Pros:
• High margin product mix – frozen yogurt has a higher profit margin than other food items.
• Low start-up costs – compared to other businesses, starting up a frozen yogurt business can be relatively inexpensive.
• Variety of flavors and toppings – customers have a wide array of flavors, styles, and toppings to choose from.
• Low labor costs– operating a frozen yogurt business requires minimal staff, making it easier to manage.
• Low risk investment – the frozen yogurt industry is stable and has been consistently growing in recent years, making it a low-risk investment.
Cons:
• Seasonal nature of the business – sales can dip during certain times of year, so it’s important to plan accordingly.
• Competition – depending on the area, there may be competition from existing frozen yogurt businesses or ice cream shops.
• Limited variety of products– a frozen yogurt shop typically only offers frozen yogurt, which means a limited product mix for customers.
• Perishability of ingredients – ingredients such as fruits, syrups, and other toppings must be replenished often in order to maintain the quality of products.
• Constant upkeep– machinery needs to be maintained regularly in order to keep the business running smoothly.
• Regulations – frozen yogurt businesses must adhere to local, state, and federal regulations in order to remain in business.
• High overhead costs – supplies such as cups, spoons, and other serving items can be expensive when bought in bulk. Additionally, electricity bills for keeping the machines running may add up quickly.
• Health risk – if the machines are not maintained properly, customers may be exposed to health risks such as food poisoning.
• Waste – a large amount of waste is generated from running this type of business, including packaging and unused ingredients. Proper disposal must be taken into consideration in order to remain environmentally friendly.