Frozen yogurt franchise Yogurtland has plans to double its retailer depend within the subsequent 5 years—however the 230-store chain closed 60 shops from 2019 to 2021.
“The shops which have survived are very, very sturdy shops,” Yogurtland President Sam Yoon mentioned. “So, we have now a really, very sturdy baseline franchise system that we will actually construct upon.”
In comparison with 2019, Yogurtland is down in retailer depend by about 20 p.c, Yoon mentioned. “We have now not recovered the shop depend, however we have now recovered per-store gross sales,” he defined. So, whereas retailer depend is down, AUV is up by about 20 p.c now in comparison with 2019.
Inspecting Merchandise 20 of its franchise disclosure doc, Yogurtland began 2019 with 269 shops. On the finish of 2021, 209 shops had been open. The majority of these 60 shops had been misplaced in 2020, with 38 shops closing. Fifty-four of the 60 shops that closed had been franchised areas.
Yogurtland obtained its begin when Phillip Chang opened the primary retailer in 2006 in Fullerton, California. As we speak, 80 p.c of its items are in California, however have unfold nationwide into states akin to Texas, Nevada and Florida.
The frozen yogurt scene was big years in the past, and whereas it’s shrank in recent times some ideas stay and are attempting to develop. Canada-based Yogen Fruz had systemwide gross sales of $208.6 million in 2021 from almost 600 shops (solely 33 within the U.S.). Neil Hershman, proprietor of 16 Handles frozen yogurt, just lately bought DO, a cookie dough model, which is able to now be solely bought at 16 Handles. The 30-plus-unit model, which Hershman and YouTube star Danny Duncan bought final yr, had common gross sales of $509,690 in 2021 from 27 shops. Brix Holdings examined out increasing yogurt franchises Orange Leaf and Purple Mango by way of ghost kitchens in 2022.
“I imagine that there are some tendencies within the restaurant trade that factors us to a really optimistic future,” Yoon mentioned. A kind of tendencies is a buyer’s want for brand new flavors, which Yogurtland is working to develop. It’s eyeing Africa and Center Japanese yogurt flavors for the long run. “We’re going to play in that house, we’re going to personal the flavour. I imagine that it’s going to maintain us very related.”
Regardless of latest closures, the franchise goals to have almost 500 shops open inside the subsequent 5 years, and has constructed up its group internally to take action, Yoon mentioned. That, paired with updates to the model’s buyer relationship administration methods, will set the model up for fulfillment, he mentioned. Yogurtland invested in analytics applications that can discover out the very best areas for brand new shops and slender in on the model’s goal prospects.
“I do imagine that as financial cycles play itself out … we are going to see what I’d name an inflection level of development,” he mentioned. “We will probably be prepared with the muscle groups developed to get after that chance.”
Yoon, who beforehand labored for BP and LG Electronics, mentioned Yogurtland advantages from his unconventional path to the restaurant trade. “It helped us reformulate our technique,” Yoon mentioned. “We redesigned our construction, we have now flattened our group, we’ve arrange a matrix construction for elevated nimbleness, collaboration and innovation, and we’ve established extra environment friendly and efficient methods.”
Yogurtland’s authentic recipes are what makes it stand out from different frozen yogurt retailers, Yoon mentioned. The chain carries distinctive flavors, akin to pecan and pralines, strawberry lemonade and mango tart.
When in search of new franchisees, Yogurtland desires candidates who’re aligned with the model’s values, which embrace collaboration, kindness and honesty.
The funding required to open a Yogurtland franchise ranges from $270,600 to $554,200 for a standard retailer. A nontraditional location requires $180,700 to $371,300. Gross sales from 193 franchised Yogurtland shops in 2021 ranged from $92,265 to $1.15 million.