With Summer heating up, Nation's Restaurant News reports that many of frozen yogurt's top chains are gearing up for some rather chilly competition. This month, Pinkberry announced it has received an additional $9 million from investors, and plans to open 35 stores in the Middle East as well as expand domestically. Meanwhile, top competitor Red Mango has grand plans of its own — to launch 550 locations over the next five years, and at least 40 new domestic stores this year in states such as Texas.
Last week, New York-based frozen dessert chain Tasti-D-Lite signed a deal to open 35 new stores in New York, New Jersey, and Connecticut over the next ten years. That's in addition to more than a dozen outposts in Nashville, TN, plus 40 more in southern Texas. Yet another competitor, Yogurt-land, plans to more than double in size before the end of the year.
While I did predict that custom blended fro-yo would be the next big trend, I think the industry may have gone a bit overboard. At a time when Starbucks has been forced to lower prices on coffee, do yogurt chains truly believe they can exponentially grow their empires on $5 cups of yogurt? Are you in agreement, or are you simply excited by the prospect of having more frozen yogurt options?
Buti
Levi's
Elizabeth and James
I go to Yogurtland once a week, so I guess I'm biased.
But, I do think that it's really possible for them to be doing really well right now. Starbucks is doing poorly because people have started viewing it as a treat instead of a necessity. People will start making their own latte at home and just go in once on Fridays, instead of every day.
Frozen yogurt is different because most people probably don't eat it every day. Even at $5/cup, it's an affordable way to replace dinners and desserts out at a restaurant and still feel like you got something delicious out of it. So you get a lot of people like me who will do dinner on the cheap but then treat themselves to yogurt. A lot of my friends go after events or sporting games instead of bars because it's cheaper than drinks.
1they JUST opened a new tasti d-lite by my apartment and i'm really happy about it - although it kind of replaces one that was there a few years ago and went away. i hope that it stays open and does well all summer since it's one of my favorite things to be able to get low cal cold treats in the summer.
2itsme3683: I never thought of it that way. That's a valid point!
3I think its overboard. Living in LA near the Pinkberry epicenter, it seems like theres a new yogurt place on every corner. We've gone through fro yo trends before and they haven't lasted. I think this will be the same thing, only it will take another year. This is a bubble. It has all the earmarks of one. I don't mind fro yo, but I will never eat pinkberry. Its made out of powder and isn't that great for you. Just a warning. I wouldn't mind trying tasti d lite when I'm on the east coast next month tho. I've heard good things!
4i think it is overboard... why not take things slowly? But itsme3683 does have a valid point.
5There are absolutely not frozen yogurt chains in my area, and it's REALLY frustrating! :[
6sonya ina, I feel your pain! We used to have a TCBY, but it closed years ago. You can't get fro-yo anywhere around here now.
7Pinkberry is the only fro-yo chain I need in life. Tasti-D-lite gives me terrible stomach aches...ugh. Just thinking about it makes me nauseous.
8A pinkberry AND red mango opened up right next to each other recently. They are near my office, but I don't really have the money to spend on overpriced yogurt or ice cream or whatever it is. I'll just stick to my grocery store brand tubs of ice cream, thanks.
9I don't care. I want a pinkberry or red mango on my block lol.
10I think itsme3683 has a good point...you can't make frozen yogurt cheaply at home like you can with coffee. Plus, a lot of people stop into Starbucks quickly and grab their drink and leave right away. At a frozen-yogurt place, people can go there after dinner and hang out for a while eating yogurt. And unlike bars, which are also thriving in the economy, you can take your kids to a yogurt place and that translates into extra $$ for the store.
11Yeah, they are getting overly popular but I love them! Of course I'm pregnant now, so frozen yogurt is heaven to me.
12there is a yogartland near my house that has a line out the door everysingle night of the week. People stop in on their way to hollywood, dressed for the club and everything.... like a bar i guess
and i did a short summer stint at pinkberry a couple years ago and seriously people eat it in place of a meal. They think because its full of fruit or oats or whatever and low and calories that they can have it as lunch or breakfast.
so i have to disagree with you there "itsme"
13I loved TCBY when it was popular years ago, and I was really disappointed when it went away. I'm thrilled that the frozen yogurt trend has made its way into my funky town, because now I have three options in downtown!
14I would LOVE for them to open a Pinkberry in Boston!
15The Frozen Yogurt explosion this year and last year is crazy. For many many years, the only frozen yogurt we had was Golden Spoon. I like the idea of doing it by weight and putting on my own toppings. YAY for frozen yogurt. Oh, and I just got a $20 gift card for frozen yogurt this week on my birthday
16Frozen Yogurt is nasty. It's never been good. I can't Imagine why anyone would want to eat it. Yogurt is about useless except in some greek cuisine. I hope they don't lose their shirts on this lame idea... hello, where is the heavy cream exotic cane sugar, exotic spices, ... ohh wait.... that actually costs money as opposed to frozen fruit, and commodity low fat milk and yogurt.
I will pass.
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