It has become clear that the brick and mortar frozen yogurt market has become very crowded and very expensive to enter.
Long term leases, vast sums of money to pay out royalties, franchise fees and larger equipment makes the barrier to entry very high.
Increased competition has created a slump in sales and retail prices for many of the established frozen yogurt retailers. Long gone are the heady days when simply creating a frozen yogurt brand and launching a website or a brick-and-mortar storefront meant instant sales volume. And while the retail prices might be down historically, the margins are still incredible. Yes, the frozen yogurt market is highly competitive. However, it is ripe for disruption.
Larger brands are starting to catch on that the real growth is in automation mobile kiosks or vending machines.
The question is: Can they outpace new entrants who understand this opportunity for future disruption and growth?
We believe the answer is no. Vending machines require local operators and larger businesses will likely struggle to find employees to operate those routes. This is likely going to be due to the fact that the cost to start an automated frozen yogurt kiosk is fractional compared to traditional models. Newer models have gone through previous iterations, ironing out the former flaws in machinery and advancing the tech to what it is today.
Keep in mind, this disruption does away with the brick and mortar model as kiosks can be mobile and fit within existing business and establishments.
Revenue share deals can do away with the majority of your business's fixed costs too.
All in all, starting an automated robotic mobile frozen yogurt vending machine business has never been easier and at the right time to do so.
Contact us today if you're looking to start a vending machine business.
