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You are here: Home / Franchise / Today’s FroYo Industry

Today’s FroYo Industry

Today’s FroYo Industry

The frozen yogurt industry has grown tremendously over the past few years and new frozen yogurt franchising opportunities are becoming possible. Revenues from frozen yogurt increased during the past five years at an average annual rate of 5.9% and are expected to rise annually for the next five years as well, according to estimates from a November, 2011 IBIS World report on the frozen yogurt industry.

What’s driving the growth of a product that has been around for a decade? The frozen yogurt self-serve model. The self-serve share of the frozen yogurt market has risen to 20.7 percent in 2011, from just three percent in 2006. Total frozen yogurt sales self-serve and full service will top $723 million this year.

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Huge Potential

Self-serve frozen yogurt stores have an advantage over full-service stores because they reduce wage costs. Fewer employees are needed per store and less training is required because they do not take orders. Self-serve stores’ share of industry revenue has increased from 3.0% of sales in 2006, to 20.7% in 2011.

By reducing wage costs and catering to the growing do-it-yourself (DIY) trend in the froyo industry, IBIS World projects that self-serve stores will be an area of continued growth in the coming years.

It’s About Product Too

Frozen yogurt sales have been driven by consumers’ increasing health consciousness, highlighted by a declining per capita consumption of sugars and sweeteners of 0.8% annually the past five years.

Frozen yogurt has a reputation for its superior nutritional quality. According to the International Journal of Obesity, frozen yogurt helps overweight people lose weight and fat more quickly than those who do not incorporate this healthy food into their diets. Yogurt is also ice cream’s leaner and more nutrient-rich counterpart. With the addition of fresh, healthy toppings like fresh strawberries and mango, frozen yogurt stores have become an increasingly preferred after meal destination vs. the traditional ice cream store.

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