(FranchisePick.Com) Paris Hilton… Jerry Seinfeld… Reese Witherspoon… Salma Hayek… Linsdsay Lohan… Leonardo Di Caprio… Even Andy Dick.
They’re all fans of the trendy, often controversial, and always newsworthy frozen no-gurt sensation called Pinkberry.
Pinkberry addicts call it “Crackberry.” The L.A. Times called it “The taste that launched 1,000 parking tickets.” FORTUNE magazine declares Pinkberry “could become the next hot franchise.” Even Starbucks founder Howard Schultz has taken notice of Pinkberry, and met with the founders.
Will Pinkberry and $10 Green Tea Frozen Yogurt dethrone Starbucks as the King of overpriced treats that let us peasants feel like we are celebrities? (If you answered YES, vote for Pinkberry at Top New Franchises.)
One obvious difference is that Starbucks doesn’t franchise (at least to individuals). Pinkberry, however, does offer franchises. Hmmm…. $10 Frozen Yogurts might not seem like too bad an idea when you’re on the other side of the counter…
The FORTUNE Magazine article (below) spells out a lot of the details.
It came from Los Angeles By Matthew Boyle, Fortune writer
Pinkberry’s tart-yet-sweet frozen yogurt has attracted investors, and inspired competitors, says Fortune’s Matthew Boyle. Is it the next hot franchise?
(FORTUNE Magazine) — Launched in Los Angeles two years ago by a failed restaurateur and a former nightclub bouncer, Pinkberry could become the next hot franchise. This purveyor of tart-yet-sweet swirled yogurt is dubbed “Crackberry” by its fans (no, it’s not made by Research in Motion). Devotees include celebrities Salma Hayek, Jerry Seinfeld, and Paris Hilton. It has also drawn the interest of Starbucks (Charts, Fortune 500) founder Howard Schultz, who, along with representatives from his venture capital firm Maveron, reportedly met with Pinkberry’s founders last November. (Maveron declined to comment.)
“I’ve been practicing franchise law for 18 years, and this is one of a very few [concepts] that I have ever seen” on such a fast track, says Lori Lofstrom, Pinkberry’s franchise lawyer.
Why all the fuss? Pinkberry offers just two yogurt flavors, plain and green tea, sprinkled with the customer’s choice of fresh berries, granola, even Fruity Pebbles cereal. (Some toppings are not officially on the menu, adding to the cult allure.) It’s pricey stuff: While the average purchase is $5.50, a large green tea with three toppings costs nearly ten bucks.
Pinkberry won’t discuss sales, but with upwards of 1,500 customers per location per day, one store could easily bring in $250,000 a month. (A typical unit for TCBY, the granddaddy of yogurt chains, does about $200,000, according to restaurant consultancy Technomic.) There are 21 Pinkberry locations in L.A. and New York, with plans for 50 by year-end. Co-founders Shelly Hwang, 33, and Young Lee, 43, say they turned a profit on their first store four months after opening it.
The founders also say they have received 3,000 requests from aspiring franchisees, who seek to pay a $40,000 upfront franchise fee for the rights to sell the treat – then kick in 7% of monthly sales (a 5% royalty fee, recently upped from 3%, plus 2% for marketing)….
IS PINKBERRY A TOP NEW FRANCHISE?
IF YOU’RE A PINKBERRY FAN LEAVE A COMMENT AT TOPNEWFRANCHISES.COM.
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