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You Should Pass on A Frozen Yogurt Franchise

Over the past decade, word around the frozen dessert industry has been focused on trend that seemed to come out of nowhere. After the meteoric rise and fall of frozen yogurt in the ‘80s and early ‘90s, the sweet stuff caught the attention of a new generation seeking a “healthy alternative” to other frozen desserts in the 2010s. But is now the best time to throw your financial weight behind this trendy treat?

Froyo Franchises Don’t Have Staying Power

It’s not called a trend for no reason. The frozen yogurt industry is notoriously fickle—it follows the lead of consumer health trends that often change more quickly than anyone can keep track of. The other tricky piece of the puzzle is that frozen yogurt demand is driven by public perception of the dessert. While during its rise, frozen yogurt has been widely viewed as a healthier option to satisfy the consumer’s sweet tooth, the fact is that there’s not much difference.

Frozen yogurt may be ounce-for-ounce lower in calories than ice cream, but it’s often loaded with more refined sugar to mask its tangy flavor. As this news becomes more mainstream, frozen yogurt’s flavor in the market has begun to sour.

Frozen Yogurt Got It Right—And That’s What Went Wrong

The frozen yogurt industry skyrocketed over the past decade because it answered need of the consumers at the time. Growth throughout the frozen dessert industry is driven by, 1) innovative flavors and flavor combinations, 2) exciting and compelling packaging, and 3) customization capability. Frozen yogurt had the best of all three, and that’s exactly what’s causing its downfall.

The Second Wave of the Froyo Boom is Over

Consumers and businesspeople alike got too excited about the trend too quickly, and the market saturated quickly. Now, frozen yogurt is experiencing a wave of consolidation as many of the smaller players are either purchased or shuttering their doors. According to a 2019 report in Ibis World, “over the five years to 2019, the industry has experienced declining revenue due to lower demand for frozen yogurt and the industry’s oversaturation.” Analysts place frozen yogurt industry growth at -7.9%.

Ice Cream Takes The Cake

Frozen yogurt’s primary competition in the frozen dessert market? Ice cream. Ice cream is the dessert people actually want when they’re going out for frozen yogurt, which is part of why ice cream has the staying power froyo never well. It’s lower cost, richer and more filling, which—especially in times of economic hardship—often wins the day.

What Should You Do?

Look for the best of both world. Try a franchise that has a time-tested powerhouse product like Jeremiah’s rich, creamy Soft Ice Cream while also offering exciting innovations in texture, flavor, packaging and customization. Jeremiah’s flavor-packed Italian Ice can be combined in unlimited mixtures with our Soft Ice Cream to create our signature frozen Gelati treat, the next titan of the frozen dessert industry. Interested in learning more? Check out our website or stop by a store.