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Frozen Yogurt is Back, Baby!

In the late 1980s, you could hardly walk two blocks in any direction in a major U.S. city without encountering a place selling frozen yogurt.  Touted as the healthy alternative to ice cream – all of the flavor, far fewer calories, and lower fat content – the industry began its decline around 1991.  An over-saturated market may have been one reason for this retrenchment, but so many frozen yogurt establishments offered the same flavors in the same manner that distinguishing one from the other was almost impossible.  In 2005, however, two West Coast entrepreneurs brought the concept back in a big way by opening up a place they called Pinkberry.

Pinkberry Franchise Review

From its single location in Los Angeles, Pinkberry had expanded to 20-plus stores in California and New York in just two years.  Today, the company boasts more than 50 stores in southern California and 15 in the New York City area (one in Flushing [Queens], and the rest in Manhattan), plus one “coming soon” in far-flung Kuwait! Founders Shelly Hwang and Young Lee claim to have brought their first store into the black within four months of its grand opening and insist that franchisees can expect to sell as much as $250,000 a month in frozen yogurt once they become established, generated from as many as 1,500 customers per day.

Pinkberry Franchise Information & Costs

The owners of Pinkberry ask that prospective owners pay an up-front franchise fee of $45,000, and also that one’s cash-on-hand is equal to or exceeds $500,000.  Some establishments occupy space in a strip-mall or storefront location, especially since the products seem to sell best in urban locations where people have a lot of disposable income.  There are some stand-alone units in the system, though.  All construction, remodeling and build-out costs are the responsibility of the franchisee, a sum that could easily eat up half or more of your nest egg, depending upon location.  The quarterly royalty fee – with the calculation based on the store’s gross sales receipts – is split into two factors.  Six percent goes directly to the corporation’s operating fund, while an additional two percent is deposited into a marketing fund.  Ownership comes with additional responsibilities, including the pledge to spend at least $2,000 for a Grand Opening launch plus an additional $2,000 each of the first three months in business for the “marketing launch.”  The price one pays to open a store also includes extensive training – two weeks for the owner/operator and three weeks for the general manager and assistant.

Distinctive Flavors and Décor

Pinkberry has only two yogurt flavors on its menu – plain and green tea – upon which the patron is invited to have one of several items sprinkled to customize the purchase.  Topping options include various fresh berries, granola, and even Fruity Pebbles breakfast cereal.  As a way to further distinguish Pinkberry from frozen yogurt stores of the past, each location adheres to very strict guidelines regarding its appearance.  Employees wear distinctive uniforms and pulsating, high-energy music is piped through an expensive sound system the envy of any hip head-banger.  The frozen yogurt base is made from nonfat milk and nonfat yogurt and said to be reminiscent of Italian gelato.  The fresh fruit toppings are hand-sliced all day long and selected to be of best-possible quality.  Designer tables, chairs and lamps help distinguish a Pinkberry store from any other frozen yogurt place on the planet.  The corporation employs an in-house design team to make sure their franchisees provide a consistent design element from one store to the next.  Some critics consider Pinkberry fairly pricy.  The average cost of a serving with single topping is $5.50, while a large with multiple toppings will set you back close to ten bucks.   But for a product that has become a near-obsession with movie stars and the average person alike – some have called it “Crackberry” for its deliciously addictive attraction – many fans seem to barely bat an eye when asking for their favorite Pinkberry treat.  Make mine green tea with raspberries, please.

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