Article
TCBY works to stand out from froyo crowd
The company is planning several initiatives this year, including a new marketing campaign and a self-service store model.
April 27, 2010
*Click herefor a slideshow of images featuring TCBY.
TCBY is getting ready to turn 30, but recent innovations prove the brand hasn't lost its youthful appeal. For one, the company is in the final rounds of a video contest for a TCBY store giveaway. That's right. Not a product giveaway, but an actual store.
The company also has its finger on the pulse of the marketplace and is responding with a new marketing campaign and test of a new service model. On the marketing side, the company will soon launch a campaign that positions its better-for-you profile ahead of its competitors in the frozen yogurt and ice cream categories.
TCBY CEO Michael Ward said the new marketing message will help the brand stand out in the increasingly competitive froyo category. Consumers are aware of the overall health benefits and quality of frozen yogurt, but they might not be aware of TCBY's superiority in the category, he said. In brand comparisons conducted by the company, TCBY's products won on health benefits as well as taste.
"When you compare us to the actual yogurt providers, we're still the leader in healthiness in every category," he said. "So we need to get that message out. It's a good one for the consumer to know — that they're making a choice and it's not only a great tasting choice but also a very healthy choice."
Self-service pilot
As the company's marketing department focuses on that messaging, the company is will begin testing a new service model inspired by the popularity of self-service yogurt brands. TCBY has plans to open two company-owned self-service stores. The first to open will be inUtah
The new stores are the first company-owned stores that TCBY has operated in five years. Ward said TCBY is opening those stores to test and evaluate the new service model as well as new flavors. Additionally, theUtah store will serve as a training center to provide additional franchisee training on top of itsTCBY University.
Ward said consumers and franchisees are showing marked excitement about the self-service model. TCBY franchise development is at an all-time high, sparked by the company's brand awareness, the popularity of frozen yogurt overall and the new service option.
"As potential franchisees investigate the different choices they have — and there are many right now — I think they're excited for the possibilities with TCBY," he said.
TCBY not only has longevity but also is the largest system in the category with its "experienced infrastructure" of more than 800 stores worldwide, Ward said.
The company also has secured more stores for the first half of this year than it opened in the last two to three years combined. And Ward expects 2010 to set a record number of openings for the chain as well, with 25 to 30 stores projected in the first half of the year.
While various media reports have speculated on whether the froyo bubble has burst, Ward dismisses that idea. While some oversaturated markets did experience a high number of concept closings, he said, it was simply the free enterprise system at work weeding out the weaker concepts.
TCBY, on the other hand, continues to grow, with a number of its recent franchisees already looking to add a second or third unit, he said.
"We're opening in towns where there are no frozen yogurt concepts and there's still the potential to open more," Ward said. "We don't see that bubble bursting at all."
Contest in final stages
And then there's that contest. TCBY invited potential franchisees to submit a video explaining why they would make a great owner/operator and why their town would benefit from having a TCBY.
Ward said the company was pleased to have received more than 100 entries. The company has released the top 10 finalists and is inviting the public to vote for their favorite candidate. Those votes will determine the five finalists, from which TCBY will select the winner of the store, valued at more than $300,000. Voting continues until May 10.
The 10 finalists include a couple who met at a TCBY as well a YouTube comedian who wants to bring a health-oriented business to his community.
Once the winner has been selected, TCBY will determine if he or she is a viable candidate to become a franchisee. Ward said there were too many entries to vet the candidates before the finalist process. In the case that a winner does not have the qualities necessary to successfully operate a store, the company would award the store to the second place candidate.
Ward said the company traditionally looks for franchisees who have business experience as well as an entrepreneurial spirit.
"So even someone like me who has just worked for a company their whole life can still show the necessary enthusiasm and entrepreneurial spirit and understanding of how important customer service is," he said. "Then you put all those together with a certain degree of financial strength."
Ward already has seen such qualities in the 10 contest finalists.
"The entrepreneurial spirit that each of these top 10 possesses would make any of them a great contender for the store," he said.
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