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The Rise of FroYo and the Decline of Ice Cream

Check out this video and article on Yahoo! Finance about the decline of ice cream and the rise of frozen yogurt.

http://finance.yahoo.com/blogs/daily-ticker/decline-american-treat-140930869.html

Here are a few highlights:

  • The number of frozen yogurt shops increased by 24% between 2011 to 2012, while the number of ice cream shops declined.
  • Ice cream sales are on track to hit their lowest levels since the mid 1990s.
  • Consumers are leaving ice cream because of health reasons and because it hasn’t kept up with the more innovate and fun vibe of frozen yogurt.

 

 

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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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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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New Profit Calculator

We have relaunched our new and improved Frozen Yogurt Profit Calculator. You can access the Profit Calculator here: /resources/profit-calculator-2/.The results will now display immediately upon submission. You can also change your inputs and try multiple scenarios. Feel free to call us to discuss the profit model or to talk about how you can structure your business to be more profitable.