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Frozen Yogurt: Convenience, Guilty Pleasure, or Gimmick?

Since 2011, there has been an explosion in the appearance of self-serve yogurt shops in the Middletown/Red Bank area. With its growing popularity, it seems that many entrepreneurs are taking the chance of taking their market share when it comes to desserts. 

The idea of having things ‘your own way’ is not new to the food service industry.  In my opinion, the self-serve frozen yogurt segment of the food service industry is merely a clever way to cash in on the public’s supposed ‘needs and wants.’

Simple concept: Pick and serve your own yogurt, add your heavy toppings, weigh a heavy & customized sundae at the cashier, and pay .XX cents per ounce. 

I simply don’t understand how so many can open and be consistently successful.  

Recently, I visited a family-owned yogurt place in Middletown.  I purchased a half-full cup of yogurt, with one topping, which cost me over $3.50. Is this a fair and comparable price point, when comparing to Carvel or Dairy Queen? Sure. However, I only purchased a half-full cup.

The whole concept of self-serve yogurt is so convenient for the operator.  With a lower labor cost, the owner can focus on other areas of growing his/her business.

One must consider the financial risk of offering ‘self-serve,’ as youngsters can create a mess and waste so much product.  You can’t wipe the machine and reuse the yogurt, as you could with packets of jelly, saltine crackers, or sugar packets. 

However, you could have your trained employee pour the toppings behind the counter.  This latter scenario would create portion control, consistency, and cost control. 

With such a saturated market of many locations, one of the shops is certainly going to see hard times.  Believe me; it hurts for me to see a foodservice operation close down.

For example, let us once again look at the Squire’s Plaza on Rt. 35 (across from the Steak & Ale), where we were able to patronize three food establishments within the last year: Papa John’s, New England Hot Dog Company, and Rita’s Italian Ice.  Now, all three have gone out of business. 

It is interesting to note that all three of these were franchise locations. When it comes to taking financial control of the business, it can be so difficult for a franchisee to calculate an average check from each patron.  Let’s admit that not everyone is going to fill their cups, like a young child, to the rim. 

The ability to forecast sales can be frustrating and troublesome.  Look at Sadie’s and Rita’s, which opted to close for the winter season. How incredible were their sales figures, to be able to close for 4+ months out of the year? Does one think that the landlords are providing free storage?

It is my hope that the remaining stores can 'make it'.  The food establishments and their rate of survival or demise on RT. 35 is amazing. The tough conditions of the economy are certainly not a hidden secret, as many of us know.

How can Let’s Yo (Holmdel, Red Bank, and Middletown locations), Sadie’s, and Twist survive on RT. 35, when there is such competition in neighboring towns?

What's to stop someone from just buying a half-gallon (1.75 quarts....sorry, the half-gallon days are gone) and making their own sundaes at home?

I foresee another yogurt place in Campbell’s Junction…wait and see. 

I wish the owners and operators of any retail dessert location the best of luck in their endeavors.

This post was inspired by Patch commenter "jerseyswamps"....thanks.

Jesse

9:59 pm on Wednesday, March 6, 2013

I was excited about the influx of self-serve frozen yogurt places until I saw the following unappetizing sceniario played out not once, not twice, but three times in three different fro-yo places: a small child filled his own cup with yogurt, gulped some down...without a spoon...and then stuck the cup back up under the nozzle for more yogurt. Yuck. Grossness aside, that's cheating. Stealing product. Shame on the parents for their lack of supervision. After witnessing that little tableau three times my spouse and I decided to limit our frozen yogurt snacks to the snack bar at Costco.

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Ara Karakashian - "Mr. K"

10:07 am on Thursday, March 7, 2013

Thanks for the comment. I never took the food sanitation or theft angle on this one, but I appreciate you pointing it out. Absolutely correct.

Brian Stern

8:37 am on Thursday, March 7, 2013

Self-Serve Frozen Yogurt... seems like a bad plan from the start. Think about all of the ice cream places in the area that have closed down and weren't replaced: Haagen Dazs in Red Bank, Cold Stone in Red Bank and several other private shops. DQ is one of the few left standing and folks aren't breaking down the door to get in there either. And as for self serve... it takes more manpower to cleanup after people, keep bins full, etc. Also, I walked out of Let's Yo with 2 small cups that were half full and a small bottle of water for my kids and spent $17!!! I can take them to DQ and drop less than $7 for both of them. Not to mention the taste of yogurt can't compare to real Ice Cream - not too many TCBY's around anymore, eh. I think we all need to stop feeling sorry for mediocre local eateries and demand better quality and creative food. If you've ever visited other parts of this country you can find really amazing food made fresh on-premises at a great price, not the microwaved and reheated swill served at most of Middletown's restaurants.

The bigger question is: Why did about 5 Frozen Yogurt businesses open the same season, within a few miles of each other? Sounds to me like they were really pushing Self-Serve Froze Yogurt at the franchise convention this year.

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Ara Karakashian - "Mr. K"

10:07 am on Thursday, March 7, 2013

Thanks for your comment. I could have mentioned that Cold Stone Creamery is merely taking your ice cream and making a dry milk shake out of it, on a marble slab, with toppings smashed into it. When speaking of price, it is similar to your Let's Yo experience. As far as the frequency of openings, I can say that a landlord will take anything as a tenant. Look at the Shoprite Shopping Center, before millennium. The anchor store was where the current RiteAid is. Where Joyce Leslie is, there was Thrift Drug. When the landlord made an addition to the shopping plaza, it was in two phases: first, from the Petco to the Nail Salon and second, for the new Shoprite. When the first addition was put it, at least half of the stores were constantly vacant. When Shoprite's current spot opened, the vacancies became a memory. However, what is the lifespan of a business in any of those spots? Not very long, unfortunately. The point that I am trying to make is that a landlord doesn't care whether 18 yogurt places open and the market becomes saturated. A vacancy is dead money, that can never be recovered, as each month passes.

Brian Stern

1:33 pm on Thursday, March 7, 2013

Understandably, landlords just want their spaces leased... that much is obvious. I’m looking for the reason that, not just one, but 5 individuals though it was a good idea to open a self-serve Frozen Yogurt shop within a few months of each other on the same highway within a close proximity. One is understandable, 2 is odd, but there has to be a deeper reason for 5... especially in a niche market that, recent history has taught us, does not flourish in this area.

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The Write Angles

2:19 pm on Thursday, March 7, 2013

The New England Hot Dog Company in Middletown opened as an independent and liberated themselves from the franchise. I was very sorry to see the business close as they were clients of mine.

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The Write Angles

2:19 pm on Thursday, March 7, 2013

Every person I know who has frequented a self-serve frozen yogurt store says it is over-priced. I agree. The quality is fine, but I just don't like the way it stacks up with the dollars.

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jerseyswamps

7:27 pm on Thursday, March 7, 2013

Another good piece. Let's Yo is good, but the price. If the price isn't right food just doesn't taste as good. That's probably why the samples at Costco and Delicious Orchards taste so good.
I think the same person or people behind Let's Yo are also pushing Retro Fitness. They'll tell you another location right across the street is a gold mind. Retro's commercial says you don't even have to be there. They'll train your manager.

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