Some ideas are better on paper, left to the imagination and the world of what-could-have-been.
And for a while, Kuldeep Birring’s idea for a frozen yogurt business was left right there, in a bundle of papers on his desk.
That bunch of papers, however, constituted a business plan for a frozen yogurt shop and had helped him finish his commerce degree at the University of Victoria. It also burned in his mind while he continued working at a local bank.
“I realized [the bank] wasn’t for me,” said the 25-year-old, now in his fourth month behind the counter of Yolo Frozen Yogurt Bar.
Last January with the help of his family, Birring started putting the money together, looking for a location and sourcing products and equipment to put his paper plan into action. That paid off in December when Yolo opened at Royal Oak Shopping Centre.
Birring won’t say what was spent to open the store. New frozen yogurt locations with similar designs in the U.S. can range between $150,000 and more than $400,000. But Birring said it’s in that ballpark, which he admits “it’s a little scary” to a first-time entrepreneur.
But Birring believes in the product and the research he’s done.
“It’s again getting big in the U.S. and when that happens it’s only a matter of time before it gets big here,” he said.
It already is in some parts of the country.
While frozen yogurt was huge around North America in the late 1980s, it has enjoyed a big comeback over the last few years.
Last year, Pepsi decided to get into the yogurt game, while Canadian frozen yogurt chain Yogurty’s — owned by the same company that holds Canadian-created Yogen Fruz, a huge name in the yogurt game in the 1980s — has plans to more than double its presence to 60 franchises across Canada this year. Yogen Fruz has more than 1,300 locations in 35 countries.
Opening frozen yogurt bars has become prevalent enough to inspire an online one-stop shop for would-be entrepreneurs. Openayogourtstore.com offers three templates at three prices for anyone looking to get into the business, offering advice on design, financing, choosing locations, finding distributors and supplies.
According to Franchisehelp.com, which was set up to provide guidance and expert advice starting a franchise business, trends toward healthy eating, more interesting flavours and cool store designs has made frozen yogurt more popular than in the 1980s or 1990s.
The site also noted American frozen yogurt giant Red Mango recently raised $12 million and plans on adding 550 locations within the next five years.
Birring is, for the moment at least, just going to concentrate on his one spot. “At first when I opened I thought it might be nice to have a few and possibly franchise at some point, but then you get into the game and you realize what’s involved,” he said. “I want to have one store and put all my energy into it and get it up and running and creating a good brand name.
“Maybe down the road, I’ll see if it’s feasible to expand.”
The store, which is modern, clean and open in its design, offers a broad selection of yogurt flavours and more than 35 different candy and fruit toppings.
Birring said the self-serve cups tend to come in around the $5 mark, though that can fluctuate as the cost depends on weight and customers are free to load them up as high as they like. There are also parfait and smoothie options.
Birring said despite the sweet additions, the store is driven by the healthy eating trends.
“It’s playing a big role, that’s how Booster Juice blew up,” he said with a nod to the Canadian smoothie franchise he’s familiar with — his uncle has two of the locations, while his parents have a Boston Pizza franchise.
Birring also offers options including probiotic yogurt, non-fat yogurt, non-dairy yogurt and gluten free varieties.
Though it’s early days, and he’s only been open through a winter, Birring said business has been pretty good.
“Any business will take time before it’s making money and breaking even, but summer will certainly help us out.”
What may take more getting used to is being the boss, as Birring said it’s taken some time to deal with the fact the buck stops with him. “I sometimes still feel like a kid in a world of adults,” he said.
