The 16 different frozen yogurt flavors that are offered at each location are what the name “16 Handles” actually stands for. Customers can select their preferred flavors and add a multitude of toppings to create a custom experience. The company’s success has surely been aided by its unique and catchy moniker.
Although frozen yogurt has been around for a while, it wasn’t until the 1980s that it gained popularity as a dessert option in America. It was promoted at the time as a healthier substitute for ice cream. Frozen yogurt didn’t become more popular again until the late 2000s, when places like 16 Handles started to provide self-serve options.
According to Forbes, companies with high profit margins and low overhead expenses are the most profitable. If they can keep their costs down and sell their goods at a high enough price, ice cream and frozen yogurt companies can turn a profit. But because of the industry’s seasonality and hefty overhead costs, including rent and labor, many ice cream stores fail.
For ice cream and frozen yogurt establishments, a healthy profit margin is normally in the range of 30%, however this can change depending on factors including location, competition, and pricing strategy. Offering distinctive and flexible alternatives, such as 16 Handles, can also help to draw clients and boost profit margins.
In conclusion, the name 16 Handles is a smart allusion to the 16 varying frozen yogurt varieties that are offered at each store. In recent years, the frozen yogurt market has experienced a spike in popularity, with 16 Handles and other self-serve locations setting the pace. While selling ice cream and frozen yogurt can be profitable, in order to stand out in a crowded market, businesses must reduce overhead costs to a minimum.
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