Santa Cruz Frozen Yogurt Store For Sale

Business description

First opened in April 2009, this self-serve frozen yogurt store offers frozen yogurt with live and active cultures. The yogurt is fat-free and has 25 calories per ounce. With simplicity as the business’s concept, they offer a variety of flavors at a cost $0.39 per ounce. The customers dispense their own yogurt and add toppings, then weigh their final treat on a scale at the cash register. They can choose from a wide array of toppings, many of which are fresh fruits or cereals.

The store is located in the heart of the highest foot traffic area of a busy downtown retail district, close to a Starbucks and many other popular retail and entertainment businesses.

This store has been undermanaged due to the demands of the two other businesses in which the owners are involved full-time and more. They did not pay any attention to this business after they hired some students to staff the counter and keep it clean. Consequently, it has underperformed in sales and profits. As of April 2010, they are taking some actions to improve sales and profits but are committed to selling the business as they have concluded that they must pay full attention to their primary businesses.

Please reference BTI#7606GC when requesting information regarding this business.

Property information

Real Estate:

Lease

Leasehold rent:

$62,868 per annum

Location:

downtown retail district

Size in square feet:

1,560

Business Operation

Expansion potential:

GROWTH PLAN: The owners recently learned that a careful adjustment of the air/yogurt ratio on the frozen yogurt machines can make a quick 35% improvement in profit margins. Customers fill cups with frozen yogurt, so the typical size they dispense depends on the size cup. Here’s the important thing to know: the weight of that cup of yogurt is determined by the air/yogurt ratio. By adjusting the ratio slightly, the same cubic volume of yogurt weighs 35% more!!! This product is sold by weight as determined by a scale at the cash register.

Until April, the only option for buying yogurt was in cups. Now the store plans to offer sugar cones, waffle cones, and add large cookies so customers can make frozen yogurt cookie sandwiches. Other products are in planning stages and will be added in the coming months.

There was never a “grand opening” promotion for this business, so a new owner could make a splash by having a “grand opening under new management” promotion. The strategies to build this business are well-known, and any good owner/operator should be able to make dramatic improvements by implementing ideas like these:

1. Get involved with the community. Sponsor some local youth teams, promote fund raisers for schools, join the chamber of commerce, offer downtown business discounts, be a presence on the local college campuses, do some advertising in local newspapers, etc.
2. Social networking is cheap (sometimes free) and easy – use Facebook, Linkedin, YouTube, MySpace, Twitter, etc. to connect, make offers, get noticed! Of course, have a great website of your own! Google adwords!
3. Use a frozen yogurt cart or trailer to attend events in the area that attract large crowds.

4. Implement joint marketing and advertising campaigns with neighboring businesses such as point of sale displays in each other’s stores. Some good prospects might be the Starbucks a few doors down Pacific Avenue or the theaters a block away.
5. Start a “Loyalty Card” program where the 10th purchase is free.
6. Promote birthday parties in the store; sell frozen yogurt and other cakes that can be custom decorated. Party supplies such as hats, noisemakers, “happy birthday” banners, confetti, cards, etc. are good upsell items.
7. Develop an email subscriber list using US Post Office mailings (postcards), drops (hand delivered cards), a signup dialog on your website, links to your website on co-marketers such as neighboring merchants, youth sports teams you sponsor, etc.
8. Coupon mailers such as Moneymailer, etc.
9. Promote in-store events using sports celebrities, authors promoting their books for book signings, models signing calendars or photos, poetry readings, aspiring musicians such as singer/songwriter types with a guitar or piano, flower shows, bake sales as fund raisers, etc. This list is only limited by your imagination but can work well if you promote it using your large email distribution list you built in item 7 above.

Reasons for selling:

Pursuing other endeavers

Trading hours:

Mon-Sat 12 p.m. - 9 p.m.
Sun 12 p.m. - 7 p.m.

Employees:

4 part-time

Years established:

2

Other information

Support & training:

2 weeks, 20 hours per week