The Benefits of Owning a Frozen Yogurt Shop Over Another Small Food Service Business

For many small business owners the decision to open a specific type of food service business can be difficult. We hope you will find these points helpful when considering whether or not a frozen yogurt shop is the right investment for you.

1. Individual Ownership v. Franchise – For many small business owners the question of whether or not to open a standalone shop or a franchise of a popular local or national chain can be a difficult decision. Both involve significant personal financial investment and have their benefits and pitfalls. The great thing is that you can open your own frozen yogurt shop or go with a franchise. The choice is yours.

  • Franchisees must comply with corporate requirements and must pay a portion of their earnings to the corporation and fixed advertising expenses. However, they are supported by a larger marketing budget and brand recognition that can help drive sales.
  • Individual owners do not have to answer to a corporation or comply with advertising, store design or product display requirements. They are free to choose the products they sell in their stores, they can design their own uniforms and determine the staffing levels necessary to successfully run their business.

2. Labor Requirements – Frozen yogurt shops are not labor intense operations. Most self-serve locations can handle high customer volume with three employees working at peak times. Furthermore, they do not require skilled labor. Almost anyone can clean a frozen yogurt machine and greet customers. Selecting the right employees often comes down to personality, not skill set, in a frozen yogurt shop.

3. Predictable Costs – The costs associated with owning your own frozen yogurt shop are pretty straightforward and predictable. Once the equipment has been purchased; monthly costs are essentially limited to energy expenses, yogurt mix, toppings, rent and employee salaries. A few months of operating and it is easy to predict what those costs will be on a monthly basis for your particular store.

While each business investment is a personal decision that involves a number of different factors. We think the limited labor needs, the predictable costs and the fact that there are both stand alone and franchise opportunities in the frozen yogurt market make opening a frozen yogurt shop a great business investment opportunity.

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