Credit card terminal
January 31, 2012 – 7:50 pm | View Comments

If you are a small business owner interested in accepting cell phone credit card processing, then you will need a mobile merchant account. A mobile merchant account allows you to accept mobile transactions regardless of …

Read the full story »
Current News

The latest news on franchises and small business

Franchise Analysis

In depth analysis on some of your favorite franchises

Interviews

Candid interviews with industry veterans and business operators

Small Biz Marketing

Read about the latest marketing tools you need for your business

Franchising 101

Learn all the basics you need to know to franchise

Home » Current News, Featured

Re-inventing the Yogurt

Submitted by admin on September 29, 2011 – 7:13 amView Comments
yogurt

In the 1990′s, the yogurt-chain Tasti D-Lite seemingly appeared on more New York City street corners than Starbucks does today.  Fat-free yogurt became such a fad that the then-hit sitcom Seinfeld aired an entire episode devoted to the subject — or rather, an episode that questioned how such a delicious dessert could actually be healthy.

Despite the lunacy of the episode itself, it triggered a real-life health study, which in 2002, revealed that Tasti D-Lite was not nearly as healthy as it advertised.

The negative study results didn’t necessarily stunt Tasti D-Lite’s growth as a company, as the large yogurt chain plans to spread its wings internationally, but it did leave a bad taste in consumer’s mouths. Why would a prospective customer ever walk into an establishment, and ask to be served a chocolate and vanilla swirl lie with rainbow sprinkle deception?

The first step to winning back customers was actually making frozen yogurt healthy. New yogurt outlets like Pinkberry and Red Mango did just that, focusing on the actual health benefits of yogurt by using nutritionally conscious ingredients like live active cultures (which contain pro-biotics). All of a sudden, frozen yogurt had a real case against its more fatty, extremely delicious brother, ice cream.

But even though Pinkberry and Red Mango took off initially, their business plan went stale after awhile. In fact, Red Mango has already closed various locations.

Call it psychological, but there’s just something about dispensing one’s own yogurt and toppings that makes the experience less corporate and more natural. Perhaps that’s why self-serve yogurt shops started becoming so popular. In Los Angeles, places like Froyo Life and Yogurtland became the go-to’s for frozen yogurt aficionados.

And just like in so many other industries, the Los Angeles-based “self-serve” fad headed east to New York City. To-date, the most recognizable self-serve yogurt joint in New York is 16 Handles.

Solomon Choi, who opened 16 Handles in 2008, credits Pinkberry with making the health-conscious jump. Yet in regards to why Pinkberry and Red Mango’s appeal has faded, Choi asserts, “The reason for that is not necessarily that they have a bad product, but people prefer this [self-serve] type of a format.”

After Choi’s East Village’s location took off, he decided to open another location on the Upper East Side, in Jericho, Long Island, Paramus, New Jersey, and most recently, on the Upper West Side. The self-serve yogurt king is also looking to cut ribbon in Soho, the West Village, Chelsea, and possibly even outside the Tri-State area.

While 16 Handles’ expansion from a small business to potentially massive chain is in the works, Choi still treats his booming company like a Mom and Pop shop.

For instance, the CEO feels strongly about personally social networking with customers via Twitter and Facebook, claiming, “It’s very important as a new and emerging brand to have that kind of close connection with your customers.”

As popular and thriving as 16 Handles is now, one must remember that the frozen yogurt business has been around since the late-1980’s. “Health-conscious” and “self-serve” might be the formula for success today, but it’s safe to assume that not even Choi knows how the next wave of frozen yogurt will evolve.

  • Monica Feid

    Red Mango has self-serve stores

  • http://risingapple.com Moebarguy

    That’s a very recent exploration (and a direct reaction to 16 Handles’ success).

  • Paulieshore

    Tasti-d-lite is not frozen yogurt, no live or active cultures in it nor did they advertise as such. What they are is healthier ice cream, less sugar and lower fat but they created a special process to get the same taste as I.C.

blog comments powered by Disqus