The profitability of a frozen yogurt franchise varies on factors like location, competition and demand. However, overall, these franchises are profitable compared to other food franchises due to relatively low costs and self-serve model. Some chain yogurt shops report $750,000 – $800,000 in annual sales per location open 2 years+. Average revenue for a Menchie’s franchise is nearly $470,000 – profits could top $200,000.
Entry Costs and Market Appeal
Pinkberry has a comparatively low franchise fee of $35,000 – an affordable entry to benefits like training and support. For average stores doing $350,000 a year, labor costs range from $7,500 to $15k monthly. In fact, a survey found 80% of consumers prefer frozen yogurt to other frozen desserts. The market has boomed with strong demand for healthier desserts and creative options.
Menchie’s is a self-serve frozen yogurt franchise focused on serving smiles and experience. Its growth worldwide and awards demonstrate a successful model. Pinkberry started in LA in 2005 and expanded to 100+ stores, helping reignite the popularity of frozen yogurt.
Key costs include the average franchise fee of $30,000 to $40,000. Additional startup expenses for location and equipment can total $100,000+. Location, costs and other factors impact profitability but some yogurt chains report sales up to $800,000 yearly within 1-2 years.
Factors Influencing Profits
They would want to know how much they are likely going to make annually from their frozen yogurt shop. The truth is that there is no one-mold-fits-all when it comes to how much a frozen yogurt shop is expected to make yearly and these factors are:
- The Size of the Frozen Yogurt Shop
If you’re wondering if a frozen yogurt business is worth it, the answer is a big YES. Frozen yogurt stores have great profit margins, unlike a senior care franchise. This is owed to the incredibly high markup they place on their treats.
Yogurt that sells for 59 cents an ounce typically costs less than 10 cents to produce. Thus, a 10 ounce serving would sell at a 500% markup even after factoring in spoons and cups. This allows for immediate profits even in high-rent areas.
Low labor costs help the profitability of frozen yogurt franchises.
In conclusion, the frozen yogurt franchise industry has a market size of $1.4 billion according to IBISWorld. The average store generates $398,724 in annual sales. On average, Yogurtland has 10-15% EBITDA margins with a single store generating around $750-800k in sales after 2 years. So, frozen yogurt franchises can be quite profitable.