Orange Leaf Frozen Yogurt Signs First Domestic and International Retail Kiosk Agreements
Smaller Store Model Provides Large Growth Potential for Brand
OKLAHOMA CITY - April 09, 2014 - (BUSINESS WIRE) - Orange Leaf Frozen Yogurt, America's fastest-growing froyo concept1, signed its first kiosk agreements with franchisees in both the U.S. and abroad. Initial kiosks are slated to open in malls in San Antonio; Sterling Heights, Mich.; and Richmond, Victoria, Australia this summer; and in the Westborough Travel Service Plaza in Westborough, Mass. late summer.
Orange Leaf kiosks will offer customers the same self-serve, choose-your-own-toppings froyo experience that fans love about Orange Leaf in a compact layout that can be customized by franchisees to suit the unique square footage and building specifications of smaller retail spaces in locations such as malls, airports, stadiums, theme/amusement parks, office buildings, university campuses, casinos and train or bus stations. The kiosk model can be about half the cost of a traditional store depending on its size, and offers a more dynamic and flexible layout. Kiosk size options range from 50 to 500 square feet and can accommodate up to eight machines and a toppings bar.
"We're excited to be able to offer franchisees a kiosk option that can help them expand with less overhead as well as a more flexible model that can be deployed in a wide variety of properties," said Vincent Provenzano, franchise development manager at Orange Leaf. "We have seen a significant amount of interest from franchisees both in the U.S. and abroad and expect to have more signed contracts for kiosks in the coming months."
The first Orange Leaf kiosk is slated to open by July 1 inside the Rolling Oaks Mall in San Antonio. The kiosk is owned and operated by existing Orange Leaf franchisees, Richard and Alicia Kuhn, who operate two Orange Leaf franchises in San Antonio. The kiosk will be approximately 200 square feet (10' x 20') with four machines and a toppings bar. The second Orange Leaf kiosk is expected to open in August in the Lakeside Mall in Sterling Heights, Mich. The kiosk is owned and operated by Hank Upadhay, an Orange Leaf franchisee with two locations in Michigan.
"The Orange Leaf kiosk model opened up different options for us in terms of real estate opportunities for expanding our business," said Richard Kuhn. "It's also allowed us to save money in the development and operations of the unit by being able to employ and train existing staff."
The first international Orange Leaf Kiosk is slated to open by September and will be housed in Victoria Gardens Shopping Centre in Richmond, Victoria, Australia. This kiosk is owned and operated by Margaret Whelan, a new Orange Leaf franchisee.
"In many cities in Australia, high real estate prices and commercial rents can create a barrier to business development. In addition, our rapidly changing climate can negatively affect foot traffic for outdoor locations," said Whelan. "The Orange Leaf kiosk sidesteps those issues with its smaller footprint, and our choice of locating it within a shopping center means we can tap into the consistent flow of customers."
Initially, Orange Leaf is only offering the kiosk model in international markets and domestically to existing franchisees, but the company will begin offering the kiosk model to new U.S. franchisees in September.
With more than 300 locations across the country, Orange Leaf has more than 200 franchisees and is adding new locations – both traditional and non-traditional models – continually, with more than 70 percent of stores currently under construction being built by existing franchisees. Compared to its peers, Orange Leaf's up-front franchise and royalty fees are some of the lowest in the industry. Orange Leaf combines an experienced franchise sales organization and compelling unit economics with a commissary model to drive a strong profitability profile and scale.
The frozen dessert industry is one of the fastest growing franchised food and beverage segments and is expected to bring $6.6 billion in revenue annually in the U.S., according to food industry consulting firm Technomic. Flavor and product innovation, new distribution channels and new store prototypes are core components of Orange Leaf's business strategy.
About Orange Leaf Frozen Yogurt
Orange Leaf Frozen Yogurt is a self-serve, choose-your-own-toppings frozen dessert franchise with more than 300 locations in the U.S. and Australia. Orange Leaf offers a multitude of delicious traditional and original flavors, including no-sugar-added, gluten-free, dairy-free and vegan alternatives. In 2013, Orange Leaf was ranked as the Fastest Growing Frozen Yogurt Chain based on network sales by IBISWorld; one of the fastest-growing, limited service chains by Technomic; and, one of the top three new franchises by Entrepreneur. Orange Leaf's pro-franchisee culture offers some of the lowest fees in the industry and encourages owners to become a part of their communities. Customized with a generous selection of do-it-yourself toppings, Orange Leaf provides an innocent indulgence, "self-served" in a stimulating atmosphere. For more information, visit the company's website, "like" Orange Leaf Yogurt on Facebook, or follow on Twitter, Instagram or Pinterest.
1 IBISWorld Industry Report "Frozen Yogurt Stores in the US," Nov. 2013