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What You Need To Know Before Opening A Frozen Yogurt Store

By Edited Nov 13, 2013 1 0
frozen yogurt
Credit: red mango

What is Frozen Yogurt?

The frozen yogurt craze has taken over the world! The increase of the Frozen yogurt market has gone through the roof. Now you may be thinking since there is already demand, that just opening a Froyo (frozen yogurt) business will suffice, and you will have costumers pouring in to buy from you, but no; it is more competitive than ever. Through this article you will learn the top tips to help you succeed in this new venture.

Demand in a particular area

Location, is prehaps one of the biggest factors in whether you will be successful. Before you go and open a Froyo shop, find out if there is a particular area that has a demand for it. You can do this by several methods, such as simple surveys, or door to door questionnaire, or even hiring a firm to do the leg work. What you do it is not as important as how you do it. So certain things such as asking a large range of people, from different backgrounds, ages, and financial standings. One problem you may run into is that many people have still not heard of what frozen yogurt is, but if you are confident in your ability to educate your market then you can be very successful. 

Research your competitors and find your unique selling point

Before you can find your unique selling point, you need to have an extremely good idea of your market, and that means knowing about your competitors. One of the things that you must do is visit their store. Just from examining their store, you can learn various things, such as what products they offer (flavors, toppings, quality). Learn what kind of model they are practicing. Are your competitors using a self-serve model, where the costumer puts on their own toppings and such, or do the employees do it? Although you will never be able to find out their exact profit margins, you can get an idea for what market your competitors are trying to attract. So such as maybe your competitors are trying to sell at the lowest price, and are selling low-end froyo. After finding out all this information, you can then formulate how you want your store to differ. Will you have the most high-end froyo in your area, or will you offer the most wide array of toppings? Whatever it is, you need to do competitor analysis, so in turn you can find out your own unique selling point.

Know the Laws

This is a basic, and obvious step when opening a new business, but it still important, and essential. Having an attorney is a must when opening a retail Froyo business. This helps in having all the paperwork in order. When it comes to businesses that serve any kind of food, you also need special permits, and licenses. You will also need everything in your store to be standard to the health, zoning, and building codes. All these things require time to make sense, but it is manageable. 

Associated Costs

It's obvious that there will be costs when starting a business, but knowing the numbers with a good understanding is essential. On average it has been estimated that it can cost anywhere from $10,000 up to $85,000 up front if you are opening your own store. If you are going to open a franchise store those numbers can very well run up to $500,000+. If you are opening your own store, you must consider rent cost, employee cost and training, inventory, supplies, as well as the cost of the essential permits and licenses. Now after finding out these numbers, you must find out how much business you expect to be doing. Only after finding out the numbers down to the dollar, can you go through with it. 


Although the Frozen Yogurt market is increasing quickly, opening a Frozen yogurt business, will take a tremendous effort. As with any business it is a risk, that it will never become successful, but with the Frozen yogurt market expected to annually increase 2.2% for the next couple of years, there isn't a better time to get started.




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  1. "self-serve frozen yogurt franchise." frozen yogurt-franchise. 1/09/2013 <Web >
  2. Wade, Donald Successful Restaurant Management: From Vision to Execution, 1st Edition. virginia: cengage learning, 2005.

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