Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)
Issue link: https://sct.epubxp.com/i/62026
RET AILING TODA Y Do-it-yourself concepts in general are doing very well. As of last year, self-serve yogurt shops account for nearly 21 percent of industrywide revenues, up from 3 percent in 2006. YOGURTLAND'S CONCEPT IS PART SLURPEE MACHINE, PART SALAD BAR. thing that bears promise of a healthy fu- ture for these sorts of businesses is the increasing unpopularity of processed sweeteners, IBISWorld says. Expansion will involve both company- owned and franchised shops, Sidoti says, though at present the chain's operations are 95 percent franchised. Rosemead, Ca- lif.–based Chinese-food chain Panda Express is now a Yogurtland franchise owner. The Yogurtland at Alaska's Ted Stevens An- chorage International air- port is accessible from the parking lot as well as the air- port building, which helps boost the shop's appeal. "People drive all the way to the airport just to go to our store," Sidoti said. LARRY SIDOTI, YOGURTLAND'S VICE PRESIDENT OF DEVELOPMENT AND OPERATIONS 86 SCT / MAY 2012 Two Yogurtland shops in New Jer- sey, both of them open for less than a year, have in the aggregate posted up- wards of $1 million in sales, according to franchise owner Michael Haines. He says he plans to open two or three more shops in the state. The frozen-yogurt market generated $723.1 million in revenues last year, with profits nearing $45 million, according to IBISWorld. Yogurt- land, the fourth-largest brand, controls 8 percent of the mar- ket, behind giants TCBY, Pink- berry and Red Mango, in that order. Yogurt- land's "concept of product custom- ization by cus- tomers is a big driving force," said Nikoleta Panteva, an I BISWorld analyst. "They are set for growth for the next five years." Do-it-yourself con- cepts in general are doing well. As of last year, self-serve yogurt shops account for nearly 21 percent of industrywide revenues, up from 3 per- cent in 2006, and IBISWorld predicts further growth for the segment in keep- ing with the popularity of this opera- tional model. Yogurtland's flavors are a big factor in its appeal, Sidoti says. Truly, to judge by the names, its offerings are hardly run-of-the-mill: Blackberry Lemon Mint Tart, Devil's Food Cupcake Batter, Mat- cha Green Tea, Lychee Tart. "We have one of the best flavor guys in the indus- try and create all our flavors in house," Sidoti said. "We spend a lot of resources on R&D; and product development." Right now all seems to be going well for the company. "They are the smallest players and have a lot of room to grow," Panteva said. But others have room for growth too, sources say. Indeed, some of the same things that have helped ease Yogurtland's success can and very well may do the same for up-and-com- ers, says Beemer. "It's a difficult concept to control," Beemer said. "You are looking at a busi- ness model that anyone can start with very little overhead. You may feel like you are the only one at first, but soon there may be 109 of them around you." SCT