Frozen yogurt franchise Yogurtland has plans to double its store count in the next five years—but the 230-store chain closed 60 stores from 2019 to 2021.
“The stores that have survived are very, very strong stores,” Yogurtland President Sam Yoon said. “So, we have a very, very strong baseline franchise system that we can really build upon.”
Compared to 2019, Yogurtland is down in store count by about 20 percent, Yoon said. “We have not recovered the store count, but we have recovered per-store sales,” he explained. So, while store count is down, AUV is up by about 20 percent now compared to 2019.
Examining Item 20 of its franchise disclosure document, Yogurtland started 2019 with 269 stores. At the end of 2021, 209 stores were open. The bulk of those 60 stores were lost in 2020, with 38 stores closing. Fifty-four of the 60 stores that closed were franchised locations.
Yogurtland got its start when Phillip Chang opened the first store in 2006 in Fullerton, California. Today, 80 percent of its units are in California, but have spread nationwide into states such as Texas, Nevada and Florida.
The frozen yogurt scene was huge years ago, and while it’s shrank in recent years some concepts remain and are trying to grow. Canada-based Yogen Fruz had systemwide sales of $208.6 million in 2021 from nearly 600 stores (only 33 in the U.S.). Neil Hershman, owner of 16 Handles frozen yogurt, recently purchased DO, a cookie dough brand, which will now be exclusively sold at 16 Handles. The 30-plus-unit brand, which Hershman and YouTube star Danny Duncan purchased last year, had average sales of $509,690 in 2021 from 27 stores. Brix Holdings tested out expanding yogurt franchises Orange Leaf and Red Mango via ghost kitchens in 2022.
“I believe that there are some trends in the restaurant industry that points us to a very optimistic future,” Yoon said. One of those trends is a customer’s desire for new flavors, which Yogurtland is working to develop. It’s eyeing Africa and Middle Eastern yogurt flavors for the future. “We’re going to play in that space, we’re going to own the flavor. I believe that it’s going to keep us very relevant.”
Despite recent closures, the franchise aims to have nearly 500 stores open within the next five years, and has built up its team internally to do so, Yoon said. That, paired with updates to the brand’s customer relationship management systems, will set the brand up for success, he said. Yogurtland invested in analytics programs that will find out the best locations for new stores and narrow in on the brand’s target customers.
“I do believe that as economic cycles play itself out … we will see what I would call an inflection point of growth,” he said. “We will be ready with the muscles developed to get after that opportunity.”
Yoon, who previously worked for BP and LG Electronics, said Yogurtland benefits from his unconventional route to the restaurant industry. “It helped us reformulate our strategy,” Yoon said. “We redesigned our structure, we have flattened our organization, we’ve set up a matrix structure for increased nimbleness, collaboration and innovation, and we’ve established more efficient and effective systems.”
Yogurtland’s original recipes are what makes it stand out from other frozen yogurt shops, Yoon said. The chain carries unique flavors, such as pecan and pralines, strawberry lemonade and mango tart.
When looking for new franchisees, Yogurtland wants candidates who are aligned with the brand’s values, which include collaboration, kindness and honesty.
The investment required to open a Yogurtland franchise ranges from $270,600 to $554,200 for a traditional store. A nontraditional location requires $180,700 to $371,300. Sales from 193 franchised Yogurtland stores in 2021 ranged from $92,265 to $1.15 million.