With the popularity of ice cream, frozen yogurt has had a long road ahead of it from the start.
To compete with ice cream is quite a monumental task.
Some will say that frozen yogurt does not do much to compete with ice cream.
There are numerous debates to be had about what is better than frozen yogurt or ice cream.
There is no debate, however, that frozen yogurt can be expensive.
Here, we will discuss why that is the case.
Why Is Frozen Yogurt So Expensive?
1. Overhead Expenses
Like any small business, a frozen yogurt operation is going to have quite a few overhead expenses.
One of the expenses that is going to be the most difficult for a frozen yogurt shop to manage is refrigeration.
The cost to keep frozen yogurt cold is expensive.
Not only is there refrigeration while the product is on display and ready to be sold, but the yogurt needs to be stored with refrigeration and shipped with refrigeration.
If frozen yogurt melts, it will lose its texture, and the product will no longer be suitable for sale.
In addition to the cost of refrigeration, there are a lot of packaging costs which need to be paid for as well.
Most yogurt is sold in a cup, and many of those cups also have plastic lids.
The cups are usually branded with the name of the store on the side.
All of this costs money and will deduct from the profit that the frozen yogurt seller can make.
Other overhead expenses include rent and insurance.
Rent for a frozen yogurt shop is going to generally be quite high because of the location.
High traffic areas tend to have higher rent.
If a frozen yogurt shop wants to make it, they are going to need to be in a high traffic area.
Frozen yogurt shops also need to keep insurance policies.
If someone accidentally spills their frozen yogurt and then slips and falls, they will probably want their medical expenses to be paid.
The shop will need to have an insurance policy in place to protect themselves should something like this happen.
The overhead expenses in a frozen yogurt shop are high enough that they are going to need to increase the pricing of the yogurt to be able to afford to keep the shop open.
Employees are always a reason that things get more expensive.
As life gets more expensive, people need more money.
To raise the pay of the employees who work at the frozen yogurt shop, the yogurt pricing probably needs to be increased as well.
If the employees are working full time in a large operation, it’s likely they have insurance and benefits as well.
This is, of course, a large expense for a company, and it will need to be covered through the sale of yogurt.
Some frozen yogurt shops are designed to have very few employees.
They are able to do self-serve frozen yogurt to help cut down on employee expense.
You will likely not see too much a decrease in the pricing of this type of yogurt.
These types of frozen yogurt establishments are going to need employees to man the shop, inspect the machines, and clean up and charge customers.
Although there will be a slight decrease in overall employee cost, the cost to keep the machines in working order will most likely increase.
Although the concept of the self-serve seems as though it should be much cheaper, you will find that it does not usually work out that way.
However, businesses that have a lot of employees are always going to be quite a bit more expensive than those with no employees.
Of course, a large part of the expenses that a frozen yogurt shop will have is their supplies and ingredients.
To make great tasting frozen yogurt, you need to use high-quality ingredients.
The ingredients used to make the yogurt itself are not going to be quite as costly as the toppings.
Toppings for frozen yogurt can get very expensive.
Many of these are going to have chocolate, and chocolate is a high-priced item.
Of course, there is a markup, and these toppings will be sold for a good amount, but they are still high-priced supplies and ingredients.
Some people will notice the difference in ingredients and tastes from one frozen yogurt shop to another.
Some will use artificial flavoring to flavor their yogurt.
Others will flavor their yogurt using real fruit.
If you are purchasing from a place that adds real fruit or all-natural ingredients, the pricing is likely going to be a bit higher.
Sometimes it makes sense to pay more for high-quality ingredients, but many people still want a low-priced frozen yogurt experience, and they don’t want to deal with high pricing at all.
When frozen yogurt shops first came out, they were not all that popular.
People still chose to get ice cream as opposed to frozen yogurt.
Then some started to realize that frozen yogurt usually has a bit less sugar, and the texture can sometimes be more enjoyable.
This helped to increase the popularity of frozen yogurt.
As things got more popular, there was quite a bit of competition.
Competition can be a good way to help businesses produce their best product.
However, if there is too much competition, then some frozen yogurt businesses will find out they are getting much less volume.
With less volume but no change in overhead, the pricing on the frozen yogurt will need to go up to cover the expenses.
This is why, when a town sees that they suddenly have five or six frozen yogurt shops, they are going to pay quite a bit more money for the treat.
Frozen yogurt shops have to compete with ice cream shops as well.
This ends up being a lot of competition, and it costs quite a bit in marketing money to be able to compete with other shops.
By the time marketing and advertising is paid for and the number of total customers is down from previous years, some shop owners question whether or not to keep their doors open.
Although some customers think that frozen yogurt shops are charging excessively, chances are they are working on keeping their doors open.
5. Pay by Weight
The last reason that frozen yogurt is so expensive is that most of the establishments require you to pay for your yogurt by its weight.
You will fill your cup with flavors and toppings and then hand it to the cashier.
The cashier will weigh the cup and then charge you a price per ounce.
The thing most people don’t realize is that the weight of your frozen yogurt is going to add up very quickly.
You will think that a small cup will be light, but by the time you weigh it, you just bought yourself $4 or $5 worth of frozen yogurt.
This is not a ton of money, but it certainly more than most expect to pay when they go in to buy frozen yogurt.
Also, if you are shopping with a family, a trip to get frozen yogurt can easily reach $30 or more.
Some people remember the days when getting a treat like this was $2 or $3.
One of the things that is difficult when it comes to the pricing of frozen yogurt is the fact that you can get it so much cheaper in the store.
You can get a large container of frozen yogurt at a store for the same price as a small cup at a shop.
This is why it is essential to consider whether or not going out for frozen yogurt matters to you.
Do you feel the need to experience yogurt outside of the house or are you fine with eating it at home?
The fact that you won’t be paying for each serving by weight will certainly help you save money at home.
Some people refuse to support frozen yogurt establishments that have a pay by weight program.
They want to know what they are going to pay per cup so that their bill is more predictable.
If you are on a budget, this is undoubtedly the best way to go about it.
How to Save Money on Frozen Yogurt
If you love frozen yogurt but can’t handle the high pricing, there are a few ways you might be able to save some money.
To start off, it can be a good idea to look for a frequent purchase program in your area.
See if one of the local shops does a program where you purchase six cups of yogurt, and the seventh is free.
If you have a large family, you will likely get to your free cup quite quickly.
This is a great way to support a local yogurt shop but save money at the same time.
Another idea is to look for coupons.
As we mentioned, there are lots of frozen yogurt shops out there, and they all need to compete with each other.
If you want to take advantage of this, you can look for the sales and promotions they are all offering.
Chances are you will find something for $1.00 off or 15% off of the total order.
The sales may save you less than a dollar each time, but it is certainly worth looking into before you go in to purchase your frozen yogurt.
When you do get in the frozen yogurt shop doors, try not to be too tempted by toppings and size.
Think about the size of the yogurt that you pour.
Do you need an extra-large?
If you can stick to one standard size cup, you will save a lot of money.
Instead of picking two or three toppings, maybe just one would do.
It can be disappointing to have to cut back, but it can be a great way to help you save some money on your purchase.
Lastly, there is always the option of purchasing frozen yogurt from the grocery store.
Yes, you will have to serve this to yourself, and some claim the taste is slightly different; however, it is quite a bit lower in expense as well.
As you can see, there are several good reasons frozen yogurt is so expensive.
If you thought that the frozen yogurt shop was trying to rip you off, you are probably mistaken.
There are several good reasons behind these high costs, and most shops are just trying to stay in business.
Although it is great to support your local businesses, sometimes a tub of frozen yogurt from the grocery store will have to do.
Maybe try and balance when you go out for frozen yogurt and with a night home having frozen yogurt.
In the long run, this could end up saving you a lot of money.