Trending: Self-Service Yogurt Chains on the Rise

Do-it-yourself frozen yogurt stores are all the rage, with a growing number of stores allowing customers to serve themselves.

August 23, 2011

WASHINGTON - Do-it-yourself frozen yogurt stores are rising in popularity, with a number of new chains as well as existing stores converting formats, allowing customers to serve themselves, the Wall Street Journal reports.

Customers are attracted to the expanded choices that do-it-yourself offers, while many spend more than they would at traditional stores. "People are doing things on their own that they wouldn't feel comfortable asking someone behind the counter to do," said Tim Casey, CEO of Mrs. Fields Famous Brands LLC, parent of industry leader TCBY, which is set to open nearly 100 self-serve stores this year.

The self-serve stores operate on weight-based pricing, with the average self-serve ticket ringing up at $6.32, compared to $5.61 at a traditional store, said a TCBY spokesperson.

Research firm FRANdata said 17 of the 71 frozen-dessert franchises offer self-serve options. The transition to self-serve for TCBY comes as it closes its traditional shops. Last year, TCBY closed 33 stores and the company will shut 11 more this year, Casey said.

Casey said part of the new focus is a result of people wanting the freedom and control that self-serve allows. "If calories are an issue or budget is an issue, they're in control."

Additionally, make-your-own cuts down on waiting for employees to handle an order, said Natasha Nelson, co-founder of self-serve chain Yogurtini, of Tempe, Arizona. "The lines are out the door at night, and the lines move quickly," she said.

Nelson said her shops need just two employees to cover a shift, which keeps labor costs relatively low.

Do-it-yourself is not without drawbacks. Start-up costs are generally higher, with the initial investment ranging from $277,000 to $521,000, compared with roughly $234,000 to $482,000 for a full-service shop. The higher cost is attributed to the yogurt machines, which can cost $15,000 apiece (self-serve shops offer more flavors than traditional stores).

Additionally, as customers navigate a store to seek flavors and add-ins, stores must be slightly larger: 1,325 to 3,700 square feet, compared to 900 to 1,225 for counter-service models, FRANdata said.

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