Does a Frozen Yogurt Business Make Money?

Every business has a chance to succeed or fail. Frozen-yogurt businesses can make a lot of money when run properly. People are always looking for healthful alternatives to their favorite foods, which means the time is always right for starting a frozen-yogurt business. A small-business owner should do plenty of research before starting the business to be sure that there is a local market for frozen yogurt. With a little luck, a lot of hard work and careful business planning, a frozen-yogurt company can make money and become successful.

Health Aspect

Today, people are more concerned about eating healthfully than they have been in the past. For this reason, a frozen-yogurt business can do quite well. Frozen yogurt, especially non-fat frozen yogurt, has fewer calories than ice cream. Frozen yogurt can also be used to make fruit smoothies, a popular and healthful choice. For a frozen-yogurt business to be successful, you should focus on the health aspects of frozen yogurt over ice cream.

Low Franchise Start-up Costs

Another reason that frozen-yogurt businesses have a good chance of making money is that they have a reasonably low start-up cost. Some franchises cost close to $1 million in liquid assets to start, but a franchise such as TCBY can be started with less than $200,000. This is affordable for many small-business owners, which means they will not have to borrow a large amount of money to get the frozen-yogurt business started. Lower business debt equals higher likelihood of success.

Knowing The Customer

Frozen-yogurt businesses that make money know their customer base and stay focused on that target group. For example, the business focus could be on families. This type of frozen-yogurt business would focus on how good frozen yogurt tastes, how it is a healthful alternative to ice cream, and also on how its lower prices are more affordable for families. Another focus could be the health fanatics who enjoy a treat but would never indulge in ice cream. This type of frozen-yogurt business would focus on fresh fruit toppings, healthful smoothies with added vitamins and nutrients, and options such as low-fat and non-fat yogurt. Frozen-yogurt businesses that focus on specific customers do quite well.

Location, Location, Location

Frozen-yogurt businesses do best in locations that get high volumes of the right kind of traffic. A frozen-yogurt business that focuses on yogurt and fresh fruit smoothies does well in a plaza that includes a gym. Health-conscious fitness types are likely to drop in for a healthy drink after a hard workout. A frozen-yogurt business that focuses on being a healthful family alternative to ice cream does quite well renting space in a mall, where parents and children pass by all day long.

Customer Service

Any business with poor customer service will fail, even frozen-yogurt businesses. A frozen-yogurt business that succeeds has an owner who is accessible to customers, either in person, by phone or by email. Offering incentives such as customer reward cards that give customers free frozen yogurts after a certain number of purchases brings in loyal customers.