“Quick summary” Frozen yogurt is an increasingly common substitute for ice creams, and frozen yogurt businesses can be found in many malls and retail locations. So, clearly, its popularity is expanding at a fast pace.
Many people prefer it to ice cream and view it as a sort of affordably indulgent luxury. The frozen yogurt industry could be an interesting and profitable business option, given its popularity and health benefits.
As an aspiring businessperson, you can profit from an expanding market of consumers who like frozen yogurt's low-fat, tasty delight.
Are you looking forward to starting this business and wondering how to open a frozen yogurt business? We have got you covered.
We have compiled this entire guide on how to start a frozen yogurt business and have your frozen yogurt business up and operating in no time.
Before we move forward to get onto the ultimate guide on how to start a frozen yogurt business, let's be clear with the basic things first about what you need and what things you should consider.
These basics will cover sourcing, getting the funding, whether to opt for Self-Serve or Full Service, individual or franchise, choosing the right location, and other crucial things.
Let's understand in detail…
If you are looking to secure funding to start your own frozen yogurt business, then check out some of the following effective steps to get funding:
When you are launching a frozen yogurt business, there are so many different factors that you keep in mind. Also, there are different approaches you abide by, such as the self-serve model or the full-service strategy for your frozen yogurt business. Each has a unique mix of benefits and drawbacks, so it's crucial to research and select the best model for you.
Do you prefer allowing consumers to serve themselves or having employees do it? Customers can create their own frozen yogurts in self-serve yogurt restaurants, which charge by ounce. All of the yogurt flavors and toppings are available for customers to use.
On the other hand, full-service staff members make everything and serve it to their customers. Since frozen yogurt is meant to be a healthy option, the vast majority of current frozen yogurt restaurants are self-serve, which consumers tend to enjoy because they can regulate their portion sizes and be as creative as they'd like with colors and extras.
However, there are still customers who want everything ready-made to eat. So do your research and go for the right option.
Apart from starting your own frozen yogurt business, you can even opt for franchise options for your frozen yogurt business. When so many other frozen yogurt restaurants compete for customers' dollars, joining a franchise with an established brand and tested methods can help a business get off the ground.
Additionally, if you buy a franchise, you'll probably get a territory all to yourself. Having your own area ensures you won't be competing with other franchises of the same brand, even though competition with other frozen yogurt shops may still exist. Most startup costs to open a frozen yogurt shop are incurred in purchasing furnishings, followed by expensive machines, equipment, and high-quality supplies.
However, Franchise owners have access to lower prices on almost everything that you need to start your frozen yogurt business, such as equipment, inventory, and supplies through group purchasing agreements negotiated by the franchisor, and even your frozen yogurt franchise profit margin is comparatively higher.
So, in this way, you can be able to save a lot of money and time while generating better revenues for your frozen yogurt business.
Introducing a wide range of flavors and toppings is an excellent way to attract customers to your frozen yogurt business. However, when you have so many diverse options, it can be challenging to pick up the right flavors and toppings that will appeal to your customers.
To make the selection process easier, here are some tips to help you choose the best flavors and toppings for your customers:
The success of the frozen yogurt restaurant depends on finding a place to buy or rent that is conveniently located close to busy locations, including strip malls or food courts.
While some shops will have a dedicated location, others might operate from a kiosk or mobile cart. There is a significant cost difference, so make sure to do the research and opt for the best location for your business needs and budget.
Suppose you decide to go for the franchise option. In that case, one benefit is that the franchisor can have access to local market research to assist you in choosing a suitable location for your new frozen yogurt business. Additionally, the franchise organization might help you bargain a lease with a business landlord.
If you're launching an independent store, we recommend you get in touch with an experienced real estate agent who can help you choose a suitable location for your new business. Also, consult an expert consultant to conduct an inspection before signing a lease to make sure the area can accommodate your needs and comply with local health regulations.
Customers appear to like yogurt stores that operate in a peaceful and pleasant environment for their clients. Customers should have a space to relax, read, or talk while enjoying their frozen delicacies at the establishment. If you want to leverage this trend, provide an environment where your customers are able to relax while using their laptops alone or in groups at tables.
Here are a few tips you can apply to create the right atmosphere at your frozen yogurt shop:
First, before starting to open your own frozen yogurt business, you need to research many different things, including market research, researching the target audience, and even conducting a SWOT analysis. All this research helps you in getting a better idea of what's happening in the market, what your audience wants, and what difference you can make to stand out from the crowd.
Before beginning any business, market research is extremely important, and it can make or break your venture.
If you're thinking about starting a frozen yogurt business, among the crucial things that you should consider is about your target market. After all, in order to build a successful business, you must understand your customer.
Here are some of the ways through which you can analyze your target market:
After you've analyzed your target market and what interests them, you can examine how you can increase your business visibility and what you can provide at your store to get them to come in.
Depending on the research of your target market, you may move on to making important decisions like customer service, marketing strategy, and the aesthetics and feel of your place.
After researching, you need to create a reliable business plan that includes everything related to your business. After the plan, you also need to decide upon Identifying potential suppliers & establishing the channel, deciding upon legal entities, and calculating startup costs and projected income. After prepping the business plan and doing all the necessary calculations - you can move forward with the proceedings.
Getting started with your business and having an actual roadmap to success is quite helpful. You need to draft an actionable business strategy for your frozen yogurt business. Here are some pointers that will assist in creating a plan that will hold up in the eyes of lenders and investors.
Making a business strategy can be stressful, but in the long run, it might end up saving you time and money. After you've completed the preceding procedures, you may be confident in your company and open the door to needed finance.
Identifying potential suppliers and establishing a reliable channel is important for your frozen yogurt business. You need to research and find the best suppliers out there who can supply you with high-quality products at an affordable rate.
Research all the options and don't go for the cheapest options available; you need to consider all the other qualities as well while looking out for suppliers.
Quick Tip: You also need to have backup options available in case your current supplier can't deliver on time. Then, you can seamlessly fulfill your requirements through a backup.
Apart from sorting the supplier, you also need to sort out your supplier distribution channel, as it greatly impacts your overall business and customer experience.
Networks of suppliers are crucial phases in the supply chain that help move and store goods from the provider stage to the customer stage. Distribution is a crucial component in determining the general profitability of your frozen yogurt business because it has an immediate effect on both supply chain costs and consumer experience.
Achieving good distribution can help you meet a range of supply chain goals, from high responsiveness to low cost of frozen yogurt shops.
To start a frozen yogurt business, you must establish a legal corporation. It will not only help your business in raising funding but also helps in compliance with all the legal regulations and prevent hassles in the future. It will also protect you from responsibility.
A corporation, collaboration, limited liability company (LLC), or sole proprietorship are some popular business structures you can choose from. Because each type of corporation has unique benefits and drawbacks, you must choose the one that is ideal for you.
The expenditures and projected incomes are among the most crucial factors to take into account when starting a frozen yogurt shop.
Although calculating the costs and profits can be challenging, you can obtain a general idea by researching the startup costs of opening a frozen yogurt shop.
Check out some of the common costs associated with starting a frozen yogurt business:
Projected Income (per month):
When you are looking to start a frozen yogurt business, it generally involves more than just creating a tasty menu and finding a location to sell it. You need to abide by various legal requirements and regulations that you should consider to ensure that the business is set up and operated properly.
These requirements include registering the business, obtaining necessary licenses and permits, complying with health and safety regulations, protecting the business with appropriate insurance coverage, and other things around.
Suppose you understand and adhere to these legal requirements. In that case, a frozen yogurt business owner can ensure the safety of their customers and the success of their business while also preventing all future hassles.
The exact process for registering a business can vary depending on the location and type of business you are starting. Also, you need to sort out a few things before registering your business - so check out the following steps.
The process of opening a new frozen yogurt shop can be exciting, but it's important to keep in mind that getting the necessary licenses and permits is a crucial step, and you should skip that one. You can get into future risks such as fines, penalties, shutting down your business, and many other legal troubles if you operate without the necessary licenses and permissions.
Depending on your business location, the services you provide, and the products you sell, you will need different licenses or permissions for each activity.
We recommend you consult a specialist to ensure you have all the appropriate licenses and permits for your frozen yogurt business.
Here are some of the licenses and permits you need to start your frozen yogurt business:
The licenses and permits might vary based on your location, business, and its offerings.
Quick Tip: To remain compatible with local laws, don't forget to renew your licenses and permissions on a regular basis.
Another crucial consideration is compliance with health and safety regulations to ensure no problems later on and even keep your space safe.
Let's evaluate the health & safety regulations you need to abide by for your frozen yogurt businesses:
Marketing is essential when you are looking forward to starting your frozen yogurt business, as it provides much-needed visibility to your newly opened business. The marketing strategies include designing a detailed marketing plan, utilizing social media and advertising, followed by offering appealing discounts and promotional offers to your customers.
Launching a new company is exciting, and marketing is essential to the success of your frozen yogurt stand venture.
Here's how you can develop an effective marketing plan:
Quick Tip: Keep in mind that marketing is a continuous activity, so monitor your progress and tweak your plan as necessary. You may create buzz and gradually expand your customer base with a clear marketing strategy and persistent efforts.
As promised - here we are! We will be discussing utilizing social media for your marketing and advertising needs. To get the best results and leverage the platforms in the best manner possible, you need to identify where your target audience is spending the most time and then choose the right platforms.
Even after that, the work is not over yet. As per your target audience and chosen platforms- you need to develop a stellar content strategy to get the most out of each platform.
Here are some tips for social media marketing and advertising that will help you:
Offering promotions and discounts should be part of a larger marketing strategy and not the only way you attract customers to your business.
So, it's important to provide quality products or services, excellent customer service, and a positive overall experience to keep customers returning (along with launching appealing promotions and discounts). Also, make your budget and decide about the proportions you can offer!
Here are some of the tips you need to keep in mind before deciding on promotions and offers for your customers:
Choosing high-quality equipment and Ingredients is a must-have for every frozen yogurt business. We will be covering adding information on choosing the right type of frozen yogurt machine, determining the best toppings and flavors, and even selecting the utensils and containers.
Make sure you consider your business requirements thoroughly and then decide on the required equipment, ingredients, utensils, containers, etc.
Picking up the right type of frozen yogurt machine for your business requirements is essential to ensure you can produce high-quality frozen yogurt efficiently and effectively.
Here are some factors to consider when selecting the best-frozen yogurt machine for your business:
The toppings and ingredients you offer to your customers can greatly impact your customers' overall experience, so it's important to put time and thought into selecting the best options for your business.
As a frozen yogurt shop owner, you should be aware of the particular flavors and toppings that clients want. One neighborhood might prefer traditional flavors like strawberry, cherry, and chocolate. Other communities might want to taste flavors like bacon or churros.
Additionally, you should keep an eye on emerging topping trends by following rivals, watching culinary television, and keeping an eye on social media.
Here are some of the popular toppings you can keep for your frozen yogurt business:
Here's a quick Tip: Offer options that cater to customers with dietary restrictions, such as gluten-free, dairy-free, and vegan toppings and ingredients. Also, you need to make sure your toppings and ingredients are fresh and of high quality.
For several reasons, selecting the appropriate utensils and containers for your frozen yogurt business is crucial. When you select the right utensils and containers for your business requirements, you can provide your customers with high-quality, safe, and hygienic frozen yogurt.
The right utensils and containers can help you prepare and serve your frozen yogurt efficiently, accurately, and in a controlled manner. It can help you minimize waste, maintain consistency, and meet your customers' expectations.
And these Streamlined operations can help you serve more customers in less time, improve your revenue, and increase your profits. Additionally, investing in durable, high-quality utensils and containers can help you avoid the cost of frequent replacements and repairs, saving you money in the long run. Overall, selecting the appropriate utensils and containers is a critical part of setting up a successful frozen yogurt business.
Here's the list of utensils and containers you will going to need for your frozen yogurt business requirements:
Note: These are general requirements, but you need to evaluate your requirements and make decisions accordingly.
You have all the necessary ingredients and equipment, did your research, and even finalized the location - but the most important part is execution and customer service. And the execution is done by your staff. The very first step is determining your requirements and then putting your requirements out there on the job boards and necessary platforms.
Then, screening and choosing the best employees. Even after the hiring, your work is not over. You still need to provide your employees with uniform training to ensure they work as per your business requirements and deliver optimum customer service.
Hiring the right employees is critical for the success of your frozen yogurt business. Remember that hiring the right employees is a process that takes time and effort.
To help you in making the best decision in hiring the employees, Here are some tips for hiring the best employees:
Hiring the right employees can significantly impact your business's success, from providing excellent customer service to maintaining high standards of cleanliness and food safety.
So, creating job descriptions and defining responsibilities(properly) for your frozen yogurt business will make a world of difference in building a competent and productive workforce.
A well-written job description helps attract qualified candidates and provides a clear understanding of what the job entails.
Here are some tips to help you hire the best employees for your frozen yogurt business:
After putting out job descriptions and responsibilities, you need to begin recruiting.
Once the hiring process has started, you must screen and choose qualified candidates. It could entail testing, background checks, and interviews. Remember that, regardless of the approach, it is crucial to uphold labor regulations all along the way.
The training process starts once you've chosen your employees. It's critical that staff members receive training and comprehend their duties.
It should cover instructions regarding customer interactions, serving, using equipment, handling money, managing food safety, and overall shop operations. You should also give them an overview of the company's policies and processes, as well as expectations and performance-related feedback.
It is a good idea to create a training plan to make sure training is efficient. All trainees should receive a "training binder" outlining the objectives, schedule, and resources pertinent to their position.
After training, it's critical to continue offering staff members assistance and feedback as well as possibilities for professional progression. It will contribute to a more engaged, effective, and motivated workplace.
Then comes D-day! Inauguration of your frozen yogurt shop. Preparing for the grand opening may take a toll, and you need to deal with so many different things, such as making arrangements and ensuring everything is ready for the big day, and you can seamlessly deal with all the unforeseen circumstances.
The crucial thing (here) is prepping in advance for everything and keeping calm and patient so you can manage everything with ease and without much hassle.
The grand opening of a frozen yogurt business is a crucial event that gives your business the needed start. It is an amazing opportunity to create excitement and anticipation around your frozen yogurt business, attract new customers, and establish yourself in the market.
A well-planned and executed grand opening can generate buzz and positive word-of-mouth, leading to increased foot traffic and sales.
Here are some of the best practices that help you in planning for your grand opening:
Congratulations on your new frozen yogurt business! But to provide a best-in-class experience to your customers and make sure everything is ready for your customer, you need to keep in mind the following tips:
It's a big day, and you are dealing with so many different things and have so many customers to handle. So, you might need to deal with unforeseen circumstances, but in such a situation, it is important to be calm & patient and deal with the situation in the best way possible.
Here are some of the tips from our side to deal with such circumstances and handle them with ease:
And here, we are done with this ultimate guide on how to start a frozen yogurt business. Starting a frozen yogurt shop is no easy task. It can be overwhelming to come up with a company plan, find the necessary funds, choose the right permissions and licenses, find the ideal location, buy the equipment, choose suppliers, and develop a marketing strategy, among other things.
We know it is detailed and lengthy, but we assure you that this is the only guide you need to get started.
And, as you now possess the fundamental knowledge required to launch your own frozen yogurt business. By taking the actions outlined in this article, your company will not only be offering mouth-watering delicacies to customers in no time, but you also need to make sure that it is abiding by all applicable legal requirements.
We hope you have found this helpful in starting your frozen yogurt shop. Still, if you are looking for expert assistance in getting started, you can reach out to our team, and we would be more than happy to assist you!
It might not be easy to come up with the ideal name for a frozen yogurt stand business. Think about selecting a name that expresses your goals and mission. Make sure to give your brand a unique and creative name.
To identify terms and phrases that can pique the interest of potential clients, brainstorm with your friends, family, and coworkers.
In order to make sure the name you select is acceptable in print and on the web, search for domain names that are already in use.
The worldwide frozen yogurt market is anticipated to grow at a CAGR of 3.7% from 2022 to 2032 and has reached a market worth of USD 2.1 billion in 2022.
The world's Greek yogurt market, which was valued at USD 2 Bn in 2021, comprises about 48% of the frozen yogurt market.
According to FMI data, the nutritional benefits of frozen yogurt are more than other types of dessert, such as ice cream, which contains a high fat and calorie content, and that is driving the market's expansion.
Additionally, a change in consumer eating habits and a focus on health have increased the demand for frozen yogurt.
The soft ice cream businesses are very profitable.
As per recent IBISWorld reports, the global ice cream market size was valued at $58.4 billion in 2020, and it is expected to reach $89.5 billion by 2026, with an annual growth rate of 6.6%. In the United States, the soft-serve ice cream market is estimated to be worth $3.5 billion.
The profitability of a soft ice cream business depends on several factors, such as location, operational costs, and pricing strategy. However, according to an analysis by FranchiseHelp, the average profit margin for an ice cream business is between 25% and 30%, which is considered high compared to other types of food businesses.
It's essential to note that these figures are general and do not reflect the specific profitability of any individual soft ice cream business.
If you handle 50 customers per day while generating an average sale of $5.00, then you will earn around $7500/month and around $100k every year. The number can vary based on a variety of factors such as location, taste, customers, marketing, and other things.
The cost of the key components of froyo, primarily fresh fruit, milk, cream, etc., might fluctuate, which will also have an effect on profitability. If you intend to have a toppings bar, you will need to keep an eye on it to save waste.
Gaining access to additional specialty products like cakes, candies, smoothies, protein drinks, and other desserts might increase sales.
Yogurt sales are likely to be greater during the summer and lower in the winter, so be careful to take seasonal variations into account when analyzing profitability.
The expense of starting an ice cream shop is high. You must consider equipment expenditures in addition to the price of renting, purchasing, or creating a store.
Next, consider the costs associated with purchasing the ingredients to manufacture your ice cream, paying the employees who will sell it, maintaining the lights and refrigerators, as well as other maintenance costs to open a frozen yogurt shop.
The answer thus depends on your particular business's requirements. Typically, ice cream parlor owners can anticipate spending $50,000.
Even yet, this rough estimate only applies to company owners who want to rent the space rather than buy it.