Is the Frozen Yogurt Store Business Dead?
August 13th, 2014 by Neil Williams
Unlike other equipment dealers who gloss over the fact that the frozen yogurt business is cooling off, I’m here to give you the facts as I see them.
Is Frozen Yogurt dead? The short answer is No. It’s still a great business. But it is showing signs of slowing. And why not? All businesses reach a level where they are no longer “the new hot business to get into”.
The above said, there is still a lot of opportunity and cash to be made opening yogurt stores. You just need to be a little smarter than you needed to be in the past. A few years ago if you had money and some energy, you could make a lot of mistakes and still make money.
Today, there is still good money to be made for those who tread a little more carefully. No longer can you simply invest $300 to $400k in a franchise store and expect it to be a huge success. Too much competition in the larger markets. There are still pockets in large markets for good locations, but the biggest opportunity lies in smaller stores in smaller markets with less competition.
The positive to an industry reaching maturity is that it has now become a proven, money making business concept.
Many people ask me why some yogurt stores have been going out of business. This is a natural question to ask if you see our “full yogurt store” used equipment listings. The simplest answer is…all industries have locations that don’t make it. Frozen Yogurt is no different than a coffee shop or a restaurant or deli or any other business. Bad location, negligent management or a host of other issues can bring a store down. It is a basic business cycle. We sell used ice cream store equipment – and ice cream stores have been around forever. Many open, some close. Its “nature”.
The way I see it, there are a couple of ways you can protect your downside and have the best shot at being successful.
1) Purchase a full store worth of used equipment. This limits your investment and gives you a shorter period to reach payback on that investment. As you know by now, we help match up sellers with buyers and we build in protective measures for both parties. I mention this because you need to be very careful if you buy used equipment directly from a seller. It’s risky. Buying from TurnKeyParlor.com will not cost you a penny more and we will ensure that you are buying what makes sense for you. We hold 50% of a sellers $$ to ensure that you receive the equipment as advertised. We also manage shipping and fully insure it for damage. Lastly, we include a warranty for up to 90 days after you put the machines to work. I can’t tell you how many people bought used equipment only to come to me later wanting me to help them sell it. Why? One example – they bought 3 phase machines without realizing that their store location only had single phase power and no way to upgrade to 3 phase. This essentially rendered the machines useless to them. They took a big loss right off the bat. This is just ONE of at least 5 mistakes you can make buying used stuff on your own. Don’t expect a direct seller to help educate you. If you work with us, we will do our best to makes sure you don’t make rookie mistakes. See our latest deals HERE
2) Go new, but limit the # of machines – Its comforting to buy new equipment with full warranties. And sometimes there isn’t a used full store available that fits your needs. Going used isn’t for everybody. We can help you with brand new equipment packages that are reasonably priced helping keep the investment as low as possible.
Whatever path you choose, we are here to help you along. Our hope is that you value the fact that we are about as neutral a party as you will find in the business. We sell all the brands and will not push you one way or the other. We do our best to present unbiased information and hope that this translates into equipment sales for us. Its not a complicated strategy.