Previously, frozen yogurt was the preferred dessert choice, but it appears that trend is progressively fading. The demand for healthier dessert options has increased, and this has had an impact on the frozen yogurt market. This raises the concern: Is the frozen yogurt sector in decline?
IBISWorld’s analysis claims that between 2015 and 2020, the frozen yogurt sector witnessed a 3.7% yearly drop. Numerous factors, such as the increased competition from alternative dessert options, shifting consumer preferences, and rising prices for frozen yogurt establishments, might be blamed for this downturn.
The COVID-19 epidemic has also had an effect on the sector. Lockdowns and other social isolation tactics have forced the closure of many frozen yogurt stores, which has resulted in a decline in sales and an increase in operating expenses.
How much frozen yogurt is actually consumed annually? Although exact figures are unclear, Statista estimates that the global market for frozen yogurt will be worth $1.3 billion in 2020. This shows that although there is still a need for frozen yogurt, the market is having trouble supplying it.
Danna and Adam Caldwell, a husband and wife team, created Menchie’s Frozen Yogurt, one of the largest frozen yogurt businesses, in 2007. The chain has more than 500 sites across the globe, with the majority of them in the United States. However, Menchie’s has also been impacted by the industry’s collapse. The business declared bankruptcy in 2019, citing heightened competition and shifting client preferences.
Yogurtland is yet another significant player in the frozen yogurt market. The 2006-founded chain has more than 300 sites across the globe. Despite the fact that the company hasn’t made its financial information available to the public, Yogurtland is reportedly profitable.
As a result, even while the frozen yogurt market may not be as successful as it once was, it is not necessarily in decline. Frozen yogurt is still in demand, but the market is having trouble keeping up with it. The industry has been impacted by both the trend toward better eating and the emergence of substitute dessert options, as well as the COVID-19 pandemic’s effects. Despite these difficulties, some frozen yogurt franchises, like Yogurtland, have continued to be profitable. Although the frozen yogurt market’s future is still unclear, it is certain that in order to thrive, it will need to adjust to shifting consumer preferences and market trends.
Several elements, including location, store size, and other costs, might affect the price of opening a Pinkberry franchise. To start a Pinkberry franchise, however, can cost anything from $300,000 to $700,000. This expense covers the original franchise price as well as any necessary equipment, supplies, marketing, and start-up expenses. For more precise information on Pinkberry’s franchise opportunities and prices, it is advised that you get in touch with them directly.