The truth about Frozen Yogurt

25 replies
I own a self-serve frozen yogurt shop. I have 10 flavor options.
Only one flavor has cane sugar in it. The rest has either high fructose corn syrup or Splenda (no sugar added option for diabetic people)

Does it bother you?

well if you've been going to self-serve froyo shop, I guarantee you've been getting a yogurt with high fructose corn syrup.

Most shops use the yogurt that comes in a carton that you can just thaw it and pour it into the machine. my competitors, they all use the same yogurt from couple different companies.

I actually found out about the ingredients few months after I opened my store.

I just assumed, since it's frozen yogurt, it should be healthy.

I tried to look other manufacturers but they all had corn syrup in it.
(I didn't like Splenda either but that was the only option for No sugar added)
I found one manufacturer though, however, their yogurt is more expensive.
I can also buy powder mix and mix it with plain yogurt & flavoring.
(this is hard when you carry many flavors)

Here is the thing. I can only make fruity flavors. People love sweet flavors like cake batter, caramel, cookies and cream etc. I can't make that. No manufacturers make it with cane sugar.

So what are my options?
A: Serve those yogurt just like everyone else. Keep the cost down. Keep my mouth shut about corn syrup.
B: Put all organic flavors. Charge 49 cents per oz (40% more expensive to get it) and expect to see a lot of people flipping at price and leave the store.
When they ask why I don't carry flavors like cake batter, tell them 'it has corn syrup in it, I can't sell that in my store'. Watch competitors taking your customers away

I am frustrated because I think people won't pay higher price for better quality yogurt. But when they find out it has corn syrup in it, they will get mad??? Who expects good quality at Walmart? Can you imagine someone getting mad for a price of organic farm raised chicken at wholefoods because it's a lot more expensive than chicken at walmart?
Am I making wrong assumptions?
Are there a lot of people who would pay extra for good quality yogurt?
or Most people just don't care about the ingredients but only organic-freaks do?

I tried to carry several organic yogurt and did some promotion with it.
I swallowed extra cost and kept my price at rock bottom (35 cents per oz)
but it didn't go well. I didn't see many people who came because of organic yogurt. so I ended up spending more $ on yogurt that people really didn't care.

Due to competitions, I am going to remodel the store, add some menus and reopen with different concept. I want to build 'healthiest yogurt shop in town' image.

I want to go with Plan C: Out of 10 flavors, carry 4 organic flavors all the time (fruity), 4 sweet flavors (corn syrup), 2 no sugar added (splenda)

I cut price from 39 cents per oz to 35 cents last year because of competition. it was a major mistake since it didn't boost the sales and I ended up giving out 'cheap store' image. I am sure cheapskaters liked it but I don't need those people anyways.
I am going to raise the price back to 39 cents. (over 40 cents will traumatize people)

I have one Big Problem though. Customers will see Organic label on 4 flavors.
what if they ask 'what about other flavors? what's in it? what's the sweetener?'
I really don't know what to do about this.
I don't want to bash other business by saying 'well at least 4 flavors are organic, guy down the street has all corn syrup based yogurt'

To conclude, I can't make all organic froyo store. but I'd like to offer some at very fair price. I am concerned about organic options creating bad effects on rest of flavors.
what's your suggestion?
#frozen #truth #yogurt
  • Profile picture of the author P1
    I think if you're going to eat froyo than you should be expecting it not to be the healthiest thing in the world.

    But for me I would go to somewhere that sells a more natural yogurt than one that doesn't like if the 2 stores where next to each other just to get that piece of mind that I took the healthier choice.
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  • Profile picture of the author goyongj
    mod can you move to off topic? thanks!
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  • Profile picture of the author krzysiek
    If i was educated like you just educated me now, I would go with the organic.
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  • Profile picture of the author Rus Sells
    this posts title seems very familiar! Have you posted this before?
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    • Profile picture of the author jimbo13
      ^ I thought the same thing but in the OT section there is a thread about Frozen Yogurt Biz near bottom of P1 maybe moving to top of P2 soon.

      Guess in the US this must be a popular thing.

      Dan
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  • Profile picture of the author Huskerdarren
    Frozen yogurt is going through a resurgence in the US. That and cupcakes!
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  • Profile picture of the author Rocket Media
    People said chipotle couldnt make it when they raised their prices because organic and growth hormone free dairy. Also naturally raised animals that have not been given steroids.
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  • Profile picture of the author Rocket Media
    Why don't you turn it into a marketing plan? Spend a little money and offer some of those more expensive options and see If people bite... Or you can "launch" the healthier option in like 3 months and that gives you time to educate customers and market to them
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  • Profile picture of the author PatrickP
    Couple questions to get started.

    You say you were not aware of this before you opened. If you had been would you still have opened?

    So your big thing is you think corn syrup is horrible?

    Are you making currently making money?
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    • Profile picture of the author goyongj
      I would've still opened. I tried to mix it on my own. the cost wasn't justifiable and i was tired of making many flavors.

      I honestly don't care about corn syrup. I have no issues with my weight. I am trying to gain weight at this point. I think general public won't like it if they find out. I think they usually don't pay attention though.
      I am worried what if I am making decisions based on few organic freaks.
      I think it's all about making money. If 90% people do not care about corn syrup and just want cheap yogurt , I don't have to listen to the rest 10%

      I am struggling at this point. I have 3 other yogurt shops 3 minutes away.
      I can go to like 7 yogurt shops in 10 minutes drive.
      it's just ridiculous competition. so I am trying to change the concept since all self serve shops are the exactly same


      Originally Posted by PatrickP View Post

      Couple questions to get started.

      You say you were not aware of this before you opened. If you had been would you still have opened?

      So your big thing is you think corn syrup is horrible?

      Are you making currently making money?
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  • Profile picture of the author dancorkill
    Price people are willing to pay is all based on perceived value not actual ingredients.

    I would go healthy ingredients and focus on hammering that is Premium stuff, e.g. healthier AND better tasting. Do this by getting articles in well known publications, then blow them up on your walls and shiz. Use the same slogan everywhere etc. It won't happen in a few months you need to be persistent.

    Always wanted to grab a Yohurt store as a side bussiness. How much does it cost to get a store all up and running?

    "what if they ask 'what about other flavors? what's in it? what's the sweetener?'"
    Has anyone ever asked you that? don't worry about stuff that has never happened and probably never will.
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  • Profile picture of the author PleaseHelpMe
    Be honest with your customers and do not go against your conscience. Those educated and concerned with ingredients will look carefully and make a decision. If you making money in this business bothers your conscience, then I would say your conscience is the priority. You will have not regrets and sleep well. You need to do whatever possible to satisfy that.

    You said that there are no yogurt manufacturers that make it with cain sugar. If that is the case it seems to me you found a niche. Low supply / higher demand. Go to stores like wholefoods and scout out the ice cream / frozen yogurt sections in order to see what brands are offered and what ingredients.

    Personally, I am very health conscience due to past illness, therefore I would definitely choose the one without syrup and would appreciate it if there was options listed (i.e. cain sugar).

    my 2 cents.
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    • Profile picture of the author PleaseHelpMe
      Agree with DanCorkill, why not make all natural flavors. Do your research. I'm sure you could find or make those other non-frutty flavors that you mentioned. Then advertise about the dangers of high fructose corn syrup that is saturated in the nation's food supply. Some say this may be contributing to the obesity epidemic.
      This could be a better option for diabetics. Also look into sweeteners such as stevia and others.

      You could advertise your yogurt as the guilt free yogurt and differentiate your product over against the others. You will indeed draw a certain market who will buy from you for that fact alone.

      I would try this route. You differentiate product from your competition. Show the benefits, which justifies a little higher price if needed. And most importantly you enjoy doing it and with a clear conscience.
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      • Profile picture of the author Pierre!
        Originally Posted by PleaseHelpMe View Post

        Agree with DanCorkill, why not make all natural flavors. Do your research. I'm sure you could find or make those other non-frutty flavors that you mentioned. Then advertise about the dangers of high fructose corn syrup that is saturated in the nation's food supply. Some say this may be contributing to the obesity epidemic.
        This could be a better option for diabetics. Also look into sweeteners such as stevia and others.

        You could advertise your yogurt as the guilt free yogurt and differentiate your product over against the others. You will indeed draw a certain market who will buy from you for that fact alone.

        I would try this route. You differentiate product from your competition. Show the benefits, which justifies a little higher price if needed. And most importantly you enjoy doing it and with a clear conscience.
        And do this with the idea of scalability in mind...

        Visit a 'Yogurt' convention and hand out brief questionnaires about who is interested in 'organic' yogurt - Then sell them the stuff they need to start the new and improved healthy line of yogurt nation wide...

        If you are gonna *swing*... Swing to hit it outta the park! Well, unless the coach tells you otherwise...

        You certainly *could* start a movement...

        Patrick
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      • Profile picture of the author goyongj
        I once thought about using this silly slogan 'the truth about frozen yogurt' for the ad and write something about 90% of frozen yogurt shops carries yogurt with corn syrup in it and I am one of the few who's trying to change that.
        obviously it won't work because people doesn't like a business bashing other businesses

        all other yogurt shops advertise their yogurt as natural, guilt free.
        Although my product is better quality, I don't know if customers would perceive that way.

        I get maybe one person asking about the ingredient each month. (I think I had no one last month) so maybe there aren't many people who really cares?
        I do have TWO wholefoods stores within 2 mile radius though. so there are def a lot of people going for organic stuff.

        I think it's true that when someone is trying to make a change (even good change), there always would be obstacles and resistances


        Originally Posted by PleaseHelpMe View Post

        Agree with DanCorkill, why not make all natural flavors. Do your research. I'm sure you could find or make those other non-frutty flavors that you mentioned. Then advertise about the dangers of high fructose corn syrup that is saturated in the nation's food supply. Some say this may be contributing to the obesity epidemic.
        This could be a better option for diabetics. Also look into sweeteners such as stevia and others.

        You could advertise your yogurt as the guilt free yogurt and differentiate your product over against the others. You will indeed draw a certain market who will buy from you for that fact alone.

        I would try this route. You differentiate product from your competition. Show the benefits, which justifies a little higher price if needed. And most importantly you enjoy doing it and with a clear conscience.
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        • Profile picture of the author Tam Chancellor
          Originally Posted by goyongj View Post

          I once thought about using this silly slogan 'the truth about frozen yogurt' for the ad and write something about 90% of frozen yogurt shops carries yogurt with corn syrup in it and I am one of the few who's trying to change that.
          obviously it won't work because people doesn't like a business bashing other businesses

          all other yogurt shops advertise their yogurt as natural, guilt free.
          Although my product is better quality, I don't know if customers would perceive that way.

          I get maybe one person asking about the ingredient each month. (I think I had no one last month) so maybe there aren't many people who really cares?
          I do have TWO wholefoods stores within 2 mile radius though. so there are def a lot of people going for organic stuff.

          I think it's true that when someone is trying to make a change (even good change), there always would be obstacles and resistances
          Why do you think it's silly? It's easy to sell something if you believe in the product.

          I think it's a great marketing strategy. It would play well in certain areas...mine being one. Personally, I avoid anything with high fructose in it and pay extra for products without it. If your store is near two Whole Food stores, then you're in a great area for "organic" frozen yogurt.

          I would highly recommend getting your hands on the book, "Getting Everything You Can Out of All You've Got...." by Jay Abraham. And raise your prices.

          Good luck
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        • Profile picture of the author PleaseHelpMe
          "obviously it won't work because people doesn't like a business bashing other businesses"

          Obviously you don't want to name names etc.
          I don't believe differentiating yourself from your competitors is bashing them. It is plain competition. In fact, if you draw away their customers because you offer a healthier option that tastes great, that might cause them to rethink their use of ingredients, which is not a bad thing. This is how it works.

          The fact that you mentioned there are 2 Wholefoods stores in a 2-mile radius says a lot. It tells me that their is a huge health-conscience customer base.
          I would think that they did their homework by means of demographics etc. Frequent the store and get a sense of why people are there and what they are buying. Look at what they stock in the frozen yogurt section. I have seen, however, at these stores products that are not exactly the healthiest items. But the people are definitely spending more money.

          Taste is what will keep a large number coming back. Some stores have organic sections and normal sections, yet their focus is on organic or natural.
          I have even seem some marketing some time of bacterial base yogurt (sorry forget the details).

          You want to educate your customers and reinforce their choice.

          I know that if one uses the word organic with a product (in the U.S.) there are more restrictions. The ingredients have to pass certain guidelines. SO if you were able to go that rout and find ingredients that are that way, they you could advertise as such... Your competitors could not unless they did the say. So it would read something like this, "Certified Organic Frozen Yogurt." I don't know the market so I don't how hard that is or what is entailed. It seems, however, that your passion is quality for your customers. Keep trying things and researching. Don't give up. Test what you do.
          I'm not sure how big of an outfit you are,but see if the wholefoods would allow you to supply yogurt. After all, those folks always use the "organic" and "local" buzwords.

          Anyway, must go. Best wishes to you in your endeavors. Sorry, I am just one person who may not know everything, but I hope that I have spurred on some more thinking.

          Oh - one last thing. Do you have a local website??

          Take care
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  • Profile picture of the author PatrickP
    How about offering your most popular flavor also in the healthier version and see if it sells?

    That way you are not getting rid of your other flavors.

    You definitely need to differentiate yourself from all the other shops in the area or this time next year there is a good chance you will be out of business.
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  • Profile picture of the author flyinghammers
    Why do you keep bringing up the part about bashing other businesses? You can differentiate yourself by highlighting your Yogurt is 100% natural. Go into a Whole Foods store. They are a very successful grocer because they differentiate themselves by selling natural and organic products. They don't tell their customers not to go to their competitors.

    If you are so concerned about only selling natural products, then this is your only option. It sounds like this a very important principle. Find a way to make it work. If it doesn't work, then the marketplace has spoken and your business isn't viable. Face the facts.


    On a side note do some research. Why isn't high fructose corn syrup healthy? Don't rely on media talking points. Look at it from critical point of view. Look at scientific studies. I have seen scientific studies that say there aren't any negative healthy effects. Even if your yogurt is 100% natural, that it isn't healthy because it contains dairy products and is not vegan.

    What kind of toppings do you use? All the yogurt shops I have seen have cereal toppings that contain high fructorse corn syrup.
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  • Profile picture of the author O0o0O
    Instead of spending your efforts educating the public, the trick here is to build perceived value of your brand while at the same time minimizing the attention to the fact that your other Yogurt flavors are less healthy.

    For example, make the outside of your store look different. Make it look very colorful, natural and wholesome. Then put wholesome icons next to your organic yogurts and then give all your yogurts the same price. This draws attention away from the corn syrup ones and thus reduces inquiries about them. If you must increase the price of your yogurts, then the artwork on your cups should be exquisitely captivating.

    Also, decorate your store with wholesome info charts, tabletop "did-you-know" fold ups, fun facts on yogurt cups, and cool floor mats. The key to your interior decor is to make people feel like they've made a wise decision by entering your store. When you make them feel important, then they come back.

    A sophisticated, yet laid back approach seems like the best option to expand your client base. Like Starbucks, this type of atmosphere would give the impression that your store is better than the others without blatantly saying so. The laid back atmosphere would appeal to lower middle class citizens looking to improve their social status.
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  • Profile picture of the author RKCastillo
    I just keep thinking about Stonyfield Organic Yogurt. I know they sell yogurt and you're selling Fro-yo but you could probably take some notes from them. I remember watching Food, Inc., a documentary about food in America and immediately thinking that I needed to start eating better. Both Stonyfield and Chipotle really ran with this film and promoted it. I felt like these were both brands I could trust and subsequently continue to buy from both of them because of the QUALITY. You should emphasize the better ingredients.

    Secondly, I'm a huge Fro-Yo fan and I'm shocked about the High-Fructose corn syrup. This could be why I'm so addicted! But seriously, I really wonder what people would think if they knew that. Educating the public may be vital.
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  • Profile picture of the author PatrickP
    reminds me of the seinfeld episode about the yogurt I think it was, that had more calories/sugar than they claimed.

    But this thread and the OPs story is why people buy a name brand franchise. You have the big name and you usually get more customers BUT it costs you a LOT more to open up.

    The OP opened his store for much less money but then 3 competitors moved in.

    For me personally I will most likely never have a bricks and mortar store/business again. It is SO much easier and less expensive to have an online store.

    For a couple hundred you can get started online with no long term leases, having to deal with zoning laws, fire inspections, having to be onsite or pay someone else and on and on and on. All the headaches of a bricks and mortar forget it. Of course then you couldn't sell yogurt
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  • Profile picture of the author Saulric
    I used to work at a major grocery store chain in the North East (Wegmans), and pretty much every week we had "flyers" on the ends of the registers advertising local events/openings/etc. Since you are so close to Whole Foods, and since they have your target market, perhaps you could talk to whomever manages their front end about playing coupons for your grand opening for a week or two.
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  • Profile picture of the author PleaseHelpMe
    Kudos to everyone who responded. This is what makes forums like this work. People need help and advice and others offer to help in some way with advice or recommendations.

    Regarding research. Trying reading some articles and go backwards. See what their sources are. Some think that fructose in american food supply may be one of the contributing factors to the obesity epidemic in the U.S. - Start here: Fructose: May Be Almost as Hazardous to Your Health as Soda Have fun! Also when you go to Wholefoods see if they have an advertising in the dairy section. Also see what categories they have. (rice-based yogurt, etc. ) If enough people are requesting the same thing, then they will stock those products and mark them out from others. Follow the money, Imitate, etc.

    With your line of yogurt you could offer at least 1 non-dairy option. etc.. best to your success.
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  • Profile picture of the author edem_sosu
    Give your customers what they want.Do not assume that you know what they want.Ask them!
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