How to Start a Business with Frozen Yogurt Franchise in UK
More and more people are switching to frozen yogurt over ice cream for guilt-free indulgence. And, the numbers are in to prove just how much its popularity has grown over the last 7 years. The frozen yogurt industry has experienced steady growth since its boom in 2011 and now it has a $2 billion business. These facts help illustrate the market is ripe for more frozen yogurt franchise in UK.
Also, other concepts such as juice bars have increasingly incorporated frozen yogurt into the core menu offerings. In doing so, they are able to provide an additional core offering that attracts an additional segment beyond their traditional smoothie and juice aficionados. In addition, frozen yogurt tends to be most purchased in the evenings and weekends which complement they day parts of juice and smoothies which tend to be sold in the early morning and afternoons. Oftentimes, the sales % of the frozen yogurt offering is 25% - 30% of a juice bar’s total sales.
Whether you are considering opening a frozen yogurt franchise in the UK or a juice bar franchise in the UK that also offers yogurt, you should consider the following:
- Secure your funding and working capital –
Any business venture requires some amount of capital. While the cost of starting and operating a yogurt shop in the UK varies, you should have clear understanding of how you intend to fund the business while you strive to make it self-sustaining. Different factors influence frozen yogurt franchise UK operating costs, ranging from the average rent rate, as well as the minimum wage. Think of other ongoing fixed and variable costs such as utilities, insurance, royalties, marketing, professional fees, equipment maintenance, etc. In addition, make sure you are clear about franchise contracts about supply procurement and payment terms. In other words, a small business loan might be enough to help get you your store opened, however, be sure to have enough working capital secured to get you through the first few months until your frozen yogurt franchise reaches break-even.
- Get into an established frozen yogurt chain or juice bar that sells frozen yogurt –
Taking out a franchise on an existing frozen yogurt chain is good, but an established chain oftentimes is proven, has a refined system of operations, and provides a higher rate of success. With the number of frozen yogurt franchise chains popping up in the UK market, this can be a confusing selection. So, take your time in performing your due diligence. With good research, you’ll soon find the right fit for the kind of business you want to have.
Also, consider a juice bar franchise like Smoothie Factory that also offers frozen yogurt as a core menu offering. One of the benefits of offering additional core menu offerings such as smoothies, juices, and juice cleanses in addition to frozen yogurt is having multiple revenue centers under one roof. Instead of selling 200 cups of yogurt each day to make a profitable business, a juice bar may only need to sell 50-60 cups a day. In addition, they are in a better position to compete with neighbouring and competing yogurt brands by lowering their price point.
Whether you choose a frozen yogurt franchise in UK or a juice bar franchise that sells yogurt, the selected brand should be able to provide a detailed business plan, training, on-going support, product development, assistance with marketing, marketing collateral, site & lease negotiation assistance, and purchasing power.
- Study trends and guest experience –
From flavour trends to funky marketing strategies, it is also critical that your selected frozen yogurt of juice bar brand keep up-to-date with what the market is looking for, so your frozen yogurt business can remain relevant and interesting. Having a pleasant and comfortable atmosphere is also key to a profitable frozen yogurt shop which is created during the design phase of the store. Seating is a plus as most guests like to sit down and enjoy their yogurt while conversing with their friends and family. In addition, the management and team members greatly contribute to the atmosphere ongoing as they are directly responsible for creating a positive guest experience day in and day out. So, a proper and robust training program should be a strong consideration of the brand you are considering. The best way to evaluate a brand’s guest service program is to simply visit several of their stores and rate your guest experience first-hand.
This article is written by Olena Villasana, associated with International Franchise Development at Smoothie Factory International.