With Summer heating up, Nation's Restaurant News reports that many of frozen yogurt's top chains are gearing up for some rather chilly competition. This month, Pinkberry announced it has received an additional $9 million from investors, and plans to open 35 stores in the Middle East as well as expand domestically. Meanwhile, top competitor Red Mango has grand plans of its own — to launch 550 locations over the next five years, and at least 40 new domestic stores this year in states such as Texas.
Last week, New York-based frozen dessert chain Tasti-D-Lite signed a deal to open 35 new stores in New York, New Jersey, and Connecticut over the next ten years. That's in addition to more than a dozen outposts in Nashville, TN, plus 40 more in southern Texas. Yet another competitor, Yogurt-land, plans to more than double in size before the end of the year.
While I did predict that custom blended fro-yo would be the next big trend, I think the industry may have gone a bit overboard. At a time when Starbucks has been forced to lower prices on coffee, do yogurt chains truly believe they can exponentially grow their empires on $5 cups of yogurt? Are you in agreement, or are you simply excited by the prospect of having more frozen yogurt options?