Pinkberry, the wildly popular frozen yogurt and smoothie chain, saw a flurry of fans flock to its recent grand opening at Blue Back Square in West Hartford — and the lines are still out the door.
Americans will nosh frozen yogurt and slurp smoothies to the tune of nearly $4 billion this year and with stores popping up all over Connecticut — Froyo World, Jamba Juice, Robeks Juice, Tasti D-Lite — consumers have plenty of tasty options.
“Intense competition will continue to define the industry,” says Nima Samadi, senior industry analyst at IBISWorld, in a recent research report. “This will be reflected in price-based competition and an increased emphasis on the regular introduction of new products.”
But, in a state known for its harsh winters and even harsher real estate costs, how these types of businesses will fare is an open question. Vendors admit selling the appeal of a Caribbean Passion smoothie or some peanut butter and jelly frozen yogurt could be a tall order on Connecticut’s frigid days.
Moreover, the real impact of the recent closings of seven Friendly’s restaurants in the state — including one that was a long-time fixture on North Main Street in West Hartford Center — on the frozen yogurt and smoothie business has yet to emerge.
For now, business for the remainder is certainly booming.
“The response in Blue Back Square has been phenomenal,” said Laura Jakobsen, senior vice president for marketing and design for LA-based Pinkberry.
Founded in 2005 and famously known to its adoring masses as “Crackberry,” Pinkberry offers its tangy yogurt in several flavors, including original, pomegranate, chocolate, mango, coconut and green tea.
Pinkberry has grown to more than 100 locations across the U.S. and Canada, in addition to its international presence in places like the U.K., Russia and the Middle East.
It’s a safe bet that fans will see more locations opening in the state — some in places you would likely expect — as Pinkberry does not sell single franchises. So far, the chain is mum on the precise number of Connecticut outlets.
Jakobsen confirmed the company is exploring several other spots in the state and hopes to make some announcements very soon. A spokesperson at Fairfield University said that Pinkberry called the school about a month ago, but no deal has been announced.
“The Connecticut customer is sophisticated and discerning; they appreciate Pinkberry’s high quality, one-of-a-kind experience,” Jakobsen added.
Business entrepreneur David Katz is counting on the possibility that healthy-eating options are a natural fit in the state.
Katz introduced Jamba Juice, a powerhouse in the smoothie business for 20 years, at his three-year-old Bruegger’s bagel shop in Orange back in May.
His juice business so far has been sweet.
“We had mothers bringing their children in late for school so they could come to the opening,” Katz said.
San Francisco-based Jamba Juice serves up chilled smoothies like Aloha Pineapple, Banana Berry and Peach Pleasure from nearly 750 locations across the country, in addition to a handful of international spots.
Seeing the opportunity not only to expand its brand, but to take advantage of the current popularity, the company last year unveiled “Whirl’ns,” its line of frozen yogurt featuring signature flavors like Magnificent Mango Pineapple, Jazzy Java Chocolate and Awesome Apple Cinnamon.
Available only in California to date, the company has reported strong response and is set to offer Whirl’ns on the East Coast next year.
Katz said the addition of Whirl’ns to his menu could boost sales 10 percent or more.
“The thing I love about it is that I believe it will discourage and ultimately close half of the yogurt shops that are opening up like crazy throughout the country,” Katz said.
A graduate of the Center for Culinary Arts in Cromwell, he has plans to expand strategically in the state. Under his franchise agreements, he must open two more Bruegger’s over the next three years, and five new Jamba Juice stores over the next eight.
Katz said an announcement regarding plans for three new stores, one in the Hartford area, should come within the next year.
He recently met with University of Connecticut officials to discuss opportunities related to the planned $220 million Storrs Center mixed-use project.
In New Haven, he is exploring the recently vacated Bulldog Burrito site on Elm Street near the Yale campus, adding that given the large size of the retail space he would likely combine it with a Bruegger’s, as he did in Orange.
According to Katz, the two main obstacles to maintaining these types of businesses in the state are weather and the high cost of doing business.
“Jamba Juice has 400 locations in California. It is sunny every day and that is really the key to this business,” Katz explained. “If it is cold outside that will hurt sales; it is very weather sensitive.”
Katz says finding the right size and location is the key, adding that non-traditional sites like airports, malls and casinos work best in Connecticut with standalone stores being difficult to sustain.
“In Connecticut, I feel you need to combine two similar franchises to make it,” Katz said.
Pairing Jamba Juice with Bruegger’s not only lowers his combined overhead, Katz said, it also maximizes customer traffic throughout the year.
“The two franchises are completely separate but as a business they split all costs,” he said. “It works great because Bruegger’s has a very strong breakfast and lunch business, while Jamba has a decent lunch and very strong evening business. The two play real well off each other.”
Rick Myers opened a Robeks Juice franchise in West Hartford Center three years ago — just as the economy was tanking.
Conceding that his lofty West Hartford Center rent — and a landlord unwilling to provide him any relief — has been a struggle, Myers and co-owner Kevin Lamb say they aren’t going anywhere.
“We have no plans for leaving,” Myers said. “We love the Center.”
Los Angeles-based Robeks has nine Connecticut locations, primarily in the Fairfield area, offering smoothies made from whole fruit, nonfat yogurt, unsweetened fruit juices, low-fat sherbet and a selection of nutritional boosts.
Myers said that the recent closing of the Friendly’s down the street won’t impact his business one way or another. But, he is certainly aware of the challenge neighboring Pinkberry poses.
“We have not seen a decrease in yogurt sales yet,” Myers said. “Pinkberry has done an unbelievable job nationally of creating a brand. I admire that.”
