16 Handles: Frozen Yogurt Gone Wild

The Wall Street Journal: “At the New York-based frozen-yogurt chain 16 Handles, the main draw has always been the self-serve aspect: Customers are free to mix and match flavors and toppings at will, paying a per-ounce price, varying by store, for their creations. But this summer, patrons at the 10-year-old chain’s East Village location may be surprised to find a soft-serve machine positioned behind the counter. It is reserved for a special new line of frozen treats, dubbed Sugalips, that employees are charged with making.”

“Included in the offerings: an outer space-inspired Galaxy Cone, priced at $8.95, that combines frozen yogurt, cotton candy and rock candy, a colorful dessert designed with the food-on-social-media era in mind … it comes as 16 Handles has seen its same-store sales decline in each of the past three years, following an initial period of consistent growth.”

“For starters, the concept of self-serve frozen yogurt is no longer seen as novel. But even more important: Frozen yogurt isn’t the trendy dessert it once was. Artisan ice-cream companies, offering a wave of creative and even vegan flavors, are commanding increased attention. So, too, are makers of multicultural frozen treats, such as Thai-style rolled ice cream … While such changes might help bring frozen-yogurt chains a broader clientele, experts warn there is a risk of alienating the regular customer base if a company goes too far.”

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