Temperatures may be freezing over but frozen yogurt businesses show little signs of thawing.
Forever Yogurt plans to expand from its current seven stores to an additional 32 locations across the country over the next four months, according to Crain’s Chicago Business.
The frozen yogurt chain, which employs 89 mostly part-time workers, currently has six Chicago-area stores, one in Madison, Wis., a seasonal trailer at North Avenue Beach and a Chicago food truck. A list of its planned future locations can be found on the company’s web site.
Plans to expand also include a recently signed franchise agreement to bring 20 stores to Pakistan. In addition, it is in advanced talks with an unnamed private equity firm to raise $6 million to expand both in the United States and in China, Crains reported.
Forever Yogurt’s franchise CEO, Mandy Calara, told Crain’s he plans to open 50 company stores and 250 franchises nationally over the next three years. He said each store costs about $300,000 to build out, including about $100,000 to install seven self-serve yogurt machines, but each pulls in $500,000 to $1 million a year. Calara projects $19 million in revenue next year.
With the frozen yogurt trend still growing, Calara said the company needs to get a head start on the competition.
For the year ended in September, customers ordered 138 million servings of frozen yogurt at the nation’s food-service outlets, up 12 percent from last year, which was up 8 percent from 2010, Crains said, citing market research company NPD Group. Frozen yogurt sales are at roughly $1 billion in the overall $6 billion frozen-dessert market, according to Darren Tristano, an executive vice president at Technomic Inc., a Chicago-based food industry consultancy.
Written by Chicago Business Journal Staff
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