Foodservice Equipment & Supplies

MAY 2015

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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Jay Kim, President, Wellspring Industry Inc., supplier company of Tutti Frutti Frozen Yogurt, Fullerton, Calif. Q&A; Like many frozen yogurt brands, Tutti Frutti got its start in Southern California, but what sets the chain apart is its operational model. The operation's 700 locations in 30 countries are run by licensees, who are supported by Wellspring In- dustry Inc., a supplier and wholesaler of soft-serve frozen yogurt mixes and equipment. "The goal of our company is to cater to the market, rather than force products on consum- ers," says Jay Kim, Wellspring's president. "Our self-serve model provides customers with choices as well as control." This has been a recipe for success, with Tutti Frutti's sales increasing almost 28 percent from 2012 to 2013 and unit growth at close to 22 per- cent in this same period, according to Technomic, a Chicago-based market research frm. FE&S; spoke with Kim to fnd out more about Tutti Frutti's business model, favor oferings and plans for the future. FE&S;: The frozen yogurt segment is pretty competitive. What makes Tutti Frutti unique? JK: While some chains in this segment are moving away from frozen yogurt, we're staying true to our roots. In our shops, we're trying to incorporate dif- ferent favors and products associated with frozen yogurt. We don't consider ourselves to be just a concept, but a brand. FE&S;: Many chains in this segment have seen growth through franchising. Is that Tutti Frutti's model as well? JK: We have a licensing, rather than a franchised, model. This diferentiates us because store owners have more control of their business. While we don't have as many restrictions as a franchise has, licensees still need to adhere to product quality re- quirements. Our partners can purchase equipment either through Wellspring or their own vendor, as long as it meets local health code requirements. We've been able to build good, trusting relation- ships with store owners in this arrangement. FE&S;: In this type of segment it can be more challenging to diferentiate menu oferings. How has Tutti Frutti accomplished this? JK: We have our own proprietary product that is attached to the Tutti Frutti Frozen Yogurt name. Our menu concentrates on frozen yogurt, but we're not locked in to just the typical favors like vanilla and chocolate. Because our brand is national and international, we also include regional and global favor preferences. In addition, we have options for vegans, vegetarians and those on restricted diets. For example, our vegan Soy Bean Frozen Yogurt is made from non-GMO soybeans, and we ofer a nondairy sorbet line for those sensitive to lactose. In the past year, we introduced a smoothie line for those who prefer a beverage-type product. Some of our stores ofer wafes, wafe cones and wafe bowls to complement our yogurt oferings. FE&S;: With locations nationwide and internationally, does Tutti Frutti need to adhere to diferent product requirements? JK: We ofer our proprietary powder products with live, dormant probiotics that become active when mixed with milk. These powders make storage and handling much easier for store owners. Proprietary liquid products are available in the states of Califor- nia and Pennsylvania, where local state laws require all yogurt to be sold in liquid form. FE&S;: Today's frozen yogurt shops are known for ofering a wide selection of favors and top- pings. Describe a typical Tutti Frutti menu. JK: We have more than 100 favors that constantly rotate. The number of oferings depends on how many machines the store has. Each store will have between 4 and 10 machines that ofer 2 favors each. The favor rotation is up to each store owner. Some keep the same menu for a month or two, 122 • FOODSERVICE EQUIPMENT & SUPPLIES • MAY 2015 e&s; segment spotlight The 40 to 80 toppings at Tutti Frutti's range from sauces and syrups to fruit and a wide selection of dry foods, such as candy, cookies and coconut.

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