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How Menchie’s beats the toughest challenge for food franchises

Posted 4/6/2016

Our frozen yogurt franchise business model makes it much easier to control Cost of Goods, a major factor for food business success

With Mix, Weigh & Pay, there’s no danger of losing profit margins to over-portioning, because guests pay for their desserts based on how much they choose.

With Mix, Weigh & Pay, there’s no danger of losing profit margins to over-portioning, because guests pay for their desserts based on how much they choose.

If you’ve been researching the restaurant and foodservice industry, it probably didn’t take long before you learned that most operations have pretty tight margins. One of the biggest factors that can determine whether a restaurant is profitable is how well they control their cost of goods relative to their sales.

Let’s take an example from the frozen dessert segment: Let’s say you’re selling soft-serve ice cream and a standard cone is supposed to be topped with 4 ounces of soft-serve, giving you a 15% profit margin on every ice cream cone. But suppose an employee, perhaps trying to be generous to guests, mistakenly serves up 5-ounce cones instead? That extra 20% of ice cream can completely wipe out your profit margin and put you in the red.

Over-portioning and food loss is a big issue throughout the restaurant industry because profit margins can swiftly be wiped out when they’re so tight to begin with. One of the great things about Menchie’s, and one thing that makes it especially attractive to people who are new food operators, is the design of our business model. The Menchie’s set-up drastically reduces the chance that your cost of goods will get out of line, making it easier to maintain profit margins.

When guests come into our store, they step into a space intentionally designed to uplift, with vibrant plums and greens and a curving wall to hold our frozen yogurt dispensers. They make their own mix — choosing from among our roster of 100-plus rotating frozen yogurt flavors and then moving along to the toppings and sauces bar to create a frozen dessert as unique as they are. When they’ve finished their masterpiece, they bring it up to the register where a smiling team member will weigh it for them and ring it up based on the weight of the dessert. Mix, Weigh and Pay!

With more than 100 frozen yogurt flavors and 70 toppings to choose from, guests can choose whatever mix makes them happiest.

With more than 100 frozen yogurt flavors and 70 toppings to choose from, guests can choose whatever mix makes them happiest.

With our pay-by-weight system, there’s simply not as much issue with loss. Granted, we hand out as many samples as our guests want, but they love trying all the new flavors so much it only encourages them to come back and spend more time in their favorite Menchie’s. So while other foodservice franchises may be fretting about over-portioning and food loss, you’re making people smile every day while keeping your food costs in line.

Learn more about our franchise opportunity

Menchie’s is the largest self-serve frozen yogurt franchise is the world, with more than 500 locations globally — and growing! For more information about the Menchie’s franchise opportunity, please download our free franchise report. You can also learn more by visiting our research pages.

 

 

 

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