additionally, fro-yo chains are coming out with new flavors and toppings at a rapid pace. You can find as many as 20 different flavor combinations in one fro-yo store. This is another reason why they have such widespread appeal. The increased popularity of frozen yogurt stores can help your business enjoy immediate sales and recognition. This is one of the main benefits of frozen yogurt franchises.
Great Profit Margins
Frozen yogurt stores have great profit margins. This is owed to the incredibly high markup they place on their treats. Yogurt that sells for 59 cents an ounce typically costs less than 10 cents to produce. Thus, a 10 ounce serving would sell at a 500% markup. This is after factoring in the cost of spoons and cups. Even in a high-rent area like New York City, you would be able to enjoy immediate profits due to your profit ratio. This is another one of the benefits of frozen yogurt franchises that is important to consider.
Low Labor Costs
Labor costs are some of the biggest expenses for businesses. A restaurant, for example, typically employs cooks, managers, busboys and waiters. This can lead to as many as 10 people working at a time. Frozen yogurt stores however, have very little labor requirements. They are almost entirely self-service. Therefore, the only employees you need are manned at the cash registers. These employees can also be responsible for cleaning and maintenance. Low labor costs and better profit margins are major benefits to frozen yogurt franchises.
Most frozen yogurt franchises are well-established brands with a high degree of organization. These businesses have proven marketing tools, qualified management, corporate structure and access to high quality ingredients. They are the definition of a turnkey business. All you need is to file an application, settle on a location and negotiate a lease. Once this is done, you can start running your franchise immediately. A lot of businesses leave much to be desired in terms of structure. Brands like Red Mango and Menchie’s have well-organized franchising opportunities. An experience-backed business model and the easy startup they allow are enormous benefits of frozen yogurt franchises.
Frozen yogurt franchises have a lot to offer in terms of opportunities. They are experiencing a surge in popularity. This eliminates the need for branding. They also have some of the best profit margins in business. This is owed to enormous markups and low labor costs. Fro-yo franchises have all the tools to get you started immediately. Assess all the benefits of frozen yogurt franchises listed in this post. You may wish to consider this new business opportunity.
Photo from http://www.chillybillysfrozenyogurt.com/chillybillys/