Why your own yogurt brand beats a yogurt franchise
In summary, starting your own yogurt brand will allow you to:
- Use yogurt dispensers with 30%-70% more efficiency for the same money
- Using efficient yogurt dispensers will decrease your food cost by 25%-50%!
- Using more efficient equipment and premixes will allow you to gain market share on price
- Using the right premix will extend your cleaning cycles by up to 3-20 times!
- Give you the option to venture into exciting complementary products
This is what frozen yogurt franshisors do not want you to find out! For more details on this subject please read the full article below.
Let me start by asking you a question: Would you sell more frozen yogurt servings selling at S$3.- or at S$2.- all other things remaining equal?
A frozen yogurt franchise arrangement for a store usually comes with an array of commitments which basically sets you up for unnecessarily high fixed and variable cost run-rates. Leaving you simply defenseless against a smart non-franchisee competitor!
A frozen yogurt franchisor needs to make money too so your prescribed equipment, like yogurt dispensers, will require an investment at an inflated price to provide your franchisor with a healthy margin. To make matters worse these dispensers tend to be the basic gravity fit type producing very little over-run (% of air in the end product). In the worst case you are to invest in multiple dispensers of which most will sell only single digit percentages of your total sales. With competing dispensers able to produce 30%-70% more over run you will be at a significant cost disadvantage for a long time to come. But since the yoghurt franchisors make money on the mix too they are more than happy with your high mix consumption. With your own branded store you can get a much better dispenser which immediately adds 25%-45% of saved mix costs back to your bottom line.
The obligatory franchise yogurt mix is generally the powder type which you have to mix inside your franchise store with 30 degree Celsius tab water. The end result is a mix with a shelf life of one or two days which will A) be inconsistent as every staff member will mix differently and B) ensure you have to flush, disassemble, clean, re-assemble and sterilize your dispenser at least every other day! Compare this with never having make your mix nor disassemble your dispensers ever.
So what is the smart alternative? Using our ready to use premix in combination with one or more LUNA dispensers will give you many weeks of shelf life, only simple external cleaning work and free preventive maintenance. These benefits quickly translate into big savings in mix costs, staff costs, more effective sales time and a much better impact draw capacity.
The bottom line is that with your own branded store you can either make a lot more profit doing exactly what the franchise stores are doing or even better, you can gain market share from the franchise stores by launching next door with a quality product selling at a much lower price!
If you want to know more feel free to get in touch with us.