AsiaOne : Cashing in on frozen yoghurt

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http://business.asiaone.com/Business/SME%2BCentral/Prime%2BMovers/Story/A1Story20080613-70596.html

Cashing in on frozen yoghurt

SWEET news for food and beverage operators: The next business jackpot could lie in a humble scoop of frozen dessert.

Frozen yoghurt (or froyo) store Frolick is opening its third branch a mere five months after its February debut. Sales have skyrocketed at the Holland Village stand, with folks licking up more than 300 scoops daily.

Its five male owners, all 26, have invested more than $100,000 in the business and expect to break even next year. No small feat when each cup of icy treat costs between $3.50 and $6.90.

It seems expansion is the new buzzword. Four frozen yoghurt and ice-cream retailers my paper spoke to confirmed that they are opening up to three branches over the coming six months.

And they are getting more innovative to attract customers. Instead of handing out fliers, many are using new media such as blogs. Some even join school fun fairs to spread the word.

Korean froyo store, Yoguru, is an example. Launched in November last year at Kallang Leisure Park, it will open its second outlet, at Raffles City Shopping Centre, at the end of this month.

Owner Sam Lee, 33, aims to have five outlets here by next year, some of which would be located in major retail hubs.

Mr Lee is so confident in his froyo that he 'is not concerned' about competitors.

He said: 'The most important thing is the product. Customers will know the difference between what's good and what's average.'

That's why 'little money' is spent on traditional marketing as the company focuses on 'good causes', including participating in school bazaars.

Meanwhile, Frolick is opening its third branch at Millennia Walk by the end of the month.

This follows on the heels of its second branch at Serangoon Gardens last month.

Co-owner James Ong, 26, said they plan to have 'five or six outlets' by the end of this year. He felt there is room for expansion because 'there would always be a demand for healthy food like yoghurt'. Just like there is healthy demand for the company's cheeky badges, which tout one-liners such as 'Eat me' or 'I like it topless'.

Besides boosting its presence at events like Zouk's flea market, Frolick is also collaborating with home-grown creative company Asylum to brand itself.

Over at East Coast Road, Ice Cream Chefs is increasing both its physical and online presence.

The local set-up, which started in May last year, is considering shop lots 'near to the central or eastern part of Singapore' for its second store this August or September.

Co-owner Jeremy Wee, 28, said the ice-cream parlour is taking the e-marketing route.

In addition to maintaining its own website and Friendster and Facebook accounts, the company is also considering tie-ups with e-platforms and bloggers.

Popular gelato retailer, Haato, may add two kiosks to its stable of four outlets if talks with potential franchisees take off.

However, not everyone is keen to expand.

Island Creamery's boss, Stanley Kwok, 53, prefers to 'focus on the main store' in Serene Centre.

He said: 'There is space for everyone. As long as your ice-cream is tasty, of good quality and reasonably priced, people will come.'