Soft-serve frozen yogurt is the turbocharged item and category to watch for the next few years, thanks to the convergence of several trends. Savvy operators are on it, and everyone else should get on it soon. I’m just saying that if c-stores, movie theaters, sports arenas, gyms, universities and senior living facilities have quietly added self-serve frozen yogurt machines to their operations, isn’t it time for more quick-serve and limited-serve restaurants to jump in?
It’s a combination of the yum, self-service and 79%-profit-margin factors that make frozen yogurt so appealing to the c-store sector, said Dan Doromal, director of marketing for soft-serve frozen yogurt machine manufacturer Donper America, Orlando, Fla., in a recent interview.
Harry Balzer, vice president and chief food industry analyst for The NPD Group declared yogurt as “the food of the decade” in a 2010 blog post. He must be a prophet, because frozen yogurt operations made up five of the top 10 slots in Technomic’s 2012 Top 500 Chain Restaurant Report in a list of the fastest growing limited-service chains with annual sales under $200 million.
Mom-and-pop frozen yogurt shops multiplied like rabbits during the recession, around 2009-10, because of the low-entry cost for entrepreneurs trying to reinvent themselves, Doromal said. Much of the growth began in California, New York, Atlanta and Chicago. Brand consolidation will be the way forward with yogurt shops, he added. “Pinkberry and those with over 250 locations worldwide will be forward and smart.”
A few other big brands are Orange Leaf Frozen Yogurt, Menchie’s Frozen Yogurt, Red Mango, Yogurtland and Sweet Frog. Last summer, ice cream giant Baskin-Robbins expanded into sugar-free frozen yogurt, knowing it needed more better-for-you options, which is a halo frozen yogurt wears well.
Houston-based salad concept Salata is even adding an assembly line yogurt bar to its 30 units. According to Technomic, yogurt items in quick-serve restaurants are up 40% in occurrences and items, per a March 2014 article in QSR magazine.
With saturation will come more innovation in packaging, promotion and product. Here are a few noteworthy examples.
- In fall 2013, Menchie’s offered collectible spoons that changed to one of five colors when dipped in frozen yogurt. Some locations also featured “Magic Crystals,” a color-changing topping.
- Last fall, Orange Leaf Frozen Yogurt began selling prepackaged, pint-size to-go containers of yogurt (for those who want to get out of there really fast).
- Yogurtland partnered with CBS last fall to develop flavors inspired by programs or their characters in the network’s fall program lineup, including “The Big Bang Theory,” “How I Met Your Mother” and “2 Broke Girls,” among others. Here are some of the flavors: We Are Man-go, Chocolate Miller Shake, Mom’s Hot Cocoa Meltdown, Cookies & Crazy Ones, Penny’s Cheesecake, Howard’s Strawberry Space Adventure, Sheldon’s Blazing a Blueberry, Plain with Robin Sparkles, How I Met Your Mocha, Barney’s Legend-Berry Tart, Two and a Half Pistachios, 2 Broke Graham Crackers, and Max and Caroline’s Cupcake Batter.
- Since breakfast is a common daypart for refrigerator yogurt, one chain took breakfast seriously for a September LTO. CUPS Frozen Yogurt offered such breakfast yogurt flavors as Cinnamon Roll, French Toast, Barista Blend Coffee, and Dulce de Leche, according to a Sept. 4 article in Fast Casual. Featured toppings were WaffleWaffle (chocolate chip flavor), Coco Pebbles Cereal, Cinnamon Toast Crunch Cereal, Fruity Pebbles, Blueberry Muffin Tops Cereal, chocolate covered espresso beans, cinnamon sugar, maple syrup and waffle cones.
With all this buzz, it’s time for the sleepy category of family dining restaurants to join in on the fun. Pizza restaurants, where are you? There’s plenty of room for more yogurt machines.
Tell me what you think.
Jody
