|It's the middle of May and already the temperatures in |
Louisiana are in the 90s. No doubt frozen yogurt will be
a cooling option this summer for consumers.
The product itself is poured into the machine (many of which can be rented or leased from an equipment company) as liquid and then air is churned through until it solidifies and becomes creamy yogurt. So all in all, startup costs appear to be lower than a restaurant.
From a profitability angle, self service seems to be a more advantageous model as the smallest cup size is comparable to a large size cup at Pinkberry. On our trips to three self serve bars, we filled our cup to nearly 10 ounces each time. Prices were consistent with the exception of Yogurtland which was significantly less by $2. We opted out of the toppings to forgo the added calories.
In line at Pinkberry, we noticed that after the server filled the cup, they then dropped it on a scale to measure portion size. That’s a solid practice that other segments could adapt to control food costs.
While this trend just landed in Louisiana in the last year, according to IBIS Worldwide, the yogurt industry is actually in a mature phase in the growth cycle and they anticipate the rate of growth will slow to .3% annually through 2016.
At the National Restaurant Association Show in Chicago last year, frozen yogurt dominated the show floor. Everytime we turned the corner we were trying a new yogurt brand and flavors that were traditional, tart and tangy. This year in Chicago, not so much.
If you like the tart, these establishments have it in spades—Mango, pomegranate, original tart, passionfruit, watermelon and lychee. If you’re a traditionalist when it comes to flavors, you’ll find chocolate, vanilla and strawberry. Ice cream flavors have also arrived with cheesecake, oatmeal cookie, red velvet cake, cookie dough, chocolate milk shake, vanilla wafer and peanut butter, among others.
With an already pretty hot May, there’s no doubt these places will do well this summer. With a low unemployment rate and accessibility of the shops, we predict they will be around for a while.