Key Expenses Associated with Running a Frozen Yogurt Business

Creating a successful business in any marketplace requires careful planning and budgeting. We understand that starting a new frozen yogurt business from the ground up can very intimidating. As a result we’ve put together a list of some of the expenses you should consider as you are planning the launch of your new business.

Rental Expenses — The expense associated with renting a space varies from city to city across the country and depends on the size and location of your frozen yogurt shop. We encourage you to do your research as you start to look for a location. Knowing the going rate for space in your area will help you ensure you get the best price per square foot for your frozen yogurt shop.

Equipment — When opening your yogurt shop you will need to purchase a number of pieces of equipment including:

• a refrigerator case for toppings,
• a cash register,
• tables and chairs for your guests

However, the most important pieces of equipment you will purchase are your frozen yogurt machines. Without these machines, there is no frozen yogurt shop! The cost of one machine (which produces two flavors) can range widely based on brand from $6,500 to $18,000 each. Since the average shop purchases 4 to 6 of these machines, comparing prices and getting the best deal can be a huge cost saving measure.  To get an up-to-date quote call the hotline: (888) 770-3933.

Energy — For the average frozen yogurt shop, energy expenses are a large part of the monthly operating budget. Because all frozen yogurt machines operate on electricity, your electrical bill for simply running the machines can be rather high. Expecting to spend around $800 a month for all of the energy needs of a shop is reasonable for an average sized shop.

Food — The cost of the yogurt mix and toppings is also something to consider when setting up your shop.

•  Yogurt Mix: The choice between liquid and powdered yogurt mixes can have a significant effect on the operating costs of your shop. You will want to consider availability of the mix types and storage needs while making your decision.

•  Toppings: Toppings can be a significant expense for a frozen yogurt shop. Seasonal fruits can be expensive and the cost of regularly purchasing chocolate can also add up.

Employees — Most shops need two or three employees to staff them at peak times, their hourly salaries and other employment costs will need to be factored into your monthly budget as well.

We hope that this list helps you start working on creating a budget for your new frozen yogurt shop!

Read our latest post on how a frozen yogurt machine factors into your business plan.