The Big Chill The brothers behind Yogun Fruz turn up the heat on a cool concept.
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No doubt about it, it's a cold world outthere. But that's no problem for three brothers inMarkham, Ontario. As the founders of frozen yogurt giant YogenFrüz Worldwide Inc., Aaron, Michael and Simon Serruya areheaping up cool profits the world over--in 81 countries, to beexact. In October, the brothers were named Young Entrepreneurs ofthe Year for Canada. And as if that weren't enough, for thesecond year running, these entrepreneurs have secured thenumber-three spot in Entrepreneur's annual Franchise500®. So what's the scoop? Theirs is truly a story ofsweet success.
Breaking The Ice
Today, Yogen Früz boasts more than 3,600 stores worldwideand 1997 sales of $360 million. That's due in part to thecompany's acquisition within the past three years of theCanadian franchise Paradise Juice Bar and the American chain GoldenSwirl, as well as I Can't Believe It's Yogurt (ICBIY) andBresler's Ice Cream & Frozen Yogurt, two Americanfranchises that had already formed strong footholds in theinternational frozen fare market.
In October, Yogen Früz extended its reach even furtherthrough a merger with Integrated Brands, parent company ofSwensen's Ice Cream, Heidi's Frogen Yozurt and Steve'sIce Cream--adding 400 additional stores to its skyrocketing tally.The Integrated Brands stores, which will keep their individualnames, bring the Serruyas another perk and give their franchiseoperation a fresh angle: exclusive rights to frozen desserts fromsuch well-known brand names as Tropicana, Betty Crocker andYoplait.
"I don't think in our wildest dreams we ever fathomedwe'd be where we are today," says Michael, 33. "Itall just kind of happened, and every once in a while you look backand say `Wow!' "
All this excitement can be traced back to a dream--and a$100,000 investment from the Serruyas' father. Initially, thebrothers wanted to purchase master franchise rights to Canada fromone of the large, established U.S. frozen yogurt franchises. Easiersaid than done, remembers Aaron: "I was 19 at the time, andMike was 20," he says. "We didn't get much respectwhen we went to see those franchisors."
That stumbling block set the stage for the brothers to set outon their own--and make frozen yogurt history. Michael enlisted theexpertise of a leading Canadian design firm to iron out the entireYogen Früz concept, while Aaron worked for months with a foodtechnician perfecting their frozen yogurt flavors. A year later, in1986, they premiered the store--and were so successful, they paidtheir father back within six months. By the time Simon, 27, jumpedon board three years later, Yogen Früz had franchised animpressive 100 locations across Canada.
Keeping Their Cool
Through it all, these entrepreneurs haven't lost sight ofwhat they see as key to their phenomenal growth--that franchiseesplay a vital role in the success of any operation. Perhaps it helpsthat they've seen the business from both sides, since theirfather was a bagel shop franchisee. "We run our business likea family business, I guess because of the way we were broughtup," says Aaron, 31. "When it comes to franchising anddealing with franchisees, [we look at it as] these are people whoare putting their livelihood in your hands. They've saved upenough money to get into business for the first time on their own,and they've chosen you. So for me, it's a complimentthey're giving us, and making them successful is a goal I wantto achieve."
Latin America and Asia continue to show the most interest in theYogen Früz concept and are experiencing tremendous growth.Take one of Yogen Früz's franchises in Venezuela: Thestore is so busy, it's probably the only frozen yogurt shop inthe world that offers valet parking to its patrons. "The cityclosed us down because of the amount of traffic [the customers]were creating," says Aaron. In response, their franchiseehired eight valets to alleviate the congestion on the crowdedone-way street.
Looking ahead, the brothers expect to grow throughdiversification and more acquisitions. They envision a new conceptfor the future, one that takes co-branding to a much higher level:Imagine a shop where franchisees can house all their parentcompany's frozen desserts under one roof, ultimately offering awide enough range of treats to satisfy every individual who entersthe store. "As we continue to add more and more world-classbrands to our family, it gives our franchisees the opportunity topick up other concepts they can offer within their store,"says Michael. "It's this whole idea of co-branding andnontraditional growth that we're seeing so strong in ourindustry today."
While countless fads come and go, the Serruya brothers long agobanked on the idea that frozen yogurt was here to stay. By trustingtheir instincts--and believing in the unlimited potential of thefrozen dessert market--they've achieved what few so young have,and in such a short period of time. For three entrepreneurialbrothers who dreamed of going into business together, destinycertainly has not left them out in the cold.
Contact Source
Yogen Früz Worldwide Inc., (905) 479-8762, fax:(905) 479-5235
