Red Mango: 200 Units and Growing

By RENEE LEE Frozen yogurt chain Red Mango was ranked No. 1 by Zagat in the “Best smoothie/frozen yogurt” category in 2011. The franchise got its name from the concept that mangoes are rarely red unless they’re very ripe and fresh—and they pay homage to the name by serving up numerous fresh fruit toppings. Founded in 2007, the chain recently celebrated its 200th location in The Woodlands, Texas. First founded in California by Dan Kim, Red Mango is now open in 30 states across the country and launched its first international locations in May, opening three stores in Mexico City. In December 2010, the franchise surpassed the 100-unit mark. Although it can be difficult to hit that 100-unit benchmark, this fro-yo chain had some tricks up its sleeve. While launching the brand on a national scale in 2009, the company created what they called “Red’s Real Deal.” Under it, Red Mango would purchase back a franchise for up to $275,000 and take it over if for any reason a franchisee was not completely satisfied within the first 90 days. According to a Red Mango spokeswoman, the buy-back option was never exercised. There are currently 203 Red Mango units, and just like any other business, they’re looking forward to further expansion. Greg Kaloustian, Red Mango’s Chief Development Officer, says expansion through North, Central and South America is next. Deals have been signed for locations in Uruguay as well as El Salvador. “You should keep an eye out for us to make a big splash in areas we don’t necessarily have a strong foothold in as of yet,” Kaloustian says.