Franchise Deep Dive: Pinkberry Franchise Costs, Fees, Profit and Data

After growing a cult following in the early 2000s, this Los Angeles-based frozen yogurt franchise began rapidly growing in the U.S. and abroad.

By Victoria CampisiStaff Writer

9:09AM • 12/29/23

LAST UPDATED: October 2023

FRANCHISE WEBSITE: https://pinkberryfranchise.com/

NUMBER OF LOCATIONS: 300+

REPORTED COST TO GET IN: $295K to $508K

REPORTED ROI (Item 19): N/A

Pinkberry is a frozen yogurt and dessert franchise. It offers a range of frozen yogurt flavors, including their signature original flavor, as well as various seasonal and rotating options. Customers can customize their frozen yogurt with a selection of toppings and sauces. The franchise emphasizes the use of fresh and natural ingredients.

How Many Pinkberry Locations Are There?

Pinkberry was founded by Shelly Hwang and Young Lee in West Hollywood, California. The idea for Pinkberry was inspired by frozen yogurt that Lee and Hwang tasted in South Korea. They aimed to bring a similar concept to the United States, but with a focus on using high-quality, natural ingredients. The store quickly gained popularity for its distinctive tangy frozen yogurt and fresh, modern store designs. Pinkberry quickly garnered a dedicated fan base in Los Angeles, driven in part by word of mouth and celebrity endorsements. Just a year later in 2006, Pinkberry rapidly began franchising its stores.

The franchise continued to grow throughout the late 2000s and early 2010s, opening stores across the United States and internationally, including the Middle East, Asia, Europe and South America. Over the years, Pinkberry introduced new frozen yogurt flavors and seasonal offerings, in addition to its signature original flavor.

In 2015, Pinkberry was acquired by Kahala Brands, a franchise-focused restaurant company that already owned Cold Stone Creamery, Baja Fresh and Planet Smoothie. Under Kahala Brands' ownership, Pinkberry continued to expand its footprint. Today, there are over 300 locations around the world. However, in 2022, it was reported that Pinkberry was closing locations amid declining popularity.

What Is The Pinkberry Business Model?

Pinkberry's business model is based on the concept of offering high-quality frozen yogurt and a customizable dessert experience to its customers. Here are the key elements of the Pinkberry business model:

Premium Frozen Yogurt: Known for its premium frozen yogurt, the company emphasizes the use of natural and high-quality ingredients to create a distinctive and tangy frozen yogurt product. They offer various flavors, including their signature original flavor, along with seasonal and rotating options.
Customization: Its business model encourages customer participation in the creation of their desserts. Pinkberry customers can choose from a wide range of toppings, including fresh fruits, nuts, candies and syrups.
Modern Store Design: Pinkberry stores are often designed with a modern and stylish aesthetic, creating an inviting and enjoyable atmosphere for customers.

"All of our operational excellence is about working toward one goal: making sure each Pinkberry guest has an unforgettably positive experience,” the brand wrote on its franchise development website. “Each staff member is trained on what it takes to make that happen, from a friendly greeting to serving up each cup of delicious, tart frozen yogurt with two hands and a smile.”

The franchise also places a strong emphasis on training and an easy-to-follow system, regardless of franchisees’ prior experience. Pinkberry offers comprehensive training to franchisees to ensure they have the necessary knowledge and skills to operate a successful Pinkberry store. This training includes industry expertise from the Pinkberry corporate team and trainers from Kahala Brands. The training program involves spending time at Kahala headquarters in Scottsdale, Arizona, and 80 hours of practical training in a designated training store. This training covers all aspects of Pinkberry operations, including marketing, management and development support.

How Much Can Pinkberry Franchise Owners Make?

Recent earnings for Pinkberry franchise owners are not publicly available. However, in 2018, the average gross sales for all Pinkberry stores was $449,597.

How Much Does It Cost To Open Pinkberry?

The investment range to open a Pinkberry is $295K to $508K, according to Entrepreneur.

Additionally, there is a minimum liquidity requirement of $125K and a minimum net worth requirement of $250K.

The Pinkberry Royalty Fee is 6% of gross sales. The Pinkberry advertising fee ranges from 2% to 4% of gross sales. It is recommended, not required, that an additional 2% of gross sales are used for local advertisement.

What Is the Franchise Fee for Pinkberry?

The franchise fee is $35K.

Who Is the Leadership of Pinkberry (Kahala Brands)?

Kevin Blackwell — CEO
Jeff Smit — Chief Operating Officer
Jay Goldstein — Vice President of Franchise Development

What Helpful Articles Can I Read to Learn More About Pinkberry?

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