How to Make a Splash in a Booming Industry

It’s no secret that the frozen yogurt and gourmet burger industries are hot right now. These concepts have intrigued the interest of consumers and prospective franchisees alike, but what are companies doing to set themselves apart from the competition? 16 Handles: Mom is always right As a veteran to the restaurant and hospitality industry, Solomon Choi had always had his hand on the pulse of the frozen dessert industry. After his mother told him of a mom and pop self-serve frozen yogurt shop that she thought was an interesting concept, Choi learned two things - where the frozen dessert industry was headed, and that mom is always right. “Once I walked into the store, a light bulb flashed on in my head. The concept was the future of frozen yogurt, and it was a franchisor’s dream,” said Choi. “Everything would be easy to execute and could be replicated.” Choi then ventured to the opposite end of the country, where self-serve frozen yogurt had yet to find its legs. At just 27 years old, Choi opened the very first 16 Handles in New York City in 2008. “There were several other frozen yogurt concepts, but we were the first to offer self-serve. You can call it brave or being foolish but I thought we were better than the other guys, so I thought, we have to go big or go home,” Choi said. “New York was the perfect place to launch the brand.” Luckily for Choi, the risk paid off, as 16 Handles has grown to 25 locations in the eastern United States. But Choi recognizes that being the first can only get you so far. 16 Handles has established itself as a place in the community to gather and lounge. “We want to be a lifestyle brand, which can be challenging for a food concept,” Choi explained. “But by creating an inviting environment, people don’t just pick up their food and then leave – they want to stay and hang out with friends at 16 Handles.” 16 Handles has also established itself as a company devoted to giving back. Through a partnership with Trees for the Future, every 16 Handles location helps plant 16 trees every day. They also use biodegradable packaging and cornstarch spoons in every store. Through selling packaged 16 Handles branded food – from granola to frozen yogurt sandwiches – the brand has found a way to extend its food and flavors outside the store. “We have a corporate chef who is continuously coming up with new flavor combinations and products to bring to our customers.” So how will 16 Handles stand the test of time and avoid being a fad? Choi says he’s not worried about it. “Frozen dessert will never go away, especially in the US, because it’s a pastime. Frozen yogurt will only continue to grow since it’s a dessert that has health benefits. This is a way to enjoy oneself without the guilt.” 32 Degrees: The Secret Weapon After establishing itself as the nation’s largest Great American Cookies* franchisee, operating more than 35 stores, Pizitz Management Group decided to make the leap from franchisee to franchisor and launched 32 Degrees, a Yogurt Bar. After 28 years of experience as a franchisee, the family-run business saw the self-serve frozen yogurt trend growing. In 2010, Jeff Pizitz led the charge for Pizitz Management Group into this growing industry and opened the first 32 Degrees location in Birmingham, and has since opened 15 stores across the southeast. “We were very confident that our company’s quarter century of experience in the franchising industry would allow us to become a big player in the category,” Pizitz said. “As retail and food franchise veterans, we witnessed the frozen yogurt boom and bust of the 1990s. We saw where those concepts went wrong and have developed the solutions that will create a robust and long-lasting system.” The 32 Degrees franchising opportunity comes with a secret weapon – a franchisee-focused approach. They not only plan to share their expertise, knowledge and resources with their franchisees, but have also committed to not escalate the cost of goods purchased by franchisees. “Any product we offer our franchisees will have no mark up,” Pizitz said. “Many franchisors sell food, paper goods and equipment to their franchisees at a higher rate as a way to turn an extra profit, but we’re not going to follow that trend. Our responsibility is to help them become successful franchisees, not to make money off of the basic tools they need to run a business.” 32 Degrees has also developed several proprietary products including the Twister, where customers select fresh yogurt and their favorite toppings and a 32 Degrees staff member twists them together. Gearing up for the cooler fall months, 32 Degrees is introducing Bottomz - a baked dessert, served warm. With flavors such as Chocolate Lava Cake, Fudge-filled Chocolate Chip Cookie and Apple Pie, they make the perfect complement to their customers’ favorite yogurt flavors. Burger 21: Beyond the Better Burger With more than 25 years of experience behind them, the owners of The Melting Pot Restaurants, Inc. envisioned a fast-casual, “beyond the better burger” restaurant. Thus Burger 21 was founded in 2009. Staying true to its name, the concept includes 21 chef-inspired burgers that range from the traditional “Burger 101” to the more eccentric “OMG” burger, as well as chicken, seafood and turkey options. The company has since opened two locations with multiple franchised locations set to open in Atlanta, New Jersey and Orlando. In an ever growing burger world, Burger 21 has recognized how to tap into one of America’s most American meals. “America has a love affair with burgers,” said Dan Stone, Vice President of Franchise Development for Front Burner Brands, the restaurant management company for Burger 21. “In developing the Burger 21 concept, the Johnston family saw an opportunity to fill a void in the burger business, which has plenty of quick-service burger joints, a number of traditional, better burger establishments and even upscale, full-service burger restaurants. The Burger 21 concept defines its own category – beyond the better burger – offering quality, premium ingredients, innovative recipes and a gourmet experience without the gourmet price.” Has being different paid off? For Burger 21, the answer is yes. “Burger 21 fills a void in the burger business,” said Stone. “This is evident in the fact that 40 percent of the burgers we sell are our non-beef burger creations and 69 percent of our total sales are derived from non-beef menu items including our salads and shakes. While there are plenty of other burger concepts out there, we believe there is a need for a restaurant that goes beyond the better burger.”