Foodservice Equipment & Supplies

OCT 2017

Foodservice Equipment & Supplies magazines is an industry resource connecting foodservice operators, equipment and supplies manufacturers and dealers, and facility design consultants.

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Page 79 of 93

e&s segment spotlight 76 • FOODSERVICE EQUIPMENT & SUPPLIES • OCTOBER 2017 A SEGMENT SWIRLS IN TRANSITION T he frozen yogurt industry is not iced out, but has undergone quite a few changes since its beginning almost a half century ago. Health- conscious consumers mainly fuel growth, although interest is starting to swirl as operators offer innovative flavors and unique toppings. "What we're seeing overall with the marketplace is the aftermath of a very ambitious and aggressive expansion in the frozen yogurt category," says Darren Tristano, an industry analyst based in the Chicago area. "And what you often see is [that] it's a land grab, with everyone looking for locations, opening stores and ag- gressively franchising." As this trend continues, froyo shops will continue shut- ting their doors and others will struggle in the marketplace. "I don't know that we'll see equilibrium in the future," says Tristano. "It may take a while for some shops to close and allow the demand to shift back to remaining units and to a level where it's more sustainable and profitable." According to Los Angeles-based IBISWorld Inc., frozen yogurt store revenue topped $2 billion in 2016, with annual growth from 2011 to 2015 at 11.6 percent. A big slowdown is anticipated, however, with growth After a shakeout, the remaining players in the frozen yogurt industry find success with innovative offerings, overseas expansion and a unique business model. By Lisa White

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