A frozen yogurt business

Looking to open a frozen yogurt smoothie store?  here is a complete guide to starting a frozen yogurt business with no money and no experience  .

Ok, so we’ve provided you with a detailed example of a frozen yogurt business plan template. We also took it a step further by analyzing and writing a sample frozen yogurt smoothie marketing plan backed by actionable guerrilla marketing ideas for frozen yogurt businesses. In this article, we will cover all the requirements to start a frozen yogurt business. So put on your entrepreneur hat and let’s move on.

It can’t be argued that most people like frozen yogurt as a healthier substitute or as an alternative to traditional ice cream cones, whether with peanut butter and sprinkled with chocolate chips, or with a tangy lemon flavor sprinkled on it. of coconut flakes.

Frozen Yogurt is a lucrative business that you can start today belonging to the lucrative ice cream production, which generated $ 9.6 billion in sales in 2009. There is no federal standards for the production of frozen yogurt; however, almost half of all states have started implementing such standards. Between 2003 and 2009, this industry increased by 16%.

If you are looking for a very profitable business to start, you can start looking to start a frozen yogurt business. This is due to the many advantages available to anyone looking to start this business. Every day more and more people want to start this business.

If you’re looking to jump into a fast-growing industry by opening your own frozen yogurt store, take a look and keep reading. There is a ton of information that will come in handy.

Starting a frozen yogurt business. The Complete Guide

  • Industry overview

Companies in this lucrative industry include establishments that primarily prepare or serve frozen yogurt and other frozen yogurt-based products and fillings, and the industry has grown rapidly in the five years leading up to 2016. Consumers estimate that, with increased health awareness and the advent of pie flavored frozen yogurt, the industry’s revenues grew extremely rapidly during this period.

  • Interesting statistics on the frozen yogurt industry

Over the next few years, health concerns and consumption patterns will continue to drive the growth of the industry for five years through 2021. However, industry revenues will grow at a slower rate than in the past. of the previous five years, because the industry is saturated.

The production of frozen yogurt has minimal barriers to entry, low entry costs and no strict licensing requirements. However, industry competition and market knowledge can pose a threat to new entrants. Potential entrepreneurs like you who are considering entering this industry are not particularly limited by the capital investment required to open a frozen yogurt store.

But you can rent premises and equipment, furniture and fixtures, which greatly reduces capital costs, costs and upfront borrowing. Membership can also be done by signing a franchise agreement, where the costs are relatively cheaper than other food establishments.

The frozen yogurt industry is quickly approaching its limit. With so many store openings in the past five years, competition has intensified in existing stores and as a result, growth is expected to slow over the next five years. The industry is estimated to grow at an annual rate of 3.4%, reaching $ 2.1 billion in revenue by 2021.

Strong traders will continue to perform reasonably well, but at a slower pace than in previous years. Consumer demand is still strong and there is room for growth in this category, but I really believe it all depends on the best operators – those who bring something special to the experience.

Frozen yogurt market research for companies begins

  • Demography and psychography

Everyone loves frozen yogurt: men, women, kids of all ages, grandparents – name it! Yogurt is a powerful protein and calcium for building bone. People eat yogurt for its sensational taste and incredible health benefits. Before planning and opening a frozen yogurt store, you should know if there is a demand or a desire for a store in the area of ​​your choice.

You need to conduct investigations, either door to door or on your own. by hiring a research firm Ask people from different walks of life, ages and genders in the area what they think of frozen yogurt. Study the income and employment statistics by region to see if people can afford to spend the money on frozen yogurt.

  • List of niche ideas in the frozen yogurt industry

One of the main decisions you will need to make when starting a frozen yogurt store is determining the type of frozen yogurt business. Your frozen yogurt business may include self-serve or full-service treats. Research your local market to determine which market niches will appeal to buyers and learn about menu offerings and price ranges. The niches you can choose from may include.

  • Sale of traditional frozen yogurt
  • Wholesale frozen yogurt
  • Selling sour frozen yogurt
  • Sell ​​frozen yogurt smoothies
  • Sell ​​yogurt with parfait
  • Sale of toppings and other yoghurt-related products
  • Open a site related to yogurt

The level of competition in the frozen yogurt sector

Americans may know more about their diet these days, but they probably have a sweet tooth just as much. Frozen yogurt, a hybrid between traditional ice cream and healthier (and hippy) yogurt products, is an innovative way for customers to “eat your pie and eat it too”.

As the popularity of the frozen yogurt franchise waned in the late 2090s, the category has experienced a colossal renaissance over the past decade with a new generation of flavors, toppings, and store options.

The increase in frozen yogurt store sales was primarily driven by popular national chains such as Pinkberry, Red Mango and Yogurtland, which have rapidly expanded their stores to the United States since 2005 and are expected to expand into the US in the future. foreign markets, especially in Asia and the Middle East.

However, the company also predicted that the number of frozen yogurt stores in the United States, which topped 1,200 in 2011 from 983 in 2007, will decline from 2021 as the market becomes saturated and smaller players struggle to survive the growth of large national franchises.

List of famous brands of frozen yogurt in the USA

  • 16 descriptors
  • PE Ice Cream Company Chocolate Shop
  • Frosty Boy
  • Gojis
  • Golden spoon
  • Handels Homemade yogurt with ice cream
  • I can’t believe in my yogurt!
  • Jubili
  • Llaollao
  • Menchies frozen yogurt
  • Frozen yogurt with orange leaves
  • Pinkberry
  • Red mango
  • Spoon Me Frozen Yogurt
  • Sweet frog
  • TCBY
  • Tutti-frutti frozen yogurt
  • Wakaberry
  • YogenFrüz
  • Yogoberry
  • Yogurtland
  • Mountain yogurt
  • YoLo frozen yogurt
  • Yumilicious

Economic analysis

In 2011, it was reported that US annual revenue from frozen yogurt production reached $ 1.59 billion. Revenue grew 5.9% per year for the five years up to 2011 and is expected to grow 2.4% per year over the next five years.

It was also accurately reported that the share of frozen yogurt in 2011 reached 128 million, up 11 percent from the previous year. Independent operators and large franchise networks have expanded their presence with new flavors, toppings and self-service formats.

According to the industry publication Franchise Times, yogurt companies need an initial investment in the range of $ 330,000 to nearly $ 500,000 and an average of around $ 400,000. Store sales can range from $ 200,000 to over $ 1.3 million per year. ; for example, at the start of 2013 they averaged US $ 510,000 for red mango and US $ 783,000 for yogurt. With a self-service item, labor costs in some stores can be less than 20% of sales.

It appears that the product introduction and expansion strategies of major new players in the frozen yogurt industry is what has become the driving force behind the geographic distribution of stores. For example, California is considered to be the birthplace of tangy frozen yogurt, because that’s where the creator of Pinkberry is located. Three of the four largest frozen yogurt franchises also sprang up in California and spread statewide.

Thus, California has the highest percentage of Froyo stores at 33.1%, which is the only reason the Western region has the most frozen yogurt stores. After the West, the Mid-Atlantic region has the second highest number of establishments, with 14.1% in New York. The urban and health-conscious market is certainly to be commended for its expansion on the east coast.

Meanwhile, the southeastern region’s hot and humid climate puts it in third place for the number of frozen yogurt establishments, with Georgia and Florida leading the way. The smallest share of frozen yogurt stores are in the interior and cooler states of the Plains and New England, which account for only 3.6% and 2.9% of the total, respectively.

Is the frozen yogurt business worth starting from scratch or better to buy a franchise  ?

For the sake of this article, it’s probably best to go the franchise route this time around. Signing up with a franchise that has a well-established brand with proven systems can help start a business, especially when many other frozen yogurt stores are competing for consumers’ money.

In addition, by becoming a franchisee, you will most likely be assigned an exclusive franchise territory. While there may still be competition from other frozen yogurt stores, having your own territory ensures that you are not competing with franchisees of the same brand.

Most of the costs associated with opening a frozen yogurt store are fixtures and fittings such as frozen yogurt machines (refrigerators and dispensers), displays (including carts to store the filling), chairs and tables for seated customers and shopping systems. outlets such as cash registers and credit card machines.

Problems and potential threats in starting a frozen yogurt business

Frozen yogurt is a great alternative to ice cream, especially for those looking for healthier desserts. Provide a variety of flavors, toppings, and serving options like edible buds or paper cups to keep as many customers happy as possible, but before you start this business you may run into some hurdles and these may include :

  • Choose the right niche
  • Permit request
  • Buy inventory
  • Drafting of a business plan
  • Industry competition

Beginning of the legal aspect of frozen yogurt for businesses

  • Best Legal Entity for the Frozen Yogurt Industry

There are several factors to consider when choosing the best form of business structure when starting a frozen yogurt business. The type of business structure you choose can affect various aspects of your business, including taxes, liability, and your exit strategy.

When starting a frozen yogurt business, an LLC structure is highly recommended because LLCs are simpler and more flexible Unlike both types of companies, LLCs do not require a board of directors, meetings of shareholders or other management formalities. Entrepreneurs can divide profits as they wish, unlike shareholders of companies, who must divide them in proportion to their share of ownership in the business.

One of the advantages of this is that entrepreneurs can attract talented employees with a share of the profits, even if those employees did not initially accumulate equity. The LLC structure also offers tax flexibility.

The profits of the LLC can be taxed as a legal entity (Company C) or as a “transit” business (Company S), which means that the company avoids paying taxes on both profits of the company and on the owners. personal income. Most LLCs choose the intercom option. However, in some cases LLCs can opt for a C corporation tax structure and save money by redirecting profits to the tax-free business.

Eye-catching trade name ideas for frozen yogurt companies

  • Berrylicious
  • Cherry on top
  • Young
  • CUPS yogurt shop
  • Fricky yogurt

Choosing the best insurance policy for your frozen yogurt business

Starting a frozen yogurt business isn’t a cheap business, and once you step into the world of serving one of your favorite comfort foods, you need to protect it. Protecting your interests and the interests of your investor with the help of an insurance program is not only necessary, it is vital. There are all kinds of risks that keep you and your business financially responsible. These insurances can include:

  • Employee compensation insurance
  • Commercial liability insurance coverage
  • Business interruption insurance
  • Insurance of all risky equipment
  • Commercial auto insurance

Do i need intellectual property protection to start a frozen yogurt business?

The creation, operation and enforcement of intellectual property (IP) rights are critical to the success of most retailers. In the frozen yogurt industry, intellectual property and trademark protection are required to

  • rights to trademarks and images
  • sample protection and registration
  • enforcement and dispute resolution
  • Fight against counterfeiting and piracy
  • Patent Laws
  • Registration and opposition of trademarks
  • Brand audit and oversight services
  • Protection and transfer of trademarks
  • Domain name strategies and disputes
  • Data and databases rights
  • Competition law
  • Technological protection and innovation
  • Advertising and Marketing Problems

Do i need professional certification to start a frozen yogurt business?

If you are planning to start your own frozen yogurt business, or if you are currently specializing in marketing or information systems, there are several certifications you can earn, which may include a retail certification. These certifications include:

  • Customer Service and Sales Certification (CSCS)
  • Advanced Customer Service and Sales Certification (ACSSC)
  • Retail Management Certification (RMC)
  • Certified Food Protection Manager (CFPM)
  • Master of Pastry Certificate Program
  • Retail Certificate (RBC)

List of legal documents required for a frozen yogurt business

Knowing what licenses and permits are needed for a frozen yogurt business can be very confusing when planning a new business. Each item takes time, energy, and paperwork to get a proper entry. As frustrating as it can be, don’t risk shutting down your business before it’s fully up and running.

In some states, it is a criminal offense to do business without a proper license, while others are punishable by heavy fines. Here are some of the legal documents required for a frozen yogurt business.

  • Federal tax identification number
  • Business license
  • Food permit
  • Resale certificate
  • Work certificate
  • Insurance certificate
  • Security system authorization

Development of a business plan for your frozen yogurt shop

Food and snack businesses are growing due to the demand for these products, and the frozen yogurt industry is undoubtedly one of the top five. As I pointed out, many people like frozen yogurt as a healthier alternative to traditional ice cream; thus making the yogurt business profitable.

If you are looking to start your own lucrative business, a frozen yogurt business is a great option to consider. Although the frozen yogurt business has huge start-up costs, it is very profitable and you will quickly get your investment back. It is imperative that you do your research to determine exactly what the audience wants. It will also help you see if the frozen yogurt business will thrive in your area.

One of the keys to success in any business is figuring out what customers want and how they want it, and delivering it the way they want. In the course of your research, you may find some interesting information that will help you grow your business. There may be an untapped demand for certain varieties of frozen yogurt, such as lactose-free frozen yogurt or frozen yogurt made with local farmer’s milk. As a smart entrepreneur, you need to investigate every opportunity, threat, and opportunity.

Writing a business plan will surely help you understand your start-up and operating costs. It will also give you insight into who your potential customers are, who your competition is and how you can beat your competition by developing your unique selling points. A business plan will also help you make realistic forecasts and plans for the future.

It will also help you determine your specific expenses and how quickly you can generate income. If you’ve done your best to conduct a feasibility study, writing a business plan would be easy, as most of the work has already been done during the research phase.

Detailed cost analysis for starting a frozen yogurt business

it is undoubtedly true that frozen yogurt is a very profitable business with sufficient cash flow; There are still problems with business. What makes you successful in this business is your ability to effectively deal with these issues. Below is an analysis of the costs of starting a large frozen yogurt business.


  • 5 cars at $ 12,500 each –  $ 62,500
  • 1 two-door refrigerator –  $ 2000
  • 1 two-door freezer –  $ 2000
  • sneeze screen –  $ 2,500
  • Point of Sale System –  $ 4,500
  • other kitchen equipment (sink, mop, 3 compartment sink) –  $ 1,500
  • Consumables –  $ 1,000
  • Tables, chairs, TVs and Wi-Fi –  $ 5,000

Construction costs

  • Construction –  $ 150,000
  • signs –  $ 5,000
  • Menu –  $ 2000
  • Inventory –  $ 4,000
  • Deferred expenses (security deposit, utility deposit, permits)  $ 7,000

Professional fees

  • Architect
  • Lawyer
  • Accounting
  • Total  8,000
  • Insurance  5000 dollars
  • Cars  $ 25,000
  • License  $ 3000
  • Grand opening –  $ 3000

Estimated total – $ 293,000

Based on our detailed analysis of the above costs, you  rendrez  account that you will need  293 000 $  to start a business of large-scale frozen yogurt and  131 560 $  to start a frozen food midsize company. yogurt business. A small frozen yogurt business is valued at  $ 23,850.

Financing a frozen yogurt business

If you have all the incentives you need, you are good to go. But if you need additional funds before you can start your frozen yogurt business, you should contact an investor, government, bank, or other lending institution.

This is where your business plan will need to become even more critical. If your business plan is compelling and shows a bright future for your business, investors will be ready to fund it. Methods of obtaining funds may include:

  • Raise initial capital from family and friends
  • Raise capital from angel investors
  • venture capital funds
  • Publishing information about your company via an IPO
  • Getting loans for small businesses
  • Receive funds through crowdfunding
  • Fundraising Through Mergers and Acquisitions
  • Finance your business expansion with equipment leasing

Choosing the right location for your frozen yogurt business

The location of your business may very well dictate its success or failure. You should do your research on the best place to host your business. Also, you need to determine if your business will have a retail component. It can bring you a lot of sales with little profit, but you will need more investment costs.

Visit malls, open-air malls, downtown areas, and places with heavy foot traffic due to proximity to local restaurants, cinemas, grocery stores, and entertainment such as theme parks or miniature golf courses. Choose a location with a large counter and display space, a seating area, a freezer and a commercial kitchen for making frozen yogurt and other items.

Getting Started with Frozen Yogurt Business Requirements for Businesses and the Workforce

When you start your frozen yogurt business, you will need facilities such as a store or warehouse, a production plant, and an administrative office. You can rent these items or design them yourself. But always keep in mind that the latter option will cost more. To get started, you need to keep all of your components in one place. You can separate them later as your business grows.

You need to understand that you will need to acquire the basic equipment and supplies necessary to run your frozen yogurt business. You’ll need a digital frozen yogurt scale, self-serve machines, displays for toppings such as fresh fruit or chopped candy, freezers, fondant warmers, and caramel sauce. Remember, you’ll also need some standard office supplies, including a fax, phone, credit card, and recording.

When you start your frozen yogurt business, you need to hire few employees. Hire the most skilled and experienced professionals for each role and provide them with the necessary training they need to fulfill their role well. Nothing brings success faster than teamwork and dedication.

The manufacturing process associated with the frozen yogurt business

Frozen yogurt is usually made mostly of milk solids, in a way. sweetener, milk fat, yogurt culture, natural or artificial flavors, and sometimes natural or artificial colors. The fat in milk makes up about 0.55 to 6% of yogurt. Added in amounts inversely proportional to the amount of milk solids, the milk fat gives yogurt its richness.

Milk solids make up 8-14% of the volume of yogurt, providing lactose for sweetness and protein for smoothness and increased firmness. melt resistance. Cane or beet sugar provides 15 to 17% of the ingredients in yogurt. In addition to adding sweetness, sugar increases the mass of solid ingredients in yogurt, improving its structure and texture.

Animal gelatin and / or vegetable additives (guar gum, carrageenan, etc.) Stabilize the yogurt by reducing crystallization and increasing the temperature at which the yogurt will melt. This stabilization ensures that the frozen yogurt stays smooth regardless of processing or changes in temperature.

Most yoghurt producers often use specially designed assembly lines for making frozen yogurt, dairy products and stabilizers are added and homogenized. At 32 ° C, a yogurt culture is added. The mixture stays at this temperature until it has set and is ready to cool.

After this step, the mixture is cooled to 0 to 4 ° C. Once it has reached the desired temperature and viscosity, the yogurt is left in the holding tanks for up to four hours. Sweeteners, flavors and colors are then added and the yogurt mixture is cooled to -6 to -2 ° C.

To create additional bulk and uniform consistency, air is introduced into the yogurt as a mixture while stirring. When a significant amount of air has been introduced into the product, the yogurt is quickly frozen to prevent the formation of large ice crystals and is stored in a cool place for shipping. Frozen yogurt can be made in the soft freezer in the same way as soft ice cream.

The frozen yogurt mix is ​​sold as a powder that needs to be mixed with water or in a liquid form ready to pour in a soft form. maintain the car. You can choose a mixture with a high or low fat content, and the amount of air introduced into the soft frozen yogurt varies. The higher the fat percentage, the more air the yogurt can absorb; and the more air is introduced into the mixture when it freezes, the creamier the product will taste.

Starting a business marketing plan for frozen yogurt

  • Frozen Yogurt Marketing Strategies and Ideas

Getting people to taste a serving of your delicious frozen yogurt is one of the most important steps in starting your frozen yogurt business. It just means that your marketing strategies should target different target markets, such as families looking for a tasty meal on a hot day, employees of local businesses on their lunch break, or people walking around the mall. .

When people start to taste your frozen treats, use strategies that will convince them to return to your store rather than your competitor’s yogurt store. Marketing ideas for your frozen yogurt may include

  • organize an event
  • launch of a loyalty program
  • use of social networks
  • use Click

Choosing the right price for the frozen yogurt business

When it comes to pricing for products like frozen yogurt, there are no hard and fast rules or known pricing models, prices will always depend on size and configuration. As a rule, the price of frozen yogurt and similar products such as ice cream and confectionery is affordable, so there is no need to use detailed pricing strategies.

With that honest fact in mind, your yogurt prices should match those available in the industry, but you need to make sure that for the first 6 to 12 months your products are selling slightly below the national average for various brands of frozen yogurt. But you have to develop trading strategies that will help you operate on low margins for 6 months; it’s a way to get people to buy your brand.

Competitive winning strategies in the frozen yogurt sector

With the increasing competition in the frozen yogurt industry and suitable stores from all sides, you need to educate consumers about your store. Every community is different and some marketing tactics will work in some areas while others will not.

The key is to try different things and find what works for you. And remember that what worked yesterday may not work tomorrow. The only limit to your marketing is your own creativity. Some ideas can be expensive, but there are plenty of others that aren’t.

  • Fundraise at your local elementary school.
  • Send coupons.
  • daily deal sites
  • create a competition of flavors
  • Loyalty programs
  • group competition
  • street marketing
  • Sponsor or advertise at local races
  • Social marketing
  • Cross-market with local businesses
  • Online Marketing

Increase customer loyalty in your frozen yogurt business

Your current customers are the best asset to your frozen yogurt business. They already know the brand, they know the products and they know their service. Focusing your time and energy on these people, rather than trying to find new customers, can be a powerful way to increase your frozen yogurt business’s income, especially during the holidays. There are many ways to retain and support your customers and keep them coming back. These means can be:

    • Friendly staff
    • Satisfy your customers
    • Discounts and sponsorship coupons
    • Loyalty and reward programs


  • Be condescending
  • Gamification
  • Assistance services and assistance systems
  • Customer reviews
  • Easy customization

Strategies to increase brand awareness and identity in the frozen yogurt industry

Brand awareness and affinity have multiple goals for retailers looking to increase their sales in the market, and the same can be done for your yogurt business. A brand awareness campaign should be flexible enough to grow with the business and adapt as needed. Ways to promote brand awareness and identity in your frozen yogurt business may include:

  • organize an event
  • to show you
  • sponsor of something
  • create an experimental trick
  • take social media, organize a public relations campaign
  • invest in promotional items
  • join forces with other companies, etc.

Reinforce a good corporate identity through good brand awareness strategies with a little imagination and understanding of your customer. The sky (and your budget) is the limit for moving forward. your competition.

Build a network of suppliers / distributors for your yogurt business

Supplier / distributor networks are important steps taken to move and store a product from supplier to customer in the supply chain. Distribution is an important factor that determines the overall profitability of your frozen yogurt business, as it directly affects both the value of the supply chain and the quality of customer service.

Good distribution can be used to achieve a variety of supply chain goals ranging from low cost to high responsiveness. The traditional distribution model has three levels: the producer, the wholesaler and the retailer.

This means that you can be a manufacturer and a wholesaler if you make yogurt and then sell the end of the supply chain to the end user. But if you buy from a seller, you are a wholesaler who in turn sells to consumers. Building a good supplier / distribution network is sure to make your business profitable, and ways to do so could include:

  • Contact wholesale food suppliers to order frozen yogurt or ingredients for making frozen yogurt and other food products. You plan to sell. Visit the websites of food vendors to compare prices and shipping options. Plan your delivery time.
  • Agree with the suppliers on the raw materials and ingredients you need. If possible, designate more than one supplier for each ingredient, as this will prevent your business from being disrupted if a supplier runs out of stock.
  • Continue to enter into distribution agreements with existing businesses such as cafes, restaurants, supermarkets. and restaurants. Since you are intending to produce yogurt, it goes without saying that you need to have buyers ready or no one will buy your product.
  • Doing some research to determine the number of finished buyers around you will help you know how many products to manufacture when you start a full job.

Tips for a Successful Frozen Yogurt Business

To successfully run a frozen yogurt business, you have to look at everything from the owners perspective. Is your frozen yogurt great? Do you indulge in the best frozen yogurt flavors and do you spin often? Are the staff motivated? Is the place clean, has good music and is it a fun and positive experience for the guest? ?

Indeed, no place is perfect, not even Disneyland, but does its best to make its business cool. Possible options:

  • always remember your quality
  • try to create amazing services
  • create a comfortable atmosphere
  • Purity
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