Company Snapshot: Yogurtland Franchising Inc.
1911 East Wright Circle
Anaheim, CA 92806
Company Snapshot: Yogurtland Franchising Inc.
Yogurtland Franchising Inc. was founded in November 2006, following the opening of the first Yogurtland store in February of that same year by founder and current CEO/President Phillip Chang. In the intervening five years, the company has not only survived the ongoing recession but has managed to thrive – at the end of 2008 there were 28 operating locations, by the end of 2009 the number had more than doubled to 61, and at the end of 2010, there were more than 100 Yogurtland stores operating in 13 states plus an additional dozen locations in Japan and Mexico. On August 21, 2011, store #150 opened in Bakersfield, CA, and several more stores have opened subsequently.
The concept is self-serve frozen yogurt. Customers mix and combine flavors in their cups by pulling on spigots that control the yogurt containers. There are 16 flavors that rotate regularly, including the popular tart and the American-style frozen yogurt that’s more similar to ice cream. The company is known for its wide variety of flavors and 33 different topping options as well as its low price. Yogurtland customers ultimately determine what they pay. All dispense-your-own goods are 33 cents per ounce (mainland). The yogurt chain is popular partly due to its self-serve format, and also because it is relatively inexpensive compared to other yogurt businesses.
Another attraction has been the collectible spoons featuring such Sanrio characters as Hello Kitty, Keroppi, My Melody, and Chococat. Its unique create-your-own approach, low prices and late hours have combined to make Yogurtland wildly popular among teens and twenty-somethings. Its ambience emphasizes a bright, clean and minimalist design, achieved in part by its inset wall-mounted frozen yogurt dispensers. Yogurtland also appeals to the younger generation through its environmental responsibility by using paper containers instead of Styrofoam or plastic and its recycling and conservation efforts.
Yogurtland’s growth has primarily come from franchising, although the company has always retained control of a few stores. Typically located in regional neighborhood and lifestyle centers, strip malls, and entertainment venues with some locations in heavily trafficked malls, the stores average 1,000-1,500 square feet. Yogurtland has also found success in a variety of non-traditional sites.
Yogurtland is continuing to expand and has franchise development agreements targeting Illinois, Maryland, Virginia, and North Carolina among others. The goal is to have 550 stores open by 2015.
Phillip Chang, President &CEO
Larry Sidoti, Vice President of Development & Operations
Alexis Eldridge, Vice President of Marketing
Yogurtland stores feature 16 original sweet and tart flavors of self-serve frozen yogurt from a rotating menu of more than 50 selections that include both classic and exotic flavors, including no sugar added choices. Customers become the architect of their frozen yogurt creation by mixing and combining flavors and topping their yogurt with a choice of over 35 toppings that include fresh fruits, nuts, cereals, candy and much more. Price is determined by the total weight of the customer’s cup.
The company’s structure and culture is built around continuous improvement and operational excellence, supported by top-level training programs reinforced by continuous franchisee support.
Market Position: Yogurtland is recognized as a leader in the self-serve frozen yogurt sector. Its combination of premium quality products, superior service, attractively designed stores and vast selection of flavors and toppings in a self-service environment set Yogurtland apart from any other frozen yogurt concept.
According to the latest figures available, the U.S. market for ice cream and related frozen desserts, including frozen yogurt, increased two percent to $25 billion in 2009 despite a down economy, according to leading market research publisher Packaged Facts. The U.S. accounts for almost one-third of the total global market.
Growth Projections and Strategy:
The focus will be on expanding existing markets in Texas (Dallas-Fort Worth, Houston, and Austin), Atlanta, Portland, Seattle and the Tri-State Area surrounding New York City. Targeted new markets include Chicago, Ill., Alabama, Maryland, New Mexico, North Carolina, South Carolina, Tennessee and Virginia. Growth will come from a combination of single and multi-unit operators. Restaurant, food service or retail experience is a plus, but is not required.
Franchise Facts: The estimated initial investment for a Yogurtland franchise location ranges from $228,000 to $525,000 and includes a $35,000 franchise fee. Royalties are six percent of gross sales paid monthly. A two percent marketing fee is also paid monthly.
Stores average 1,000 to 1,500 square feet and are typically located in middle class to affluent, high-profile and heavily trafficked market/drug and lifestyle centers, strip malls and entertainment venues. Non-traditional locations include airports, college campuses and sporting venues and these will continue to be a focus of further growth.
Training: Yogurtland provides a comprehensive seven-day training program that consists of both classroom and hands-on training encompassing all aspects of operations at a company-operated Yogurtland store and the corporate headquarters in Anaheim, Calif. Onsite training is also provided for four to five days during the store’s grand opening.