News
Has the froyo bubble burst? Some say yes.
November 17, 2009
At least 13 frozen yogurt locations have closed throughout California's Orange County, causing some to wonder if the froyo bubble has burst.
According to an article in the Orange County Register, two Pinkberry and two Red Mango storeshave been shutteredalong with a variety of other regional brands. (Click here to access an Orange County frozen yogurt map, which tracks area openings and closings.)
From the story:
Orange County's froyo craze appears to be crashing after nearly two years of steady, out-of-control growth.Operators blamed the closures on everything from the tanking economy to an over-saturated market.A key reason for the crash: There's not enough demand to support every chain, (Dan Finch, a long-time Golden Spoon Yogurt franchisee) said.
During the peak summer season, sales at Finch's three froyo shops were down 25 percent, he said. With the slow winter period approaching, Finch believes many independent frozen yogurt shops decided to bail before matters got worse.
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