Frozen Yogurt Shop Trends

Frozen Yogurt shops are popping up just about everywhere, from downtown shopping spaces to larger mall locations. Froyo is increasingly popular as a lower calorie, nonfat or low-fat alternative to ice cream. A 2012 story on myfroyo.com¹ put sales of frozen yogurt at over $200 million annually, with the average person eating 4.3 pounds of frozen yogurt a year. There are hundreds of flavor combinations available, but at the end of the day Americans pick vanilla as our favorite – perhaps because it goes so well with toppings, or because it serves as the base flavor for smoothies.

Over the past decade froyo shops have experienced tremendous growth as reported in a 2013 Frozen Yogurt Industry Analysis Report on franchisehelp.com². The Report outlines the innovations new to the froyo industry; like expanded flavor choices that go beyond the traditional model of trying to mimic popular ice cream choices. It’s not uncommon to find exotic options like cran-raspberry and green tea yogurt in many shops. Feeling the heat, ice cream outlets like Cold Stone Creamery and Baskin-Robbins are starting to offer frozen yogurt offerings of their own.

Franchising is a popular path for entrepreneurs looking to enter this expanding industry.  There are several types of yogurt products available for possible franchisees featured in the Analyst Report. These include Soft-Serve - the most popular type of yogurt shop; Hand-Scooped - which simulates the ice cream shop experience closely; Cakes or Pies - to offer a different take on the yogurt products; and Smoothies – a great way to market to health-conscience customers.

Franchise owners can turn a tidy profit as the mark-up on froyo is as high as 500% on a 10 ounce cup according to a report from CBS News³, New York. The story based its findings on a $.59 per ounce price point (that costs under $.10 per ounce to produce) and includes the cost of the cup and spoon. The self-service aspect of the business model also adds to profitability as the stores can operate with a smaller staff.

While the self-serve model cuts operating costs, accuracy in weight is extremely important in a business that relies on selling servings measured in ounces to generate revenue. Revel offers several solutions that assure effortless communication between your scale and POS system to provide accurate measurements and precise pricing. In fact, Revel Systems is the first and only iPad POS to be certified by the National Conference on Weights and Measures. The integrated scale ensures seamless communication with your POS, keeping your business running smoothly. And, because it is a certified, food-safe scale, your business will not be subject to prohibitive fines for not using the proper hardware.

Revel’s iPad POS for Frozen Yogurt POS is a system specifically designed for the froyo business. All of the required hardware is pre-selected and integrated into a package that meets the unique individual requirements of your shop. Revel Systems can streamline every aspect of your froyo business from reporting, sales, inventory and staffing. And, since Revel solutions are cloud-based, all of your business data is available anytime and from anywhere.  Why not let Revel create a system that frees you up from the daily grind and lets you do what you do best – serving up that creamy goodness!

Resources:

¹Myfroyo.com

²Franchisehelp.com: http://www.franchisehelp.com/industry-reports/frozen-yogurt-industry-report

³CBS News, New York: http://newyork.cbslocal.com/2013/06/12/consumers-complain-about-500-percent-frozen-yogurt-cost-markup/