Article

Fro-yo concept 16 Handles relies heavily on customer interaction

Manhattan-based store ready for franchise growth.

August 5, 2010 by Alicia Kelso — Editor, QSRWeb.com

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There's a new kid on the frozen yogurt block, with plans of spreading far and fast.

Technically, Manhattan-based 16 Handles has been around since 2008, but the company just began offering franchise opportunities for the first time, and owner Solomon Choi hopes to have 15 outlets open within two years.

Choi plans to expand his business by offering franchises throughout the Northeast, including in New York, New Jersey, Pennsylvania, Connecticut and Maryland. Sticking to this region will help the company stay true to its roots while achieving its objective.

"We want to be the leading self-serve frozen yogurt brand of choice on the East Coast, especially New York, where our first store was opened," Choi said. "In order to do this, we are targeting neighboring markets to increase regional brand awareness. We want to remain focused rather than starting all over the place and spreading ourselves too thin."

Choi has perhaps taken an unusual approach in spreading that brand awareness, relying heavily on social media and online marketing as primary advertising outlets. The company also implements web/phone-based tools such as Foursquare and Gowalla. This method, Choi believes, has allowed 16 Handles to stick out a bit from other fro-yo concepts.

"It's all about our customers and their feedback," he said. "We have successfully connected with our customers by using technology and social media. By having an open, two-way communication with our customers, we have been able to service their wants and needs better and quicker."

This system has even trickled down to 16 Handles' menu. Customers are able to control their portion, flavor and toppings at the store, which rotates 16 flavors "on tap" daily and by location.

Additionally, more than 30 toppings are offered, as are non-fat, Kosher-certified, and live and active culture-certified frozen yogurts. Flavors will also always be available in non-dairy and sugar-free versions.

"We are constantly offering new flavors and topping varieties based on customer feedback. Our No. 1 customer favorite is Cookies & Cream, but our more recent additions such as Red Velvet and Birthday Cake have gained much popularity," Choi said.

Another attribute that has allowed 16 Handles to stick out is its implementation of eco-friendly practices.

"We set a benchmark in the industry by being the first to implement eco-friendly packaging and supporting tree planting and agroforestry training around the globe," Choi said. "Our customers seem to feel a connection with a conscientious company that tries to do more than just sell frozen yogurt."

"We never make claims to have the best product," he added. "Instead, we strive to be the best brand and provide the best service to our customers. If we take care of the customers and our employees first, profits and long lines will follow."

While Choi's strategy may seem a bit unusual, it stems from his lineage and previous experience.

Choi's parents were franchise owners of a seafood restaurant in San Diego, where he learned the industry and worked his way from busboy to manager to vice president. He eventually branched off on his own to manage operations at a gelato franchise and frozen yogurt business in California before opening 16 Handles in New York.

According to the a U.S. Market for Ice Cream and Related Frozen Desserts report, the ice cream and frozen dessert market is expected to grow by more than $4 billion (to $27.6 billion) by 2012. So far, frozen yogurt's sales have jumped the most within the industry, growing by 12 percent from 2006 to 2007 alone.

For more information about 16 Handles, visit www.16handles.com.

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