Tag: starting frozen yogurt business

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Tips for buying a soft-serve machine

When opening a frozen yogurt store, the soft-serve machines will be the largest single expense. A good machine is critical to serving good product. There are several basic things you need to know about frozen yogurt machines. This information may seem overwhelming, but given that you might spend $50,000 on your soft-serve machines, the investment of your time will be worth it.

The Basics
To make frozen yogurt you’ll need a commercial grade soft-serve machine (soft-serve machines and frozen yogurt machines are the same thing). Here are the basic components of the machine:

  • Hopper – the area where you pour the frozen yogurt mix.
  • Freezing cylinder – this is a small shaft that sits horizontal inside the machine. The mix drips from the hopper into the freezing cylinder where it freezes.
  • Beaters – these are inside the freezing cylinder and they spin around to keep the mix from freezing solid. They also help whip air into the machine and make a nice creamy product.
  • Front plate – this is the piece that goes on the front of the machine with the handles. It also includes the opening where the frozen yogurt is dispensed. Most machines have a star shaped design where the product comes out – giving the frozen yogurt the look we all recognize.
  • Overrun – this is the air that is in the frozen yogurt mix. Air is critical to making a nice creamy product. Without overrun, the product will come out dense, icy, and won’t taste right. Visit the Training page on the Nanci’s website for a video on how to control overrun.

Machine Sizes
There are several different sizes, but for our purposes we’ll break it down into two types – floor model and counter-top model.

Floor model – these machines go all the way to the floor and are on rollers. They are either medium or high capacity and usually require 220-volts, but not always (see the section on electricity). They usually have two flavors and a twist (although they can come in a one-flavor model). For frozen yogurt shops, this is usually the best option.

Counter-top model – these machines sit on a counter or cart. They are usually low capacity to medium capacity. They are available with one flavor one two flavors and a twist. These machines can be a good option as an add on to an existing concept, like a sandwich shop.

Electricity
Most medium to high-capacity frozen yogurt machines require 220 volt electricity, although some are 115 volts. In either case, they will require different outlets than your standard home electrical outlet. They will also require higher amps than normally. Be sure to check with an electrician to see what will be required and how much it will cost.

Gravity versus Pump
This refers to how the mix gets into the freezing cylinder. With a gravity machine the hopper is at the top of the machine. The mix is poured into the hopper and then gravity pulls the mix into the freezing cylinder. With a pump machine, the hopper is pressurized and the mix is pumped into the freezing cylinder. The advantages to a gravity fed machine is that they cost less and are easy to fix. The advantages to a pump machine is that you have complete control over the amount of air you put into the final product. This can affect the quality of your product and the cost.

Gravity machines can put in up to 45% air and pump/pressurized machines can put in up to 100% air (which means equal parts mix and air).

Air Cooled versus Water Cooled
The motors in soft-serve machines produce heat and need to be cooled. The two methods for cooling are either air cooled with a fan or water cooled with pipes that run water through the machine to cool it. Overall, we recommend air cooled because they are less expensive to install and need less maintenance.

Air cooled machines don’t require any additional investment when installed, and they can be less expensive to operate (depending on your electricity costs versus water costs). Water cooled require installation of a water system, which can cost $15,000-$40,000. Water cooled machines make less noise and produce less heat. You may save on utility costs if your water costs are much lower than your electricity.

Soft-Serve Machine Companies
There are several companies that manufacture and sell frozen yogurt machines. Some are made in the United States and others are made in other countries, like China. Prices on floor models range from $5,000 to $15,000. The machines will vary in quality, warranty offered, and production capacity. The right machine for you depends on your constraints (like cash or the ability to finance) and your goals (how many machines you need, the type of concept you are doing). There isn’t always just one right answer for what machine you should buy. Contact a frozen yogurt expert at Nanci’s and we can discuss it with you. We don’t sell machines, so we’re a great neutral, third-party to talk with.

If you decide to buy machines at the low-end of the price range, make sure to machines are made with good materials and parts. For example, all machines are made with stainless steel, but steel has different grades of quality. Some machines that are made with the low-quality stainless steel can rust and cause many problems.

Also, keep in mind that regardless of the brand of soft-serve machine you purchase, you’ll want to make sure you have good access to service. All machines break at some point, and you’ll need a good technician that can work on them.

In your negotiations with machine companies be sure to ask for free in-person training and free parts (such as o-rings and machine lube). Some companies offer free Nanci’s product to off set the initial costs of the machine.

If you have any questions call Nanci’s Frozen Yogurt at 1-800-788-0808.

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Improving Your Customer Service

Customer Service is the root of many businesses, particularly the Frozen Yogurt industry. For most people, going out to grab a cup of froyo isn’t just about the smooth and creamy treat melting on your tongue and tickling your taste buds.  It’s about the experience.  Customer Service is not a transaction — it is the relationship with your customer. It’s making that frozen desert into a little cup of personal bliss for each customer.

Important basics to remember

-SMILE! Even the friendliest person in the world might come across as indifferent or fake if that is what their face says. Remember, the amount of communication between two people is predominantly non-verbal.

-BE ATTENTIVE.  No one likes to be ignored. Greet customers as they enter, and bid them farewell as they leave. On occasion your shop might be very busy — perhaps a line out the door and around the corner (good for you!) — but remember to keep checking in with the customers as they come in and as they wait. It does not matter if they are at the front of the line or just stepping into the back, their business matters.

-BE PROFESSIONAL. Hop off the counters, and wash your hands often. Quit touching your face and looking at your feet. Be confident in how you carry yourself in the workplace and show respect even when disrespected (hey it happens). Keep composed and be ready to work!

-MAKE SUGGESTIONS, GET CREATIVE. Most frozen yogurt shops have local favorites or signature flavors.  These are perfect things to suggest to new customers or returning customers wanting to try something new. Don’t be afraid to experiment! Finding weird and new ways to combine flavors and toppings reinvents the experience for customers and brings back that first-time feeling that is both exciting and mysterious.

-KEEP BUSY. I’m sure everyone is familiar with the “if you can lean, you can clean” phrase seen often in the food industry work place. As an employee, often times work can drag on, which can begin to reflect in your mood and in turn reflect out towards others. Staying on top of cleaning and regular store maintenance in between gaps in customers will not only improve business but also helps pass the time. Take a little extra time cleaning the tables or floors. Or prepare for the rush hour.

-DEVELOP RELATIONSHIPS. There is nothing quite like walking into a neighborhood shop and being greeted by a familiar face and even by name. This sense of familiarity and friendliness creates a community feel to your shop. People like to feel that they are making a purchase from people, rather than a corporation or a business. You can also develop relationships with neighboring businesses and their employees. Not only can they be a great marketing resource for you, but they can be great customers as well.

Most importantly, always remember that the customer comes first. The customer is the point and purpose of a business. Make coming to your store the highlight of your customer’s day.

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How to Make a Profit with a Frozen Yogurt Business

Frozen yogurt shops are one of the hottest retail concepts around. Many people see how simple the concept is, the low investment cost, and the high margins and think it is a no brainer. They expect to open their shop and start turning an amazing profit right away. But it’s not quite that simple. Check out the profit calculator on our website for a customized analysis for your concept.

There are several key drivers to making a profit with a frozen yogurt store. It is important to emphasize profit versus sales. You may have lots of sales, but if your costs are too high you won’t make any profit. You should think of these profit drivers as dials or levers – you can adjust the dials various ways to maximize profit.

Key Profit Drivers

Sales Revenue
  • Volume – the number of customers per day and the number of ounces of yogurt sold
  • Price per ounce
  • Sales of additional items (non yogurt items)
Costs
  • Labor costs
  • Rent & utilities
  • Product costs (yogurt mix, flavorings, toppings, etc.) – don’t forget to include the cost of free samples
  • Supplies (cups, spoons, napkins, etc.)
  • Store and equipment maintenance

 

Turning the Dials

Increase Sales Revenue

  • Get more customers. Typically this will mean more costs (like advertising and marketing), but it you can also be creative and find traffic generating ideas with no or little cost. Another way to drive more traffic is to improve your product by offering new or unique flavors and by creating a unique product compared to your competitors. Nanci’s mixes and flavors are ideally suited for this – contact us to discuss further.TippingPointCORRECTED
  • Increase the price. You can increase price and often not affect sales volume, but this is tricky because thereis an elusive price Tipping Point. When you cross it your volume will actually decrease because either customers will stop coming or they will buy less. This Tipping Point is unique to every area and every store. One approach is to keep your base price per ounce high but then use discounts and promotions to give customers a lower effective price. Remember that it is much easier to lower your price than it is to raise it.

Lower Costs

When evaluating costs there are Fixed Costs and Variable Costs. Fixed Costs are costs that are the same regardless of how many customers you serve. For example, your rent cost will be the same whether you serve 10 customers or 300.  Rent is a fixed cost. On the other hand, cups are a variable cost because you only incur costs for each customer.

  • Rent. One of the largest single costs for your store will be rent. There are a couple strategies to take when deciding on a location. For the purposes of simplicity, we’ll break it down into two strategies at opposite ends of the spectrum, even though in reality there are various strategies in between these two.

High Rent/High Volume. If the location is high rent it needs to also be a high traffic area to drive your sales volume. High rent areas may also allow you to charge more per ounce. In order for this strategy to work, you must have a large number of customers.

Low Rent/Low Volume/Low Cost. If the location is a very low rent property that means it’s probably off the beaten path and doesn’t have as much natural traffic. Generally, this would result in less traffic and lower sales volume, although there are stores that are in horrible locations and still gain a “cult following” and have lots of traffic. A low rent location may also mean you need to charge less per ounce, lowering your sales revenue. In order for this strategy to work you have to keep your costs extremely low and find ways to generate traffic in spite of your location.

  • Labor. Labor will most likely be your single highest cost. The big question here is whether or not you can run your store with just one employee. Our profit model shows that unless your store has strong volume (150 customers per day or more), you could lose money having two employees staff your shop. Of Course there are other factors to consider, like employee safety and or employee fraud.
  • Product Costs. this is also a tricky area, because your entire concept is based on your frozen yogurt mix. If you mix isn’t good, you won’t succeed. But at the same time, you shouldn’t throw money away on an overpriced product. Nanci’s solves this issue with mixes that are high-quality, premium mixes, but at a very competitive price.
  • Samples. most likely, the customers will demand free samples, but at the very least you should understand how many free samples you are giving away and how it is affecting your costs. One option is to have the sample cups behind the counter so the customer has to request one from an employee. Studies show that when shoppers make eye contact with a store employee they are less likely to steal something – I’d like to think this principal holds true for abusing the free samples as well.

The general belief in the business world, is that you don’t really make a substantial profit on food retail shops until you own three or more. Depending on your available capital, you may want to consider opening 2 or 3 shops at the same time. This will also give you immediate brand relevance and can often protect your area from incoming competitors.

Don’t forget to check out the profit calculator and feel free to call 1-800-788-0808 or email info@nancis.com with any questions.

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Increase Sales Part 3: Marketing Tips

Drive Traffic to Your Frozen Yogurt Store with Marketing

“You can have the best product or service in the world, but if people don’t buy – it’s worthless.” Noel Peebles, Marketing Expert

 

I would add to this quote that if people don’t know about it – it’s worthless.

With the increasing competition in the frozen yogurt industry and stores popping up on every corner, you have to make consumers aware of your shop. Each community is different and some marketing tactics will work in some areas and others will not. The key is to try different things and find what works for you. And remember that what worked yesterday, might not work tomorrow.

The only limit to your marketing is your own creativity. Some ideas can be expensive, but there are plenty that are not.

Here are some ideas we’ve gathered from our customers.

  • Cross marketing with local businesses. Network with gyms and other retails to place coupons or signs in their shop. Host theme nights. Create nights for special interest groups – like book clubs, girls night out, religious study groups, singles groups, etc.
  • School fundraisers with your local elementary school.
  • Coupon mailers.
  • Daily deal websites. Living Social, Groupon, AmazonLocal, or Google Deals.
  • Create a flavor contest. Have people submit their ideas for a flavor via Facebook and in store. Pick three finalists and put their flavors in your machines for one week – with their photo and name above the machine with their flavor. Keep track of how many ounces of each flavor is consumed to determine the winner. This will create a buzz and cause the finalist to get friends and family to come eat their flavor.
  • Group contests. Similar to the Create a Flavor contest above, but have groups compete against each other. This can be especially effective with sororities. The winning can get a donation to the charity of their choice.
  • Street marketing. A sign holder or a person in a frozen yogurt costume can draw attention to your shop.
  • Sponsor or advertise at local races. Just about every community has 5K, 10K, triathlons, and other races throughout the year. There are many options for advertising, including dropping coupons into the bag each racer gets.
  • Social marketing. Leverage Facebook, Instagram, and other social media sites. There are many creative contests and games you can do combine social media with in-store interaction.
  • Online marketing. Create a free Google Places account, as well as other online directory listings. Google AdWords or Facebook advertising can also be effective.
  • Loyalty programs. Tools like Perka can help you put together customer loyalty programs and punch card systems.

 

We’d love to hear your ideas. Email us at info@nancis.com

 

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Increase Sales Part 2: Improve Customer Experience

Improve the In-Store Experience for Your Customers

Kids Activity Area

Most frozen yogurt stores don’t offer a great place for families to relax and enjoy their frozen yogurt. A kids area is a great way to entertain children, so parents can enjoy their time in your shop. Parents will be much more likely to visit your store, if they know their children will be entertained. Even if your shop is small, you can use a corner for some simple kids activities.

A few ideas for a kids area include:
    • Paper and washable crayons/markers
    • TV with kids movies on a loop
    • Small toys or games
    • Simple crafts
    • Video game system – like a Nintendo Wii

Live Music

Ask local musicians to play music on weekends or evenings. Many musicians will play for free or just for tips. If you don’t have room inside your shop, maybe they could set up on your patio and you could put out additional chairs.

Games

Have easy-to-play group games available for customers to use and return. Ideas include trivia games (i.e. Wits & Wagers), Jenga, Catch Phrase, etc.

Do you have other ideas you’d like to share? Email us at info@nancis.com

CLICK HERE TO READ PART 3: MARKETING TIPS

 

 

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Increase Sales Part 1: Expand Menu

Expand Your Menu Beyond Frozen Yogurt

A great way to increase sales, gain new customers, and supplement your frozen yogurt sales is to add new menu items. If you are competing with a large chain, an expanded menu can be extremely effective, because the big chains are restricted on what changes they can make.

There are two different types of menu items you can offer:
  1. Self-service menu items
  2. Full-service menu items.

Self-Service Menu Items

For self-serve frozen yogurt stores, the consistency of the self-serve concept may be very important – both for the customer experience and for in-store operational processes and employees. Here several ideas for self-serve menu items:

  • Belgian waffles. Using a rotating Belgian waffle maker, customers can make their own waffles. This concept is commonly used in hotels and works extremely well. You can charge by the waffle or even by the ounce.
  • Pre-packaged salads
  • Soups
  • Pre-packaged sandwiches
  • Cookies or other pastries
  • Oatmeal
  • Coffee

Full-Service Menu Items

  • Smoothies
  • Sandwiches made to order
  • Full breakfast. Items may include eggs, omelets, breakfast burritos, hash browns, etc.
  • Crepes

Before making any menu changes, you should check your lease agreement to make sure you aren’t prohibited from offering additional food items.

Do you have other ideas you’d like to share? Email them to us at info@nancis.com

CLICK HERE TO READ PART 2: IMPROVE CUSTOMER SERVICE

 

 

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Benefits of dry powder frozen yogurt mix

Nanci’s has manufactured liquid yogurt mix in the past and now manufactures and sells dry frozen yogurt mix, so we fully understand the pluses and minuses to each. In our local market (Phoenix, Arizona) we used to offer a liquid frozen yogurt mix that was a terrific product, but about 27 years ago, we developed our first dry mix and since then we have added to that product line and have decided that dry frozen yogurt mix is the way to go – so our dry mixes have become our signature products.

Here are some of the reasons we are believers in dry mix:

  • With Nanci’s Frozen Yogurt dry mixes you don’t compromise taste, texture, or quality compared to liquid. We have done many blind taste tests between liquid and dry and no one can tell them apart.
  • Nanci’s dry mix has great probiotics you want in frozen yogurt. We have a unique method of micro-encapsulation that protects the good bacteria in the dry form. When you eat the frozen yogurt the probiotics come to life and deliver all the great health benefits yogurt is known for.
  • Less expensive than liquid mix. In addition to the price of the mix, liquid mix is expensive to store and ship. Nanci’s dry mix is usually at least $1 per gallon less expensive than comparable liquid mix plus the savings on storage and shipping.
  • Easy and inexpensive to store – you don’t need a ton of refrigerated space. Liquid mix actually comes frozen solid and it takes 1-3 days to thaw before you can pour it into your machine. This can cause logistical problems when you are out of product and requires a large amount of expensive freezer and refrigerator space.
  • Easy to use – you can use it right when you need it. Our dry mix is very easy to mix up – you just stir it into water or milk and then pour into your machine. It literally takes 3 minutes.
  • You can customize it if you want. Dry mix is very flexible. You can adjust the amount of liquid to affect the creaminess/iciness and you can mix and match flavors with the base mix.
  • Liquid mixes are pre-flavored, so storing in inventory a good variety of mixes can be prohibitive. We’ve solved that problem with our 100 flavor concentrates that you can combine to create more than 200 amazing flavors.
  • With dry mix you’re in control. You can control the level of flavor the overall texture from extra creamy to cold and icy. With liquid mix the factory is in control, not you.

If you want to talk more about the dry frozen yogurt mix versus liquid frozen yogurt mix give us a call at 1-800-788-0808 or email us at info@nancis.com. You can also get more info on our mixes on our Frozen Yogurt Mix webpage.

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Marketing Tips to Attract New Customers

There are several different approaches you can take to help your company market successfully. There are two main parts of retail market: 1) marketing to attract new customers, and 2) marketing to customers once they are in the store.

In-store marketing includes loyalty programs, contests, and prize giveaways and can ensure that your customers come back. While these steps are crucial to continued business success, getting customers in the door for the first time is even more important. Here are a few ideas to find new customers:LogosBar

  • Daily Deal Websites (Groupon, Living Social, Amazon Local, etc.). Daily deal websites can be an excellent resource for you as a frozen yogurt storeowner. Groupon does not charge up front for their services, and in most cases, the fee is a percentage of the revenue generated through the “Local Deal” created by you. Most of these deals last 24 hours, however there are options to run even longer or shorter deals as well. One example is to offer a deal where $10 paid by the customer through Groupon will give that customer $18 in credit to your store. But you can create any deal you want to offer – with approval from Groupon. This is a great way to attract first time customers, especially if you are opening a new store. Once customers come in, you can utilize your in-store marketing techniques. Living Social, Amazon local, and local daily deal websites are also good options in addition to Groupon.
  • Partner Marketing. Many yogurt stores are located in strip malls or in very close proximity to other businesses. Common neighbors are gyms, movie theaters, nail salons, pizza parlors, and other types of restaurants. Reach out to your neighbors and ask them to place flyers or coupons in their stores near the registers. If someone is walking out of a Chinese restaurant for example, a quick glance at on one your flyers on their way out the door could be all it takes to have them pop in for a little dessert. In exchange, you can help advertise for your neighboring companies.Screenshot 2015-01-27 10.13.41
  • Sign Marketing. Depending on your location, different regulations may exist for placing or even hiring people to hold signs to advertise your shop. Your town, city or county will handle these regulations. If placing a stand-alone sign is not acceptable, sometimes having a hired worker hold a sign is a viable option. But be careful about using sign holders. An energetic, well-groomed worker who is charismatic can attract customers to your store, while a lazy-looking, sloppy individual with his sign sitting on the ground can drive customers away. You can also use a lighted sign at night to attract attention
  • Traditional Advertising. This is usually the most expensive option, but can reach the most people as well. Traditional advertising includes television, radio, newspaper, coupon pack mailers (moneymailer.com, www.valpak.com), and the back of grocery store receipts.
  • Online Advertising. Google AdWords Express is a great way to advertise locally online. It is a local version of Google’s traditional AdWords platform. When people click on your ad, the link can go to your website or to a free Google business page. Customers can also call your business directly. You pay when a someone clicks on your add or calls the phone numberin the ad. Visit http://www.google.com/adwords/express/ to get started.Google-Adwords-Express-Logo1

 

 

 

The most important thing to remember is that you CANNOT rely on the famous quote from the movie The Field of Dreams, “If you build it, they will come.” …If they don’t know about it, then they definitely won’t come!

Be creative and try several different things until you find marketing methods that work for you. And if you have any ideas or suggestions we’d love to hear about it – please contact us.

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Self-Serve Frozen Yogurt Shop versus Behind-the-Counter

Over the last several years, the self-serve frozen yogurt concept has really taken off. Here are brief descriptions of self-serve and traditional behind-the-counter frozen yogurt concepts with advantages and disadvantages for each.

Self-Serve Frozen Yogurt Concept
In a self-serve shop, the customers fill their own cups with whatever yogurt and toppings they want. Their cup is weighed, and then they pay by the ounce.

Advantages: The customers pay for exactly what they get.
Complete control over your profit margin.
Customers can make it their way with whatever yogurt and topping combinations they want.
Usually requires fewer employees to run the store – many shops use just one employee.
Average dollar purchase is higher than traditional frozen yogurt shops.

Disadvantages:
Requires more machines to do it right – the minimum we recommend is five.
Makes it difficult to add additional menu items that require employee labor (like smoothies or crepes).
You end up losing a lot of product to free samples.
Because you can’t charge a separate price for the toppings, you really don’t end up making much money on them. In some cases you lose money on the toppings.

Traditional Behind-the-Counter Concept
The tradition way of running a frozen yogurt shop is with 2 to 4 machines behind a counter. Customers order the size and flavor and the employee dispenses it for them. The customers pay a set amount for each size.

Advantages:
Requires fewer machines.
Less wear and tear on the machines.
Better suited for serving other menu items (like shakes, smoothies, sundaes, food items, etc).
Toppings can be a profit center if priced separately.
Less wasted product.
More control over the customer experience.

Disadvantages:
Inconsistent portions served by employees.
Requires more employees to operate.
The average dollar purchase tends to be less than with self-serve shops.

As you can see, there are advantages to either concept. Ultimately, you need to decide what is right for your market and your business plan. It’s important to be aware of the trade-offs and adjust accordingly.

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Two Magic Numbers for Frozen Yogurt

The correct temperature setting on your soft-serve machine is critical for making a good frozen yogurt product and for extending the life of your mix. Every frozen yogurt shop owner should have a good food thermometer like this one: https://frocup.com/product/digital-thermometer/

Use a thermometer to check the temperature in the hopper (the reservoir where you pour the mix) and the temperature of the product when you dispense it from the machine.

Magic Number #1

Hopper Temperature = around 35 degrees F (between 34 to 39 degrees)

The hopper temperature is critical for keeping the product fresh The temperature in the hopper should be under 40 degrees F. Any warmer and the product can go bad. It should also be warmer than 32 degrees or else the product in the hopper will freeze. If you see the product freezing in the hopper, just raise the temperature a degree or two.

Magic Number #2

Finished Product Temperature = 17-19 degrees F

The temperature of the product when it is dispensed should be between 17-19 degrees F. This would also be the temperature of the freezing cylinder. Because Nanci’s Frozen Yogurt use pure fruit sugar, the temperature for our mixes needs to be a little lower than for cane sugar mixes. A sugar mix might come out stiff at 22 degrees, but Nanci’s mixes are better at around 18 degrees. This can easily be adjusted on your machine – just consult your manual or contact the manufacturer if you need help.

If your product ever comes out wet, soupy, or melted then you need to lower the temperature. Frozen yogurt should come out stiff, creamy, and frozen (not wet). It’s amazing what a difference a couple of degrees makes.