The frozen yogurt business is a sought-after dessert delight in its own right, with a diverse range of tastes and experiences. According to a new poll, people prefer frozen yogurt to ice cream, gelato, and other popular frozen delicacies.
Frozen yogurt is a lucrative business option that you can start right now, and surprise! Surprise! It has now become a part of the wealthy ice cream sector, which had earned $9.6 billion in revenue back in 2009. Although there are no federal regulations for the production of frozen yogurt, approximately half of all states have begun to do so. This industry expanded by 16 per cent between 2003 and 2009.
If you plan to start a business, then starting a frozen yogurt business is the best option. A lot of people are getting into this business because various advantages are being offered. But! It would be best if you had a solid plan, and this is what we are going to discuss today.
Just pay attention and thoroughly read the article as we will discuss the steps that you need to follow to start a frozen yogurt business.
1. Make a Business Plan
A detailed business plan is the foundation of any successful firm. Your business plan should include a study of the region or locations where you intend to operate stores, an industry analysis, and a financial forecast that includes the cost of beginning your firm, projected revenues, and when you can expect your new endeavour to break even. A business plan is crucial not just for keeping you on track in your new venture, but lenders and investors will likely want to see it before agreeing to help you fund it.
2. Fund your Dream
The cost of starting a yogurt business varies greatly based on your location's rent prices and minimum wage, as well as the local competitors. However, plan to spend a calculated amount on personnel, rent, utilities, equipment, and other expenditures in the first year of your business, leaving you with a little profit. Consider taking out a small business loan to help you get started, but keep in mind that you'll be making monthly payments with interest.
3. Taste and Packaging
If you want to ignore industry trends and go your way, make sure you sell yogurt that your consumers will enjoy. Flavour trends now suggest that funkier is better. Frozen yogurt fans adore odd tastes and flavour combinations, especially if they're available in a variety of sizes. As far as packaging is concerned look for glass packaging and website that sell bulks of glass packaging
4. Look for a Suitable Location
One benefit of choosing a franchise is that the franchisor may have access to local market data to assist you in selecting a suitable site for your new business. Furthermore, the franchise firm may be able to assist you in arranging a commercial lease with a landlord.
If you're starting a new business on your own, talk to a real estate professional who can help you choose a suitable site. Bring in a specialist to inspect before signing a lease to verify that the facility will satisfy your demands and local health standards.
5. Create a Relaxing Environment and make it Eco-Friendly.
Customers appear to favour yogurt businesses similar to coffee shops where they provide a place for reading or socialising while they enjoy their frozen delights. If you want to cash in on this trend, establish an environment that encourages guests to relax and unwind, whether on their computers or at tables in groups and instead of using paper cups serve or let them fill the yogurt as bottled and jarred packaged goods.
Choose a somewhat big and accessible store on a lunch break or after work for a yogurt date. Invest in some nice chairs, set up public Wi-Fi, and let your customers unwind.
6. Health and Profit Marketing
There's one built-in marketing technique when it comes to frozen yogurt: the health element. Yogurt is high in probiotics, which aid digestion and strengthen the immune system and numerous vitamins. Customers at self-serve outlets may select their portion sizes to keep things low in calories, and it's also available in low-fat or no-fat and low-carb varieties.
Make use of this in your marketing strategies. Your shop provides a nutritious dessert alternative to ice cream, as well as a relaxing hangout spot to replace the adjacent coffee shop.
Questions to Ask Before Starting a Frozen Yogurt Business
Is it better to have self-serve or full-service?
Do you want consumers to serve themselves or do you want employees to do the work? Customers may construct their own frozen yogurts by the ounce at self-serve yogurt cafes, which have all of the flavours and toppings on hand. Staff workers mix together the yogurt concoctions in full-service stores.
Customers appear to prefer self-serve frozen yogurt establishments because they can regulate their portion sizes (frozen yogurt is meant to be a healthy option, after all) and get as creative as they want with flavours and toppings.
Who is the intended audience?
The best client is someone who lives close by, so you can build a loyal following of people who rely on your food. Your customers don't have to be health freaks to benefit from your services; they might be folks managing their weight or trying to make more conscious food choices.
What is the revenue model for a frozen yogurt shop?
To pay company expenditures and establish a profit margin, owners must determine pricing for each menu item. Those searching for high-end frozen yogurt are prepared to spend a bit extra for better tastes. All of the company's costs (not simply the cost of the components) must be factored into your rates.
What is the maximum amount you may charge customers?
Customers may usually expect to pay three to four times the cost of the components. So, if one serving of frozen yogurt costs $0.50, you may charge the customer about $2. If you're in a big city like LA or NYC, you'll probably be able to charge around $4 or $5. You may also charge by the pound, which includes the frozen yogurt as well as the toppings.
What are some insider suggestions for getting a frozen yogurt shop off the ground?
When it comes to frozen yogurt, consistency is one of the most important things to perfect. No matter when they're ordered, your menu items should taste the same. The most accessible approach to maintain uniformity is to use a liquid mix rather than a dry mix.
The second factor to examine is usually innovation. You're considering today's most popular tastes and how to incorporate them into your business. Consider giving up limitless free samples to pique people's interest in your tastes, and never ignore a consumer complaint (either in person or online).
When and How to form a Team?
Before you open the business, you'll want to assemble a crew. Employees who can stay with you for the long haul are ideal, but this may be difficult to achieve depending on where you are and the salaries you give. Look for employees who love providing excellent customer service and who want to make each visit memorable.
So here are the “easy steps” that you need to follow in order to set your Yogurt business. All the best! Happy New Beginnings.