How Much Do Frozen Yogurt Shops Make?

Frozen Yogurt ShopsIf you are thinking of opening a frozen yogurt shop, you need to know if you are making a wise decision. While the answer to the question “How much do frozen yogurt shops make?” varies greatly from location to location, the overall question of the profitability of frozen yogurt shops is easier to answer. After a short slowdown, the frozen yogurt industry is experiencing resurging popularity. According to research giant IBSWorld, the frozen yogurt industry generated revenues of $760 million in 2012, and demand for frozen yogurt will likely remain stable over the next several years as increasingly health-conscious consumers and new markets drive growth. The combination of low start-up costs, ease of ownership, and continued heavy demand make opening a frozen yogurt shop a good business bet.

The profitability of frozen yogurt stores is dependent on many factors including region, individual franchise popularity, and specific store circumstances. There is a plethora of frozen yogurt franchises today, so it is important to set your shop apart. There are several ways of accomplishing this:

  • Serve unique flavors Keeping an eye on taste trends and adding new flavors can help keep appeal for your shop fresh. Experiment with different flavors to come up with singular combinations, and do not hesitate to drop poor sellers.
  • Cater to health concerns Increasing consumer concern over high fructose corn syrup presents you with the opportunity to stand out by offering different sweetener options. Try carrying frozen yogurt sweetened with pure cane sugar as well as no sugar options for diabetic customers. Add gluten-free frozen yogurt and toppings so allergy sufferers can partake of your wares.
  • Broaden your product base Why restrict yourself to the colder side of dessert? Cupcakes, cupcake pops, and other baked goods are easy to add to your lineup and can capture a wider share of the dessert market.
  • Go organicThere is a growing market for organic food and desserts. Take advantage of this trend by adding some organic frozen yogurt choices. While the price for organic is higher than regular frozen yogurt, there are strategies you can employ to get customers to take the price leap:
    • Educate customers on the health benefits of organic products
    • Run an advertising campaign on “the truth of frozen yogurt” that emphasizes the differences between your healthy organic yogurt and the artificial ingredients in other shops’ products that only claim to be healthy or natural.
    • Extoll the benefits of organic yogurt: healthier AND better tasting.
    • Ask your local health food stores if you can display flyers promoting your shop.

For details on the typical earnings of specific companies, request information from the franchises that interest you. While by law franchise salespersons cannot furnish you with an Earnings Claim, some provide the information in their franchise disclosure document. Your best option for answering the question of  how much do frozen yogurt shops make lies with speaking with current franchisees. Find a franchise in an area that is demographically similar to yours, but is far enough away from your proposed business that you would not be direct competition. Ask them what profit they are realizing after franchise fees and overhead, as well as any suggestions they may have. With persistence, you may be able to find a non-competitive business mentor who will answer all your questions.

An easy way to increase the profits from your frozen yogurt shop is by using Calypso, the most affordable POS system in the business. A self-serve frozen yogurt POS must have seamless integration to a POS scale to calculate the cost of merchandise based on weight of what the customer is looking to purchase. Calypso’s yogurt shop POS reads the yogurt weight from the scale automatically, reducing employee errors by eliminating the need to re-key weights manually. With Tare Weights Calypso’s POS system with scale  reduces the weight by the weight of the cup, automatically configuring for different cup sizes. Contact Calypso today at 800-771-7100 to discover more ways Calypso can help increase your yogurt shop profits!

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