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Weighing up the frozen yoghurt craze

Sarah Stowe

Frozen yoghurt is on the rise in Australia, which is great for lovers of the food, yet poses a challenge for potential franchisees seeking to invest in a frozen yoghurt franchise. 

With so many options out there, decoding the market can be a challenge, however it doesn’t need to be if you compare the facts and conduct some thorough research. 

Five key players – Menchie’s, Moochi, Yo-Get-It, Crave Australia and Mix & Go FroYo told Franchising a little about what it is that sets their concept apart from the rest. 

MENCHIE’S

Vision/philosophy

Menchie’s aims to deliver an exceptional customer experience by providing a superior product and customer service, and its mission statement ‘we make you smile,’ is put into motion quite literally at its stores.

“From day one we designed our stores to be unique, warm, and the friendliest places on earth,” says CEO Amit Kleinberger.

“The Menchie’s experience is different from other frozen yoghurt chains as we focus on the why before we focus on the what. We create a positive environment that stems from placing community before commerce. We are in business for smiles,” he explains.

Product

Kleinberger explains the brand’s frozen yoghurt recipe, which is made using milk from cows in California, also sets it apart.

“[They] are not injected with any artificial growth hormones such as rBST. All of our frozen yoghurt is certified by the National Yoghurt Association and has received the Live and Active Culture seal, indicating it is real yogurt.”

Future

There are big plans for the brand, too. Kleinberger says there are currently 250 new stores under development.

“We have more than 350 locations open in the US, Canada, Japan, Australia, Puerto Rico, Israel, Jordan, South Africa, and Guam [and] we’re planning to open stores in China, France, India, Trinidad & Tobago, United Arab Emirates, Mexico, China, Costa Rica, Kuwait, Qatar, Pakistan, New Zealand, and Saudi Arabia, among others.”

MOOCHI

Vision/philosophy

According to general manager Euna Kim, Moochi’s founder David Bae developed the brand after he realised there was a gap in the market for healthy dessert options.

“Moochi was established with the vision to provide customers with a guilt-free treat that can be consumed all year round. The brand is about providing more than just another dessert alternative but giving customers a fun and engaging experience,” she explains.

Bae invested much time and thought into the Moochi logo, and its colour represents his goals for the brand.

“Magenta pink aligned with David’s vision that Moochi as a brand could stand out and become a trendsetter in the Australian frozen yoghurt market,” says Kim. 

Product

Kim says Moochi’s product offering is markedly different from those of its competitors, and she stresses it is genuinely healthy.

“People seem to think that all frozen yoghurt products are homogenous but our product has a distinct creamer and tangier profile, simply because we add fresh milk and real yoghurt to our product.

“There seems to be a perception that frozen yoghurt is like a soft serve or just another dessert but we didn’t want to compromise the nutritional benefits of eating real yogurt,” she explains.

Future

Kim says Moochi is looking to open another 20 stores by the end of the 2014, and the team is working on a number of other projects.

“We are continuously working to reduce the calorie and sugar levels while maintaining the same rich and creamy flavour.

“We are also looking into commercially viable ways to provide catering without compromising the quality of the end product and we would like to convert to environmentally friendly packaging.” 

YO-GET-IT

Vision/philosophy

Yo-Get-It was developed in 2009 after founder Scott Bradley saw a “massive hole” in the healthy dessert market.

“We wanted to start a trend and be the first to bring self-serve frozen yoghurt to Australia,” he explains.

Product

Bradley says he loves when people ask him what makes the Yo-Get-It’s product offering different from its many competitors, because it is unique.

“As it stands now we are the only frozen yoghurt business (that we are aware of) making our yoghurt from scratch from our own recipe from our own factory.

“This gives us huge control of the product, ensuring it is made from the best natural low-fat Greek yoghurt, Australian skim milk and free from artificial flavourings or colourings,” he explains.

“Most importantly this means that the franchisees can purchase the yogurt at a much cheaper rate, and in turn pass those savings on to the customers.”

He adds Yo-Get-It offers smoothies that are made using the same frozen yoghurt, which customers love.

The future

Yo-Get-It has just opened its eighth store in South Australia, and plans to open 100 stores over the next three years.

The brand also has plans to develop healthier offerings. “Our next big thing is to bring out 100 percent sugar free yoghurt, dairy free yoghurt and a high protein yoghurt for all the gym junkies,” he says. 

CRAVE AUSTRALIA

Vision/philosophy

Aleksandar Svetski brought US frozen yoghurt chain Crave to Australia after he stumbled across the brand in San Francisco.

He says Crave operates in line with two key philosophies:

Brand

  • Fun (Atmosphere)
  • Quality (Product)
  • Class & Style (Environment/Setting)
  • Choice (Self Service)

Internal / Franchisees

  • Drive
  • Hunger
  • Passion
  • Service

“This means that we provide everything the customer wants in an atmosphere they will enjoy, in a modality where they get to choose and in an environment they can hang out in!” says Svetski.

While Crave is an American brand, he stresses Crave Australia has been developed specifically for the local market.

Product

“We make it [the product] fresh onsite from properly dehydrated Italian yoghurt – not old, frozen liquid delivered from the US that’s been sitting in plastic bottle for months on end,” says Svetski. 

He adds Crave products are health conscious and cater to customers with special dietary requirements.

“We have a naturally sweetened (with Stevia) sugar free range, a lactose free range and to top it all off, our product is certified both Halal and Kosher.”

Future

Crave opened its first store in August, and has aggressive expansion plans. “We wanted a different direction and the response has been phenomenal with another 12 stores opening between August and November 2013 – I think that’s a record growth curve,” Svetski says. 

MIX & GO FROYO

Vision/philosophy

Mix & Go FroYo was founded in 2011 under what managing director Matt Day describes as an easy business model.

“Now [we have] an easy franchise model which we can share with franchisees and also share our brand across Australia,” he says.

The brand is Australian owned, and as such strives to meet the needs of the local rather than US market.

“We have low setup costs and have developed a franchise model which is very simple and easy to manage. We allow input from franchisees which allows them flexibility in their stores,” Day adds.

The brand aims to offer customers a combination of excellent customer service and quality product, and works with its franchisees to educate them about the brand’s philosophy.

Product

Mix & Go FroYo prides itself on being Australian owned and delivering a product that is similarly made from local ingredients.  

“We are committed to providing the best products made fresh using premium Australian ingredients and the safest, most efficient equipment sourced from around the globe,” says Day.

Future

“We are looking for the best franchisees to help expand our brand across Australia and New Zealand,” Day says.  

He adds he and his team are continuously working to ensure the brand remains relevant. “We are always adapting our brand to suit the Australian market, keeping up with the latest internet trends and social media to maintain a marketing edge over our competitors.” 

Images: supplied by Menchie’s, Moochi, Yo-Get-It, Crave Australia and Mix & Go FroYo.