Frozen yogurt popularity grows despite industry downturn

(From an article published by Dawn Reiss, Special to R&I -- Restaurants and Institutions, 5/1/2008)

The economic chill gripping much of foodservice—bringing less-ambitious forecasts for new-unit openings and sales growth—has so far skirted at least one corner of the industry. Proving that little luxuries can thrive even when basic necessities are scrutinized, the frozen-yogurt segment is expanding inward from the coasts and keeping warm the industry’s entrepreneurial spirit.
This really is frozen yogurt’s second expansion wave. The first, in the 1980s, driven by brands such as TCBY and I Can’t Believe It’s Yogurt, lost its momentum. According to the Agricultural Marketing Resource Center, retail sales of frozen yogurt declined between 1998 and 2003 while ice cream sales grew by 24%.

Frozen yogurt’s current popularity wave is led by new brands. Berry Chill, sno:la, and FreshBerry are joining the ranks of Pinkberry and Red Mango, which already have a strong hold on the East and West coasts. The product these new purveyors serve is different: tangier or more tart, depending on the brand, and lighter than frozen yogurt’s previous incarnation. It usually is topped with fresh fruit, granola, cereal or a more-decadent splurge, such as chocolate. Flavor choices go well beyond chocolate and vanilla territory to more-exotic options such as green tea, pomegranate and sour cherry.

The free-standing frozen-yogurt shops cater to an audience that shuns fluorescent lightening and expects a sit-and-chat type of ambience. In place of the outmoded ice-cream-parlor look, many of the stores have opted to feature high-end furniture, flat-screen televisions and Wi-Fi to lure everyone from business professionals and teens to late-night revelers. Many play upbeat dance music and have sofas and cafe-style tables that encourage customers to linger. Of more importance, the operators think that consumers are willing to spend $5 on a different frozen-yogurt experience.

See entire article at: http://www.rimag.com/index.asp?layout=article&articleid=CA6556318&article_prefix=CA&article_id=6556318