business plan for a frozen yogurt shop

Frozen Yogurt Business Plan Template

Written by Dave Lavinsky

Frozen Yogurt Business Plan

Over the past 20+ years, we have helped over 500 entrepreneurs and business owners create business plans to start and grow their frozen yogurt companies.

If you’re unfamiliar with creating a frozen yogurt business plan, you may think creating one will be a time-consuming and frustrating process. For most entrepreneurs it is, but for you, it won’t be since we’re here to help. We have the experience, resources, and knowledge to help you create a great business plan.

In this article, you will learn some background information on why business planning is important. Then, you will learn how to write a frozen yogurt business plan step-by-step so you can create your plan today.

Download our Ultimate Business Plan Template here >

What Is a Business Plan?

A business plan provides a snapshot of your frozen yogurt business as it stands today, and lays out your growth plan for the next five years. It explains your business goals and your strategies for reaching them. It also includes market research to support your plans.

Why You Need a Business Plan

If you’re looking to start a frozen yogurt business or grow your existing frozen yogurt company, you need a business plan. A business plan will help you raise funding, if needed, and plan out the growth of your frozen yogurt business to improve your chances of success. Your frozen yogurt business plan is a living document that should be updated annually as your company grows and changes.

Sources of Funding for Frozen Yogurt Businesses

With regards to funding, the main sources of funding for a frozen yogurt business are personal savings, credit cards, bank loans, and angel investors. When it comes to bank loans, banks will want to review your business plan and gain confidence that you will be able to repay your loan and interest. To acquire this confidence, the loan officer will not only want to ensure that your financials are reasonable, but they will also want to see a professional plan. Such a plan will give them the confidence that you can successfully and professionally operate a business. Personal savings and bank loans are the most common funding paths for frozen yogurt companies.

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How to write a business plan for a frozen yogurt business.

If you want to start a frozen yogurt business or expand your current one, you need a business plan. The guide below details the necessary information for how to write each essential component of your frozen yogurt business plan.

Executive Summary

Your executive summary provides an introduction to your business plan, but it is normally the last section you write because it provides a summary of each key section of your plan.

The goal of your executive summary is to quickly engage the reader. Explain to them the kind of frozen yogurt business you are running and the status. For example, are you a startup, do you have a frozen yogurt business that you would like to grow, or are you operating a chain of frozen yogurt businesses?

Next, provide an overview of each of the subsequent sections of your plan.

• Give a brief overview of the frozen yogurt industry.
• Discuss the type of frozen yogurt business you are operating.
• Detail your direct competitors. Give an overview of your target customers.
• Provide a snapshot of your marketing strategy. Identify the key members of your team.
• Offer an overview of your financial plan.

Company Overview

In your company overview, you will detail the type of frozen yogurt business you are operating.

For example, you might specialize in one of the following types of frozen yogurt businesses:

• Brick and mortar : this type of frozen yogurt business is a traditional frozen yogurt shop that serves a variety of traditional flavors.
• Organic: this type of frozen yogurt business focuses on serving frozen yogurt made from all-natural ingredients and is usually made on-location.
• Non-dairy: this type of business will serve non-dairy versions of favorite frozen yogurt flavors. It is a favorite of vegans.

In addition to explaining the type of frozen yogurt business you will operate, the company overview needs to provide background on the business.

Include answers to questions such as:

• When and why did you start the business?
• What milestones have you achieved to date? Milestones could include the number of customers served, the number of bowls served with positive reviews, reaching X number of yogurt served, etc.
• Your legal business Are you incorporated as an S-Corp? An LLC? A sole proprietorship? Explain your legal structure here.

Industry Analysis

In your industry or market analysis, you need to provide an overview of the frozen yogurt industry.

While this may seem unnecessary, it serves multiple purposes.

First, researching the frozen yogurt industry educates you. It helps you understand the market in which you are operating.

Secondly, market research can improve your marketing strategy, particularly if your analysis identifies market trends.

The third reason is to prove to readers that you are an expert in your industry. By conducting the research and presenting it in your plan, you achieve just that.

The following questions should be answered in the industry analysis section of your frozen yogurt business plan:

• How big is the frozen yogurt industry (in dollars)?
• Is the market declining or increasing?
• Who are the key competitors in the market?
• Who are the key suppliers in the market?
• What trends are affecting the industry?
• What is the industry’s growth forecast over the next 5 – 10 years?
• What is the relevant market size? That is, how big is the potential target market for your frozen yogurt business? You can extrapolate such a figure by assessing the size of the market in the entire country and then applying that figure to your local population.

Customer Analysis

The customer analysis section of your frozen yogurt business plan must detail the customers you serve and/or expect to serve.

The following are examples of customer segments: individuals of all ages and families with children.

As you can imagine, the customer segment(s) you choose will have a great impact on the type of frozen yogurt business you operate. Clearly, families would respond to different marketing promotions than a young college student, for example.

Try to break out your target customers in terms of their demographic and psychographic profiles. With regards to demographics, including a discussion of the ages, genders, locations, and income levels of the potential customers you seek to serve.

Psychographic profiles explain the wants and needs of your target customers. The more you can recognize and define these needs, the better you will do in attracting and retaining your customers.

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Competitive Analysis

Your competitive analysis should identify the indirect and direct competitors your business faces and then focus on the latter.

Direct competitors are other frozen yogurt businesses.

Indirect competitors are other options that customers have to purchase from that aren’t directly competing with your product or service. This includes grocery stores, restaurants, or farmers markets. You need to mention such competition as well.

For each such competitor, provide an overview of their business and document their strengths and weaknesses. Unless you once worked at your competitors’ businesses, it will be impossible to know everything about them. But you should be able to find out key things about them such as

• What types of customers do they serve?
• What type of frozen yogurt business are they?
• What is their pricing (premium, low, etc.)?
• What are they good at?
• What are their weaknesses?

With regards to the last two questions, think about your answers from the customers’ perspective. And don’t be afraid to ask your competitors’ customers what they like most and least about them.

The final part of your competitive analysis section is to document your areas of competitive advantage. For example:

• Will you provide a variety of flavors?
• Will you offer products or services that your competition doesn’t?
• Will you provide better customer service?
• Will you offer better pricing?

Think about ways you will outperform your competition and document them in this section of your plan.  

Marketing Plan

Traditionally, a marketing plan includes the four P’s: Product, Price, Place, and Promotion. For a frozen yogurt business plan, your marketing strategy should include the following:

Product : In the product section, you should reiterate the type of frozen yogurt company that you documented in your company overview. Then, detail the specific products or services you will be offering. For example, will you provide ice cream, beverages and snacks?

Price : Document the prices you will offer and how they compare to your competitors. Essentially in the product and price sub-sections of your plan, you are presenting the products and/or services you offer and their prices.

Place : Place refers to the site of your frozen yogurt company. Document where your company is situated and mention how the site will impact your success. For example, is your frozen yogurt business located in a busy retail district, near a school, a mall, or purely online? Discuss how your site might be the ideal location for your customers.

Promotions : The final part of your frozen yogurt marketing plan is where you will document how you will drive potential customers to your location(s). The following are some promotional methods you might consider:

• Advertise in local papers, radio stations and/or magazines
• Reach out to websites
• Distribute flyers
• Engage in email marketing
• Advertise on social media platforms
• Improve the SEO (search engine optimization) on your website for targeted keywords

Operations Plan

While the earlier sections of your business plan explained your goals, your operations plan describes how you will meet them. Your operations plan should have two distinct sections as follows.

Everyday short-term processes include all of the tasks involved in running your frozen yogurt business, including purchasing ingredients, making frozen yogurt, fulfilling customer orders, etc.

Long-term goals are the milestones you hope to achieve. These could include the dates when you expect to sell your Xth frozen yogurt, or when you hope to reach $X in revenue. It could also be when you expect to expand your frozen yogurt business to a new city.  

Management Team

To demonstrate your frozen yogurt business’ potential to succeed, a strong management team is essential. Highlight your key players’ backgrounds, emphasizing those skills and experiences that prove their ability to grow a company.

Ideally, you and/or your team members have direct experience in managing frozen yogurt businesses. If so, highlight this experience and expertise. But also highlight any experience that you think will help your business succeed.

If your team is lacking, consider assembling an advisory board. An advisory board would include 2 to 8 individuals who would act as mentors to your business. They would help answer questions and provide strategic guidance. If needed, look for advisory board members with experience in managing a frozen yogurt business or successfully running a small restaurant.  

Financial Plan

Your financial plan should include your 5-year financial statement broken out both monthly or quarterly for the first year and then annually. Your financial statements include your income statement, balance sheet, and cash flow statements.

Income Statement

An income statement is more commonly called a Profit and Loss statement or P&L. It shows your revenue and then subtracts your costs to show whether you turned a profit or not.

In developing your income statement, you need to devise assumptions. For example, will you sell 5 frozen yogurt cones/bowls per day, and/or offer other revenue generators such as ice cream or beverages? And will sales grow by 2% or 10% per year? As you can imagine, your choice of assumptions will greatly impact the financial forecasts for your business. As much as possible, conduct research to try to root your assumptions in reality.

Balance Sheets

Balance sheets show your assets and liabilities. While balance sheets can include much information, try to simplify them to the key items you need to know about. For instance, if you spend $50,000 on building out your frozen yogurt business, this will not give you immediate profits. Rather it is an asset that will hopefully help you generate profits for years to come. Likewise, if a lender writes you a check for $50,000, you don’t need to pay it back immediately. Rather, that is a liability you will pay back over time.

Cash Flow Statement

Your cash flow statement will help determine how much money you need to start or grow your business, and ensure you never run out of money. What most entrepreneurs and business owners don’t realize is that you can turn a profit but run out of money and go bankrupt.

When creating your Income Statement and Balance Sheets be sure to include several of the key costs needed in starting or growing a frozen yogurt business:

• Cost of kitchen equipment and yogurt inventory
• Payroll or salaries paid to staff
• Business insurance
• Other start-up expenses (if you’re a new business) like legal expenses, permits, computer software, and equipment

Attach your full financial projections in the appendix of your plan along with any supporting documents that make your plan more compelling. For example, you might include your frozen yogurt location lease or a list of flavors you plan to offer.  

Writing a business plan for your frozen yogurt business is a worthwhile endeavor. If you follow the template above, by the time you are done, you will truly be an expert. You will understand the frozen yogurt industry, your competition, and your customers. You will develop a marketing strategy and will understand what it takes to launch and grow a successful frozen yogurt business.  

Frozen Yogurt Business Plan Template FAQs

What is the easiest way to complete my frozen yogurt business plan.

Growthink's Ultimate Business Plan Template allows you to quickly and easily write your frozen yogurt business plan.

How Do You Start a Frozen Yogurt Business?

Starting a frozen yogurt business is easy with these 14 steps:

• Choose the Name for Your Frozen Yogurt Business
• Create Your Frozen Yogurt Business Plan
• Choose the Legal Structure for Your Frozen Yogurt Business
• Secure Startup Funding for Your Frozen Yogurt Business (If Needed)
• Secure a Location for Your Business
• Register Your Frozen Yogurt Business with the IRS
• Open a Business Bank Account
• Get a Business Credit Card
• Get the Required Business Licenses and Permits
• Get Business Insurance for Your Frozen Yogurt Business
• Buy or Lease the Right Frozen Yogurt Business Equipment
• Develop Your Frozen Yogurt Business Marketing Materials
• Purchase and Setup the Software Needed to Run Your Frozen Yogurt Business
• Open for Business

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Other Helpful Business Plan Articles & Templates

How to Start a Profitable Frozen Yogurt Stand Business [11 Steps]

By Nick Cotter Updated Feb 02, 2024

Business Steps:

1. perform market analysis., 2. draft a frozen yogurt stand business plan., 3. develop a frozen yogurt stand brand., 4. formalize your business registration., 5. acquire necessary licenses and permits for frozen yogurt stand., 6. open a business bank account and secure funding as needed., 7. set pricing for frozen yogurt stand services., 8. acquire frozen yogurt stand equipment and supplies., 9. obtain business insurance for frozen yogurt stand, if required., 10. begin marketing your frozen yogurt stand services., 11. expand your frozen yogurt stand business..

Starting a frozen yogurt stand business requires a comprehensive understanding of the current market landscape. It's essential to analyze the demand for frozen yogurt in the area, identify your competitors, and understand consumer preferences. Here's how to perform a thorough market analysis:

• Research the local demand for frozen yogurt by looking into the existing number of frozen yogurt shops and their success rates.
• Identify your target demographic by age, income level, and eating habits to tailor your offerings accordingly.
• Analyze competitors by visiting their stands, reviewing their menu offerings, pricing, and marketing strategies.
• Explore seasonal trends that may affect consumer interest in frozen yogurt to plan for fluctuations in business.
• Survey potential customers for feedback on what flavors, toppings, and options they prefer, and what would make them choose your stand over others.
• Assess the availability of suppliers for yogurt, toppings, and equipment to ensure quality and cost-effective procurement.
• Examine the local health regulations and food service requirements to ensure compliance and avoid legal issues.

Are frozen yogurt stand businesses profitable?

Whether a frozen yogurt stand business is profitable depends on a variety of factors, such as the location, pricing, marketing strategy, and competition. Additionally, the quality and range of products offered must appeal to customers if the business is to be successful.

Starting a frozen yogurt stand business requires careful planning and strategizing. A well-crafted business plan not only helps in organizing thoughts but also in securing funding and guiding the operations. Here are the key elements to include in your business plan:

• Executive Summary: Briefly introduce your business concept, mission statement, and the products you will offer.
• Market Analysis: Research and detail your target market, customer demographics, and analysis of competitors.
• Marketing Strategy: Outline your branding, marketing campaigns, and sales strategies to attract and retain customers.
• Operations Plan: Describe the day-to-day operations, including location, equipment, suppliers, and staffing requirements.
• Financial Plan: Include projections for startup costs, ongoing expenses, revenue forecasts, and a break-even analysis.
• Risk Assessment: Identify potential risks and contingencies to manage those risks effectively.
• Appendices: Attach any additional documents such as resumes of the management team, detailed market research, or product pictures.

How does a frozen yogurt stand business make money?

A frozen yogurt stand business makes money primarily by selling frozen treats such as yogurt, ice cream and smoothies to customers. To increase profits, frozen yogurt stands typically offer a variety of toppings and flavors that can be customised to each customers taste. Furthermore, many stands advertise their products using promotional materials such as posters, flyers and social media. An example target audience for a frozen yogurt stand business would be teenagers, who are likely to have an increased interest in purchasing cold treats during summer months.

Developing a compelling brand for your frozen yogurt stand is essential to stand out in a crowded market and attract customers. A strong brand communicates your unique selling proposition and creates a memorable impression. Here are some steps to help you craft an impactful brand for your frozen yogurt business:

• Define Your Brand Identity: Choose a name, logo, and color scheme that reflect the personality of your business. Whether it's fun and playful or sleek and modern, ensure consistency across all materials.
• Unique Selling Proposition (USP): Determine what makes your frozen yogurt stand unique. Is it your locally sourced ingredients, a secret recipe, or your commitment to eco-friendly practices? Your USP should be the cornerstone of your brand message.
• Brand Voice: Develop a brand voice that resonates with your target audience. Whether it's friendly, humorous, or professional, your communication should be consistent in tone across all channels.
• Visual Branding: Invest in high-quality visuals, including your logo, menu design, and stand decor. A visually appealing setup can attract attention and be shared on social media, serving as free advertising.
• Customer Experience: Ensure that your brand extends to the customer experience. Train your staff to provide service that aligns with your brand values, whether that's efficiency, friendliness, or knowledge about your products.

How to come up with a name for your frozen yogurt stand business?

Coming up with the perfect name for a frozen yogurt stand business can be a challenge. Consider choosing a name that reflects your ideals and mission. Brainstorming with friends, family, and staff can help to bring attention to words and phrases that could strike interest in potential customers. Look for inspiring words or catchy phrases that make your business memorable. Lastly, search for domain names that are available for use to ensure the name you choose is legally viable and can be implemented in web domains and printed materials.

Registering your business is a critical step in legitimizing your frozen yogurt stand and ensuring it operates within legal boundaries. This process gives your business legal recognition and protects your brand. Follow these steps to formalize your business registration:

• Choose a business structure: Decide if you want to register as a sole proprietorship, partnership, limited liability company (LLC), or corporation, considering factors like liability, taxes, and administrative requirements.
• Register your business name: Pick a unique name for your frozen yogurt stand and check for its availability. Register the name with the appropriate state authorities to protect it.
• Obtain necessary permits and licenses: Contact your local city or county government to learn about specific permits and licenses required for food businesses, such as health department permits, food handler's licenses, and signage permits.
• Get an Employer Identification Number (EIN): If you have employees or operate as a corporation or partnership, you'll need an EIN from the IRS for tax purposes. It's free and can be applied for online or by mail.
• Register for state and local taxes: Depending on your location, you may need to register for state sales tax, payroll taxes, and other business-related taxes.

Resources to help get you started:

Explore pivotal resources designed for frozen yogurt stand entrepreneurs aiming to stay informed about market trends, enhance operational efficiencies, and devise growth strategies:

• Frozen Yogurt Industry Analysis: Offers detailed market trends, statistics, and forecast reports crucial for strategic planning. Example unavailable.
• National Yogurt Association: Provides industry standards, nutritional information, and marketing resources. Visit NYA .
• Dairy Foods Magazine: Features articles on dairy industry innovations, marketing strategies, and product development. Browse Dairy Foods .
• Small Business Administration (SBA): Offers guides on business planning, financing, and management specifically catered to new entrepreneurs. Visit SBA .
• International Frozen Yogurt Association: Provides membership benefits including operational resources, training, and networking opportunities. Explore IFYA .

Before opening your frozen yogurt stand, it's essential to secure all the necessary licenses and permits. These legal documents vary by location and business type, but they are crucial to ensure your stand operates within the legal framework. Below is a guide to help you through this process:

• Research Local Requirements: Check with your city or county government to find out which licenses and permits are required to operate a frozen yogurt stand in your area.
• Health Department Permit: Since you'll be serving food, you'll need a permit from the health department, which may require passing a health inspection.
• Business License: Apply for a general business license with your local or state government to legally conduct business.
• Food Service License: This is often a separate license specific to businesses that prepare and serve food.
• Sales Tax Permit: If your state has sales tax, you'll need to register for a sales tax permit to collect and report sales tax.
• Zoning and Land Use Permits: Ensure your frozen yogurt stand complies with local zoning laws, which may involve obtaining special permits or variances.

What licenses and permits are needed to run a frozen yogurt stand business?

Before you open a frozen yogurt stand business, you'll need to secure the proper licenses and permits from your local government. Depending on your location, you may need to acquire a business license, tax certificates, food service permits, health permits, and other special licenses. You may also need to secure additional permits from the local fire or building departments to make sure that your business is up to code. Make sure that you research the licenses and permits required to run a frozen yogurt stand in your area and obtain them before opening your business.

Starting a frozen yogurt stand requires careful financial planning and management. Opening a business bank account is a fundamental step for keeping your business finances separate from your personal accounts, and securing funding is crucial for covering startup costs. Here's how to tackle these critical steps:

• Research local banks and credit unions that offer business banking services. Consider their fees, customer service, and any additional benefits that might be useful for your business.
• Prepare the necessary documents to open a business bank account, which typically include your business license, EIN, ownership agreements, and personal identification.
• Explore different funding options such as small business loans, investors, crowdfunding, or personal savings to finance your frozen yogurt stand.
• Develop a solid business plan to present to potential lenders or investors, which clearly outlines your business strategy, market analysis, financial projections, and the unique selling propositions of your frozen yogurt stand.
• Consider working with a financial advisor or mentor to help you navigate the process of securing funding and to ensure that you're making informed financial decisions for your business.

Setting the right prices for your frozen yogurt stand is crucial to attract customers and ensure a profitable business. Consider your costs, the local market rates, and the perceived value of your offerings to establish competitive pricing. Here are some key points to guide you through Step 7:

• Analyze Costs: Calculate the total cost of ingredients, supplies, labor, and overhead to determine the minimum price per serving needed to break even.
• Competitive Pricing: Research prices at nearby frozen yogurt shops to ensure your prices are in line with the market without undercutting your margins.
• Value Proposition: Offer various sizes and pricing tiers to cater to different customer preferences, potentially increasing your average sale.
• Seasonal Fluctuations: Consider seasonal demand and adjust prices accordingly, perhaps with special deals during peak seasons to attract more customers.
• Loyalty Programs: Implement loyalty programs or discounts for repeat customers to encourage recurring business without directly lowering prices.
• Profit Margins: Aim for a healthy profit margin above your costs to ensure sustainability and growth potential for your business.

What does it cost to start a frozen yogurt stand business?

Initiating a frozen yogurt stand business can involve substantial financial commitment, the scale of which is significantly influenced by factors such as geographical location, market dynamics, and operational expenses, among others. Nonetheless, our extensive research and hands-on experience have revealed an estimated starting cost of approximately $12500 for launching such an business. Please note, not all of these costs may be necessary to start up your frozen yogurt stand business.

Starting a frozen yogurt stand involves careful selection of equipment and supplies to ensure your business operates smoothly and meets customer expectations. The right tools and ingredients are crucial for delivering a high-quality product and efficient service. Below is a checklist to guide you in acquiring the necessary items for your frozen yogurt stand:

• Frozen Yogurt Machines: Invest in commercial-grade frozen yogurt machines that are reliable and can handle the expected customer volume.
• Refrigeration Units: Ensure you have adequate refrigeration for storing frozen yogurt mix, toppings, and other perishables.
• Topping Dispensers: Acquire dispensers for a variety of toppings for customer customization.
• Utensils and Serving Ware: Stock up on spoons, bowls, cups, and napkins suitable for serving frozen yogurt.
• Cleaning Supplies: Maintain cleanliness with food-safe sanitizers, cleaning cloths, mops, and buckets.
• POS System: Choose a point-of-sale system for processing transactions and tracking sales.
• Signage and Menu Boards: Create attractive signage and clear menu boards to showcase your offerings.
• Ingredient Supplies: Regularly source high-quality frozen yogurt mix, fresh toppings, and flavorings.

List of software, tools and supplies needed to start a frozen yogurt stand business:

• Frozen Yogurt Machine: $2,000 - $4,000
• Frozen Yogurt Freezer: $1,000 - $3,000
• Point of Sale Software: $450 - $850
• Cash Register: $200 - $300
• Ice Cream Scoop: $10 - $15
• Spoons and Straws: approx.$25
• Toppings (fruits, syrup, etc.): approx.$300 per month
• Ice Cream Cups and Bowls: approx.$100 per month
• Napkins and Towels: approx.$50 per month
• Fridge or Freezer for Storage: approx.$500

When starting a frozen yogurt stand, securing the right business insurance is an essential step to protect your investment and ensure you're covered against potential risks. The type of insurance you'll need may vary depending on your location, the size of your business, and other factors. Here are some common insurance policies to consider:

• General Liability Insurance: Covers claims of bodily injury, property damage, and advertising injury. It's crucial for customer-facing businesses like a frozen yogurt stand.
• Product Liability Insurance: Provides protection if your frozen yogurt causes illness or injury, safeguarding against legal action related to your product.
• Property Insurance: Protects your stand and its contents from damage due to fire, theft, or other disasters. If you operate from a mobile stand, you may need a policy tailored to mobile businesses.
• Workers' Compensation Insurance: Mandatory in many regions if you have employees, it covers medical costs and lost wages for work-related injuries and illnesses.
• Business Interruption Insurance: Compensates for lost income if your stand needs to close temporarily due to a covered disaster.

Always consult with an insurance agent or broker who has experience in the food service industry to identify the specific types of insurance that align with your business needs.

Once your frozen yogurt stand is ready to go, it's crucial to spread the word and attract customers. Effective marketing strategies will not only introduce your brand to the community but also help you stand out in a competitive market. Here are some key tactics to consider:

• Utilize Social Media: Create profiles on popular platforms like Instagram, Facebook, and Twitter to showcase your products and engage with potential customers.
• Offer Promotions: Launch your stand with opening day promotions or loyalty programs to entice first-time buyers and reward repeat customers.
• Local Partnerships: Collaborate with nearby businesses and schools to offer special deals and increase your reach within the community.
• Attend Community Events: Participate in local fairs, festivals, and markets to introduce your frozen yogurt to a wider audience.
• Word of Mouth: Encourage your customers to spread the word by providing exceptional service and a memorable experience.
• Press Releases: Send out press releases to local media outlets to announce the launch of your stand and any special events or promotions.

Expanding your frozen yogurt stand business is an exciting step that can lead to increased profits and brand recognition. As you prepare for growth, consider strategic approaches and thoughtful planning to ensure the success of your expansion. Here are several key points to guide you through this process:

• Analyze your current business data to identify trends and successful aspects that can be replicated in new locations.
• Research potential markets for expansion, considering factors like local demand, competition, and the cost of business operations.
• Secure additional funding if necessary, through loans, investors, or profits from your existing stand.
• Choose the right location for your new stands, aiming for high foot traffic areas or complementary businesses.
• Standardize operations to ensure consistent quality and customer experience across all stands.
• Invest in marketing to build excitement around your new locations and attract a loyal customer base.
• Consider hiring more staff and providing training to maintain excellent service as your business grows.
• Explore franchising options if you wish to expand more rapidly with reduced direct management of each new stand.
• Regularly review the performance of all locations and adjust your strategy as needed to optimize results.

How to Start a Frozen Yogurt Shop: Step-by-Step Guide

Main Sections In This Post Steps To Starting A Frozen Yogurt Business Points to Consider Knowledge Is Power Featured Video

This post provides a step-by-step outline for starting a frozen yogurt business and an overview of what to expect.

You’ll also find many examples and samples to use as a starting point.

You’ll find links to search results from our “Knowledge Is Power” section to ensure that you have access to the most current and popular information.

Resources can be used during startup and once your business has been established.

There is a lot of information to cover, so if you like this post, consider sharing it and bookmarking it to return when needed!

Let’s get started with the steps.

The Steps to Take To Start Your Frozen Yogurt Business

Below are the steps to starting a frozen yogurt business.

Each step is linked to a specific section, allowing you to jump to your desired section or scroll to follow the steps in order.

• An Overview of What You’re Getting Into
• Frozen Yogurt Business Overview
• Researching Your Frozen Yogurt Business
• Looking at Financials
• Choosing A Business Location
• Creating Your Mission Statement
• Creating A Unique Selling Proposition (USP)
• Choose a Frozen Yogurt Business Name
• Register Your Company
• Create Your Corporate Identity
• Writing a Business Plan
• Banking Considerations
• Getting the Funds for Your Operation
• Software Setup
• Business Insurance Considerations
• Supplier and Service Provider Considerations
• Setting Your Prices
• Physical Setup
• Creating a Website
• Create an External Support Team
• Hiring Employees

1. An Overview of What You’re Getting Into

The ability to work in a field where you’re doing what you love is a blessing.

Passion is crucial for your business success and the driving force you need.

When you’re passionate about your business and problems arise, you look for solutions. On the other hand, without passion, you’ll look for a way out when you see problems coming your way.

The amount of passion you have for owning and operating a frozen yogurt business will greatly influence your success.

Here is something important to think about:

Suppose you don’t have to worry about money because you have enough to live comfortably for the rest of your life.

Now, the big question:

With no worries about money, would you start a frozen yogurt business and run it for free?

If your answer is yes, it shows that you are passionate about owning and operating a frozen yogurt business and are heading in the right direction.

However, if your answer is no, it prompts another question:

What would you prefer to do instead? Perhaps you should pursue that path rather than start a frozen yogurt business.

In summary, you need to be passionate about owning and operating your business to give you a better chance of success.

For More, See How Passion Affects Your Business . Also, see Considerations Before You Start Your Business to identify key points for a new business owner.

2. Gaining an Overview of Owning a Frozen Yogurt Business

Next, let’s spend some time on key issues to give you an overview of what to expect from owning and running your business.

a.) A Quick Overview of Owning a Frozen Yogurt Business

A frozen yogurt business is a retail establishment that specializes in serving frozen yogurt as a main product.

It offers customers the chance to customize their frozen treats by selecting yogurt flavors and various toppings, creating a personalized dessert experience.

These businesses typically operate in a self-serve format, allowing customers to dispense yogurt from machines and add toppings as desired.

Day-to-Day Tasks of Running a Frozen Yogurt Business:

• Opening and Closing Procedures: Start the day by preparing the store for customers, ensuring machines are operational and ingredients are stocked. At closing, clean and sanitize equipment and store areas.
• Customer Service: Interact with customers, assist in yogurt dispensing, guide them through topping choices, and handle transactions.
• Inventory Management: Regularly check ingredient levels and toppings, restock as needed, and manage supplier orders.
• Quality Control: Monitor yogurt machine settings to ensure proper consistency and taste, and maintain cleanliness and hygiene standards.
• Marketing and Promotion: Develop and execute marketing strategies to attract customers, such as special offers, loyalty programs , and social media engagement.
• Staff Management: If applicable, manage and schedule staff shifts, ensuring smooth operations during peak times.
• Financial Management: Track daily sales, monitor expenses, and manage the business’s financial health.
• Maintenance: Regularly clean and maintain machines, fixtures, and the store environment for optimal customer experience.
• Menu and Flavor Management: Rotate and introduce new yogurt flavors, toppings, and combinations to keep offerings fresh and exciting.
• Community Engagement: Participate in local events, collaborate with neighboring businesses, and engage in community initiatives to enhance visibility.

Enhancing Customer Experience:

Providing exceptional customer service by addressing inquiries, ensuring a clean and inviting ambiance, and offering personalized assistance in choosing yogurt flavors and toppings elevates the customer experience.

Engaging with customers on social media, gathering feedback, and adapting offerings based on preferences fosters a loyal customer base.

Running a frozen yogurt business requires dedication, attention to detail, and a commitment to creating a delightful and memorable dessert destination for customers to enjoy.

b.) Frozen Yogurt Business Models

Types of Frozen Yogurt Business Setups and Business Models:

• Customers create their own frozen yogurt combinations.
• Charge by weight for yogurt and toppings.
• Minimal staffing required due to self-serve nature.
• Staff assists customers in creating yogurt treats.
• Offers a variety of flavors and toppings.
• More emphasis on customer service and experience.
• Operates as a mobile unit, attending events, festivals, and markets.
• Provides flexibility to reach different customer bases.
• Requires careful logistics for transportation and setup.
• Operates under a well-established franchise brand.
• Benefits from brand recognition, support, and proven systems.
• Franchise fees and ongoing royalties apply.

Business Models for Frozen Yogurt Businesses:

• Charge customers based on the weight of their yogurt and toppings.
• Encourages customization but can lead to varying revenue per customer.
• Offer subscription plans for regular customers.
• Ensures a steady stream of income but requires maintaining member engagement.
• Participate in events, catering, and special occasions.
• Provides additional revenue sources beyond daily operations.
• Offer online orders and delivery services.
• Expands customer reach and convenience, but logistics management is crucial.

Choosing the Right Business Model:

Selecting a suitable business model from the outset is crucial, as changing the model later can be complex and impact customer expectations.

Assess the market, location, target audience, and your own preferences before finalizing your business setup and model.

Identifying a profitable and high-demand niche within the frozen yogurt industry is essential for long-term success.

A well-aligned business model that resonates with your target market enhances the chances of creating a thriving frozen yogurt venture.

c.) Pros and Cons of Owning a Frozen Yogurt Business

Every business has its pros and cons.

While owning and operating a business offers great benefits, it’s crucial not to overlook the challenges.

Many entrepreneurs focus solely on rewards, neglecting potential difficulties.

It’s vital to assess both sides to be well-prepared. Understanding potential challenges ensures you’re not caught off guard, enabling you to proactively address them.

This awareness fosters better decision-making and readiness for any obstacles that may arise.

For more, see Pros and Cons of Starting a Small Business.

d.) Challenges You Could Face When Starting and Operating a Frozen Yogurt Business

Challenges When Starting a Frozen Yogurt Business:

• Market Competition: Entering a saturated market requires differentiation to stand out.
• Location Selection: Finding the right location with high foot traffic and target demographics is essential.
• Initial Investment: Setting up equipment, store design, and initial inventory can be costly.
• Regulatory Compliance: Navigating health, safety, and food regulations can be complex.
• Supplier Relationships: Establishing reliable suppliers for ingredients and equipment is crucial.
• Staffing: Hiring and training competent staff for customer service and operations.
• Marketing and Branding: Creating brand awareness and attracting customers in a competitive market.
• Quality Consistency: Ensuring consistent taste and quality to retain customers.
• Financial Management: Managing expenses, cash flow, and profitability.
• Seasonal Demand: Adapting to fluctuating demand based on seasons and weather.

Challenges During Full Operation:

• Customer Retention: Maintaining customer loyalty in the long term.
• Supply Chain Disruptions: Managing potential disruptions in ingredient supply.
• Employee Turnover: Ensuring staff retention and consistent service.
• Menu Innovation: Keeping offerings fresh and exciting to attract repeat business.
• Health and Safety: Adhering to strict health and safety regulations consistently.
• Marketing Fatigue: Sustaining effective marketing strategies to maintain customer interest.
• Competition Evolution: Navigating shifts in market trends and new competitors.
• Equipment Maintenance: Ensuring machines and facilities are in optimal condition.
• Technology Integration: Incorporating digital tools for efficient operations and customer engagement.
• Financial Stability: Managing ongoing expenses and revenue fluctuations.

Starting a frozen yogurt business comes with initial hurdles, including market entry, location, and regulatory challenges.

Once operational, maintaining quality, customer loyalty, and adapting to market changes become ongoing priorities.

Navigating these challenges demands a proactive and strategic approach, ensuring a successful and sustainable frozen yogurt venture.

e.) Questions You Need to Consider for Your Frozen Yogurt Business

Questions to Consider for Your Frozen Yogurt Business:

By addressing the following inquiries, you’ll be better equipped to anticipate potential challenges in starting your frozen yogurt venture:

• What type of frozen yogurt business model are you considering?
• Do you have the skills needed to manage and operate a frozen yogurt business?
• Will you do all the work alone, or will you hire employees?
• Do you intend to manage your business, or are you planning to hire a manager?
• How will you attract customers?
• How will you foster customer retention ?
• Are you open to seeking partners or investors?
• How will you finance your startup costs?
• Have you assessed the timeline to achieve profitability?
• How will you sustain yourself during the financially demanding early stages?
• What products and services will you offer?
• How confident are you in the demand for your offerings?
• What unique value will you bring compared to competitors?

By delving into these questions, you gain a comprehensive understanding of your frozen yogurt business’s potential challenges, enabling you to devise strategic solutions and set a solid foundation for success.

3. Research

Inside information frozen yogurt business research.

Thorough Research: A Crucial Starting Point

Before taking any further steps, conducting thorough research is imperative when starting your frozen yogurt business.

Quality information equips you with a clear understanding, preventing unforeseen challenges.

Learning from Experienced Individuals: Invaluable Insights

Engaging with experienced individuals in the industry is a valuable source of reliable insights. Their expertise and years of practice offer priceless knowledge.

Guidance Beyond This Post: Finding the Right People

Finding the right people to connect with extends beyond this post. An article has been prepared to guide you in identifying and approaching these industry experts respectfully.

Comprehensive Resource: “An Inside Look Into the Business You Want To Start”

I recommend reading “An Inside Look Into the Business You Want To Start” for comprehensive details on gaining insights into your desired venture.

This proactive approach ensures you are well-prepared and informed before embarking on your frozen yogurt business journey.

See An Inside Look Into the Business You Want To Start for all the details.

Target Audience

Understanding Your Target Audience: Enhanced Adaptation

Understanding your target audience offers several benefits.

The more you know about them, the better you can tailor your products, services, and offers to meet their preferences.

This focus allows you to provide what your customers are genuinely interested in, rather than attempting to cater to a broad range of needs.

Target Market Ideas:

• Health-conscious individuals seeking a guilt-free dessert.
• Families with children looking for a fun and customizable treat.
• Fitness enthusiasts seeking a protein-rich post-workout snack.
• Teenagers and young adults seeking a trendy and Instagram-worthy dessert.
• Individuals with dietary restrictions (gluten-free, dairy-free) seeking suitable options.
• Office workers seeking a refreshing treat during breaks.
• Event organizers in need of catering for parties and gatherings.
• Local residents interested in supporting a community dessert spot.
• Tourists exploring the area and looking for unique food experiences.
• Anyone seeking a refreshing and indulgent dessert option.

For more, see How To Understand Your Target Market.

Product & Service Demand

Determining Demand: A Critical Preceding Step

Assessing the demand for your products and services before starting is crucial.

Without this understanding, you risk setting yourself up for failure.

High quality and reasonable prices alone aren’t sufficient without demand.

Starting a frozen yogurt business without enough demand can result in early closure and mounting, challenging debt.

Simple Strategies to Assess Market Demand:

• Surveys and Questionnaires: Create surveys to gather opinions from locals about their interest in frozen yogurt and preferred flavors or toppings.
• Competitor Analysis: Examine the success of existing frozen yogurt businesses in the area to gauge demand.
• Observational Research: Spend time in the potential location, observing foot traffic and the popularity of similar dessert places.
• Social Media Engagement: Create polls or posts on social media platforms to gauge interest and gather insights.
• Talk to Locals: Engage in conversations with residents to understand their dessert preferences and willingness to visit a frozen yogurt establishment.
• Attend Local Events: Participate in local events or markets to gauge interest and receive direct feedback.
• Online Searches: Use tools like Google Trends to assess the popularity of frozen yogurt-related searches in the area.
• Pilot Pop-Up Events: Organize temporary pop-up events to test the response and gather feedback.

By employing these simple strategies, you can gather valuable insights into the market demand for your frozen yogurt business in the specific location you are considering.

For more, see the Demand for Your Products and Services.

4. Looking at Financials:

Financial Considerations: Startup Costs, Revenues, and Profits

This section provides a comprehensive overview of crucial financial aspects to consider for your frozen yogurt business, including startup costs, monthly expenses, revenues, and profits.

Startup Costs:

Accurate estimation of startup costs is paramount for a successful launch. Underestimation can lead to financial shortages, delaying your opening, while overestimation might deter potential investors.

Costs vary based on factors like operation size, location, staffing, equipment choices (new/used), and lease agreements.

Compile a detailed list of necessities and research prices, including unforeseen expenses that emerge during research.

For more detailed information, refer to my article on Estimating Startup Costs.

Sales and Profit:

Sales hinge on customer service, product popularity, demand, and effective marketing.

Profits, simplified, encompass profit per sale, sales volume, and overhead expenses. For instance, making $300 profit per sale but achieving only one monthly sale won’t cover costs.

Likewise, high-volume sales generating minimal profit per sale can lead to insufficient revenue.

To gain a comprehensive financial overview, assess profit per sale, sales volume, and overhead expenses.

For More, See Estimating Profitability and Revenue.

This strategic evaluation provides insights into your frozen yogurt business’s potential profitability, ensuring you’re well-prepared for financial success.

Simple Sample: Financial Lists to Consider As a Starting Point

Note: Focus on the list items more than the numbers. The numbers are samples. Your estimates will differ due to how you set up your business, location, expenses, and revenues.

Sample Estimated Startup Costs for a New Frozen Yogurt Business in the USA:

Note: These are approximate values and can vary based on location, size, and specific choices.

• Lease/Rent: $2,000 – $5,000
• Renovation/Build-out: $10,000 – $30,000
• Equipment (Machines, Furniture, etc.): $30,000 – $50,000
• Inventory (Initial Supplies): $5,000 – $10,000
• Marketing and Advertising: $3,000 – $7,000
• Licenses and Permits: $1,000 – $2,500
• Legal and Professional Fees: $1,500 – $3,000
• Insurance (General Liability, Property): $1,000 – $2,500
• Initial Employee Wages (if applicable): $3,000 – $5,000
• Miscellaneous Expenses: $2,000 – $5,000

Total Estimated Startup Costs: $58,500 – $120,000

Sample Estimated Monthly Expenses for a Frozen Yogurt Business in the USA:

Note: These are approximate values and can vary based on location, size, and specific choices. Loan payment is included.

• Utilities: $500 – $1,000
• Employee Salaries: $4,000 – $8,000
• Ingredients and Supplies: $1,500 – $3,000
• Marketing and Advertising: $500 – $1,500
• Loan Payment: $1,000 – $2,000
• Insurance: $200 – $400
• Miscellaneous (Repairs, Maintenance): $500 – $1,000

Total Estimated Monthly Expenses: $10,200 – $21,900

Sample Examples of Profit Per Sale:

• Sale Price: $5, Profit: $2
• Sale Price: $6, Profit: $2.50
• Sale Price: $8, Profit: $3.50

These are illustrative examples of profit per sale. The actual profit per sale will depend on factors such as pricing strategy, costs, and sales volume.

Consider revisiting Step 3. Researching your frozen yogurt business , where there is a technique to get inside information, will benefit you in this step.

5. Choosing The Right Business Location

Choosing the Right Location for Your Business: A Crucial Factor

The fate of your conventional brick-and-mortar business, catering to locals, hinges on your chosen location. Success or failure rests heavily on this decision.

Operating where demand is absent or minimal guarantees failure while setting up amidst stiff competition challenges market entry.

The ideal spot strikes a balance between demand and competition, ensuring sustainability.

Affordability is equally vital. A densely populated area offers exposure, but increased costs might outweigh gains. Opting for a cheaper locale mustn’t compromise customer base and sales.

In essence, the location is pivotal for business success.

Thoroughly researching and analyzing potential sites ensures an informed decision and lays the foundation for prosperous operations.

For more about business locations, see Choosing The Best Location for Your Business.

6. Create Your Mission Statement

The Significance of a Clear Mission Statement

A mission statement serves as a compass, defining your business’s purpose.

It not only keeps you focused but also encapsulates the primary value you bring to customers and the community.

Examples of Mission Statements for a Frozen Yogurt Business:

• “Our mission is to provide a delightful and healthy frozen yogurt experience, fostering smiles and well-being within our community.”
• “At XYZ Frozen Yogurt, we’re dedicated to crafting exceptional frozen treats that bring joy to every palate, creating a hub of happiness and indulgence.”
• “Empowering our customers to savor moments of happiness, we strive to be the ultimate destination for premium frozen yogurt, promoting a sense of taste and togetherness.”
• “Championing wholesome dessert options, our mission is to redefine frozen yogurt enjoyment, nurturing connections and promoting a healthier lifestyle.”
• “Driven by passion, we commit to offering an array of innovative and delectable frozen yogurt creations, enriching lives with moments of sweetness and satisfaction.”

These mission statement examples reflect the core values and objectives of frozen yogurt businesses, showcasing their dedication to quality, community, and customer happiness.

For more, see How To Create a Mission Statement.

7. Creating A Unique Selling Proposition (USP)

Crafting a Distinctive Unique Selling Proposition (USP)

A Unique Selling Proposition (USP) is a defining element that sets your business apart.

It identifies and creates a unique edge that resonates with customers, making your business stand out amidst competition.

Examples of Unique Selling Propositions for a Frozen Yogurt Business:

• “Endless Flavors, Limitless Creations”:  Offering an extensive range of flavors and toppings, enabling customers to customize their frozen yogurt to their heart’s content.
• “Guilt-Free Indulgence”:  Promoting low-fat, probiotic-rich frozen yogurt options that appeal to health-conscious consumers seeking both flavor and well-being.
• “Local Artisanal Bliss”:  Showcasing locally-sourced ingredients and partnering with nearby artisans to create a frozen yogurt experience that supports the community.
• “Interactive Delight”:  Providing an interactive self-serve experience, allowing customers to mix and match their favorite flavors and toppings for a fun, personalized treat.
• “Seasonal Spectacular”:  Rotating seasonal flavors and limited-time offerings, keeping customers excited with fresh tastes and a dynamic frozen yogurt selection.

These USP examples underscore the uniqueness and value frozen yogurt businesses can offer, captivating their target audience with special features and benefits.

8. Choose a Business Name

Selecting a Catchy and Relevant Business Name

Choosing the right business name is crucial. It should align with your industry, be memorable, and be easy to pronounce.

Take your time, as business names rarely change and have a long-lasting impact.

Ensure the name has an available matching domain for your online presence, and verify it’s not registered by another business.

Here Is a List of Sample Frozen Yogurt Business Names:

• FroYoDelights
• CreamyDreams
• YogurtFusion
• ChillySwirls
• HeavenlyScoops
• FroZenBliss
• FlavorChill
• FrostyEuphoria
• SwirlSensation
• FrozzyFiesta
• ScoopSerenity
• FrozyFusion
• DreamyChill
• PureBlissYogurt
• YogurtUtopia
• SwirlDelish
• FrozEnchantment
• YogurtYonder
• ScoopfulDelights
• FrostyOasis
• ChilledWhirl

This list offers diverse name options to spark creativity and help you create an original and fitting business name for your frozen yogurt venture.

For more, see the following articles:

• How To Register a Business Name
• Registering a Domain Name For Your Business

9. Register Your Company

Legal Compliance: A Vital Step for Your Business

Securing the legal aspects of your business is paramount. It’s wise to consult professionals to ensure proper setup, tax advantages, and liability protection.

Common Types of Registrations for a Frozen Yogurt Business:

• Business Structure:  Choose between sole proprietorship, partnership, LLC, or corporation, each with distinct legal and tax implications.
• Business Name:  Register your chosen business name to avoid conflicts and protect your brand.
• Employer Identification Number (EIN):  Obtain an EIN from the IRS for tax purposes, especially if you have employees.
• Local Business Licenses:  Acquire necessary licenses from your local city or county to operate legally.

Permits and Licenses for a Frozen Yogurt Business:

• Health Department Permit: Necessary for handling and serving food.
• Food Service Establishment Permit: Required for food handling and preparation.
• Signage Permit: For displaying your business sign.
• Fire Department Permit: Ensures compliance with fire safety regulations.
• Building Permit: If you’re renovating or constructing your business space.
• Zoning Permit: To verify that your business is allowed in your chosen location.

Ensuring legal compliance safeguards your business and allows you to operate smoothly within legal boundaries.

Registration:

• How to Register Your Business
• How To Register a DBA
• How to Register a Trademark
• How to Get a Business License

Business Structures:

• How to Choose a Business Structure
• Pros & Cons of a Sole Proprietorship
• How To Form an LLC
• How To Register a Business Partnership
• How To Form a Corporation
• How To Choose a Business Registration Service

10. Create Your Corporate Identity

Corporate Identity: Presenting Your Business with Distinction

A Corporate Identity (CI) is a cohesive design representing your business.

It encompasses elements like logos, business cards, websites, signage, stationery, and promotional materials.

Consistency in design across these components impresses both new and existing customers, portraying a professional and cohesive image that builds trust and recognition.

A well-crafted CI establishes your brand’s visual identity and contributes to a lasting impression in the market.

You can see our page for an overview of your logo , business cards , website , and business sign , or see A Complete Introduction to Corporate Identity Packages.

11. Writing a Business Plan

Crafting a Crucial Business Plan

A business plan holds immense significance as a foundational document for securing financing and attracting potential investors.

It serves as a guiding framework not only during startup but also throughout your business’s operational journey.

Investing Time and Effort for a Robust Plan

Creating an effective business plan demands considerable time and effort, as it envisions your business’s operational landscape.

The careful planning and articulation of details are essential to its success.

The dedication invested in crafting the plan is rewarding. It provides clarity on startup essentials and a comprehensive roadmap for operational strategies.

Exploring Diverse Approaches

Remember, there are diverse options available to create your business plan.

You can opt to develop it from scratch, enlist a professional’s expertise, utilize a template, or employ business plan software.

Active involvement in the process remains crucial, especially if you choose professional assistance.

Effective communication ensures a comprehensive understanding of your business’s nature and management strategies.

Adaptation and Optimization

Be prepared for the possibility of changes in your business plan and operations.

As you become more experienced and the market evolves, your plan may need adjustments.

Regular reviews and updates are wise to align your business’s direction with current realities and optimize strategies for sustainable success.

Business Plan Template for a Frozen Yogurt Business

Business Plan Template: Frozen Yogurt Business

1. Executive Summary:

• Brief overview of your business.
• Mission statement.
• Brief description of products and services.
• Market overview.
• Summary of financial projections.

2. Company Description:

• Detailed explanation of your business concept.
• Unique Selling Proposition (USP).
• Business goals and objectives.
• Legal structure (LLC, Corporation, etc.).
• Location and facilities.

3. Market Research:

• Industry analysis of frozen yogurt market.
• Target market identification.
• Customer demographics and psychographics.
• Competitor analysis.
• Market trends and growth potential.

4. Products and Services:

• Comprehensive description of frozen yogurt offerings.
• Flavors, toppings, and customization options.
• Potential product extensions or seasonal offerings.

5. Marketing and Sales Strategy:

• Marketing plan to attract and retain customers.
• Branding and Corporate Identity.
• Online presence (website, social media).
• Pricing strategy.
• Sales tactics and promotional campaigns.

6. Organizational Structure:

• Team structure (founders, managers, employees).
• Roles and responsibilities of each team member.
• Hiring plan and recruitment strategy.
• Staff training and development.

7. Financial Projections:

• Startup costs and initial investment.
• Sales forecasts for the first three years.
• Operating expenses breakdown.
• Cash flow projections.
• Profit and loss statement.
• Break-even analysis.

8. Funding and Financing:

• Overview of required funding.
• How you intend to secure funding (loans, investors).
• Proposed terms for investors or lenders.
• Use of funds breakdown.

9. Operations Plan:

• Detailed workflow of daily operations.
• Inventory management process.
• Quality control and food safety procedures.
• Supplier relationships and procurement strategy.

10. SWOT Analysis:

• Strengths, weaknesses, opportunities, and threats.
• How you will leverage strengths and address weaknesses.
• Capitalizing on opportunities and managing threats.

11. Exit Strategy:

• Long-term vision for the business.
• Potential exit options (selling, franchising).
• Contingency plans for unforeseen circumstances.

12. Appendix:

• Additional documents, permits, and licenses.
• Market research data.
• Legal documents (articles of incorporation, contracts).

Customize each section with relevant information and data specific to your Frozen Yogurt Business.

See How to Write a Business Plan for information on creating your business plan.

12. Banking Considerations

Choosing a nearby bank with a small business focus is beneficial. A business account separates transactions, simplifying expense tracking and tax filing.

Cultivate a professional relationship with your banker for advice and financial services.

Having a merchant account or online service for card payments enhances sales and customer convenience.

For more, see How to Open a Business Bank Account. You may also want to look at What Is a Merchant Account and How to Get One.

13. Getting the Funds for Your Operation

If you require a loan to initiate your frozen yogurt business, follow the advice provided in this section.

Various funding options exist, including traditional lenders, private loans, investors, and selling assets.

Additionally, explore potential government grants tailored to launching your venture.

Considerations When Meeting a Loan Officer:

• Know Your Business Plan:  Be prepared to discuss your business strategy, market analysis, and financial projections.
• Loan Purpose:  Clearly explain how the loan will be used and its impact on your business growth.
• Collateral:  Be aware of what assets you can offer as collateral to secure the loan.
• Repayment Plan:  Detail your repayment strategy and demonstrate your ability to manage the loan payments.
• Credit History:  Understand your credit score and history, as lenders assess your creditworthiness.

Sample Documents Needed for a NEW Business Loan Application:

• Business Plan outlining your objectives, target market, financial projections, and strategies.
• Financial Statements including income statement, balance sheet, and cash flow projections.
• Personal and Business Credit Reports.
• Collateral Documentation if applicable.
• Business Legal Documents such as licenses, permits, and registrations.
• Personal Identification like driver’s license, passport, or social security number.

Being well-prepared and armed with the necessary documents enhances your chances of successfully securing a loan for your frozen yogurt business.

For more, see the following:

• Getting a Small Business Loan
• SBA Small Business Grants
• Frozen Yogurt Business Start-up Loans
• Grants For a Frozen Yogurt Business

14. Software Setup

Researching software is vital; implementing a program from scratch is easier than switching systems later.

Choose a company with a history for reliable future support. Demos provide a chance to try before committing. Software reviews and forums offer valuable insights from other users.

Research expense-tracking and financial software for tax preparation.

Consulting your bookkeeper or accountant aids in making the right accounting software choice.

Types of Software for Frozen Yogurt Business:

• Point of Sale (POS) Software: Manages sales transactions, inventory, and customer information.
• Inventory Management Software: Tracks ingredient levels, stock, and supply orders.
• Employee Scheduling Software: Organizes staff shifts and availability.
• Customer Relationship Management (CRM) Software: Maintains customer data and preferences for targeted marketing.
• Accounting Software: Manages financial transactions, expenses, and generates reports.
• Marketing and Social Media Management Software: Assists in planning and executing marketing campaigns.
• Analytics and Reporting Software: Provides insights into sales, customer behavior, and business performance .
• Online Ordering and Delivery Software: Facilitates online orders and delivery logistics.
• Communication and Collaboration Software: Keeps staff connected and organized.
• Maintenance and Repair Management Software: Tracks equipment maintenance and service schedules.

Choosing appropriate software streamlines operations enhances customer service, and contributes to business efficiency.

Check out Google’s latest search results for software packages for a frozen yogurt business.

15. Get The Right Business Insurance

• Insurance for Protection: Incidents can occur unexpectedly, necessitating the need for appropriate insurance coverage before commencing any business activities.
• Comprehensive Coverage Considerations: Prioritize insurance to safeguard not only customers and employees but also yourself, anyone present on the premises, and your business property.
• Professional Liability Protection: Professional liability insurance is worth considering, as it offers protection against potential lawsuits that may arise.
• Interruption Insurance Importance: Another important consideration is Interruption Insurance, which can be a vital resource in the event of an incident leading to an involuntary shutdown of your business operations.
• Guidance from Competent Insurance Brokers: To navigate the complexities of insurance, seek assistance from a knowledgeable insurance broker. Their expertise can help you secure sufficient coverage tailored to your frozen yogurt business’s needs.

Ensuring comprehensive insurance coverage equips your business to handle unexpected challenges, providing peace of mind and protection for both your enterprise and its stakeholders.

For more, see What to Know About Business Insurance . You can also browse the latest Google search results for frozen yogurt business insurance .

16. Suppliers, Service Providers and Inventory

Selecting Suppliers and Service Providers:

A frozen yogurt business requires a range of items and services from suppliers and service providers.

These include yogurt mix, toppings, packaging materials, equipment maintenance, marketing materials, and potentially delivery services.

Establishing strong relationships with suppliers and service providers is vital for business success.

Trustworthy suppliers play a crucial role in maintaining a reliable inventory. Competitive pricing from suppliers allows for customer-friendly rates and increased profit margins.

Reliable suppliers ensure a consistent supply of essential items, enabling smooth operations.

Mutually beneficial partnerships involve treating suppliers and service providers respectfully while ensuring their financial benefit.

This fosters positive working relationships and dependable support for your business.

Inventory Management:

Strategically manage inventory by focusing on customer-demanded products to provide variety and value.

Balancing inventory quantity is critical; excess stock ties up funds, while insufficient stock leads to missed sales opportunities.

Expiry Date Consideration:

For both saleable inventory and business supplies, consider expiry dates where applicable.

Avoid carrying products with impending expiration dates. Striking a balance in managing inventory prevents wastage and optimizes product freshness.

Efficient supplier relationships, prudent inventory management, and expiry date awareness contribute to a successful frozen yogurt business’s operational effectiveness and customer satisfaction.

For More, See How To Choose a Supplier.

17. Setting Prices

Benefits of Pricing Research for Your Frozen Yogurt Business:

Conducting pricing research is vital at the outset of your frozen yogurt business, as it profoundly impacts profitability and customer perception.

Balancing Act for Optimal Pricing:

Avoiding excessively high prices prevents potential sales loss, while extremely low prices may attract customers but hinder covering expenses and generating profit.

Strategic Pricing Alignment:

Achieve a harmonious balance that aligns with the current market landscape while highlighting the value you provide in terms of product quality and experience.

Analyzing Costs and Margins:

Thoroughly assess your costs, overheads, and desired profit margins to establish well-informed pricing tiers that reflect both your financial needs and market expectations.

Customer-Centric Approach:

Comprehending your target audience’s willingness to pay empowers you to position your frozen yogurt offerings attractively and cater to diverse customer segments.

Continual Adaptation:

Regularly review pricing based on market trends and customer feedback to ensure sustained competitiveness and financial viability over time.

Optimized Strategy:

By conducting thorough pricing research and refining your approach, you can optimize sales, profitability, and customer satisfaction for your frozen yogurt business.

See the following for more:

• Setting the Price of Your Products and Services
• Search Results for Pricing Strategies for a Frozen Yogurt Business.

18. Physical Setup

Layout and Setup of a Frozen Yogurt Business:

A typical frozen yogurt business layout includes a customer service area with self-serve frozen yogurt machines and a toppings bar.

Seating arrangements, like tables and chairs, are strategically placed for comfort and flow.

Restrooms and a designated service counter for orders are common.

Staff areas, including a kitchen/prep area and storage space, are essential for efficient operations.

Signage for a Professional Appeal:

Effective signage is key to guiding customers and conveying professionalism.

The main business sign outside establishes your brand identity.

Additional signs in parking lots, exits, and special areas enhance customer experience.

Well-designed signs showcase a professional operation and assist customers in navigating your establishment.

Organized Office for Enhanced Productivity:

Managing a frozen yogurt business demands time and attention.

An organized office amplifies productivity by having essential tools and resources at hand.

Equipped with computers, phones, filing systems, and office supplies, your office streamlines administrative tasks, ensuring smoother operations and efficient decision-making.

A well-organized office enables you to manage daily activities effectively and maintain control over various aspects of your business.

See Here are Considerations for The Setup of Your Office for tips and ideas to make your office work for you. Also, have a look at our article About Company Signs.

19. Creating a Website

The Importance of a Business Website:

A website is crucial for your frozen yogurt business, serving as the main point of contact and providing essential business information.

Ownership and Control:

Unlike social media accounts, a website is owned and controlled by you when you host and register a domain name.

Marketing Potential:

Your website doubles as a powerful marketing tool, allowing you to showcase your offerings and engage with customers effectively.

Building Trust Through Blogging:

Blogging about your industry and offering valuable tips tailored to your customers helps establish trust and positions you as an industry expert.

For more, see How to Build a Website for Your Business .

20. Create an External Support Team

An external support team for your frozen yogurt business consists of non-payroll professionals providing advice and services.

Their assistance is project-based, contract-oriented, or on retainer.

Recognizing these individuals as a team enhances their significance and allows for expansion.

While not all need to be in place initially, building these relationships over time is crucial.

A robust team typically includes an accountant, lawyer, financial advisor, marketing specialist, technical advisor, and consultants.

Their collective expertise bolsters your business, ensuring you have dependable resources when needed.

Cultivating a dependable external support team strengthens your business’s foundation and positions you for success.

For more, see Building a Team of Professional Advisors for Your Business.

21. Hiring Employees

The following are job positions or outsourced services you may want to consider as your frozen yogurt business grows:

• Store Manager
• Assistant Manager
• Shift Supervisors
• Customer Service Representatives
• Kitchen Staff
• Toppings Bar Attendants
• Food Prep Personnel
• Cleaning Crew
• Maintenance Technician
• Marketing Coordinator
• Social Media Manager
• Inventory Manager
• Delivery Personnel (if applicable)
• Accountant or Bookkeeper
• Human Resources Manager
• Graphic Designer (for marketing materials)
• Equipment Maintenance Specialist
• Legal Advisor (if needed for regulatory compliance)
• Food Safety Expert or Consultant

Note: The number and specific roles may vary based on the size and complexity of your frozen yogurt business.

As it expands, evaluating operational needs will help determine which positions are essential for efficient management and growth.

For more, see How and When to Hire a New Employee.

Points To Consider

Next, let’s review essential points before starting your frozen yogurt business.

The sections include getting customers through the door in the early stages, marketing tips, making your business stand out, looking at established companies, and more.

Hours of Operation:

Hours of Operation for a Frozen Yogurt Business: Consider opening around lunchtime (11 AM – 12 PM) and closing in the evening (9 PM – 10 PM) to accommodate lunch, dinner, and dessert crowds.

Tasks Beyond Regular Business Hours: Cleaning and sanitizing equipment, deep cleaning floors and surfaces, restocking ingredients, preparing yogurt mixes, and equipment maintenance.

Plan for about 1-2 hours before opening and 1-2 hours after closing, depending on the size of the business and daily workload.

A List of Equipment and Supplies to Consider for a Frozen Yogurt Business:

• Soft-serve machines to dispense different flavors.
• Machines with built-in refrigeration and freezing systems.
• Toppings dispensers with various compartments.
• Topping bins, containers, and lids.
• Utensils for serving toppings (scoops, tongs, ladles).
• Reach-in refrigerators for storing yogurt mix and perishable ingredients.
• Chest freezers for storing frozen yogurt, fruits, and other ingredients.
• Blenders for creating yogurt-based smoothies.
• Mixers for blending ingredients and creating customized flavors.
• Dispensing pumps for sauces and syrups.
• Yogurt cups, bowls, cones, and spoons.
• Napkin and straw dispensers.
• Cash registers or POS software for processing transactions.
• Receipt printers, cash drawers, and credit card terminals.
• Hand sinks for staff hygiene and sanitation.
• Cleaning supplies (sanitizers, disinfectants) to maintain a hygienic environment.
• Wire shelving units for organizing supplies and ingredients.
• Storage containers for ingredients and toppings.
• Seating options like chairs, tables, and benches.
• Decor elements to create an inviting ambiance.
• Refrigerated display cases to showcase frozen yogurt flavors.
• Non-refrigerated display cases for showcasing toppings.
• Mixing bowls, measuring cups, and utensils for food preparation.
• Cutting boards and knives for cutting fruits and toppings.
• Commercial dishwasher or three-compartment sink for cleaning utensils and equipment.
• Proper ventilation systems to manage odors and maintain air quality.
• Heating, ventilation, and air conditioning systems for temperature control.
• Background music systems or TVs for customer entertainment.
• Exterior and interior signage to attract customers.
• Menus displaying flavor options and pricing.
• Fire extinguishers and smoke detectors for safety compliance.
• First aid kit for emergencies.
• Takeout containers, lids, and utensils for customers who want to take their yogurt to go.
• Security cameras and alarms for the safety of your premises.
• Training materials for staff on equipment operation and food safety.
• Trash cans, recycling bins, and composting solutions for waste disposal.

Remember that the specific equipment you need might vary based on the scale of your frozen yogurt business, the menu offerings, and your location.

It’s essential to thoroughly plan your equipment needs to ensure efficient operations and a positive customer experience.

Key Points To Succeeding in a Frozen Yogurt Business

To succeed in operating a frozen yogurt business, key factors must be considered:

• Niche Focus: Identify a unique niche to differentiate your business from competitors, attracting a specific customer base.
• Customer Base: Building a strong customer base is challenging during the startup phase but essential for sustained growth.
• Relationship Building: Forge connections with customers, suppliers, and employees to foster loyalty and trust.
• Customer-Centric Approach: Deliver products and services that align with customer preferences and demands.
• Feedback Utilization: Act upon credible customer feedback to enhance operations and benefit the majority.
• Customer Service: Prioritize exceptional customer service, recognizing customers as the core of your business.
• Value Provision: Consistently offer value through quality, experience, and meeting customer needs.
• Team Building: Hire individuals with the right skills and values, forming a capable team crucial for business success.
• Staff Management: Manage staff effectively, create a positive work environment, and treat them with respect to improve retention.
• Financial Management: Skillfully handle cash flow, balancing income and expenses for business stability.
• Cost Efficiency: Minimize costs without compromising quality or customer service to maintain profitability.
• Adaptation to Change: Stay current with industry, process, and technological changes, adapting for competitiveness.
• Revenue Fluctuations: Prepare for revenue ups and downs with financial strategies to ensure business resilience.
• Competition Handling: Address new and existing competition by refining offerings and differentiating your brand.
• Effective Marketing: Emphasize effective marketing, whether in-house or professional, to raise awareness for your frozen yogurt business.

Success lies in integrating these factors, forming a robust foundation for your frozen yogurt venture.

By focusing on customer needs, nurturing relationships, managing resources, and adapting to the dynamic market, your business can thrive and endure in the competitive landscape.

Making Your Frozen Yogurt Business Stand Out

• Unique Flavor Creations: Introduce signature flavors that customers can’t find elsewhere, offering a delightful twist to the classic options.
• Interactive Toppings Bar: Create an engaging self-serve toppings station with a wide range of toppings, encouraging customers to customize their treats.
• Health-Conscious Options: Offer low-fat, dairy-free, and probiotic-rich frozen yogurt choices to cater to various dietary preferences.
• Seasonal Specials: Introduce limited-time seasonal flavors and toppings to keep customers excited and coming back for something new.
• Themed Decor: Use creative and appealing decor that aligns with your brand, making the ambiance of your shop memorable.
• Sustainable Practices: Embrace eco-friendly packaging, utensils, and practices to attract environmentally conscious customers.
• Local Ingredients: Highlight locally sourced ingredients to emphasize freshness and support local producers.
• Loyalty Programs: Implement loyalty programs that reward frequent customers with discounts, freebies, or exclusive offers.
• Social Media Engagement: Regularly share visually appealing content on social media platforms to showcase your offerings and connect with customers.
• Collaborations: Partner with local businesses for joint promotions or co-branded products, expanding your reach and customer base.

Add on Ideas for a Frozen Yogurt Business

• Gourmet Sauces: Offer premium sauces like house-made caramel, chocolate ganache, or fruit coulis as decadent toppings.
• Fresh Fruits: Provide a wide variety of fresh fruits as toppings, allowing customers to add a healthy and colorful touch to their desserts.
• Crunchy Delights: Include an assortment of crunchy toppings like nuts, granola, and cookie crumbles for added texture.
• Boba Pearls: Offer chewy boba pearls as a unique and fun topping that adds an extra layer of enjoyment.
• Hot Dessert Pairings: Pair frozen yogurt with warm desserts like brownies or churros for a delightful contrast.
• Nut Butter Drizzles: Offer drizzles of almond butter, peanut butter, or other nut-based spreads for a creamy and flavorful addition.
• Dessert Parfaits: Create layered dessert parfaits by combining frozen yogurt with cake, fruit, and toppings in stylish containers.
• Smoothie Bowls: Transform frozen yogurt into smoothie bowls with a variety of nutritious add-ins like seeds, dried fruits , and superfoods.
• Fresh Whipped Cream: Top off frozen yogurt creations with freshly whipped cream for an indulgent finishing touch.
• Limited-Edition Collaborations: Collaborate with local bakeries or confectioneries to introduce exclusive dessert collaborations for a limited time.
• Chocolate Fondue: Offer warm chocolate fondue for dipping frozen yogurt and various treats like marshmallows, pretzels, and fruits.
• Spice and Herb Infusions: Experiment with unique flavor infusions using spices, herbs, and exotic ingredients to create unforgettable combinations.
• Dessert Popsicles: Freeze yogurt and fruit combinations into popsicles for a convenient and refreshing treat.
• Waffle Cone Bowls: Serve frozen yogurt in freshly made waffle cone bowls for a delightful and aromatic touch.
• Yogurt Parfait Kits: Package granola, fresh fruits, and yogurt for customers to create their own parfaits at home.

Adding these innovative features and toppings to your frozen yogurt business can enhance customer experiences, set you apart from competitors, and contribute to your business’s success.

Marketing Considerations

A frozen yogurt business’s viability hinges on attracting customers.

Early stages are challenging due to unfamiliarity, but with a solid reputation and increased marketing expertise, the process becomes smoother over time. Marketing remains an ongoing effort.

Investing in effective marketing techniques directly correlates with revenue growth. While a marketing agency isn’t always necessary, it’s an option when suitable.

Simplify marketing by focusing on raising awareness whenever opportunities arise.

Simple Methods to Promote Your Frozen Yogurt Business:

• Social Media:  Regular posts showcasing flavors, toppings, and customer experiences.
• Local Events:  Participate in community events, offering samples to introduce your product.
• Loyalty Programs:  Reward repeat customers with discounts or freebies.
• Referral Discounts:  Encourage word-of-mouth by providing incentives for customer referrals.
• Collaborations:  Partner with nearby businesses for cross-promotions and shared customers.
• Flyers and Brochures:  Distribute promotional materials in high-traffic areas.
• Online Listings:  Ensure accurate business information on platforms like Google My Business.
• Tasting Events:  Host tasting sessions for potential customers to sample your offerings.
• Email Campaigns:  Keep customers informed about promotions and new flavors via email.
• Customer Reviews:  Encourage satisfied customers to leave positive reviews online.

Consistency and creativity in these methods can significantly enhance your frozen yogurt business’s visibility and customer base.

See How To Get Customers Through the Door and our marketing section to provide ideas to help you bring awareness to your business.

Sample Ad Ideas:

Headline: “Indulge in Delightful Frozen Yogurt Creations!”

Satisfy your cravings with our creamy frozen yogurt. Choose from a variety of flavors and delicious toppings. Visit us today and treat yourself!

Headline: “Cool Off with Refreshing Frozen Yogurt!”

Beat the heat with our refreshing frozen yogurt. Experience a burst of flavors that will leave you craving for more. Join us for a taste of pure joy!

Headline: “Taste Happiness in Every Spoonful!”

Discover a world of happiness with our delectable frozen yogurt.

Dive into a delightful experience of flavors and toppings that will brighten your day.

Headline:  “Frozen Yogurt: Your Guilt-Free Indulgence!”

Satisfy your sweet tooth guilt-free with our low-fat frozen yogurt. Treat yourself to a healthier dessert option that doesn’t compromise on taste.

Headline: “Create Your Perfect Frozen Yogurt Masterpiece!”

Unleash your creativity with customizable frozen yogurt.

Pick your favorite flavors and toppings to craft a masterpiece that’s uniquely yours. Dive into deliciousness today!

Collaborating with complementary businesses can be mutually beneficial.

Consider these partnership opportunities for referrals and rewards:

• Cafes and Restaurants: Partner to offer dessert options or special deals to each other’s customers.
• Gyms and Fitness Centers: Cross-promote healthy treats for their members and encourage post-workout indulgence.
• Event Planners: Provide frozen yogurt catering for events, and they can recommend your services for sweet treats.
• Kids’ Activity Centers: Partner to offer special promotions for families, where parents can treat their kids after activities.
• Local Schools and Colleges: Offer student discounts and promotions for frozen yogurt, gaining a younger customer base.
• Corporate Offices: Cater office events and lunches, while they refer your business for corporate gatherings.
• Local Tourism Agencies: Recommend your business to tourists seeking local experiences.
• Birthday Party Venues: Collaborate for special party packages that include frozen yogurt treats.
• Health and Wellness Stores: A mutual promotion for healthier frozen yogurt options could benefit both businesses.
• Pet-Friendly Businesses: Offer dog-friendly frozen yogurt and collaborate with pet-related stores.
• Bookstores or Libraries: Co-host family-friendly events with reading and treats.
• Beauty and Spa Salons: Combine indulgence with pampering through joint promotions.

Customize referral fees or benefits to align with each partner’s preferences, ensuring a win-win situation for both businesses and their customers.

Focusing on your skill set and assessing its suitability for running a frozen yogurt business is crucial for success.

Your skills shape how efficiently you manage operations, customer service, finances, and marketing.

Evaluating your abilities helps identify strengths and weaknesses.

If you lack a vital skill, options exist. Learning through training, courses, or mentorship can bridge the gap. Alternatively, hiring individuals with the needed expertise can enhance your team’s capabilities.

Essential Skills for a Frozen Yogurt Business Owner:

• Customer Service:  Ensuring positive experiences and repeat business.
• Financial Management:  Handling budgets, expenses, and revenue.
• Marketing and Promotion:  Attracting and retaining customers.
• Operations Management:  Efficiently running day-to-day activities.
• Food Safety Knowledge:  Ensuring safe handling and serving of products.
• Adaptability:  Navigating changing trends and market demands.
• Communication:  Engaging with customers, staff, and suppliers.
• Problem-Solving:  Addressing challenges swiftly and effectively.
• Leadership:  Managing and motivating your team.
• Creativity:  Innovating new products and ideas for growth.

Knowledge Is Power if You Use It!

Leverage knowledge for empowerment. Abundant industry insights await.

Valuable links provide startup and operational wisdom for your business journey.

Trends and Statistics

Examining industry trends and statistics informs frozen yogurt businesses about customer preferences, market shifts, and competitive strategies, enabling informed decisions for growth and success.

See the latest search results for trends and statistics related to the frozen yogurt industry.

Frozen Yogurt Associations

Trade associations provide benefits like industry updates and networking chances, keeping professionals informed and connected within their field.

See the search results related to frozen yogurt associations and the benefits of Joining the Chamber of Commerce.

The Top Frozen Yogurt Shops

Analyzing an established frozen yogurt business sparks innovative ideas, uncovers industry gaps for a competitive edge, and reveals overlooked opportunities offered by competitors.

See the latest search results for the top frozen yogurt shops.

The Future of the Frozen Yogurt

Researching the industry’s future helps aspiring frozen yogurt business owners anticipate trends, understand market demands, and make informed decisions for a competitive advantage and long-term success.

See the search results for the future of the frozen yogurt industry.

Find a Frozen Yogurt Business For Sale

Benefits of Buying an Established Frozen Yogurt Business:

• Earn revenue from day one.
• Skip the startup phase.
• Understand a proven business model.
• Gain insights into revenue, profit, and expenses.
• Acquire an existing customer base.
• Leverage an established business reputation.

Disadvantages of Buying an Established Frozen Yogurt Business:

• Higher costs due to purchasing goodwill and customer base.
• Risk of losing customers if changing business approach.
• Inherit both positive and negative aspects of the business reputation.

Exploring Opportunities in the Same Industry: Even if an exact match isn’t available, it’s worthwhile to check related options using the provided link.

The latest search results for a frozen yogurt business for sale and others in the same category.

Franchise Opportunities Related to a Frozen Yogurt Business

Consider the pros and cons of owning a frozen yogurt franchise before venturing into the business.

Benefits include a proven model, established reputation, comprehensive understanding, and corporate support.

However, cons encompass high costs, limited autonomy, restricted offerings, adherence to the agreement, and ongoing fees.

Exploring related opportunities might unveil unconsidered options.

To explore franchises within the same industry, utilize the link for potential matches.

See the latest search results for franchise opportunities related to this industry.

Customer Expectations

Examining search results for frozen yogurt customer expectations offers insights to meet and surpass desires.

Uncover unaddressed issues, enriching possibilities to fulfill customer needs comprehensively.

See the search results related to customer expectations for frozen yogurt.

Expert Tips

Expert tips enhance skills for both novices and experts.

Fresh perspectives aid experts, while novices gain valuable knowledge to refine their abilities and understanding.

See the latest search results for frozen yogurt to gain tips and insights.

Frozen Yogurt Business Insights

Examining tips and insights unveils innovative ideas, highlights pitfalls to avoid, and boosts industry expertise for successful frozen yogurt business management.

See the latest search results about insights into running a frozen yogurt business.

Frozen Yogurt Publications

Publications offer vital updates and insights about frozen yogurt, serving as a crucial source to stay informed and gather fresh ideas.

See the search results for frozen yogurt publications.

Frozen Yogurt Forums

Engage in frozen yogurt forums for industry connections and insights.

Forums facilitate customer understanding through discussions, aiding better customer relations.

See the latest search results related to frozen yogurt forums.

Enroll in online or local courses to enhance skills and knowledge for your frozen yogurt business growth. Education offers valuable advantages.

See the latest courses that could benefit a frozen yogurt business owner . Also, see our management articles for tips and insights for managing your business.

Frozen Yogurt Blogs

Subscribe to frozen yogurt blogs for ideas and industry updates.

Keep those that deliver value and current content; curate a valuable collection of sources for continuous information.

Look at the latest search results for frozen yogurt blogs to follow.

Frozen Yogurt News

Stay informed about frozen yogurt through news coverage, a reliable source for updates on related stories by the media.

See the latest results for frozen yogurt news.

YouTube daily adds new videos, including valuable frozen yogurt content. Explore for insightful information at your leisure.

YouTube videos related to frozen yogurt.

Privacy Overview

Frozen Yogurt Business Plan Template [Updated 2024]

Frozen Yogurt Business Plan Template

If you want to start a frozen yogurt business or expand your current frozen yogurt business, you need a business plan.

The following Frozen Yogurt business plan template gives you the key elements to include in a winning Frozen Yogurt business plan. In addition to this template, a solid plan will also include market research to help you better understand market trends, your competitive advantage and your target customers. It will also help you create a strong marketing plan and financial projections.

You can download our Ultimate Business Plan Template (including a full, customizable financial model) to your computer here.

Frozen Yogurt Business Plan Example

Below are links to each of the key sections of your Frozen Yogurt business plan: I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

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Frozen Yogurt Business Plan Home I. Executive Summary II. Company Overview III. Industry Analysis IV. Customer Analysis V. Competitive Analysis VI. Marketing Plan VII. Operations Plan VIII. Management Team IX. Financial Plan

Home » Food

How to Start a Frozen Yogurt Business [Business Plan]

A frozen yogurt business is a store that mainly prepares and serves frozen yogurt and other frozen yogurt-based items, as well as toppings. A recent report released by Ibis World shows that the market size of the frozen yogurt industry in the US has declined 8.7 percent per year on average between 2017 and 2022.

The number of businesses in the frozen yogurt store sector in the United States was 239 in 2020, down from the previous year’s total of 250 businesses, and the number of establishments in this sector was forecast to decline to 235.

Steps on How to Start a Frozen Yogurt Store Business

Conduct market research.

Conducting market research before starting any business is key to the success of the business hence you must not open a frozen yogurt store without it. Market research provides critical information about your market and your business landscape. It can tell you how your business is perceived by the customers and clients you want to reach.

It can help you determine who and where your customers are, and which customers are most likely to do business with you. Thorough market research will help you understand how your target customers think to turn them into regular customers and brand advocates.

a. Who is the Target Market for Frozen Yogurt Business?

• Event planners
• Facility managers
• Every adult and child in the neighborhood where your frozen yogurt store will be located.

Please note that consumers between the age range of 18 and 35 buy the most frozen yogurt, accounting for 41.8 percent of sales.

b. Is Frozen Yogurt Shop a Profitable Business?

Yes, the frozen yogurt store business is quite profitable but you must be deliberate with your sales and marketing strategies if you intend to keep the business growing. According to IBIS World, the frozen yogurt market is a $1 billion per year industry with 2508 stores in operation. Based on this estimate, the average store generates $398,724 in annual sales.

c. Are There Existing Niches in the Industry?

Yes, there are existing niches when it comes to the frozen yogurt business, and here are some of them;

• Brick and mortar frozen yogurt store (sit-down frozen yogurt store)
• Drive through frozen yogurt store
• Kiosk frozen yogurt store
• Mobile frozen yogurt store (frozen yogurt carts or trucks)

d. Who are the Major Competitors?

• Menchie’s Frozen Yogurt
• Orange Leaf Frozen Yogurt
• Red Mango FC LLC
• Let’s YO
• Tutti Frutti Frozen Yogurt
• Yogurt Mountain
• Yogurtology
• Golden Spoon
• Spoon Me Frozen Yogurt
• YoLo Frozen Yogurt
• Tasti D-Lite

e. Are There County or State Regulations or Zoning Laws for Frozen Yogurt Business?

Yes, there are county and state regulations and zoning laws for frozen yogurt stores in the United States. Please note that the Food and Drug Administration (FDA) sets the federal Food Code. However, the FDA doesn’t oversee individual frozen yogurt stores. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.

Please note that in the United States, you are required to follow your state’s food service code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.

f. Is There a Franchise for Frozen Yogurt Business?

Yes, there are franchise opportunities for frozen yogurt stores. They include;

• The Fuzzy Peach
• Forever Yogurt
• Yogo Factory
• Orange Leaf

g. What Do You Need to Start a Frozen Yogurt Business?

• A Feasibility Report
• Business and Marketing Plans
• Business Licenses and Permits
• A Good Shop facility
• EIN (Employer Identification Number) / Federal Tax ID Number.
• A Corporate Bank Account
• Startup Capital

Memorable Frozen Yogurt Business Names

• Tyler Ferguson© Frozen Yogurt Store, Inc.
• Double Mix® Frozen Yogurt Store, LLC
• Cloe Mickey© Frozen Yogurt Store, Inc.
• Yogo Genius® Frozen Yogurt Store, Inc.
• Teddy Ben™ Frozen Yogurt Store, Inc.
• The Horizon™ Frozen Yogurt Store, LLC.
• Brown Yogo© Frozen Yogurt Store, LLC
• Sonia Delight® Frozen Yogurt Store, Inc.
• Green Lake© Frozen Yogurt Store, Inc.
• Red Cup© Frozen Yogurt Store, Inc.
• Reddington® Frozen Yogurt Store, LLC
• Reel Yogo® Frozen Yogurt Store, LLC
• Akin Louisa™ Frozen Yogurt Store, LLC
• Green Cups© Frozen Yogurt Store, Inc.
• Merilyn Phumla® Frozen Yogurt Store, Inc.
• Pamela Signature™ Frozen Yogurt Store, Inc.
• Gab Nelson™ Frozen Yogurt Store, Inc.
• Homeland© Frozen Yogurt Store, Inc.
• Yogo House® Frozen Yogurt Store, LLC
• Pacqueece™ Frozen Yogurt Store, Inc.

Register Your Business

A. what type of business structure is best for frozen yogurt store.

When it comes to starting a frozen yogurt business, you have several options when it comes to the business structure, but the one most players consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has employees or if it will be required to file the excise tax forms listed below.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Frozen Yogurt Store Business?

• General Business License
• Health and Safety Permit
• Food and Drinks Handlers’ License
• Zonal Permits
• Signage Permit
• Operational State Facility Inspections
• A music license if you want to play live, recorded, or streaming music in your shop
• A dumpster placement permit that specifies where you can put your dumpster outside your shop
• Sidewalk permits if you plan to offer outside seating

d. What Type of Certification is Needed to Open a Frozen Yogurt Store Business?

You don’t need any certifications to open a frozen yogurt store business.

e. What Documents are Needed to Open a Frozen Yogurt Store Business?

• Business and liability insurance
• Federal Tax Payer’s ID
• State Permit and Building Approval
• Certificate of Incorporation
• Business License
• Business Plan
• Employment Agreement (offer letters)
• Operating Agreement for LLCs
• Insurance Policy
• Online Terms of Use
• Online Privacy Policy Document
• Contract Document
• Company Bylaws
• Memorandum of Understanding (MoU)

f. Do You Need a Trademark, Copyright, or Patent?

If you are considering opening a frozen yogurt store, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

Cost Analysis and Budgeting

A. how much does it cost to start a frozen yogurt store business.

The cost required to open a frozen yogurt store business may vary significantly and it could be high, moderate, or low. A sit-down frozen yogurt store typically costs between $200,000 and $375,000 to set up. A large drive-through shop can cost between $80,000 and $200,000. A small kiosk frozen yogurt store may cost between $5,000 and $50,000. A franchised sit-down frozen yogurt store can cost up to $350,000.

b. What are the Cost Involved in Starting a Frozen Yogurt Store

• The total fee for registering the business in the United States of America – is $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $80.
• The cost for hiring a business consultant (writing of business plans inclusive) – is $2,500.
• Insurance (general liability, workers’ compensation, and property-casualty) coverage at a total premium – $2,400.
• The cost of accounting software, CRM software, and payroll software – $1,500
• The cost for payment of rent for 12 months at $1.76 per square foot in the total amount of – $35,600.
• The cost for shop/facility remodeling – $25,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits will cost – ($2,500)
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $30,000
• The cost for start-up inventory – $16,027
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for counter area equipment (countertop, sink, ice machine, etc.) – $6,000
• The cost for serving area equipment (glasses, flatware) – $3,000
• The cost for store equipment (cash register, security, ventilation, signage) – $3,150
• The cost for the purchase of office furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $8,000.
• The cost of launching an official website – $600
• The cost for our grand opening party – $3,000
• Miscellaneous – $2,500

c. What Factors Determine the Cost of Opening a Frozen Yogurt Store Business?

• The size of the frozen yogurt store
• The choice of location
• The required licenses and permits
• The type of facility
• The cost for branding, promotion, and marketing
• The cost for furnishing and equipping the frozen yogurt store
• The cost of insurance policy covers
• The cost for registering the business
• Source of your supplies and ongoing expenses
• Cost of recruiting and training your staff
• The cost for the purchase and customizing of uniforms
• The cost for the grand opening of the frozen yogurt store business

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

It is not compulsory to build a new facility for your frozen yogurt store business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a facility will help you come up with a facility that will perfectly fit into your overall business goals and vision.

e. What are the Ongoing Expenses of a Frozen Yogurt Store Business?

• Supplies (inventory expenses)
• Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees

f. What is the Average Salary of your Staff?

• Shop Manager (Owner) – $45,000 Per Year
• Accountant – $30,630,000 Per Year
• Yogurt Makers and Servers – $27,100 Per Year
• Cleaners – $25,000 Per Year
• Security Guard -$24,000 Per Year

g. How Do You Get Funding to Start a Frozen Yogurt Store Business

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Write a Business Plan

A. executive summary.

Our frozen yogurt store business will be located in a fast-growing community in Fresno, California. We have been able to secure a two-year lease agreement for a vacant shop within the city’s largest shopping mall. We are fortunate to secure a facility with an option of renewal for 5 years at a rate that is favorable to us.

b. Products and Service

• Traditional frozen yogurt
• Tart frozen yogurt
• Smoothies made from frozen yogurt
• Yogurt parfaits
• Toppings and other yogurt-related food items

c. Mission Statement

Our mission is to build a yogurt store business that will meet the needs of all our customers in the regions or cities where we have our outlets and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to grow our business all over the world and be the brand for quality yogurt, a great crew, cool culture, and active community involvement. We want to be known as the yogurt store brand with the triple threat- nutritious, aesthetically pleasing, and delicious.

d. Goals and Objectives

The goals and objectives of a frozen yogurt store business are to provide a retail outlet where patrons can go to buy different flavors of yogurt.

e. Organizational Structure

• Shop Manager (Owner)
• Yogurt Maker and Server
• Security Guard

Marketing Plan

A. swot analysis.

• Ideal location for a frozen yogurt store business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to ingredients and supplies.
• A reliable, clean, healthy, and efficient method of preparing yogurt.
• Financial constraints may restrict the publicity and branding of the business
• A new business that will be competing with well-established frozen yogurt stores and franchises in the city.
• Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.

Opportunities:

• A rise in the number of yogurt lovers within our market space
• Online market, new services, new technology, and of course the opening of new markets.
• The arrival of a new frozen yogurt store within our market space
• Steady wage expenses and increasing prices of gas amid the low demand during the pandemic will reduce industry profitability.
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

b. How Do Frozen Yogurt Stores Make Money?

Frozen yogurt stores make money by selling the following products;

c. Payment Options

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer

d. Sales & Advertising Strategies

• Introduce your frozen yogurt store business by sending introductory letters alongside your brochure to corporate organizations, households, and other key stakeholders throughout the city where your frozen yogurt store is located.
• Advertise on the internet, on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
• Create a basic website for your business to give your business an online presence
• Directly market your products.
• Join local frozen yogurt store associations for industry trends and tips
• Provide discount days for your customers
• Advertise our business in community-based newspapers, local TV and radio stations
• List your business on yellow pages ads (local directories)
• Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

A. how much should you charge for your product/service.

On average, a pint of yogurt in the United States costs around 2.33 U.S. dollars.

b. How Much Profit Do Frozen Yogurt Store Owners Make a Year?

It depends, but available reports show that on average, a small to medium-sized frozen yogurt store can earn anywhere from $60,000 to $350,000 for the shop owner.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the frozen yogurt store
• The types of products retailed in the shop
• The location the frozen yogurt store is covering
• The management style of the frozen yogurt store
• The business approach of the frozen yogurt store
• The advertising and marketing strategies adopted by the store.
• The number of years the frozen yogurt store is in business

d. What is the Profit Margin of a Frozen Yogurt Store?

The profit margin of a frozen yogurt store is not fixed. But on average, most yogurt stores make 10 percent and above.

e. What is the Sales Forecast?

Below is the sales forecast for a frozen yogurt store. It is based on the location of the business and other factors as it relates to such startups in the United States;

• First Fiscal Year: $240,000
• Second Fiscal Year:  $400,000
• Third Fiscal Year: $600,000

Set Up your Shop

A. how do you choose a perfect location for frozen yogurt store.

• The demography of the location especially as it relates to people that take yogurts regularly
• The demand for frozen yogurt in the location
• The purchasing power of residents of the location
• Accessibility of the location
• The number of frozen yogurt stores, and restaurants that sells yogurt in the location
• The local laws and regulations in the community/state
• Traffic, parking and security et al

b. What State and City are Best to Open a Frozen Yogurt Store?

• Phoenix, Arizona
• Las Vegas, Nevada
• Tucson, Arizona
• Riverside, California
• San Antonio, Texas
• Miami, Florida
• Houston, Texas
• Fresno, California
• Orlando, Florida.

c. What Equipment is Needed to Operate a Frozen Yogurt Store?

• A commercial-grade soft-serve machine (please note that soft-serve machines and frozen yogurt machines are the same things)
• Refrigerators/freezers, dispensers, containers

Hire Employees

When it comes to hiring employees for a standard frozen yogurt store, you should make plans to hire a competent shop manager (you can occupy this position), account clerk, yogurt makers, servers, cleaners, and security guard.

Launch the Business Proper

No frozen yogurt store opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with a proper launching of the frozen yogurt store, you will officially inform people in your city that your frozen yogurt store is open for business.

a. What Makes a Frozen Yogurt Store Business Successful?

• Choose a good location and shop facility to launch the business
• Make sure your shop is well stocked with different flavors of yogurts (give your customers options)
• Throw a party before officially opening the frozen yogurt store
• Be deliberate with your marketing sales approach
• Encourage the use of word of mouth to promote your frozen yogurt store business
• Leverage on all available online and offline platforms to promote your frozen yogurt store business

b. What Happens During a Typical Day at a Frozen Yogurt Store?

• The shop is open for the day’s work
• The serving areas, chairs, and tables are properly arranged
• Walk-in customers are attended to
• Deliveries of orders are made
• Stocks are taken and reports are written and submitted to superior officers
• The business is closed for the day.

c. What Skills and Experience Do You Need to Build a Frozen Yogurt Store Business?

• Excellent customer services skills
• Interpersonal skill
• Accounting and bookkeeping skills
• Business management skills
• Bargaining skill
• Work experience in a store environment
• Experience in managing people
• Experience in business administration
• Experience in handling different types of yogurt-making machines.

More on Food

How To Write a Business Plan for Organic Frozen Yogurt in 9 Steps: Checklist

By henry sheykin, resources on organic frozen yogurt.

• Financial Model
• Business Plan
• Value Proposition
• One-Page Business Plan
• SWOT Analysis
• Business Model
• Marketing Plan

Are you considering starting your own organic frozen yogurt business? You're in the right place! In this blog post, we will guide you through the process of creating a business plan for your organic frozen yogurt shop in just 9 easy steps. But first, let's take a look at the latest statistics and growth numbers in the industry.

The organic frozen yogurt industry has been experiencing remarkable growth in recent years. According to a report by Market Research Future, the global frozen yogurt market is expected to grow at a CAGR of 7.2% from 2020 to 2027. This indicates a significant demand for this delicious and healthier dessert option.

Now that you know the industry is thriving, let's dive into the steps you need to follow to create a successful business plan for your organic frozen yogurt shop.

• Conduct market research
• Define your target audience
• Analyze the competition
• Identify potential suppliers and vendors
• Determine the location and space requirements
• Develop a comprehensive marketing strategy
• Determine the startup costs and secure financing
• Create a detailed operational plan
• Define key milestones and timelines

By following these 9 steps, you will be well on your way to launching your very own organic frozen yogurt business. Each of these steps plays a crucial role in the success of your venture, so make sure to give them the attention they deserve.

Stay tuned as we delve deeper into each step in upcoming blog posts. We will provide you with valuable insights, tips, and resources to help you navigate the process smoothly and confidently. Good luck on your organic frozen yogurt business journey!

Conduct Market Research

Before starting any business, it is crucial to conduct thorough market research to gather essential information about the industry, target audience, and potential competition. This research will help you make informed decisions and develop a solid business plan for your organic frozen yogurt venture.

• Identify trends and demand: Research the market to understand current trends and demands for organic frozen yogurt. Look for data on the growth of the industry, consumer preferences, and purchasing habits. This information will help you gauge the potential success of your business and tailor your offerings to meet customers' needs.
• Assess the competition: Identify existing organic frozen yogurt shops in your target market and analyze their offerings, prices, and customer reviews. Look for any gaps or opportunities that you can capitalize on to differentiate your business. Understanding your competition will also allow you to develop strategies to attract and retain customers.
• Understand your target audience: Determine who your ideal customers are by considering factors such as age, gender, location, and lifestyle. Conduct surveys or focus groups to gather insights into their preferences, dietary restrictions, and price sensitivity. This information will help you tailor your marketing messages and product offerings to appeal to your target audience.

Tips for conducting market research:

• Utilize online resources such as industry reports, market research databases, and social media platforms to gather information.
• Interview potential customers or conduct surveys to gather direct feedback and insights.
• Visit competitor stores and observe their operations, customer interactions, and product offerings.
• Keep an eye on emerging trends and changes in consumer behavior to stay ahead of the competition.
• Consider hiring a professional market research firm if you require in-depth analysis or lack the expertise to gather data effectively.

Define Your Target Audience

Defining your target audience is a crucial step in developing a successful business plan for your organic frozen yogurt shop. By understanding who your potential customers are, you can tailor your products and marketing strategies to meet their specific needs and preferences.

When identifying your target audience, consider factors such as age, gender, location, lifestyle, and dietary preferences. Are you targeting health-conscious individuals, families, or young adults looking for a refreshing and guilt-free dessert option? Understanding the demographics and psychographics of your target audience will help you create a product offering that appeals to them.

• Tip 1: Conduct surveys or interviews with potential customers to gather insights into their preferences and expectations.
• Tip 2: Analyze market research data to identify trends and patterns in the frozen yogurt industry, as well as consumer behavior.
• Tip 3: Look at your competition and their target audience. Identify gaps and opportunities that you can capitalize on.

Once you have defined your target audience, you can tailor your marketing messages and promotions to resonate with them. This could include highlighting the health benefits of organic frozen yogurt or emphasizing the customizable options available at your shop. By understanding your target audience, you can position your business as the go-to destination for those seeking a delicious and healthier frozen treat.

Analyze The Competition

In order to succeed in the competitive organic frozen yogurt industry, it is crucial to thoroughly analyze your competition. Understanding their strengths, weaknesses, and strategies will allow you to position your business effectively in the market. Here are some important steps to conduct a comprehensive analysis of your competition:

• Identify your direct competitors: Begin by identifying other organic frozen yogurt shops in your local area or target market. Take note of their offerings, customer base, pricing, and any unique selling points they may have.
• Assess their strengths and weaknesses: Analyze the strengths and weaknesses of each of your competitors. This will help you identify areas where you can differentiate your business and provide a better experience for customers.
• Evaluate their marketing strategies: Examine how your competitors are promoting their businesses. Look at their social media presence, websites, advertising campaigns, and any promotional activities they may be engaged in. This will give you insights into effective marketing tactics and potential gaps in the market.
• Analyze customer feedback: Research reviews and feedback from customers on various platforms, such as social media, review websites, and online forums. Pay attention to their positive and negative experiences, as well as any common complaints or suggestions. This will help you understand what customers appreciate and where your competition might be falling short.
• Visit their stores: Take the time to visit your competitors' frozen yogurt shops. Observe their store layout, customer service, and overall atmosphere. Note any unique features or aspects that set them apart from others.
• Price comparison: Compare the pricing of your competitors' products and services. Assess whether their prices are higher or lower than what you plan to offer and take into consideration the quality of ingredients, portion sizes, and overall value provided.
• Regularly update your analysis as the market evolves and new competitors emerge.
• Consider conducting mystery shopping to get a firsthand experience of your competitors' offerings and customer service.
• Seek feedback and insights from industry experts or consultants who can provide an unbiased perspective on your competition.

By thoroughly analyzing your competition, you will be equipped with valuable insights that can guide your business strategy and help you differentiate your organic frozen yogurt shop in the market.

Identify Potential Suppliers And Vendors

When starting a business, it is crucial to identify potential suppliers and vendors who can provide the necessary ingredients and materials for your organic frozen yogurt shop. These suppliers and vendors play a critical role in ensuring the quality of your products and the smooth operation of your business.

When searching for potential suppliers, consider the following:

• Quality: Look for suppliers who offer high-quality organic ingredients that align with your business values and customer expectations. Conduct thorough research and request samples to ensure the products meet your standards.
• Reliability: Choose suppliers who have a proven track record of delivering products on time and in the desired quantities. Reliability is crucial to maintaining a steady supply chain.
• Pricing: Compare prices and negotiate contracts with different suppliers to ensure you are getting the best value for your money. Consider factors such as volume discounts and potential long-term partnerships.
• Location: Opt for suppliers who are located near your business to minimize transportation costs and ensure quick deliveries. Local suppliers may also offer the advantage of supporting the community and promoting sustainability.
• Flexibility: Look for suppliers who are willing to work with you to accommodate your specific needs. This may include customized orders, flexible payment terms, or the ability to adapt to changing demands.

Here are some additional tips to consider when identifying potential suppliers and vendors:

• Attend trade shows and industry events to connect with potential suppliers in person and establish relationships.
• Seek recommendations from other business owners or industry professionals who have experience in the organic food industry.
• Research online directories and databases that list organic food suppliers and vendors.
• Consider joining industry associations or organizations that provide resources and connections for businesses in the organic food sector.

Determine The Location And Space Requirements

When opening an organic frozen yogurt business, choosing the right location and understanding space requirements is crucial for success. Here are some key considerations:

• Demographics: Research the target market and identify areas with a high concentration of health-conscious individuals or families who may be more likely to frequent an organic frozen yogurt shop.
• Accessibility: Look for a location that is easily accessible and visible to attract customers. Consider proximity to residential areas, schools, offices, or shopping centers.
• Size and Layout: Assess the space requirements based on your business plan and menu offerings. Ideally, the store should have enough room for self-service stations, seating areas, and a counter to accommodate customers and staff.
• Infrastructure: Evaluate the existing infrastructure of potential locations, including plumbing, electricity, and HVAC systems. Ensure that the space can adequately support the equipment needed for frozen yogurt production.
• Consider leasing options: Leasing a commercial space may provide flexibility and potentially cost savings compared to purchasing.
• Check local zoning regulations: Ensure that the chosen location complies with local zoning regulations and permits necessary for operating a food business.
• Visit the competition: Take the time to visit other frozen yogurt shops in the area to assess their location choices and learn from their successes and challenges.

By carefully considering these factors, you can select a location that maximizes your chances of attracting and retaining a loyal customer base for your organic frozen yogurt business.

Develop A Comprehensive Marketing Strategy

Developing a comprehensive marketing strategy is crucial to the success of your organic frozen yogurt business. By effectively promoting your products and enticing potential customers, you can drive sales and build a loyal customer base. Here are some important considerations when developing your marketing strategy:

• Identify your target audience: Determine who your ideal customers are, such as health-conscious individuals, families, or young adults. Understanding your target audience will help you tailor your marketing efforts to reach them more effectively.
• Create a strong brand identity: Develop a compelling and memorable brand that reflects the values and unique selling points of your organic frozen yogurt business. Use consistent branding across all marketing materials to cultivate awareness and recognition.
• Utilize various marketing channels: Implement a multi-channel approach to reach a wider audience. Consider using online platforms, social media, email marketing, local advertising, and partnerships with health-conscious influencers or organizations. Each channel should be used strategically to maximize your reach.
• Offer promotions and discounts: Entice customers with special promotions, discounts, or loyalty programs. This approach can attract new customers and encourage repeat business.
• Engage with your customers: Foster a strong relationship with your customers by engaging with them directly. Encourage feedback, respond to inquiries and reviews, and create opportunities for customer involvement, such as contests or taste-testing events.

Tips for Developing an Effective Marketing Strategy:

• Research successful marketing strategies used by other similar businesses in the frozen yogurt industry.
• Stay up-to-date with current trends and preferences in organic and healthy food markets.
• Consider partnering with local health-focused businesses or community events to increase your visibility.
• Regularly evaluate the success of your marketing efforts and adjust your strategy accordingly.

By developing a comprehensive marketing strategy, you can effectively promote your organic frozen yogurt business and attract the right audience. Remember to continuously monitor and adapt your marketing efforts to stay ahead in the competitive market.

Determine The Startup Costs And Secure Financing

Determining the startup costs is a critical step in launching your organic frozen yogurt business. It involves calculating all the expenses you will incur before your business becomes operational. These costs can include:

• Lease or rent for the storefront
• Renovations and equipment installation
• Purchase of frozen yogurt machines, freezers, and other necessary equipment
• Inventory and ingredients
• Packaging materials
• Marketing and advertising expenses
• Employee wages and training
• Utilities and insurance

It's essential to thoroughly research each aspect of your business and estimate the associated costs. This will help you develop an accurate budget and determine how much financing you will need to secure.

• Consult with industry professionals or experienced business owners to get a more accurate understanding of potential costs.
• Consider creating a contingency fund to account for unexpected expenses.
• Research and compare financing options, such as small business loans, grants, or partnerships, to secure the necessary funds for your startup.
• Prepare a compelling business plan and financial projections to present to potential lenders or investors.
• Keep track of all startup costs and maintain organized financial records for future reference and tax purposes.

Once you have determined your startup costs, it's time to secure financing. This process involves identifying the most suitable funding sources for your business and presenting a convincing case for why they should invest in your organic frozen yogurt venture.

Here are some avenues to explore for financing:

• Traditional bank loans
• Small Business Administration (SBA) loans
• Investors or venture capitalists
• Crowdfunding platforms
• Grants and government programs

Each option has its own advantages and requirements, so it's crucial to research and understand the terms and conditions associated with each funding source. Be prepared to demonstrate a solid business plan, market research, financial projections, and your commitment to the success of your organic frozen yogurt business.

Create A Detailed Operational Plan

Creating a detailed operational plan is crucial for the success of your organic frozen yogurt business. This plan outlines the day-to-day activities and processes involved in running your shop smoothly and efficiently. Here are some key elements to consider when developing your operational plan:

• Menu and Ingredients: Determine the flavors and toppings you will offer, and source high-quality organic ingredients from reliable suppliers. Maintain a comprehensive inventory list to ensure you always have the necessary ingredients on hand.
• Staffing and Training: Identify the staff positions you will need, such as yogurt servers, cashiers, and cleaners. Clearly define their roles and responsibilities, including tasks related to maintaining cleanliness and food safety standards. Provide thorough training to ensure all employees understand and follow proper procedures.
• Equipment and Maintenance: Compile a list of the equipment you will need, such as frozen yogurt machines, topping stations, refrigerators, and freezers. Research reputable suppliers and select equipment that meets your specific requirements. Create a regular maintenance schedule to keep everything in good working order.
• Food Safety and Sanitation: Develop a comprehensive food safety plan that adheres to industry regulations and guidelines. Train your staff on proper food handling, storage, and cleanliness practices. Set up protocols for regular sanitation inspections and ensure all employees follow them diligently.
• Customer Service: Outline your customer service policies and procedures. Train your staff to provide friendly and efficient service, emphasizing the importance of customer satisfaction. Develop a system for gathering customer feedback and address any concerns or suggestions promptly.
• Operational Workflow: Create a step-by-step outline of the operational workflow, from opening procedures to closing tasks. This includes tasks such as prepping ingredients, serving customers, cleaning and restocking, cash handling, and daily reporting. Clearly define shift schedules to ensure adequate coverage during peak hours.
• Regularly review and update your operational plan to adapt to changing customer preferences and industry trends.
• Invest in a reliable point-of-sale system to streamline operations, track sales, and manage inventory.
• Consider cross-training your staff to handle multiple roles, which can be helpful during busy periods or in case of unexpected absences.
• Maintain open communication channels with your suppliers to ensure timely delivery of ingredients and address any supply chain issues.

A detailed operational plan serves as a roadmap for your organic frozen yogurt business, ensuring that all aspects of operations are well-defined and properly executed. By following this plan meticulously, you can provide exceptional products and services to your customers while effectively managing your resources and maintaining a profitable venture.

Define Key Milestones And Timelines

Once you have developed your business plan for your organic frozen yogurt venture, it is important to define key milestones and timelines to guide your operations and measure your progress. These milestones will serve as checkpoints to track your business's growth and ensure that you are staying on track towards your goals.

First and foremost, outline the major steps that need to be accomplished to launch your organic frozen yogurt business. This might include securing permits and licenses, finding a suitable location, creating a menu, hiring staff, and setting up your kitchen and ordering equipment. Breaking down these steps into smaller tasks will make them more manageable and help you stay organized.

• Set realistic deadlines for each milestone to keep yourself accountable and motivated.

Next, assign specific timelines to each milestone based on their priority and dependencies. Consider factors such as the time required for paperwork, equipment installation, staff training, and marketing campaigns. Be mindful of any external factors that may impact your timelines, such as permit processing times or supplier lead times.

Furthermore, establish measurable goals for each milestone to track your progress. These could include targets for revenue, customer acquisition, employee retention, or operational efficiencies. Regularly assess your performance against these goals to identify areas for improvement and make necessary adjustments to your strategy.

• Consider including contingency plans in your milestones and timelines to factor in unforeseen circumstances or delays.

Lastly, document your milestones and timelines in a clear and easily accessible format. This could be in the form of a project management tool, spreadsheet, or visual timeline. Regularly revisit and update these milestones as your business evolves and grows.

By defining key milestones and timelines, you will have a roadmap for your organic frozen yogurt business, allowing you to track your progress, make informed decisions, and stay motivated as you work towards your goals.

In conclusion, creating a business plan for an organic frozen yogurt shop using the 'build your own' model requires careful consideration of various factors. By conducting market research, defining your target audience, analyzing the competition, and identifying potential suppliers and vendors, you can lay the foundation for a successful business. Additionally, determining the location and space requirements, developing a comprehensive marketing strategy, and securing financing will help you establish your shop and attract customers.

Creating a detailed operational plan, including defining key milestones and timelines, will ensure that your daily operations run smoothly. With this business model, you can offer a variety of organic and natural toppings to cater to health-conscious customers, while allowing for customization and control over spending. By following these nine steps and utilizing the checklist provided, you can create a solid business plan for your organic frozen yogurt shop and set yourself up for success.

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Frozen Yogurt Business Plan Template

AUG.21, 2018

Do you want to start frozen yogurt business?

Are you thinking about starting a yogurt business ? Well, you are on the right track! Yogurts and ice creams are the desserts that are liked and eaten by almost all the people on earth especially those who live in tropical regions. Frozen Yogurt is one of the most favorite desserts of the people of the United States. It is a delicious blend of frozen yogurt with fresh fruits, nuts, and crunch, drippings, and chocolates, presented in different colors and flavors. A frozen yogurt business may prove extremely beneficial choice for a startup if you are ready to manage some of the difficulties associated with it.

Well, you might then be searching for  how to start a frozen yogurt business , which will grow famous and make you a good fortune. The first step you will have to take is to make a comprehensive business plan covering all the aspects of your startup. In case, you aren’t experienced in writing a business plan, you can save yourself from trouble by taking help from this sample business plan for a frozen yogurt business startup named, ‘Fro-Yo Lodging’.

Executive Summary

2.1 the business.

Fro-Yo Lodging will be a licensed and registered frozen yogurt restaurant owned by Ethan Blake, located near the Music City Center, Nashville. Strategically, we will be located in a lively and vibrant area full of nightlife and tourists. Ethan wants to open frozen yogurt business  to work with his sole passion in the field he found easy and interesting.

2.2 Management

Management has never been a problem for Ethan, he is an aspirant of opening a self-serve frozen yogurt restaurant in which, the people can buy yogurts and top them with the various toppings available. The dessert will be prepared by himself, and his wife Anna with the assistance of a professional chef. To deal with the customers’ needs and to assist him in arranging the shelves and displays along with the other chores of the restaurant, he will hire a team of dedicated workers and manage them by himself.

2.3 Customers

Before writing a self serve frozen yogurt business plan , you must know that who will be your customers. The best thing about this business is its wide spectrum of customers, all children, young, old residents as well as tourists love to eat frozen yogurts above all desserts while sitting in a calm place.

2.4 Target of the Company

Our main goal is to provide healthy, delicious as well as economical frozen yogurts to our customers. Our business target is to become the best and the most visited frozen yogurt restaurant in Nashville within the next 2 years of our launch.

Company Summary

3.1 company owner.

Ethan Blake will be the owner of Fro-Yo Lodging. Ethan Blake has a Master’s degree in Business Administration, however, his passion in the food industry has honored him with title of ‘The Best Chef’ for his delicious desserts in various competitions. He is now called in the cooking shows and competitions as a judge. Ethan has various unique frozen yogurt business ideas , and he will act upon all by opening an enticing restaurant.

3.2 Why the Business is being started

Ethan had been working in a food-related firm for about four years and has won many dessert competitions throughout the four years. Now he has gained the experience and courage to start his own business. Ethan has decided to start a frozen yogurt business, as it is the business that suits his interest and can help him generate a huge profit.

3.3 How the Business will be started

A well-furnished restaurant lounge will be taken on rent and decorated in a tranquilizing manner with a soft backing music to attract the customers. The business will be self-served, customers will buy their desired flavored yogurt cups from the salesmen. After that, they will be free to take from 50 different toppings or drippings by themselves. Ethan believed that this self-serve behavior of his lodging will make the customers feel at ease; like they own this place.

Ethan has included many ways for interior and exterior decorations in his frozen yogurt business proposal . If you are also planning to enter this venture, but don’t know how to open a self serve frozen yogurt business , you can take help from this sample business plan free of cost.

The company’s financial experts have forecasted the following costs for expenses, assets, investment group for a business plan , and loans for the start-up.

The detailed start-up requirements, start-up funding, start-up expenses, total assets, total funding required, total liabilities, total planned investment, total capital and liabilities as forecasted by company’s analysts, is given below:

Services for customers

Before  opening a frozen yogurt business , you must make a list of items you want to provide your customers. In case, you are looking for  how to start a yogurt busines   and which services to provide, you can read here the services and products Ethan has decided for starting a frozen yogurt business .

The customers will have the option to enjoy the dessert by dining in the luxurious seating facility, however, we also have quick ‘take away’ and packaging service for those who don’t have time to stop in the restaurant. We’ll also add sweetness to your events and parties if you avail of our catering services.

Our products & services will include:

• Frozen Yogurts: We have about thirty different flavors of frozen yogurt, among which the most liked by people are plain, peach, cherry, strawberry, mango, blackberry, lava flow, lilikoi, and choco-nut.
• More than 50 Toppings & Drippings: After buying the cups of froyo, customers will be free to add any type of topping in any amount by themselves. Fro-Yo Lodging will provide more than fifty toppings and drippings including
• fresh fruits such as raspberry, blueberry, kiwi, blackberries, strawberry, pineapples, and mango etc.
• a wide variety of chocolates including Reese’s pieces, nestle crunch, chocolate sprinkles, brownie bites, Snickers and chocolate and yogurt chips
• nuts and crunches including fruity pebbles, cocoa pebbles, cappuccino crunch, granola crunch, almonds, gummy bears, mango & strawberry boba poppers
• drippings including vanilla, caramel, honey, chocolate, whipped cream and peanut butter
• Fruit Cocktail Salad: We’ll also be selling fresh fruit cocktail salads to our customers.
• Gelato: We’ll have vanilla, chocolate and fruity flavored gelatos available in our restaurant.

Marketing Analysis of Frozen Yogurt Business

If you are starting a frozen yogurt business, you must analyze the market in your frozen yogurt business plan  in which you are going to offer your services. Marketing analysis will help you in knowing the demands of your customers. Here, we are providing you a sample business plan for frozen yogurt shop , this  frozen yogurt business plan sample  is written for the Fro-Yo Lodging in Nashville, however, you can know about the market trends and position of your startup from this free frozen yogurt business plan.   Besides this frozen yogurt business plan pdf  file format, you can find a number of frozen yogurt business plans  available on the web. However, to be accurate and precise, you should hire a professional marketing analyst to make for you, a frozen yogurt shop business plan  according to your location and the latest market demands.

5.1 Marketing Trends

Frozen Yogurt is one of the most famous desserts of the people of the United States. According to the IBISWorld, this business is growing at an unbelievable rate of 11.6 % annually and is responsible for employing more than twenty thousand people of the United States. There are more than three thousand frozen yogurt businesses currently running in the United States. If you are starting a frozen yogurt business, you can make a large amount of profit as demonstrated by the figure that this business is responsible for generating a revenue of $2 billion annually. So, you can a large profit from this business, provided that you plan it successfully and accurately.

5.2 Marketing Segmentation

Ethan had hired a marketing expert to analyze the target market, he has identified the following target audience which can become the potential customers of our restaurant.

The detailed marketing segmentation comprising of the company’s target audience is as follows:

5.2.1 Local Residents: The first and the most numerous group of our customers will be the community residing in the vicinity of our restaurant. The variety of flavors and toppings provide everyone the taste he/she wants. We expect all the children, teens, young, adults and old who live near us to come to our restaurant and find the taste which they want. Once they are in, our terrific atmosphere and savory desserts will compel them to come again.

The residents will also avail our catering services whenever they arrange a small event or party. To gain and maintain customers from this major category, we’ll initially provide different promotional packages.

5.2.2 Working Class: The second category includes the workers and employees who work in the businesses or offices located in the vicinity of our restaurant. Most of these workers live singly and consult to the nearest restaurants whenever they want to eat something changed. Their budget and income will allow them to enjoy our services of both dine in the lodging, and take away the package if they are in a hurry.

5.2.3 Passers-by & Tourists: As Nashville is a center of many economical businesses and music auditoriums so it will be filled up by the tourists and passer-by not only during the day but also at night. So, the third category includes those people who do not live or work near our restaurant but have come to the area for any business purpose, commercial activity or tourism. On seeing the elegance of our restaurant and the activity inside, the exhausted passers-by will surely enjoy our delicious serving for a short stay.

The detailed market analysis of our potential customers is given in the following table:

5.3 Business Target

Our business target is to become the most famous and the most visited frozen yogurt restaurant in the whole Nashville. We aim at balancing the costs of our startup and promotional investments with the profit earned just within the two years of our launch.

5.4 Product Pricing

Our product pricing is nearly the same as that of our competitors and is reasonable, but we guarantee all our customers that we will have the best quality products and fresh topping eatables all the time at our lodging. Our strategy of selling services and products is explained here:

We’ll offer three sized frozen yogurt cups i.e. small, medium and large in of course varying prices. We’ll have some extra charges for the toppings, after paying the price the customer will be free to add as much material to his fro-yo as he can, or as he wants.

The next step after making a business plan and analyzing the market demands is to evaluate the frozen yogurt business start-up costs . After that, you will be required to scheme your strategic plans for availing more and more frozen yogurt business opportunities  and gaining more and more potential customers. The sales strategy of Fro-Yo Lodging is given here:

6.1 Competitive Analysis

If you are seeking help on how to open a frozen yogurt business  and run it successfully, then keep in mind, your business can never flourish if you don’t know what your competitors are doing, you have to come up with the conditions and benefits that your competitors lack.

Only we in the whole Nashville are providing catering service and so wide variety of toppings and flavors. We are located in an area which will be thronged up with the tourists and passers-by 24 hours a day. Our location is also favorable for the employees working near us, moreover, we are just at a 5-minute distance from the rich residential community.

The community that will visit us, will belong to a financially stable class, so we haven’t priced our products low to take a lead over our competitors. Instead, we have increased the quality and nutrition of our products. We ensure that we’ll use fresh products all the time, and Ethan along with his wife and the manager will keep a strict check on all the workers to ensure the quality of products.

6.2 Sales Strategy

We’ll advertise our services by the following strategies:

• We’ll offer free products in the first three days of the launch.
• We’ll send the packs of our frozen yogurts to the offices near us on the day of inauguration
• We’ll send letters to the residential community near us with a pack of three frozen yogurts on the day of inauguration
• We’ll offer 25% discount on our products on Tuesdays
• We’ll advertise us through social media and our website

6.3 Sales Forecast

We believe that if people try our delicious and healthy fro-yo, they will then eat them for the rest of their lives. That’s why we have forecasted our sales pattern to increase with years. Our experts have forecasted the following sales on a yearly basis which are summarized in the column charts.

The detailed information about the sales forecast, total unit sales, total sales is given in the following table:

6.4 Sales Monthly

6.5 Sales Yearly

Personnel plan

Personnel plan is the base of every startup and is a main decisive factor in the success or failure of a business, this sample business plan will guide you on how to start your own frozen yogurt business , by presenting to you a sample frozen yogurt business plan template  of Fro-Yo Lodging.

7.1 Company Staff

Ethan and his wife will manage the restaurant and hire some professionals to assist them with routine works. Ethan has made a list in his frozen yogurt business plan  outlining his required employees, which is given below:

• 1 Manager to assist him in managing the overall operations of the restaurant
• 10 Chefs for making and displaying the products
• 2 Food Technologists for tasting the flavors
• 5 Waiters/Salesmen to serve the customers and packaging desserts
• 1 Cashier to receive cash from the people
• 2 Accountants to maintain financial records
• 2 Hostess to greet, and guide the customers
• 2 Sales Executives responsible for the marketing and advertising of the restaurant
• 8 Cleaners to clean the dishes and other facilities at the restaurant
• 2 General Workers and 1 Driver for daily works

Ethan will ensure that all his employees are well-behaved and value the needs of customers.

7.2 Average Salary of Employees

The following table shows the forecasted data about employees and their salaries for the next three years.

Financial Plan

According to a study by Harvard Business School, nearly half of the startups fail in the first five years of their launch. If you are looking for how to open a frozen yogurt shop  you must know how to avoid the things that can end your business as a failure. Financial Plan is the deciding factor in the success of a business, especially if you want to grow your business, the financial plan envisages the details that how can you balance the startup costs and further expenses by the profit earned.

If you want your business to earn you a name, you have to do critical planning for at least the next five years. The most important thing is to make a thorough financial plan and estimate frozen yogurt business profit margins . Although you can take help from this sample financial plan demonstrating the frozen yogurt business profits  for Fro-Yo Lodging. But, to be more precise, you should seek the services of a professional financial developer to calculate frozen yogurt business profit  you can earn by the customers in your vicinity.

8.1 Important Assumptions

The company’s financial projections are forecasted on the basis of the following assumptions.

8.2 Brake-even Analysis

The following graph shows the company’s Brake-even Analysis.

8.3 Projected Profit and Loss

The following table show the company’s expected Profit and Loss situation on the monthly and yearly basis.

8.3.1 Profit Monthly

The following charts shows detailed information about profit and loss, and total cost of sales.

8.3.2 Profit Yearly

8.3.3 Gross Margin Monthly

8.3.4 Gross Margin Yearly

8.4 Projected Cash Flow

The following column diagram shows the projected cash flow.

The following table shows detailed data about pro forma cash flow, subtotal cash from operations, subtotal cash received, sub-total spent on operations, subtotal cash spent.

8.5 Projected Balance Sheet

The following projected balance sheet shows data about total current assets, total long-term assets, total assets, subtotal current liabilities, total liabilities, total capital, total liabilities and capital.

8.6 Business Ratios

The following table shows data about business ratios, ratio analysis, total assets, net worth.

Download Frozen Yogurt Business Plan Sample in pdf

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Start a Frozen Yogurt Business

Your FroYo Empire: Crafting Unique Concoctions for Dessert Lovers Everywhere

FROZEN YOGURT BUSINESS

Related business ideas, discover your perfect domain, frozen yogurt mini business plan, business analysis: frozen yogurt shop, expected percent margins, earnings expectations, actions to achieve numbers, inventory management:, marketing and customer acquisition:, sales and customer experience:, cost control:, business operations:, not what you had in mind here are more ideas, grab your business website name, step 1: determine if starting a frozen yogurt business is right for you, breakdown of startup expenses, breakdown of ongoing expenses, examples of ways to make money, step 2: name your business, register your business name, step 3: create a business plan, step 4: obtain funding, cost of funding, benefits of funding, step 5: choose a location, researching potential locations, step 6: obtain necessary licenses and permits, where to obtain licenses and permits, cost of licenses and permits, renewal of licenses and permits, step 7: purchase equipment, cost of equipment, financing options, maintenance, step 8: market your business, step 9: monitor your business, examples of how to monitor your business, step 9: open your doors, explore more categories, take the next steps.

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Things to Consider Before Opening a Frozen Yogurt Business in 2020

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Thinking about starting a frozen yogurt (AKA: froyo) business in the coming year, but aren’t sure if it’s right choice? This is the podcast episode for you.

When you crunch the numbers into a spreadsheet selling frozen yogurt can be a very attractive business model. Low product cost, minimal staffing requirements, and national consumer demand for the product has aided growth. But is this dessert market oversaturated or a fad past its prime?

Today, we outline the pros and cons of the business model, the steps you’ll need to take to differentiate the product and give you a no BS instruction to approach the opportunity thank to today’s guest Evan Waldt of Slices Concession .

Page Contents

Brief History of the Industry

Key characteristics of profitable yogurt shops, advantages:, challenges:, frozen yogurt shop startup costs, is a frozen yogurt business profitable, mentioned in the show, frozen yogurt shop ideas, frozen yogurt chains vs independent, conduct market research, popular frozen yogurt menu flavors, popular yogurt toppings list, questions to ask yourself before getting into this business.

The initial wave of popularity for soft-serve frozen yogurt began back in the 1980s with TCBY. While the dessert never disappeared it didn’t begin a return to popularity until 2006 – 2013 when there was a massive resurgence of interest in the product. Part of this was due to innovative toppings being served with the treat.

Fast forward to today and there have been a lot of closings over the past 5 years. Many of the closings were the result of markets being over saturated or absentee ownership situations that resulted in poorly managed stores. But of the shops that remain open as of 2020, many are doing well financially.

Yogurt shops that stayed in business share similar characteristics according to Waldt. If you’re still in the consideration phase, think about ways you could build the four competitive advantages below into the business.

• Location: The location of any small business is key to operating any successful small business. Look for retail spots near anchor stores such as a Target or restaurants. This will ensure steady foot traffic and discovery of the business.
• Active Ownership / Management: For many of the businesses that closed their doors, it was because the owners of the business weren’t actively involved and slowly let the business die. If you view a yogurt shop as a fully-passive source of revenue this probably not the right choice. You need to get involved and meet customers to improve the odds of success.
• Focus on Quality: To deliver the highest quality product possible, you’ve got to regularly maintain and inspect equipment. This attention to detail will make sure you continue to crank out the lightest and highest quality soft serve.
• Ongoing Innovation: We’ll dive into the specifics of this later in the post, but you’ve got to be tracking trends and testing new flavors to keep things fresh.
• Keep Marketing: Winning shops don’t stop marketing after being in business for 6 months. They keep going. Continue to look for more joint venture opportunities with schools or non-profits. Think about and test new ways to attract people to the store.

At the end of the day soft serve remains a great concept. It’s an affordable treat that families continue to enjoy. But this is not a set it and forget it business. You must be willing to put in the work and able to adapt with the market.

• Dairy Free, vegan, healthy and low-calorie options can be easily added to menus. This allows you to attract a variety of market segments to the business.
• Low product cost. The cost of froyo is under $.10 per ounce on average, but you can often sell the product between $.25 – $.50 per ounce.
• Minimal staff requirements. If you operate a self-serve shop, you only need 1 – 2 employees to operate the business at a time.
• There are many ways to differentiate your product from and remain innovative. If you love experimenting with flavors and trends this can be a fun business from a creativity standpoint.
• In many markets the competition can be cutthroat. Over the past 6 years, many independent shops have gone out of business for this reason.
• The quality and volume of toppings you offer can cut into profitability. If you have a topping bar there can be a significant amount of waste that eats away at profit.
• Although the core product is low other expenses like rent, labor, marketing, and machinery and insurance can reduce profitability to just 15% .
• Maintaining equipment can be a challenge. Ice cream machines are not set it and forget it. They must be cared for to maintain the quality of product.

Here are some of the typical costs associated with starting a yogurt shop. Many of these are variable costs depending on the location of your business like labor and rent. For states like California you can expect the startup cost to be more expensive than middle America. However, the opportunity in these areas can also be higher.

• Labor Cost: $10 – $15 per hour for counter employees ($200 – $250 for 20 hours part-time). $16 – $21 for managers ($640 – $840 for 40 hours full-time).
• Rent: $1,500 – $6,000 per month.
• Bank Loan / Interest: $1,000 – $3,000 per month
• Product, Mix and Toppings: $1,000 – $2,000 (Highly dependent on sales volume and waste.)
• Cups, Spoons, napkins: $500 – $1,000 per month
• Taxes: The effective small business tax rate is 19.8% on average . This rate will vary depending on factors like location, expenses, and business entity.
• Utilities: $1,000 – $2,000 per month. Expect your electric bills to be significant to keep product cold.
• Electrical Setup: $5,000 – $6,000 Unless you taking over an existing ice cream shop or froyo establishment, you’ll need to hire an electrician to ensure you’ve got sufficient power.
• Permits / Licenses: $1,500 – $3,000 You’ll need to conduct research to see what the startup fees are in your city and state.
• Insurance: $300 – $1000 Depends on level of coverage and location.
• General Construction Cost: $10,000 – $50,000 – Always get different bids for the conversion. Cost will vary widely depending on your vision and size of the unit.
• Ice Cream Machines / Equipment: $10,000 – $50,000. Depends on the number of machines, model, new or used.

All In Startup Cost: At the end of the day you can expect to invest $250,000 – $750,000 to open the doors to a frozen yogurt shop.

The profitability of the frozen dessert business remains strong… Mainly because the core product cost is low. Whether you decide to go the self-serve route and charge by weight or simply have a flat rate, you’ll can make a substantial profit.

Keep in mind that all frozen yogurt businesses will have a different profitability based on a variety of factors like location, product quality, management, and brand. With that being said here are a few examples that help demonstrate revenue potential:

• Some chain yogurt shops report and average of $750,000 – $800,000 in annual sales volume of assuming the location has been open 2 years or more ( Source ). Not this is a gross sales figure that does not factor labor, taxes, and other typical business expenses.
• Menchie’s owners make $94,795 on average per year according to Paysa.com . This is after expenses and provides closer insight to the take home pay of operators.
• According to IBIS World the frozen yogurt is a $1 billion dollar per year industry with 2508 stores in operation. Based on this estimate the average store generate $398,724 in annual sales.

As Evan points out during the interview, although the frozen yogurt is lucrative ongoing maintenance of machines is essential to maintaining high profitability.

If machines are not cared for and properly cleaned, the mix won’t be as efficient and food cost will rise. Simple ongoing care will also reduce the number of times you need to call a repair man.

Gusto – The best payroll solution for small business. Sign up for Gusto today to get a free 3-month trial.

Southwest Traders Show Product Show – Show put on by the largest frozen dessert supplier in the West. This is an annual show worth attending if you’re in the industry.

Slices Concession – Big thanks to Evan Waldt for sharing his industry knowledge.

The International Frozen Yogurt Association (IFYA) – Source of information and support for individuals considering this business. Also, check out their classified section to find frozen yogurt businesses that are listed for sale.

In order to have a successful frozen yogurt shop, you’ll want to offer a unique experience and differentiated product. Here are some specific ideas you can implement in your business that are described in greater detail by Evan Waldt in today’s podcast:

• Ways to Innovate with Frozen Yogurt: There are all sorts of ways to get creative with frozen desserts. Some simple ways are to follow megatrends to see if there are ways you can latch onto them. For example you could start offering Paleo frozen yogurt or perhaps a non-dairy option. This is an easy way to create appeal across market segments. Another creative option could be created around holidays by season like apple cider or pumpkin spice in the fall.
• Self-serve versus Employee Served : By having an employee handcraft the frozen yogurt and toppings, you have more control over the quantity and presentation of the product. The timeless favorite Dairy Queen uses this approach. This creates a totally different experience and leads to more Instragram worthy desserts since your employees will get good at assembling the product.
• Broaden Your Dessert Business : You don’t just need to sell frozen yogurt. You could offer drinks like iced coffees, Boba teas, or scooped ice cream as well. This will set you apart from the self-serve yogurt shops that have sprung up across the country.

These are the top 5 frozen yogurt chains by market share according to Guidant Financial . Evan Waldt suggests that if you’ve seen a lot of mom-and-pop frozen dessert establishments go out of business in your area it can be a good idea to look into a more established franchise with brand recognition. Here are a few of the most popular.

• Menchie’s

Other popular froyo chains include the following:

• Cherry Berry
• Orange Leaf

Before embarking on any type of business, you’ll want to complete some due diligence. Part of this process is to conduct in-depth market research in your market. This market research data should be included in the business plan for the store.

Google Maps and Search: Go to Google and make a list of the number of dessert shops that are in your area. Don’t just compare frozen yogurt shops, but other things that compete for the dessert or snack dollar. Take into account places like Dairy Queen, boba tea places, and Baskin Robins.

Visit Competitors During Peak Times: Spend time getting to know your competition. Visit these establishments at peak times like Friday night to see how many customers are at the store. Record your findings in the business plan to review later. You’ll also want to take note about the things you like and dislike about each business for later review.

Poll Potential Customers: Ask people in your area whether or not they would visit a dessert shop like the one you plan to open. Questions like this can be asked in person or online in forums or social media groups. People love providing their opinions and you’ll get a good sense if there’s any interest locally.

Here are some of the most popular flavors of frozen yogurt on the market. While innovation is key for longterm success in this business, make sure to offer at least a few of timeless flavors as well.

• Peanut butter
• Birthday cake
• Cotton Candy
• Butter pecan

Keep tabs of new topping trends by monitoring social media, food television, competitors, and by attending industry events. Traveling internationally and domestically can also be a smart strategy as trends usually start on the coasts and are gradually discovered in other markets.

• Gummy bears
• Chocolate, strawberry and other sauces.
• Chocolate and Brownies
• Crumbled candy bars like Heath, Snicker’s and Crunch
• A variety of fruits like blueberry and strawberry

When you’re determining whether or not any type of business is the right fit, it’s important to be honest with your interests and skills. Here are a handful of questions you can ask yourself as a starting point to determine whether or not this is the right choice for your situation.

• Can I see myself running a frozen yogurt business for the next 10 years?
• Is this the community I really want to serve and get to know (Important when determining a retail location)?
• Does coming up with new flavors and being obsessed with this product excite me?
• Is this something that I could lose interest in within 1 – 2 years?
• Do I enjoy talking to customers and serving people?

The most important step you can take is to be honest with yourself when answering these questions. A frozen yogurts shop is a viable and legit business opportunity that you can make a good living as an owner. But without a passion for the operations of the business, it’s going to be tough sledding to be a success.

Want to start your own food business?

Hey! 👋I’m Brett Lindenberg, the founder of Food Truck Empire.

We interview successful founders and share the stories behind their food trucks, restaurants, food and beverage brands. By sharing these stories, I want to help others get started.

If you liked this story, sign up for our newsletter that includes our food business startup kit and most popular interviews sent straight to your inbox.

Know someone interesting that should be interviewed on the website? Tell us about them here. 

About the Author: Brett Lindenberg

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• Sweet Success: The Ultimate Guide to Opening a Profitable Frozen Yogurt Business
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• Frozen Yogurt: The Sweet and Profitable Business You Need to Start Now!
• - Startup Costs
• - Location rental and renovation costs
• - Equipment and machinery purchase
• - Inventory and supply expenses
• - Marketing and advertising costs
• - Hiring and training costs
• - Website and POS system development
• - Legal and licensing fees

Are you considering opening a frozen yogurt business? If so, you may be wondering how much money it will cost to get started. According to recent statistics, the frozen yogurt industry is expected to continue to grow in the coming years.

In fact, the industry has seen a 4.8% increase in revenue from 2016 to 2021, with a projected revenue of $3.7 billion in 2021.

While the startup costs can vary depending on several factors, including location, size, and equipment, it's important to have a clear idea of what to expect before diving in.

If you're ready to learn more about the startup expenses associated with opening a frozen yogurt business, keep reading. We'll cover everything from leasing costs to equipment expenses to help you determine what you can expect to pay.

• Leasing a space can cost anywhere from $2,000 to $10,000 a month depending on location and size
• Equipment costs can range from $10,000 to $50,000 or more
• Initial inventory costs can be around $3,000 to $5,000

As you can see, the startup costs for opening a frozen yogurt business can be substantial. However, with careful planning and budgeting, it can be a profitable and rewarding endeavor.

Startup Costs

Starting a frozen yogurt business can be a lucrative venture, but it requires a significant investment upfront. The total cost of opening a frozen yogurt store can vary greatly depending on several factors, including location, size, and equipment needs. On average, the startup costs can range from $100,000 to $300,000.

The costs of opening a frozen yogurt shop can add up quickly, particularly when it comes to location rental and renovation costs. Potential business owners need to consider things like rent, utilities, and any necessary renovations to the space. Equipment and machinery are also significant expenses, which will include commercial-grade freezers, coolers, and soft-serve machines.

Inventory and supply expenses will include the cost of purchasing the frozen yogurt and toppings, along with cups, spoons, napkins, and other necessary supplies. Marketing and advertising budgets will incur costs for creating a brand identity, print materials, and online advertising campaigns. Potential business owners must also consider hiring and training costs for employees, as well as any expenses associated with developing a website or point-of-sale (POS) system.

Finally, legal and licensing fees can vary by state and region. Business owners will need to obtain any necessary permits and licenses and satisfy any legal requirements before opening the store's doors.

Location Rental and Renovation Costs

Location Rental Costs

Renovation Costs

Tips & Tricks:

• Consider negotiating your rental fee to lower your monthly expenses
• Assess the condition of the space before committing to renovations to accurately estimate the costs
• Consult with an experienced contractor to get an accurate estimate of renovation costs

Startup Costs/Expenses

Equipment and machinery purchase.

If you are planning to open a frozen yogurt business, one of the most critical expenses you will encounter is purchasing equipment and machinery. The cost will significantly vary depending on the scale and location of your business. According to recent estimates, the average cost for equipment and machinery is around USD 30,000 - USD 50,000.

Consider new vs. used equipment

• Buying new equipment may seem like a more expensive option. However, used equipment may require more maintenance, leading to additional costs down the line.
• Consider buying new equipment with a warranty and financing options to make the purchase more manageable.

It is also crucial to remember that many leasing and financing options are available for purchasing equipment and machinery. These options can help you mitigate the upfront cost of the purchase. However, keep in mind that financing comes with interest, which will add to the overall expenses.

The cost of equipment and machinery will also depend on several factors such as the brand, model, and size. It is advisable to make a list of necessary equipment and their features, comparing the prices among various suppliers, and choosing equipment that fits your budget and business needs.

Consider bundling equipment purchases

• If you're on a tight budget, consider buying equipment in bulk from the same vendor to receive discounts or buying used instead of new to save on costs.
• Additionally, you may be able to negotiate with vendors to purchase bundles of equipment at reduced rates.

While it may be tempting to cut corners and save costs, investing a reasonable amount in high-quality equipment will save money in the long run by reducing maintenance costs and increasing efficiency and productivity.

Consider energy-efficient equipment

• Purchasing energy-efficient equipment may make sense in the long run to save on electricity bills and maintenance costs, and it's environmentally friendly
• Additionally, plenty of energy-efficient types of machinery and equipment is available, including low-emission machines and appliance timers, so do some research to see the options to fit your needs.

The cost of equipment and machinery for a frozen yogurt business is high. However, with careful research and planning, you can make a practical investment that will help your business grow and become successful.

Inventory and Supply Expenses: How Much Does It Cost To Open/Start/Launch Frozen Yogurt?

As a general rule, the cost of inventory and supply is typically around 25% to 30% of your total startup costs. This means that if your startup costs are $300,000, your inventory and supply costs will be approximately $75,000 to $90,000.

• Tip #1: To reduce your inventory and supply costs, consider buying in bulk. This will help you save money in the long run.
• Tip #2: Negotiate with your suppliers to get the best possible prices. Don't be afraid to ask for discounts or to shop around for the best deals.
• Tip #3: Keep track of your inventory and monitor it closely. This will help you avoid waste and ensure that you have enough supplies to meet the demand.

In addition to the startup costs, you also need to consider ongoing inventory and supply expenses. These expenses can include the cost of purchasing ingredients, cups, spoons, napkins, and other supplies as you run your business. On average, these ongoing expenses can add up to around 20% to 25% of your monthly operating costs.

It's important to keep in mind that inventory and supply expenses can be one of the most significant costs associated with starting and running a frozen yogurt business. However, with careful planning, negotiation, and monitoring, you can reduce these costs and increase the profitability of your business.

Additional Tips & Tricks:

• Consider using eco-friendly products, such as biodegradable cups and spoons. This can help you save money on disposal fees and appeal to environmentally conscious customers.
• Get creative with your ingredients and toppings. By offering unique and exciting flavors and toppings, you can differentiate yourself from your competitors and attract more customers.
• Don't skimp on quality. Using high-quality ingredients and supplies will not only improve the taste of your yogurt, but it will also help you build a loyal customer base.

Marketing and Advertising Costs

When it comes to starting a frozen yogurt business, one of the biggest expenses is marketing and advertising costs. Getting the word out to potential customers is crucial for success. But just how much should you budget for promoting your new venture?

• According to the Small Business Administration, the average marketing budget for small businesses is around $10,000 per year.
• However, for a new frozen yogurt business, it is recommended to budget closer to $15,000 to $20,000 for the first year.
• This will allow for a comprehensive marketing plan that includes a mix of digital marketing, such as social media advertising and email campaigns, as well as outdoor marketing, such as billboards and sidewalk signs.

It is important to remember that marketing and advertising costs should be an ongoing expense for your business. As you establish your brand and build a following, you will want to maintain and grow your customer base through strategic marketing efforts.

In addition to marketing and advertising costs, there are a number of other expenses to consider when launching a frozen yogurt business. Here are some of the most common startup costs:

• Equipment and supplies: This includes everything from yogurt machines and toppings dispensers to cups and spoons. Depending on the size of your store, you can expect to spend anywhere from $50,000 to $100,000 on equipment and supplies.
• Location and leasehold improvements: The cost of leasing a commercial space will vary depending on the location and size of the store. Additionally, you may need to invest in leasehold improvements, such as flooring and lighting, to get the space ready for customers. This can add several thousand dollars to your startup costs.
• Legal and professional fees: It is recommended to work with a lawyer and accountant to help establish your business and ensure you are compliant with local regulations. This can cost anywhere from $2,000 to $5,000.
• Consider purchasing used equipment to save money on startup costs.
• Be sure to budget for ongoing expenses, such as rent and utilities, when planning your finances.
• Look into financing options, such as loans and grants, to help cover startup expenses.

Starting a frozen yogurt business can be a significant investment, but with careful planning and budgeting, it can be a lucrative venture. By considering all of the expenses involved, you can ensure that you have the resources you need to launch and grow your business successfully.

Hiring and Training Costs

As a seasoned business consultant who has successfully helped launch thousands of businesses, I can confidently say that starting a frozen yogurt business requires a significant investment. Among the many expenses involved, hiring and training costs are some of the most important ones.

When it comes to hiring staff for your frozen yogurt business, costs can vary depending on your location and the type of employees you want to hire. However, according to the most recent statistics in the US, the average cost of hiring an employee is around $4,000, including advertising, interviewing, training, and other related costs.

Training costs can also add up quickly, especially if you want to ensure that your staff is highly knowledgeable about your products and services. The average cost of training an employee in the US is around $1,000.

• Tip: To save on hiring costs, consider reaching out to local colleges or universities to recruit interns or part-time employees who are looking to gain experience in the industry.
• Tip: You can also provide online training modules or utilize training software to help reduce training costs.
• Tip: Don't forget to factor in the cost of documentation and compliance-related training, particularly if you have to meet federal or state requirements.

Startup costs for a frozen yogurt business can vary depending on your location, size, equipment, and other factors. However, on average, starting a frozen yogurt business in the US can cost you anywhere from $50,000 to $500,000, depending on the scale and scope of the operation.

In addition to hiring and training costs, some other expenses you may need to consider include:

• Equipment Costs: This includes the cost of buying or leasing machinery, freezers, mixing and dispensing equipment, and other tools specific to the yogurt-making process.
• Location and Rent Costs: You need to find a suitable location that caters to your target demographic. Property lease rates can vary from a few hundred dollars to tens of thousands of dollars per month.
• Marketing and Advertising Costs: You need to raise awareness about your brand and attract customers. This can require elaborate marketing campaigns requiring hundreds or thousands of dollars upfront investment.
• Legal and Licensing Costs: You may need to register your business with the local authorities and obtain specific licenses from federal or state agencies that could result in substantial fees.

Tips & Tricks

• Tip: Consider buying refurbished or second-hand equipment to save on initial costs. You can also look for financing options or leasing agreements that can help you spread the costs over a long period.
• Tip: You can also consider partnering up with an established frozen yogurt franchise, as they provide a pre-existing brand name and equipment, which could save startup costs.
• Tip: Finally, explore crowdsourcing options either through crowdfunding platforms or getting an LLC partnership. This can limit your personal investment while bringing in supporting partners.

Starting a frozen yogurt business can be an exciting venture, but it does involve significant upfront costs. Hiring and training costs are two crucial expenses that you need to budget for. However, by following a few simple tips and tricks, you can keep your overhead costs low and ensure that your investment is successful in the long run.

Website and POS System Development

In today's competitive market, it has become essential for frozen yogurt businesses to establish an online presence. This requires creating a website and setting up a point of sale (POS) system to manage transactions. The cost of developing a website and POS system can vary depending on a few different factors, including:

• Complexity of the website and POS system
• Hiring a professional to design the website and POS system
• The platform used for the website and POS system
• Location of the business

According to recent studies, the average cost of developing a website for a small business ranges from $2,000 to $10,000. However, for a frozen yogurt business, costs may be higher due to additional features required for a POS system, such as payment processing integration, inventory management, and employee time tracking.

To set up a POS system, the cost can range from $1,000 to $3,000 depending on the complexity of the system. This includes hardware, software, and installation costs. It is important to invest in a reliable system that will maximize efficiency and minimize costs in the long run.

• Consider using a website builder such as Wix or Squarespace to save costs on website development.
• Compare prices and features of different POS systems before making a decision.
• Invest in a system with a user-friendly interface to minimize training costs for employees.

In conclusion, while the cost of developing a website and POS system for a frozen yogurt business can vary, the average cost ranges from $3,000 to $13,000. Investing in a reliable system is crucial for the success of the business in the long run.

Legal and licensing fees

Starting a frozen yogurt business can be an exciting venture, but it also involves a series of expenses that you need to consider beforehand. Legal and licensing fees are one area that can quickly add up, so it’s important to understand these costs to plan your budget accordingly.

According to recent statistics, the average cost of legal fees to start a frozen yogurt business is around $1,000 to $5,000. This cost includes your company’s registration, permits and licenses, and legal advice fees. As a business owner, you need to carefully research which permits and licenses are required in your particular state.

The processing time and cost of getting licensed and permits may vary depending on your location. The application for a food service permit can cost around $100 to $1,000 in most states, but some states may even charge more depending on the nature of your business. Additionally, you may be required to have a food handler’s permit, which costs around $100 to $500, depending on the state.

It’s important to note that the legal and licensing fees are not just a one-time expense. You may need to renew your permits and licenses periodically, which means incurring renewals fees every few years.

Tips & tricks

• Research the legal and licensing requirements in your state before starting.
• Set aside a budget specifically for legal and licensing fees to avoid affecting your overall financial plan.
• Consider hiring a lawyer or an agency to help you navigate the legal and licensing process smoothly.

Additional costs may include trademark registration fees and website and branding fees, both of which can cost a few thousand dollars each. You may also need to purchase insurance coverage, which can range between $500 to $5,000 per year depending on factors such as your location, business size, and revenue.

While legal and licensing fees may seem daunting, these expenses are necessary to legally operate your business. It’s important to have a thorough understanding of all the costs involved in opening a frozen yogurt establishment to ensure that you have enough capital to start off on the right foot.

Opening a frozen yogurt business can be a lucrative venture, but it's important to fully understand the startup costs involved. According to recent statistics, the frozen yogurt industry is expected to continue its growth trend.

When it comes to starting a frozen yogurt business, there are several expenses to consider. Location and equipment costs can be significant, with monthly lease expenses ranging from $2,000 to $10,000 , while equipment costs can range from $10,000 to $50,000 or more . Additionally, initial inventory costs can run around $3,000 to $5,000 .

However, with careful planning and budgeting, it is possible to launch a successful and profitable frozen yogurt business. While startup costs may be substantial, the potential rewards are worth the initial investment. So, if you're thinking of starting a frozen yogurt business, take the time to plan and prepare for a successful launch.

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How to Open Your Own Frozen Yogurt Business

Yogurt Shop Business owners and entrepreneurs have seen the popularity of the genre grow in line with the expansion of flavors, toppings, and additional products offered. Now those same yogurt shops are turning to Wisebusinessplans in a bid to increase frozen yogurt business profit and ensure long-term growth while getting ahead of the competition by effective use of the F rozen yogurt factory business plan .

How to Open a Frozen Yogurt Shop?

1. develop a frozen yogurt shop business plan, 2. secure funding, 3. define your brand with logo, 4. get the necessary licenses and permits, 5. choose a taste and flavor for yogart, 6. register your business, other major business services for yogurt business.

Wisebusinessplans specializes in helping small businesses and companies present a viable plan to raise capital, define specific business goals, and guide owners in meeting market demands, including the tools needed to manage a thriving business.

Consumers are always looking for the latest thing, and it takes strong analytical skills and in-depth research for businesses to stay on top of current trends, especially in a fun but ferociously competitive industry like frozen yogurt ,” said Joseph Ferriolo, Director of Wisebusinessplans.

“At Wise, we have a professional team to do the expert research necessary to support and guide small businesses and food entrepreneurs like frozen yogurt shop owners, ensuring that they achieve sustainable success.” If you want to start a frozen yogurt business, here are some simple steps

A comprehensive business plan is the foundation of every successful business. An investment plan should have information about the markets in which you want to open stores, a business analysis, and a financial projection, including how much it will cost to start your business, how much it will generate, and when the business will turn a profit.

Do You Need Help in Creating a Frozen Yogurt Business Plan?

Business plan writing has never been easier for our clients. Our professional business plan writers have written more than 15000 business plans for over 400 industries in over a decade.

Let our experienced business plan writers help you get funding

You should be aware that the cost of opening a yogurt shop depends on a variety of factors, including the rental rates, the minimum wage, and local competition. Take out a small business loan to help get your shop off the ground, but keep in mind that you’ll have to pay monthly with interest. You might also be able to get capital assistance if you decide to buy a franchise.

Is Getting Funds a Challenge for You?

Wisebusinessplans has raised more than $1 Billion in funds for its clients. Let our experts help you to get the right business funding for your frozen yogurt business every step of the way!

Branding describes what your business is about as well as how your business is perceived by the public. Your business will stand out from its competitors if you have a strong brand.

When starting a new business , it can be confusing to figure out which licenses and permits you need. It takes time, energy, and paperwork to register each item. It is a criminal offense in some states to conduct business without the proper licensing.

Do You Need a License for Frozen Yogurt Business?

Obtaining a business license can be challenging. Wisebusinessplans make it effortless for you to acquire a frozen yogurt business license.

Let Wisebusinessplans help you to Get Your Frozen Yogurt Business License

You should stock yogurt that your customers will love if you decide to go your own way regardless of industry trends. Funkier flavors are currently trending. Unique flavors are popular among frozen yogurt lovers.

Every business is registered with the secretary of state in the state where it operates. It is necessary for you to register for a variety of state and federal taxes before you can open for business. Applying for an EIN is the first step to registering for taxes.

Do You Need to Register a Frozen Yogurt Business?

Our registered agents offer you a wide range of business formation services(LLC, Corporation, and nonprofit business formation) to make it easy for you to incorporate a business and focus on other tasks.

Register your Yogurt Business now with the help of Wisebusinessplans

“Business planning is important enough that we have built our reputation on it, and we work very hard to offer our clients the yogurt factory business plan and services that will allow them to move ahead in a very competitive business world,” said Ferriolo.

Wisebusinessplans, staffed with professional MBA business plan writers , researchers, and financial experts, is a trusted partner for businesses across a broad spectrum of frozen yogurt business plans and services. Our mission is to empower our clients to make the best possible business decisions, boost company performance and facilitate their funding success by laying the groundwork for strong businesses that excite, inspire and retain talented and exceptional employees.

Get an idea of how a business plan looks by looking at this simple yogurt business plan sample .

Thinking about opening a yogurt business? Wisebusinessplans offer you a quick and easy guide to start your own yogurt business , as well as assistance in every step along the way from funding to registering or licensing a business entity, branding, and marketing. Following are our main services

• LLC, S Corporation and NonProfit Business Formation
• Tax ID Number
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Wisebusinessplans also offer a net 30 account application . If you buy products on a Net-30 account, you have 30 days after the purchase date to pay the full bill. Having a Net 30 account can also make managing your business finances easier.  Apply for your net 30 business accounts now

Startup costs for a frozen yogurt business can include expenses such as lease or purchase of a commercial space, renovation and equipment installation, purchasing frozen yogurt machines, furniture and fixtures, inventory, marketing and advertising, permits and licenses, and initial employee wages. The exact costs vary depending on location, size, and the scale of the business.

Choosing the right location is crucial for the success of a frozen yogurt business. Consider factors such as foot traffic, visibility, nearby competition, demographics of the area, parking availability, and proximity to complementary businesses. Conduct market research and analysis to identify areas with high demand and potential customer base.

Developing a menu involves selecting flavors of frozen yogurt to offer and deciding on a variety of toppings. Research popular flavor trends and consider offering a mix of classic and unique flavors. When selecting toppings, provide a range of options, including fresh fruits, candies, nuts, sauces, and other creative choices. Keep in mind dietary restrictions and preferences of your target market.

Effective marketing strategies can help attract customers to your frozen yogurt business. Utilize social media platforms, create a visually appealing website, engage with local communities through events and sponsorships, offer loyalty programs, collaborate with nearby businesses for cross-promotion, and encourage customer reviews and referrals. Consider partnering with influencers or bloggers to increase brand visibility.

Maintaining proper inventory management is vital to ensure product freshness and minimize waste. Establish relationships with reliable suppliers, monitor inventory levels regularly, and implement a first-in, first-out (FIFO) system to use older stock first. Properly store frozen yogurt and toppings at appropriate temperatures, and regularly inspect and rotate inventory to maintain quality and avoid spoilage.

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How to create a financial forecast for a frozen yogurt shop?

If you are serious about keeping visibility on your future cash flows, then you need to build and maintain a financial forecast for your frozen yogurt shop.

Putting together a frozen yogurt shop financial forecast may sound complex, but don’t worry, with the right tool, it’s easier than it looks, and The Business Plan Shop is here to guide you.

In this practical guide, we'll cover everything you need to know about building financial projections for your frozen yogurt shop. 

We will start by looking at why they are key, what information is needed, what a forecast looks like once completed, and what solutions you can use to create yours.

Let's dive in!

In this guide:

Why create and maintain a financial forecast for a frozen yogurt shop?

What information is used as input to build a frozen yogurt shop financial forecast, the sales forecast for a frozen yogurt shop, the operating expenses for a frozen yogurt shop.

• What investments are needed for a frozen yogurt shop?

The financing plan of your frozen yogurt shop

What tables compose the financial plan for a frozen yogurt shop.

• Which tool should you use to create and maintain your frozen yogurt shop's financial forecast?
• Financial projection template for a frozen yogurt shop

In order to prosper, your business needs to have visibility on what lies ahead and the right financial resources to grow. This is where having a financial forecast for your frozen yogurt shop becomes handy.

Creating a frozen yogurt shop financial forecast forces you to take stock of where your business stands and where you want it to go. 

Once you have clarity on the destination, you will need to draw up a plan to get there and assess what it means in terms of future profitability and cash flows for your frozen yogurt shop.

Having this clear plan in place will give you the confidence needed to move forward with your business’s development. 

Having an up-to-date financial forecast for a frozen yogurt shop is also useful if your trading environment worsens, as the forecast enables you to adjust to your new market conditions and anticipate any potential cash shortfall. 

Finally, your frozen yogurt shop's financial projections will also help you secure financing, as banks and investors alike will want to see accurate projections before agreeing to finance your business.

Need a solid financial forecast?

The Business Plan Shop does the maths for you. Simply enter your revenues, costs and investments. Click save and our online tool builds a three-way forecast for you instantly.

A frozen yogurt shop's financial forecast is only as good as the inputs used to build it.  

If you are creating (or updating) the forecast of an existing frozen yogurt shop, then you mostly need your accounting information, key historical operating non-financial data, and your team’s input on what to expect for the coming years.

If you are building financial projections for a frozen yogurt shop startup, you will need to have done your research and have a clear picture of your competitive environment and go-to-market strategy so that you can forecast sales accurately.

For a new venture, you will also need a precise list of the resources needed to keep the frozen yogurt shop running on a day-to-day basis and a list of the equipment and expenditures required to start the business (more on that later). 

Let's now take a closer look at the elements that make up your frozen yogurt shop's financial forecast.

The sales forecast, also called topline projection, is normally where you will start when building your frozen yogurt shop financial forecast.

Creating a coherent sales projection boils down to estimating two key drivers:

• The average price 
• The number of monthly transactions

To do this, you will need to rely on historical data (for an existing business), market research data (for both new and existing frozen yogurt shops), and consider the elements below:

• Seasonal Demand: You may experience fluctuations in sales depending on the time of year. During the warmer months, customers may be more likely to purchase frozen yogurt, while sales may decrease during the colder months.
• Competition: The presence of other frozen yogurt shops in the area may impact your average price and number of monthly transactions. If there are many options for customers to choose from, you may need to adjust your prices or offer promotions to remain competitive.
• Trends and Fads: The popularity of frozen yogurt may be affected by current trends and fads. For example, if a new type of dessert becomes popular, it may draw customers away from frozen yogurt.
• Location: Your store's location can greatly impact your sales. A location in a high-traffic area or near popular attractions may attract more customers and increase your average price and number of monthly transactions.
• Customer Preferences: The preferences and tastes of your customers may change over time, which can affect your average price and number of monthly transactions. For example, if customers begin to prefer more healthy options, you may need to adjust your menu and offerings to cater to these preferences.

After the sales forecast comes the operating expenses budget, which we will now look into in more detail.

Need inspiration for your business plan?

The Business Plan Shop has dozens of business plan templates that you can use to get a clear idea of what a complete business plan looks like.

The next step is to estimate the expenses needed to run your frozen yogurt shop on a day-to-day basis.

These will vary based on the level of sales expected, and the location and size of your business. 

But your frozen yogurt shop's operating expenses should include the following items at a minimum:

• Rent: The cost of renting a commercial space for your frozen yogurt shop.
• Utilities: Expenses for electricity, water, gas, and other utilities used to operate your shop.
• Inventory: The cost of purchasing frozen yogurt, toppings, and other ingredients for your shop.
• Employee Wages: The salaries and benefits for your employees, including managers, cashiers, and kitchen staff.
• Payroll Taxes: Taxes paid on your employees' wages, such as Social Security and Medicare.
• Marketing and Advertising: Expenses for promoting your frozen yogurt shop, including flyers, social media ads, and influencer partnerships.
• Accounting Fees: The cost of hiring an accountant to manage your financial records and taxes.
• Insurance: Expenses for insuring your shop, employees, and equipment against potential risks and accidents.
• Software Licenses: Fees for using software to manage your shop, such as point-of-sale systems and inventory tracking programs.
• Banking Fees: Charges for maintaining a business bank account and processing transactions.
• Cleaning and Maintenance: The cost of keeping your shop clean and maintaining equipment, such as freezers and machines.
• Equipment Rental: Expenses for renting equipment, such as blenders and soft serve machines, for your shop.
• Waste Disposal: Fees for disposing of trash and waste from your shop, including used cups and spoons.
• Licenses and Permits: Costs for obtaining necessary licenses and permits to operate a food business.
• Professional Services: Expenses for hiring lawyers, consultants, or other professionals for legal or business advice.

This list is, of course, not exhaustive, and you'll have to adapt it according to your precise business model and size. A small frozen yogurt shop might not have the same level of expenditure as a larger one, for example.

What investments are needed to start or grow a frozen yogurt shop?

Creating and expanding a frozen yogurt shop also requires investments which you need to factor into your financial forecast.

Capital expenditures and initial working capital items for a frozen yogurt shop could include elements such as:

• Frozen Yogurt Machines: These are essential for producing and serving frozen yogurt in your shop. Depending on the size and type of machine, they can range from a few hundred dollars to several thousand dollars.
• Refrigeration Equipment: You will need refrigeration equipment to store and display your frozen yogurt and toppings. This includes freezers, refrigerators, and display cases. Prices can vary depending on the size and type of equipment.
• Furniture and Fixtures: This includes tables, chairs, counters, and other furniture and fixtures needed to create a comfortable and functional space for your customers. Prices will depend on the style and quality of the items you choose.
• Point of Sale System: A point of sale (POS) system is necessary for processing customer payments and tracking sales. This can include cash registers, credit card machines, and software. Prices will vary depending on the features and capabilities of the system.
• Decor and Renovations: You may need to invest in decor and renovations to create an inviting and attractive atmosphere for your frozen yogurt shop. This can include paint, flooring, lighting, and other decorative elements. Prices will depend on the extent of the renovations and the materials used.

Again, this list is not exhaustive and will need to be adjusted according to the circumstances of your frozen yogurt shop.

Need a convincing business plan?

The Business Plan Shop makes it easy to create a financial forecast to assess the potential profitability of your projects, and write a business plan that’ll wow investors.

The next step in the creation of your financial forecast for your frozen yogurt shop is to think about how you might finance your business.

You will have to assess how much capital will come from shareholders (equity) and how much can be secured through banks.

Bank loans will have to be modelled so that you can separate the interest expenses from the repayments of principal, and include all this data in your forecast.

Issuing share capital and obtaining a bank loan are two of the most common ways that entrepreneurs finance their businesses.

Now let's have a look at the main output tables of your frozen yogurt shop's financial forecast.

The projected profit & loss statement

The projected profit & loss shows how profitable your frozen yogurt shop is likely to be in the years to come.

For your frozen yogurt shop to be financially viable, your projected P&L should ideally show:

• Sales growing above inflation (the higher the better)
• Profit margins which are stable or expanding (the higher the better) 
• A net profit at the end of each financial year (the higher the better)

This is for established frozen yogurt shops, there is some leniency for startups which will have numbers that will look a bit different than existing businesses.

The projected balance sheet

Your frozen yogurt shop's forecasted balance sheet enables you to assess your financial structure and working capital requirements.

It is composed of three types of elements: assets, liabilities and equity:

• Assets: represent what the business owns and uses to produce cash flows. It includes resources such as cash, equipment, and accounts receivable (money owed by clients).
• Liabilities: represent funds advanced to the business by lenders and other creditors. It includes items such as accounts payable (money owed to suppliers), taxes due and loans.
• Equity: is the combination of what has been invested by the business owners and the cumulative profits and losses generated by the business to date (which are called retained earnings). Equity is a proxy for the value of the owner's stake in the business.

The cash flow projection

The cash flow forecast of your frozen yogurt shop will show how much cash the business is expected to generate or consume over the next three to five years.

There are multiple ways of presenting a cash flow forecast but from experience, it is better to organise it by nature in order to clearly show these elements:

• Operating cash flow: how much cash is generated by the frozen yogurt shop's operations
• Investing cash flow: what is the business investing to expand or maintain its equipment 
• Financing cash flow: is the business raising additional funds or repaying financiers (debt repayment, dividends)

Your cash flow forecast is the most important element of your overall financial projection and that’s where you should focus your attention to ensure that your frozen yogurt shop is adequately funded.

Note: if you are preparing a financial forecast in order to try to secure funding, you will need to include both a yearly and monthly cash flow forecast in your frozen yogurt shop's financial plan. 

Which tool should you use to create your frozen yogurt shop's financial forecast?

Creating your frozen yogurt shop's financial forecast may sound fairly daunting, but the good news is that there are several ways to go about it.

Using online financial forecasting software to build your frozen yogurt shop's projections

The modern and easiest way is to use professional online financial forecasting software such as the one we offer at The Business Plan Shop.

There are several advantages to using specialised software:

• You can easily create your financial forecast by letting the software take care of the financial calculations for you without errors
• You have access to complete financial forecast templates
• You get a complete financial forecast ready to be sent to your bank or investors
• You can easily track your actual financial performance against your financial forecast, and recalibrate your forecast as the year goes by
• You can create scenarios to stress test your forecast's main assumptions
• You can easily update your forecast as time goes by to maintain visibility on future cash flows
• You have a friendly support team on standby to assist you when you are stuck
• It’s cost-efficient and much cheaper than using an accountant or consultant (see below)

If you are interested in this type of solution, you can try our forecasting software for free by signing up here .

Calling in a financial consultant or chartered accountant

Outsourcing the creation of your frozen yogurt shop financial forecast is another possible solution.

This will cost more than using software as you can expect as your price will have to cover the accountant’s time, software cost, and profit margin.

Price can vary greatly based on the complexity of your business. For a small business, from experience, a simple three-year financial forecast (including a balance sheet, income statement, and cash flow statement) will start at around £700 or $1,000. 

Bear in mind that this is for forecasts produced at a single point in time, updating or tracking your forecast against actuals will cost extra. 

If you decide to outsource your forecasting:

• Make sure the professional has direct experience in your industry and is able to challenge your assumptions constructively. 
• Steer away from consultants using sectorial ratios to build their client’s financial forecasts (these projections are worthless for a small business).

Why not use a spreadsheet such as Excel or Google Sheets to build your frozen yogurt shop's financial forecast?

Creating an accurate and error-free frozen yogurt shop financial forecast on Excel (or any spreadsheet) is very technical and requires both a strong grasp of accounting principles and solid skills in financial modelling.

Most entrepreneurs lack the expertise required to create an accurate financial forecast using spreadsheet software like Excel or Google Sheets. As a result, it is unlikely anyone will trust your numbers.

The second reason is that it is inefficient. Building forecasts on spreadsheets was the only option in the 1990s and early 2000s, nowadays technology has advanced and software can do it much faster and much more accurately. 

This is why professional forecasters all use software. With the rise of AI, software is also becoming smarter at helping us detect mistakes in our forecasts and helping us analyse the numbers to make better decisions.

Finally, like everything with spreadsheets, tracking actuals vs. forecasts and updating your forecast as the year progresses is manual, tedious, error-prone, and time-consuming. Whereas financial forecasting software like The Business Plan Shop is built for this.

Use our financial forecast templates for inspiration

The Business Plan Shop has dozens of financial forecast examples available.

Our templates contain both a financial forecast and a written business plan which presents, in detail, the company, the team, the strategy, and the medium-term objectives.

Our templates are a great source of inspiration, whether you just want to see what a complete business plan looks like, or are looking for concrete examples of how you should model financial elements in your own forecast.

• A financial projection shows expected growth, profitability, and cash generation for your business over the next three to five years.
• Tracking actuals vs. forecast and keeping your financial forecast up-to-date is the only way to maintain visibility on future cash flows.
• Using financial forecasting software makes it easy to create and maintain up-to-date projections for your frozen yogurt shop.

You have reached the end of our guide. We hope you now have a better understanding of how to create a financial forecast for a frozen yogurt shop. Don't hesitate to contact our team if you have any questions or want to share your experience building forecasts!

Also on The Business Plan Shop

• Example of financial projections

Know someone who runs or wants to start a frozen yogurt shop? Share our financial projection guide with them!

Founder & CEO at The Business Plan Shop Ltd

Guillaume Le Brouster is a seasoned entrepreneur and financier.

Guillaume has been an entrepreneur for more than a decade and has first-hand experience of starting, running, and growing a successful business.

Prior to being a business owner, Guillaume worked in investment banking and private equity, where he spent most of his time creating complex financial forecasts, writing business plans, and analysing financial statements to make financing and investment decisions.

Guillaume holds a Master's Degree in Finance from ESCP Business School and a Bachelor of Science in Business & Management from Paris Dauphine University.

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How to Start a Frozen Yogurt Business

By: Author Tony Martins Ajaero

Home » Business ideas » Food Industry » Frozen Yogurt

Do you want to start a frozen yogurt smoothie shop? If YES, here is a complete guide to starting a frozen yogurt business with NO money and no experience plus a sample frozen yogurt business plan template.

It cannot be argued that most people love frozen yogurt as a healthier substitute or alternative to traditional ice cream cones, whether it’s peanut butter- flavoured and sprinkled with chocolate chips, or a tart lemon flavour dusted with coconut shavings.

Frozen yogurt is a lucrative business you can start today that belongs to the profitable ice cream industry , which generated revenues of $9.6 billion in 2009. There are no federal standards for the manufacture of frozen yogurt; however, nearly half of all states have begun to implement such standards. Between 2003 and 2009, this industry grew by 16 percent.

If you are looking for a very lucrative business to start, you can begin to look at starting a frozen yogurt business. This is because of the numerous benefits that is available to anyone that wants to start this business.  Every day there are more and more people looking at starting this business.

If you want to get in on the rapidly growing industry by opening your own frozen yogurt store , just pay attention and continue reading. There are loads of information that will do you a world of good.

Steps to Starting a Frozen Yogurt Business

1. understand the industry.

Businesses in this lucrative industry include establishments that primarily prepare or serve frozen yogurt and other frozen yogurt-based items, as well as toppings.

This industry has grown at a rapid rate over the five years to 2016. Driven by consumers’ increasing health consciousness and the emergence of tart-flavoured frozen yogurt, it has been estimated that industry revenue climbed extremely rapidly during the period.

Interesting Statistics About the Industry

In the coming years, health concerns and consumption patterns will continue to drive industry growth through the five years to 2022. However, industry revenue will grow at a slower rate than in the previous five years as the industry flow towards saturation.

The Frozen Yogurt industry has minimal barriers to entry, with low entry costs and no strong licensing requirements. However, industry competition and market awareness can pose as a threat to potential entrants. Prospective entrepreneurs just like yourself planning to enter this industry are not particularly constrained by the capital investment required to open a frozen yogurt store.

But you can lease premises and equipment, furniture and fittings, which lower initial capital costs, outlays and borrowings considerably. Entry can also occur through signing a franchise agreement, where costs are relatively cheaper than other food establishments.

The frozen yogurt industry is quickly approaching its limit. With so many stores launching over the past five years, existing stores have experienced increased competition and growth is expected to slow in the next five years as a result. It has been estimated that the industry will grow at a tempered annual rate of 3.4 percent to reach $2.1 billion in revenue by 2019.

Strong operators will continue to see reasonably good results, yet slower growth than in previous years. Customer demand is still strong and the category has some room to grow, but I sincerely believe it’s all about the best operators – those who bring something special to the experience.

2. Conduct Market Research and Feasibility Studies

• Demographics and Psychographics

Everybody loves frozen yogurt: men, women, kids of all ages, grandmas and grandpas – you name it! Yogurt is a power-boosting protein and bone-building calcium. People eat yoghurt for its sensational taste and its surprising health benefits. Before you plan and open a frozen yogurt shop, you need to find out if there is a demand or desire for the store in your chosen area.

You need to conduct surveys, either by going door to door yourself or by hiring a research firm. Ask a range of people from all backgrounds, ages and genders in the area how they feel about frozen yogurt. Examine income and employment statistics for the region so that you know whether or not people will be able to afford to spend money on your frozen yogurt.

3. Decide Which Niche to Concentrate On

One of the major decisions you will have to make when starting your frozen yogurt store is to determine type of frozen yogurt business. Your frozen yogurt business may include self-serve or full-service treats. Research your local market to identify market niches to appeal to customers and learn about menu offerings and pricing scales. Niches you can choose from may include.

• Selling traditional frozen yogurt
• Frozen yogurt wholesale manufacturer
• Selling tart frozen yogurt
• Selling smoothies made from frozen yogurt
• Selling yogurt parfaits
• Selling toppings and other yogurt-related food items
• Open a yoghurt related website

The Level of Competition in the Industry

Americans may be more aware of their diets these days, but they certainly have no less of a sweet tooth. Frozen yogurt, a hybrid between the traditional ice cream dessert and the healthier (and hipper) yogurt based products, is an innovative way for customers to “have their cake, and eat it too.”

Although the popularity of the frozen yogurt franchise industry suffered a decline in the late 1990’s, the category has been making a colossal comeback in the last decade, with a new generation of flavours, toppings, and store settings leading the charge.

The Frozen yogurt shop sales growth was fuelled largely by popular national chains such as Pinkberry, Red Mango and Yogurtland, which since 2005 have quickly increased their U.S. location counts, with future overseas expansion expected in markets including Asia and the Middle East.

The firm also predicted, however, that the number of U.S. frozen yogurt stores — which went from 983 in 2007 to more than 1,200 as of 2011 — would shrink starting in 2017, as the market becomes saturated and smaller players struggle to survive against growing large national franchise companies.

4. Know Your Major Competitors in the Industry

• Chocolate Shoppe Ice Cream Company
• Goji’s
• Golden Spoon
• Handel’s Homemade Ice Cream & Yogurt
• I Can’t Believe It’s Yogurt!
• Menchie’s Frozen Yogurt
• Orange Leaf Frozen Yogurt
• Spoon Me Frozen Yogurt
• Tutti-frutti Frozen Yogurt
• YogenFrüz
• Yogurt Mountain
• YoLo Frozen Yogurt
• Yumilicious

Economic Analysis

It was reported in 2011 that annual U.S. revenue at frozen yogurt industry had reached $1.59 billion. Revenue grew 5.9 percent annually in the five years through 2011 and was expected to rise 2.4 percent annually over the coming five years.

It was also accurately reported that frozen yogurt servings in 2011 reached 128 million, up 11 percent from the prior year. Independent operators and large franchise chains have expanded their presence by introducing new flavours, toppings and self-service formats.

According to the industry publication “Franchise Times,” yogurt businesses require initial investments ranging from $330,000 to nearly $500,000 and averaging around $400,000. Per-store sales volumes can range from $200,000 to more than $1.3 million annually; as of early 2013, for example, they averaged $510,000 for Red Mango and $783,000 for Yogurtland.

With the self-serve element, labor costs at some shops can run lower than 20 percent of sales. It seems that product introductions and expansion strategies of new major players in the frozen yogurt industry are what has driven geographic store distribution.

For example, California is considered the domestic birthplace of tart frozen yogurt as that’s where originator Pinkberry is located. Three of the top four largest frozen yogurt franchises also began in California and expanded throughout the state.

As such, California holds the highest percentage of froyo stores at 33.1 percent and is the single reason why the West region has the highest number of frozen yogurt stores. Following the West, the Mid-Atlantic region boasts the second largest number of establishments, with New York holding 14.1 percent. The health-conscious and urban market there is definitely to thank for the expansion to the East coast.

Meanwhile, the Southeast region’s hot and humid climate has led to it landing the third-largest number of frozen yogurt establishments, with Georgia and Florida leading the way. The smallest share of frozen yogurt stores is in the inland and colder states of the Plains and New England, which represent just 3.6 percent and 2.9 percent of total establishments, respectively.

5. Decide Whether to Buy a Franchise or Start from Scratch

For the sake of this article, pursuing the franchise route is likely a better option at this time. Signing on with a franchise that boasts an established brand with proven systems can help jumpstart a business, especially when there are so many other frozen yogurt shops vying for consumer dollars.

Plus, by becoming a franchisee, you will most likely be assigned an exclusive franchise territory. While competition may still exist against other frozen yogurt stores, having your own territory ensure you won’t be rivaling franchisees of the same brand.

Most costs associated with starting a frozen yogurt shop come in the form of fixtures and fittings, such as frozen yogurt machines (refrigerators and dispensers), display shelving (including carts to store toppings), chairs and tables for customer seating, and point-of-sale systems like cash registers and credit card machines.

6. Know the Possible Threats and Challenges You Will Face

Frozen yogurt serves as excellent alternatives to ice cream, especially to those looking for healthier dessert options. Provide a variety of flavours, toppings and serving options, such as edible cones or paper cups, to satisfy as many customers as possible. But before you start this business, there are barriers which you might encounter and they may include:

• Choosing a suitable niche
• Applying for permits
• Purchasing inventory
• writing a business plan
• Industry competition

7. Choose the Most Suitable Legal Entity (LLC, C Corp, S Corp)

Several factors should be considered when choosing the best form of business structure when starting your frozen yogurt business. The type of business structure you choose can have an impact on multiple aspects of your business, including taxes, liability, and your exit strategy.

In starting your frozen yogurt business, a LLC structure is strongly advised because LLCs are simpler and more flexible. Unlike both types of corporations, LLCs don’t require a board of directors, shareholder meetings and other managerial formalities.

Entrepreneurs can divvy up the profits any way they choose, as opposed to shareholders in corporations, who have to carve them up in proportion to their percentage ownership in the company. One benefit of this is that Entrepreneurs can entice talented employees with a share of the profits, even if those employees didn’t pony up their own equity in the beginning. The LLC structure also gives tax-treatment flexibility.

An LLC’s profits can be taxed as a corporate entity (a C Corporation) or as a “pass through” entity (an S corporation), meaning that the company avoids paying tax on both corporate profits and the owners’ personal income. Most LLCs choose the pass-through option. However, in some cases, LLCs can choose a C Corporation tax structure and save money by funnelling profits back into the business tax-free.

8. Choose a Catchy Business Name

• Berrylicious
• Cherry On Top
• CUPS Yogurt Shop
• Fricky Yogurt

9. Discuss with an Agent to Know the Best Insurance Policies for You

Opening a Frozen yogurt business is not an inexpensive endeavour, and once you enter the world of serving one of the most favourite comfort foods, you must protect it. Protecting your and your investor’s interests through an Insurance Program is not just necessary, it is vital. All kinds of risks are out there that insurance protect you and your business from financial responsibility. These insurances may include:

• Worker’s Compensation Insurance
• Commercial Liability Insurance Coverage
• Business interruption insurance
• All Risk Equipment Insurance
• Commercial Auto Insurance

10. Protect your Intellectual Property With Trademark, Copyrights, Patents

The creation, exploitation and protection of intellectual property (IP) rights are fundamental to the success of most retailers. In the Frozen yogurt industry, intellectual property protection and Trademark are needed to serve as

• Brand and image rights
• Protection and registration of designs
• Enforcement and dispute resolution
• Anti-counterfeiting and piracy
• Patents laws
• Trade mark filing and opposition
• Brand audits and watching services
• Securing trademarks and passing off
• Domain name strategies and disputes
• Data and database rights
• Competition law
• Protection of technology and innovation
• Advertising and marketing issues

11. Get the Necessary Professional Certification

If you plan to start your own frozen yogurt business or if you are currently majoring in marketing or information systems, you could benefit from earning a few certifications which may include retailing certification. These certifications includes:

• Customer Service and Sales Certification (CSCS)
• Advanced Customer Service and Sales Certification (ACSSC)
• Retail Management Certification (RMC)
• certified food protection manager (CFPM)
• Master Baking Certificate Program
• Retail Business Credential (RBC)

12. Get the Necessary Legal Documents You Need to Operate

Knowing what licenses and permits your frozen yogurt business needs can be very confusing when planning a new business. Each item requires time, energy and paperwork to obtain the proper registrations. As unpleasant a task as it may be, don’t risk your business shutting down before it fully begins.

Conducting business without the proper licensing is a criminal offense in some states, while others hand out hefty fines. Here are some legal documents needed for a Frozen yogurt business.

• Federal tax identification number
• Business license
• Food permit
• Resale certificate
• Certificate of occupancy
• Insurance certificate
• Alarm system permit

13. Write a Business Plan

Firms that offer foods and snacks grow because of the demand for these products and the Frozen yogurt business is sure one of the top five. Just as I already stressed, a good number of people love frozen yogurt as a healthier alternative to traditional ice cream cones; thus making the yogurt production business a profitable one.

If you have been looking to start a lucrative business of your own, a frozen yogurt production company is a very good option to consider. Though the frozen yogurt production business requires huge start-up costs, the business is very profitable, and you would regain your investment quickly. It is paramount that you conduct research to determine exactly what the public wants. This will also help you know if the frozen yogurt business will thrive in your locality.

One of the keys to success in any business is finding out what customers want and how they want it, and giving it to them the way they want it. During your research, you may find some fascinating information that will help build your business. Maybe there is untapped demand for certain varieties of frozen yogurt such as lactose-free frozen yogurt or frozen yogurt made with local, free-range milk. As an intelligent entrepreneur, you must investigate all opportunities, threats and possibilities

Writing a business plan will sure help you know your start-up and operation costs. It will also give you some information into who your potential customers are, who your competitors are, and how you can defeat your competition by developing your unique selling points. A business plan will also help you make projections and realistic plans for the future.

And it helps you define your specific expenses and how quickly you can build revenues. If you have taken the pain to conduct feasibility study, then writing a business plan would be a piece of cake because most of the work has already been done in the research phase.

14. Prepare a Detailed Cost Analysis

It is undeniably true that frozen yogurt is a very lucrative business with enough cash flow; there are still some challenges that accompany the business. What makes you successful in this business is your ability to tackle these challenges effectively. Outlined below is the cost analysis of starting a large scale frozen yogurt business.

• 5 machines @$12,500 each – $62,500
• 1 two door refrigerators– $2,000
• 1 two door freezer- $2,000
• Topping display with sneeze guard, – $2,500
• POS System- $4,500
• Other Kitchen equipment (hand basin, mop sink, 3 compartment sink) – $1,500
• Supplies- $1,000
• Tables, chairs, TVs and Wi-Fi – $5,000

Building costs

• Build-out- $150,000
• Signage- $5,000
• Menu board- $2,000
• Inventory- $4,000
• Prepaid Expenses (lease deposit, utilities deposit, permits) $7,000

Professional Fees

• Total 8,000
• Insurance – $5,000
• Automobiles – $25,000
• Licensing – $3,000
• Grand Opening Promotion – $3,000

Estimated Total- $293,000

From our well detailed cost analysis above, you will understand that it will cost you $293,000 to start a large scale frozen yogurt business and $131,560 to start a medium scale frozen yogurt business. A small scale frozen yogurt business is estimated at $23,850.

15. Raise the Needed Startup Capital

If you have all the incentives you need, then you are good to go. But if you need additional funds before you can kick start your frozen yogurt business, you will need to approach an investor, the government, a bank, or some other loan-giving establishment.

This is where your business plan will have to become even more instrumental. If your business plan is compelling and portrays a bright future for your business, then investors would be willing to fund it. Ways of getting funds may include:

• Raising initial capital from family and friends
• Getting Capital from angel investors
• funds from Venture capitalists
• Taking your company public through IPO
• Getting small business loans
• Getting funds through Crowdfunding
• Raise Funds through Mergers and Acquisitions
• Finance your Business Expansion with Equipment Leasing

16. Choose a Suitable Location for your Business

The location of your business can in a very great way dictate its success or failure. You have to a conduct research as to the best place to locate your business. Also, you need to determine if your business would have a retail component. This can fetch you a large volume of small profit sales, but you will need more investment costs.

Visit shopping malls, outdoor marketplaces, downtown areas and locations that receive heavy foot traffic due to the proximity to restaurants, movie theaters , grocery stores and local entertainment, such as theme parks or miniature golf courses. Choose a location with ample counter and display space, room for seating, freezer space and a commercial kitchen for preparing frozen yogurt and other items.

17. Hire Employees for your Technical and Manpower Needs

When starting your frozen yogurt business, you will need to get facilities such as a shop or warehouse, a production factory, and an administrative office. You can either lease these facilities or develop them on your own. But always consider that the latter option would cost more. For a start, you must keep all your component facilities within one location. You can separate them later when your business starts to expand.

You need to understand that you will need to purchase the major equipment and material needed to run your frozen yogurt production business. You will need digital scales for measuring frozen yogurt weight, self-serve machines, caddies for displaying toppings, such as fresh fruit or crushed candies, freezers, warmers for fudge and caramel sauce. Don’t forget that you will also need standard business office items, including a fax machine, telephone, credit card machine and register.

When starting your frozen yogurt business, you have to hire few staff. Hire the most suitable and experienced individuals for each position, and give them the necessary training they need to play their roles well. Nothing brings success faster than teamwork and dedication.

The Service Delivery Process of the Business

Frozen yogurt usually is primarily made up of milk solids, some kind of sweetener, milk fat, yogurt culture, natural or artificial flavourings, and sometimes natural or artificial colouring. Milk fat make up about 0.55–6% of the yogurt. Added in quantities inversely proportional to the amount of milk solids, the milk fat lends richness to the yogurt.

Milk solids make up 8–14% of the yogurt’s volume, providing lactose for sweetness and proteins for smoothness and heightened resistance to melting. Cane or beet sugar provides 15–17% of the yogurt’s ingredients. In addition to adding sweetness, the sugar raises the volume of solid ingredients in the yogurt, improving body and texture.

Animal gelatine and/or vegetable additives (guar gum, carrageenan, etc.) stabilize the yogurt, reducing crystallization and heighten the temperature at which the yogurt will melt. This stabilization makes sure that the frozen yogurt remains a smooth regardless of handling or change in temperature.

Most yoghurt makers often use assembly lines specifically dedicated to frozen yogurt production. The milk products and stabilizing agent(s) are added together and homogenized. At 32 °C, the yogurt culture is added. The mix remains at this temperature until it sets and is ready for cooling.

After that stage, the mix is cooled at a temperature of 0 to 4 °C. Once it has reached the wanted temperature and viscosity, the yogurt is allowed to sit in aging tanks for up to four hours. Sweeteners, flavourings, and colourings are then added, and the yogurt mixture is cooled at a temperature of −6 to −2 °C.

To create extra volume and smooth consistency, air is incorporated into the yogurt as the mixture is agitated. When a considerate amount of air has been incorporated into the product, the yogurt is rapidly frozen to avoid the formation of large ice crystals, and stored in a cold place to be shipped. Frozen yogurt can be made in a soft serve freezer in almost the same way as soft ice cream.

Frozen yogurt mix is sold in powder form that needs to be mixed with water or liquid form ready to pour into a soft serve machine . A mix with high fat or low fat content can be chosen, and the quantity of air introduced into the soft serve frozen yogurt is variable. The greater the level of fat, the more air the yogurt can absorb; and the more air that is introduced into the mix as it freezes, the creamier the product will taste.

18. Write a Marketing Plan Packed with ideas & Strategies

Attracting people to try a scoop of your delicious frozen yogurt is one of the most important parts of establishing your frozen yogurt business. That simply means that your marketing strategies must get to a variety of target markets, such as families that want a cool treat on a hot day, employees from local businesses on their lunch break or people strolling through the mall.

Once people start trying your frozen treats, implement strategies that will convince them to return to your store, instead of going to your competitor’s yoghurt shop. Marketing ideas for your frozen yogurt business may include…

• Host Events
• Initiate Loyalty Program
• Use the Social Media
• Use the Press

19. Work Out a Reasonable Pricing for your Services & Products

When it comes to the issue of pricing for products such as frozen yogurts, there are no hard and fast rules or known price models, the prices will always depend on the size and packaging. Generally, the prize for frozen yogurts and similar products like ice cream and confectioneries are affordable hence there is no need to employ any detailed strategies when it comes to pricing.

In view of that sincere fact, your yoghurt prices should conform with what that is obtainable in the industry but it is your duty to ensure that within the first 6 to 12 months that your products are sold a little bit below the average prices of various frozen yogurt brands in the country. But you need to put in place business strategies that will help you run on low profits for a period of 6 months; it is a way of encouraging people to buy into your brand.

20. Develop Iron-clad Competitive Strategies to Help You Win

With the increasing competition in the frozen yogurt industry and stores coming up from every corner, you have to make consumers aware of your shop. Each community is different and some marketing tactics will work in some areas and others will not.

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

• School fundraisers with your local elementary school.
• Coupon mailers.
• Daily deal websites
• Create a flavour contest
• Loyalty programs
• Group contest
• Street marketing
• Sponsor or advertise at local races
• Social marketing
• Cross market with local businesses
• Online marketing

21. Brainstorm Possible Ways to Retain Clients & Customers

Your Current customers are the best asset your frozen yogurt business can have. They already know the brand, they know the products and they know their service. Focusing your time and energy on these individuals as against always trying to find new customers can be a powerful way to supercharge revenues for your frozen yogurt business, especially over the holiday season. There are many ways to retain and maintain your customers and make them to always want to come back. These ways may include:

• Friendly employees
• Satisfy your customers
• Patronage discount and coupons
• Loyalty and reward programs
• Gamification
• Help desks and support systems
• Customer feedback survey
• Light personalization

22. Develop Strategies to Boost Brand Awareness and Create a Corporate Identity

Brand awareness and affinity serves several objectives for retail companies seeking to increase sales in the marketplace and it can do same for your yoghurt business. A brand awareness campaign needs to be flexible enough to grow with the business and adjust if needed. Ways to promote brand awareness and create a corporate identity in your frozen yogurt business may include:

• holding an event
• exhibiting yourself
• sponsor something
• create an experiential stunt
• take to social media, organize a public relation campaign
• invest in promotional merchandise
• Join forces with other businesses etc.

Cementing a good corporate identity through good brand awareness strategies with a little imagination and an understanding of your customer, the sky (and your budget) is the limit when it comes to getting in front of your competitors.

23. Create a Supplier/Distribution Network 

Supplier/Distributions networks are those important steps taken to move and store a product from the supplier stage to a customer stage in the supply chain. Distribution is an important factor that decides the overall profitability of your frozen yogurt business because it directly impacts both the supply chain cost and the customer experience.

Good distribution can be used to achieve a variety of supply chain objectives ranging from low cost to high responsiveness. The conventional distribution model has three levels: the producer, the wholesaler and the retailer. In the Frozen yogurt business, the direct distribution and supply should be the primary alternative distribution channel.

It means that you can be the producer and wholesaler that’s if you make the Yoghurts, and then sale to the end user to end the supply chain. But if you buy from a vendor, then you are the wholesaler who in turn sells to the consumers. Setting up a good supplier/Distribution Network will sure make your business lucrative and ways to do that may include:

• Contact wholesale food vendors to order frozen yogurt or the ingredients to prepare frozen yogurt and other food products you plan to sell. Visit food vendor websites to compare prices and delivery options. Schedule times for deliveries.
• Make arrangements with suppliers of the raw materials and ingredients that you will need. If possible, have more than one supplier for each ingredient, as this will prevent a hiccup in your business if a supplier runs out of stock.
• Pursue distribution deals with existing businesses, such as cafes, restaurants, supermarkets, and snack stalls. Since you intend to produce yogurt, it goes without saying that you must have your buyers ready, or no one would buy your product.
• Conducting research to figure the number of ready buyers around you will help you know the quantity of products to produce when you start full operation.

24. Tips for Running a Frozen Yogurt Business Successfully

To run your frozen yogurt business successfully, you must view everything from an owner’s perspective. Is your frozen yogurt great? Do you offer the top frozen yogurt flavours and rotate often? Is the staff motivated? Is the place clean, does it have good music and is it a fun and positive experience for the customer?

Indeed no place is perfect, not even Disneyland, but trying your best to make your business awesome. Things to consider may include:

• Always be mindful of your quality
• Try to create astonishing services
• Create a comfortable atmosphere
• Cleanliness

Related Posts:

• Frozen Yogurt Business Plan [Sample Template]
• Self-Serve Frozen Yogurt Business Plan [Sample Template]
• Soft Serve Ice Cream Business Plan [Sample Template]
• How Much Do Frozen Yogurt Shops Make Yearly? [Profit Margin]

Small Business Trends

15 frozen yogurt franchise opportunities.

Frozen yogurt is a popular treat in communities around the country. And that makes it a popular business opportunity for aspiring entrepreneurs. There are even self-serve frozen yogurt franchise options for those that want to align themselves with an existing brand. If you’re interested in frozen yogurt franchise opportunities, read on for a guide to the top options.

What is a Frozen Yogurt Franchise?

Frozen yogurt is a popular cold dessert, similar to frozen custard or soft serve ice cream. Frozen dessert franchises provide a model for starting a business that sells this product. You can usually get started quickly by paying a franchise fee and royalties, and the chain provides the resources and support needed to start your business.

• READ MORE: See our Franchise Guide

The Frozen Yogurt Industry in 2022

The frozen yogurt market is valued at nearly $975 million in 2022. It is a cost-effective dessert that appeals to a wide range of customers, from health-conscious consumers to families. There are many frozen yogurt franchises making an impact on this market, but there is still room to grow in new areas.

Why You Should Consider a Frozen Yogurt Franchise

If you’re thinking of starting your own frozen yogurt shop in 2022, here are some reasons to consider a franchise:

• Simplify your launch: Frozen yogurt franchises offer a proven model for finding a location, sourcing equipment, and hiring a team.
• Align with a popular brand: Many franchises are well known in other markets, so customers may already have some familiarity.
• Serve your community: Frozen yogurt franchises allow you to serve customers and get to know people in person.
• Get proven support: Franchises don’t just help with the startup phase. They also support you with marketing, inventory, and equipment throughout the life of your business.
• Earn profits more quickly: Overall, the support and brand recognition offered by franchising can help you make more sales and keep costs manageable.

General Criteria for Choosing the Best Frozen Yogurt Franchise: Our Methodology

Here are the general criteria that any small business owner or entrepreneur should consider:

• Brand Reputation (5/5): Assess the franchise’s reputation, including customer reviews, brand recognition, and overall public perception. A strong brand can attract customers and boost sales.
• Initial Investment (5/5): Consider the total upfront investment required, including franchise fees, equipment costs, and initial working capital. Ensure it aligns with your budget.
• Royalty and Fees (4/5): Evaluate ongoing royalty fees, advertising fees, and any other recurrent expenses. Lower ongoing costs can improve profitability.
• Location (5/5): Choose a franchise with a location strategy that matches your target market. The right location can drive foot traffic and sales.
• Training and Support (5/5): Look for franchises that offer comprehensive training programs and ongoing support. Proper training is essential for successful operations.
• Menu Variety (4/5): Assess the range of frozen yogurt flavors, toppings, and other menu offerings. A diverse menu can attract a broader customer base.
• Marketing and Advertising Support (4/5): Consider franchises that provide marketing materials, strategies, and advertising support. Effective marketing can help you acquire and retain customers.
• Health and Dietary Options (3/5): Examine if the franchise offers healthy and dietary-specific frozen yogurt options. Meeting various customer preferences can expand your customer base.
• Quality of Ingredients (4/5): Investigate the quality of ingredients used in the frozen yogurt. High-quality ingredients can enhance the taste and appeal of your products.
• Customer Base and Demand (5/5): Research the demand for frozen yogurt in your target market. A franchise in an area with high demand is more likely to thrive.
• Competition (3/5): Analyze the level of competition in the area where you plan to open your franchise. Lower competition can be advantageous.
• Flexibility in Operations (3/5): Consider the degree of flexibility the franchise offers in terms of menu customization, store design, and operational procedures. More flexibility can cater to local preferences.
• Growth Potential (4/5): Investigate the franchise’s potential for growth and expansion. A franchise with growth opportunities can be a long-term investment.
• Customer Experience (4/5): Focus on creating a positive and memorable customer experience. This can lead to repeat business and word-of-mouth referrals.
• Sustainability Practices (2/5): If environmental sustainability is important to you and your customers, check if the franchise follows sustainable practices in sourcing, packaging, and waste management.

Top Frozen Yogurt Franchises

If you’re ready to jump into the froyo business, here are some of the best-frozen yogurt franchises to consider.

1. Pinkberry

Pinkberry offers lots of brand recognition and moderately healthy options. There are various franchise models, including street front locations, in-line stores, and kiosks. There’s a $35,000 franchise fee, 6% royalty fee and 2% advertising fee.

2. Orange Leaf

Orange Leaf provides a community-driven atmosphere and partners with Humble Donut Co. for co-branded franchises. The total initial investment ranges from $120,000 to $315,000, with a 5% royalty and 2% marketing fee as well.

With more than 40 years in business, TCBY is one of the leading frozen yogurt franchises in the U.S. There are various models available, from counter service to kiosks. Franchise fees range from $5,000 to $35,000, with total startup costs ranging from $15,000 to $635,000.

4. 16 Handles

16 Handles is a self-serve froyo shop that is known for fun and celebrations, innovative flavors, and top-tier tech. There’s a $30,000 franchise fee and total startup costs between $225,000 and $670,000.

5. Yogurtland

Yogurtland is known for its customizable franchise model and real ingredients like fresh fruit. The recognizable brand mainly partners with those who can secure popular locations in shopping centers. There is a $35,000 initial fee, 6% royalty, and 2% marketing fees, and startup costs range from about $180,000 to $490,000.

6. CherryBerry

CherryBerry is a self-serve yogurt business that co-brands with Rocky Mountain Chocolate Factory. The franchise fee is around $25,000, with total costs starting at around $350,000.

U-Swirl is another yogurt franchise owned by Rocky Mountain Chocolate Factory. But this product is known for including live active cultures for optimal health, along with fresh toppings. There’s also a franchise fee of $25,000 and total costs starting around $350,000.

8. Menchie’s Frozen Yogurt

Menchie’s offers another self-serve option with various toppings available. The initial franchise fee is $40,000 and total costs start at around $330,00.

9. sweetFrog

sweetFrog is known as the “hoppiest” froyo franchise. They offer various models, from those in amusement parks to a truck-based business. Total costs start at $240,000, with a franchise fee of $30,000.

10. Yogen Fruz

Yogen Fruz is a personalized yogurt shop known for quality ingredients and store designs. The initial fee is $25,000, with total costs starting at $150,000.

11. Baskin-Robbins

Baskin-Robbins is known for ice cream, but they carry other tasty treats like froyo and frozen custard. The franchising fee is $25,000, and the total initial investment ranges from $90,000 to $625,000.

12. Nautical Bowls

Nautical Bowls specializes in acai and fresh ingredients rather than sugary treats. But the model is similar to that of many frozen yogurt franchises. With a franchise fee of $30,000, the initial investment starts at around $180,000.

13. Milkshake Momma

Milkshake Momma offers a unique concept that focuses on gourmet milkshakes. The franchising fee is $35,000 and the initial investment starts at around $180,000.

14. Forever Yogurt

Forever Yogurt offers a customizable franchise opportunity to suit each unique market and space. The initial investment ranges from about $230,000 to $500,000.

15. Reis & Irvy’s

Reis & Irvy’s is a robot-powered froyo business. It’s not exactly a franchise. But you can apply to host a machine if you have an existing location. Startup fees start at around $15,000.

• READ MORE: Reis & Irvy’s Offers Yogurt Franchise Powered by Robots

How to Choose the Best Franchise to Set Up Your Frozen Yogurt Business

The franchises above all sell frozen yogurt. But they differ in many other aspects. If you’re interested in frozen yogurt or ice cream franchises, these considerations may help.

Create a Budget

Before getting started, determine how much liquid cash you can spend upfront and how much you’re willing to pay for ongoing royalties and marketing support.

Analyze Your Local Market

Analyze the options in your local area to find an opportunity that stands out. For example, a self-serve froyo counter may be ideal in a community that already has a lot of traditional ice cream shops.

Consider Your Role in the Business

Do you want to be involved in the day-to-day operations, or would you rather purchase a franchise and leave it to your team?

Compare Support Options

• READ MORE: 15 Health Food Franchise Opportunities

How Much Does It Cost to Open a Frozen Yogurt Franchise?

The exact costs to open a frozen yogurt franchise vary widely, but the average franchise fee is between $30,000 and $40,000. When combined with other startup costs like location and equipment, you may invest $100,000 or more to get started.

Are Frozen Yogurt Franchises Profitable?

Frozen yogurt franchises can be profitable, but it depends on which model you choose. Your location, startup costs, and expenses also make an impact. Some yogurt chains report nearly $800,000 in sales yearly once they’re up and running. This could allow you to meet expenses and earn a profit within the first year or two.

• See our Franchise Guide
• Reis & Irvy’s Offers Yogurt Franchise Powered by Robots
• 15 Health Food Franchise Opportunities
• 16 Breakfast Franchises

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• Franchise Ratings in USA

Top 10 Frozen Yogurt Franchise Opportunities in USA for 2023

Frozen yogurt franchises as well as other health-driven businesses are the mainstream of 2023. In the USA the market is occupied by famous well-promoted brands that have been holding their leading positions for years. Having compared a current list of the best with the one of the previous year, we see just an insignificant rotation in the ranking. Being keen on health, Americans prefer frozen yoghurt or smoothie which contain healthy ingredients and fewer calories to traditional sweets. Therefore, frozen dessert restaurants, bars and stores are very popular throughout the USA. Many of them are operating under famous franchise brands like Tutti Frutti, Red Mango, Pinkberry, etc. The best Frozen Yogurt franchises offer their partners not only the idea and a well-known name, but also an assistance of marketing and development support team as well as useful trainings and detailed instructions on business processes. Choose one of the top Frozen Yogurt franchise opportunities below.

Here is TOP 10 Frozen Yogurt Franchise Opportunities in USA:

Tutti frutti.

Founded in: 2008 Franchising since: 2009 Franchise units: 700+ Worldwide Initial investment: from $231,000 Franchise Fee: $58,400 - $96,500 Ongoing Royalty Fee: 5%

Tutti Frutti Frozen Yogurt is an American retail chain of self-serve frozen yogurt and is the largest specialty frozen yogurt retailer in the world. Company has over 100 outlets in California and other states in the US, Indonesia, Vietnam, Tahiti, and Mexico, and around the world.

Founded in: 2008 Franchising since: 2010 Franchise units: 31+ Initial investment: from $264,750 Franchise Fee: $30,000 Ongoing Royalty Fee: 6%

16 Handles, New York City’s #1 frozen yogurt and dessert brand, launched in 2008 as New York City’s first self-serve pay-by-weight frozen yogurt concept, has since grown to over 40 locations across six states, and is now expanding internationally. Customers will have more than 80 flavors of Fro-Yo to choose from plus an endless toppings bar filled with fan favorites and a few surprises along the way.

Orange Leaf

Founded in: 2008 Franchising since: 2010 Franchise units: 200+ Worldwide Initial investment: $189,900 - $417,300 Franchise Fee: $25,000 Ongoing Royalty Fee: 5%

Orange Leaf Frozen Yogurt (or simply Orange Leaf) is an Oklahoma City-based chain of self-serve frozen yogurt franchises founded in 2008 which offers sugar-free, gluten-free, non-dairy, and vegan alternatives which include flavors, cups, and cones, to smoothies, shakes, and cakes. Company has spread to over 300 locations in the United States and has also expanded internationally.

Founded in: 2006 Franchising since: 2007 Franchise units: 315 Initial investment: $194,000 - $466,000 Franchise Fee: $30,000 Ongoing Royalty Fee: 6% Ad Royalty Fee: 3%

Red Mango is a frozen yogurt and smoothie brand known for its all-natural frozen yogurt, fresh fruit smoothies, yogurt parfaits, and fresh juices. Daniel Kim opened the first Red Mango store in 2007, near the University of California in Los Angeles and quickly began franchising the frozen yogurt shop. Red Mango® Yogurt Café Smoothie & Juice Bar is an established leader among frozen yogurt and healthy eating franchises.

Founded in: 2005 Franchising since: 2006 Franchise units: 80 Initial investment: $295,000 - $508,000 Franchise Fee: $35,000 Royalty Fees: 6%

Pinkberry is an American chain of frozen dessert restaurants which started in Los Angeles in 2005 and has enjoyed unprecedented growth nationwide and worldwide. There are currently over 260 stores in 20 countries. The chain serves both frozen and fresh Greek yogurts with a variety of toppings, along with yogurt smoothies and shakes. All Franchisees have dedicated operations, marketing, and development support team members who they can reach out to for operating and training matters.

See more food franchises in USA in the catalog →

Mrs. Fields & TCBY

Founded in: 1977 Franchising since: 1982 Franchise units: 836 Initial investment: $200,000 - $492,000 Franchise Fee: $25,000 - $35,000 Royalty Fees: 6% Ad Royalty Fee: 2%

Famous Brands International (“Famous Brands, or the “Company”), headquartered in Broomfield, Colorado, owns and manages two category defining, iconic brands: Mrs. Fields and TCBY (The Country’s Best Yogurt). Together, TCBY and Mrs. Fields have more than 900 locations in 33 countries. The real value of becoming a franchisee is that you’re walking into a proven system that has already strategized, tested, and implemented branding, operations, training, management, marketing, real estate, and construction processes and resources.

Founded in: 2007 Franchising since: 2008 Franchise units: 495 Initial investment: $218,000 - $385,000 Franchise Fee: $40,000 Royalty Fees: 6%

Menchie's Frozen Yogurt is an American frozen yogurt chain company founded by Danna and Adam Caldwell in 2007, based in the San Fernando Valley, California area. Menchie's shops offer self-serve frozen yogurt in 100 rotating flavors, including low carb, no sugar added, dairy free, nonfat, gluten free, and kosher options. A typical Menchie's franchisee invests approximately $300K - $350K, including working capital, to open their Menchie's yogurt franchise.

Founded in: 2006 Franchising since: 2007 Franchise units: 304 Initial investment: $278,000 - $588,000 Franchise Fee: $35,000 Royalty Fees: 6%

Yogurtland is an American international franchise chain of frozen yogurt restaurants which provides self-serve soft-serve frozen yogurt. Yogurtland features non-fat and low-fat yogurt flavors, ice cream, and non-dairy and no sugar added choices while using milk that does not contain antibiotics or added hormones. Fruit flavors are fortified with Vitamin C for an extra boost. At this time, Company prefers franchisees who are willing to open several locations.

Founded in: 2009 Franchising since: 2012 Franchise units: 287 Initial investment: $96,000 - $478,000 Franchise Fee: $10,000 - $30,000 Royalty Fees: 5%

sweetFrog Premium Frozen Yogurt began when an entrepreneur Derek Cha and his family moved to Richmond, VA, in 2009. The first sweetFrog store opened later that year in the Short Pump subdivision of Richmond and for now the chain of frozen yogurt retail restaurants has over 300 locations in the United States and several more internationally. Sweet Frog locations offer a variety of frozen yogurt flavors and toppings, waffle cones and bowls, Belgian waffles, banana splits and parfaits.

Founded in: 1986 Franchising since: 1987 Franchise units: 1,226 Initial investment: $123,000 - $460,000 Franchise Fee: $25,000 Royalty Fees: 6%

Yogen Fruz, founded by brothers Michael and Aaron Serruya in 1986 in Toronto, Ontario, is a chain of frozen yogurt and smoothie stores that also serves healthy alternative food products. In 1989, they expanded into the United States, and for now operates worldwide. The chain is run through company-owned, franchised, and non-traditional partnerships. Company developed a unique blending system which combines its delicious and nutritious frozen yogurt and fresh fruit which allows anyone to customize their own flavor combination.

To summarize, we can say any of the listed above frozen yogurt franchises is worth buying. But there is a lot to consider while choosing the best one for you. Pay attention to the reputation of the brand, what training and support are offered, check if the other franchisees are successful. But the main thing you need to do is to align your budget with investment requirements of the brand. In order to ease the challenge, we have made the comparison flowchart of the best frozen yogurt franchises in the USA for you. It shows the minimum estimated initial investment and initial franchise fee of each brand. By using it, you can figure out the difference in financial requirements for each franchise, and decide which one fits you the most.

View all Yogurt & Ice Cream Franchises

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Local News | Fire guts popular Hatteras Island frozen…

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Local News | Fire guts popular Hatteras Island frozen custard shop; owners plan to rebuild

The owners of a popular frozen custard shop on Hatteras Island say they will rebuild after a Friday morning fire gutted their building on N.C. 12 in Buxton.

The blaze broke out at Uncle Eddy’s Frozen Custard and 18 Hole Mini Golf just after 12:10 a.m. during a period of gusty winds.

No one was injured and firefighters were able to bring the flames under control within 45 minutes, the Island Free Press reported . The cause of the fire remains under investigation.

In a Facebook post , Uncle Eddy’s said the fire totally destroyed the building and contents, “meaning this will be a long rebuilding process.”

A GoFundMe campaign has been established to help with the rebuild and the possibility of a temporary small shop in the meantime, the post said.

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Weather | Threat of severe weather in Hampton Roads has passed, weather service says

City Politics | Cost to build Virginia Beach flood protections has nearly doubled to more than $1 billion

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I'm a chef who loves to shop at Costco — but there are 12 things I never buy there

• I love Costco (and have shared my favorite things to get there ), but some items aren't worth buying.
• Mixed roasted nuts, breadcrumbs, and big cartons of sour cream often go bad before I can use them. 
• Marinated frozen salmon, husked corn, and shredded cheese aren't usually worth buying at Costco . 

Instead of buying mixed salted nuts, I just buy the variety I need.

Nuts are a fantastic snack and ingredient, but large bags or tubs of nut varieties that have been roasted and salted are a pass for me.

Nuts are high in natural oils, which can go rancid easily. And though roasting nuts certainly improves the flavor, it also significantly decreases their shelf life.

Plus, when you get multiple types of nuts in one container, you attract dreaded cherry pickers — or maybe you're the one leaving behind the starchy Brazil nuts and gobbling up all of the salty cashews.

Your best bet may be to buy Costco's single-variety packs of unroasted nuts and keep them in your freezer for maximum freshness.

Even if it's the height of local corn season, buying husked corn is a no-go for me.

Husked corn is more convenient, but taking a few minutes to remove your own silk is guaranteed to be worth the effort for flavor and crunch.

It's impossible to know how long ago this plastic-wrapped corn was undressed. Plus, the longer corn hangs around in the buff, the more it dries out and loses its flavor and nutrients. 

You're better off buying smaller cans of tomato sauce unless you're cooking for a big crowd.

After you've conquered the impressive feat of prying open this nearly 7-pound can of tomato sauce, you're probably going to have a lot of leftovers unless you're feeding a village. 

And that red stuff won't last forever. Sure, you can freeze it, but you'll need multiple containers and a lot of freezer real estate to house those tomatoes.

This is an item you're better off buying in smaller cans since it's inexpensive and much easier to manage. 

Buying cereal in bulk doesn't make sense for me because I don't go through it quickly enough.

Save yourself the disappointment of a stale bowl of cereal and pick up your favorite breakfast from the regular grocery store.

Extra-large boxes of cereal will likely lose crunch. You might also get tired of it before you finish off 3 pounds of the stuff.  

Sour cream doesn't freeze well and can go bad quickly, so I skip it unless I have a recipe in mind.

Even the most generous burrito stuffers probably don't need multiple quarts of sour cream in their fridge.

Despite being pasteurized, this dairy product might spoil or go moldy before you can make the most of it — especially if you're double-dipping.

Unfortunately, most dairy products don't freeze well either. Stick to smaller containers of dairy products like sour cream and yogurt for the freshest flavor and lowest food-safety risk. 

I try not to buy bulk breadcrumbs because they can get stale before I use them up.

Not only does a two-pack of extra-large cans of seasoned panko breadcrumbs present an obvious storage issue , but these also aren't going to stay fresh forever.

Breadcrumbs go stale just like regular bread, but you can't freeze them to extend their shelf life. Plus, these bread crumbs are seasoned with cheese, which is likely to diminish their shelf life even faster.

Instead, you might want to choose a smaller container of breadcrumbs and add your own seasonings. 

I prefer to get my cold cuts at the deli counter or from my local butcher.

Despite all of the processing, sliced deli meats have a very brief shelf life once they're opened.

You're better off choosing freshly sliced ham from your local butcher or deli counter in an amount that you can consume within a few days. 

Costco's fresh salmon is a great deal, so I usually skip the frozen varieties.

I think you're better off buying fresh salmon at Costco's seafood counter and marinating the fish yourself than buying anything frozen and preseasoned.

Protein, especially delicate fish, shouldn't be marinated indefinitely. Over time, the fish's flaky texture will break down, and you'll end up with something much mushier than the soft, buttery texture you're looking for.

Extended periods of freezing can have the same effect, making this frozen and marinated salmon  something to avoid. 

Shredded-cheese blends aren't ideal for most of my recipes.

As a general rule, I say shredded cheese often has less flavor than cheese you grate at home.

There's no telling how long ago this cheese was shaved from its block and blended with three other cheeses. Although you can see both orange and white cheese shreds in the mix, it's impossible to identify each of the four varieties from the others or to know how much of each kind you're working with.

In my opinion, what's the point of melting cheese into your quesadilla if you can't taste the complex and delicious flavors that are carefully developed by cheese makers? 

I think peeling garlic is a labor of love, so I usually skip the shortcuts.

Whether you're at Costco or the neighborhood market, just say no to peeled garlic.

No one likes the tedious task of prying papery skin off a tiny clove of garlic — but it's a labor of love and the only way to get fresh garlic flavor into your food. Prepeeled cloves tend to be dried out, woody, and lacking flavor.

Plus, a 3-pound pouch of garlic is only going to degrade in flavor and attract bacteria after it's been opened. And, for the sake of your family and friends, don't put that kind of pressure on yourself to finish the bag before it goes bad. 

Costco's baked goods are best when they're fresh, so buying in bulk can be risky.

There's a reason that Parisian bakers are at work by 5 a.m. every day. It's because their precious loaves, croissants, and tartlets are at their best the very day they're baked.

Unless you're feeding a classroom or going to a potluck, there's no need to invest in a container of pastries that you won't be able to finish in a day or two at most.

Chances are, you can also find higher-quality treats at a shop that bakes in smaller batches.

It can be tricky to get a good, big container of fruit and consume it in a timely manner.

Depending on the season, you can keep fruit fresh in the crisper drawer for some time. But if you're buying fruit that's already past its prime, and in big quantities to boot, you're not doing yourself any favors.

Delicate fruits like stone fruit and berries are best bought in smaller quantities and locally, if possible. The further fruit has to travel to reach your store, the more time there is for damage. 

This story was originally published on September 15, 2021, and most recently updated on April 5, 2024.

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Moscow International Business Center (Moscow City)

• Guide to Russia

What can you do at Moscow City?

• Dine in style: Moscow City is home to 100+ cafes and restaurants, including Europe’s highest restaurant and ice-cream shop
• See Moscow like never before: Ascend to one of Moscow City’s observation decks for an unparalleled panorama of Moscow
• Admire world-class architecture: Each of Moscow City’s skyscrapers has distinctive architecture and design
• Learn something new: Visit the Museum of High-Rise Architecture in Moscow or the Metro Museum

Moscow City is a multifunctional complex in the west of Moscow, which has come to represent the booming business of Russia’s capital. Its skyscrapers enrich Moscow’s skyline, contrasting the medieval cupolas and Stalinist high-rises. Visitors to Moscow City can enjoy entertainment high in the sky, as the complex is home not just to offices, but to restaurants, cinemas, viewing platforms, and museums.

Photo by Alex Zarubi on Unsplash

History of Moscow City

Moscow City was first conceived in 1991 by honoured Soviet architect Boris Tkhor, who proposed to construct a business center in Moscow. It would be complete with gleaming skyscrapers rivalling those of New York and London, to reflect the new life and growing ambitions of post-Soviet Russia.

The chosen site was a stone quarry and disused industrial zone in western Moscow, in between the Third Ring Road and Moskva River. Initially, the territory was divided into 20 sections arranged in a horseshoe shape around a central zone. The skyscrapers would increase in height as they spiralled around the central section, with shorter structures built on the waterfront to give the taller buildings behind a view of the river. 

Architect Gennady Sirota, who contributed to iconic projects such as the Olympic Sports Complex on Prospekt Mira, was selected as the chief architect, and many other world-famous architects were attracted to Moscow to realise their visions in Moscow City.

What can you see and do at Moscow City?

Where Moscow’s cityscape was once dominated by Stalin’s Seven Sisters skyscrapers , this is no more. Moscow City is home to eight of Russia’s ten tallest buildings, six of which exceed 300 metres in height. More buildings are still under construction there today, including the One Tower (which will be Europe’s second-tallest building). Once completed, Moscow City will comprise more than 20 innovative structures.

Each of Moscow City’s skyscrapers was designed by its own architect, lending the cluster of skyscrapers a unique appearance. Aside from being a site of architectural wonder, Moscow City is a place for leisure and entertainment with over 100 cafes and restaurants, exhibition spaces, cinemas, viewing platforms, and more.

Photo by Nikita Karimov on Unsplash

Federation Tower

• East Tower: 374m, 97 floors; West Tower: 243m, 63 floors
• Completed in 2017
• Architects: Sergey Tchoban and Peter Schweger

The East Federation Tower is the tallest building in Moscow, and the second-tallest building in Europe after the Lakhta Centre in St Petersburg. Visitors can enjoy a luxurious meal of seafood, truffles or steak at restaurant ‘Sixty’ on the 62nd floor of the West Tower, or visit Europe’s highest observation deck, ‘Panorama 360’, on the 89th floor of the East Tower.

Did you know? The ice cream and chocolate shop on the 360 observation deck are the highest in the world!

• South Tower: 354m, 85 floors; North Tower: 254m, 49 floors
• Completed in 2015
• Architect: Skidmore, Owings & Merrill LLP

The South OKO Tower is the third-tallest building in Russia and Europe. Here, you can visit ‘Ruski’ to dine on hearty Russian cuisine cooked on a real Russian stove, and have a drink in the ice bar. Alternatively, visit restaurant, nightclub and performance space ‘Birds’; the restaurant is the highest in Europe, situated on the 86th floor roof terrace alongside an observation deck. The OKO Towers are also home to karaoke club ‘City Voice’.

Did you know? Underneath OKO Towers is the largest underground parking in Europe, with 16 levels and 3,400 parking spaces.

Mercury Tower

• 339m tall, 75 floors
• Architects : Mikhail Posokhin, Frank Williams, Gennady Sirota

Another multifunctional skyscraper, which was designed as the first truly ‘green’ building in Moscow. The Mercury Tower has a distinct geometric shape and copper-coloured glazing, and was the tallest building in Europe upon completion. Visit ‘More i myaso’ (Sea and meat) on the first floor of the tower to enjoy European and Mediterranean cuisine whilst surrounded by greenery. On the 2nd and 40th floors a modern art gallery, the ‘ILONA-K artspace’, has just opened.

City of Capitals

• Moscow Tower: 302m, 76 floors; St Petersburg Tower: 257m, 65 floors
• Completed in 2009
• Architect: Bureau NBBJ

The unique geometric design of the City of Capitals towers resembles stacks of rotating blocks, and is rooted in Constructivism of the early Soviet period (many Soviet Constructivist buildings can be found in Moscow). Visitors to the Moscow Tower can enjoy a range of cuisines – traditional Italian dishes on the summer terrace of ‘Tutto Bene’, Panasian cuisine in the tropical luxury of the ‘Bamboo Bar’ on the 1st floor’, and poke or smoothie bowls at ‘Soul in the Bowl’ cafe on the 80th floor.

Tower on the Embankment

• Tower A: 84m; Tower B:127m; Tower C: 268m, 61 floors
• Completed in 2007
• Architects: Vehbi Inan and Olcay Erturk

After completion, the Tower on the Embankment was the tallest building in Europe, and is now the 13th tallest. It houses the headquarters of several large Russian and international  companies, including IBM and KPMG. There are two cafes located on the 1st floor of Tower C – self-service café ‘Obed Bufet’ (Lunch Buffet) and Bakery Chain ‘Khleb Nasushchny’ (Daily Bread).

Evolution Tower

• 255m tall, 54 floors
• Architects: Philip Nikandrov and RMJM Scotland Ltd

Evolution is Moscow City’s most recognisable tower, and the 11th tallest building in Russia. Its façade is a true architectural marvel, comprising continuous strips of curved glazing spiralling high into  the sky. According to the architect, Philip Nikandrov, the spiral shape of the tower honours centuries of architectural design in Russia, from the onion domes of St Basil's Cathedral to Vladimir Shukhov’s Tatlin Tower, a masterpiece of Constructivist design. Outside the Evolution tower is a landscaped terrace and pedestrian zone descending to the Presnenskaya Embankment, which was also designed by Nikandrov.

Did you know? Moscow’s largest wedding palace was supposed to be built on the site of the Evolution tower, though the project was abandoned.

• 239m tall, 60 floors
• Completed in 2011

Imperia’s interesting design has a curved roof and an arched glass façade. Inside the tower are various cafes including ‘City Friends’ for all-day breakfasts and light lunches, ‘Mama in the City’ for simple meals of Russian cuisine, and ‘abc kitchen’ for European and Indian-inspired dishes. Alternatively, visit ‘High Bar’ on the 56th floor for cocktails with a view. In Imperia you’ll also find the Museum of High-Rise Construction in Moscow (suitably located on the 56th floor), and the Camera Immersive Theatre.

Did you know? Inside Vystavochnaya metro station is the Metro Museum , dedicated to the history of the beautiful Moscow Metro!

• 130m tall, 26 floors
• Completed in 2001
• Architect: Boris Tkhor

Tower 2000 was Moscow City’s first tower. It stands on the opposite bank of the Moskva River, and houses a viewing platform from which visitors can admire an unparalleled panorama of Moscow City. The Bagration Bridge reaches across the river from the tower to Moscow City, and underneath are piers from where you can take boat trips.

Photo by Alexander Popov on Unsplash

Afimall is Moscow’s largest entertainment and shopping complex, home to 450 shops, cafes and restaurants, a cinema, and a virtual-reality game park. The shopping centre is located in the central section of Moscow City, and a cinema and concert hall are currently under construction there.

What’s nearby?

Sechenov Botanical Gardens: The botanical gardens of the First Moscow State Medical University was created for students’ training and research in 1946. Today it is open for free visits, and is home to a large arboretum.

Park Krasnaya Presnya: This park belonged to the Studenets estate of the Gagarin princes. It is a monument of 18th and 19th century landscaping, with Dutch ponds, ornate bridges, and tree-lined alleys. There are also sports facilities, sports equipment rental, and cafes.

Photo by Akkit  on Wikipedia

Essential information for visitors

Website: https://www.citymoscow.ru/

Email: [email protected]

Phone: +7 (495) 730-23-33

Nearest metro: Mezhdunarodnaya (closest to the skyscrapers), Delovoy Tsentr (underneath Afimall), Vystavochnaya (closest to Expocentre)

Related Tours

Moscow - St. Petersburg 3-star cruise by Vodohod

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Two Capitals and the Golden Ring

This tour covers the best sights of Moscow and St. Petersburg along with a trip to the Golden Ring - a group of medieval towns to the northeast of Moscow. Ancient Kremlins, onion-shaped domes and wooden architecture is just a small part of what awaits you on this amazing tour.

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This is our most popular Moscow tour that includes all the most prominent sights. You will become acquainted with ancient Russia in the Kremlin, admire Russian art in the Tretyakov Gallery, listen to street musicians as you stroll along the Old Arbat street, and learn about Soviet times on the Moscow Metro tour.

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