Fro-Yo Business, Such a Sweet Profit

Frozen yoghurt is an urban trend in Jakarta nowadays. Almost all shopping centres have cafes or take-away booths selling frozen yoghurt, plus some ice cream mix and various delicious toppings. The dairy product is believed to have the property of rejuvenation and clearing one's skin.

Within the last two years, at least 75 brands of frozen yoghurt, or fro-yo, have been circulating in Indonesia. Not all have survived, some rise only to fall into obscurity. But some, are budding and expanding.

One of the fro-yo pioneers in Indonesia is PT Berjaya Sally Ceria (PT BSC), owner of the Sour Sally brand. Though only 1.5 year old, Sour Sally, that serves the premium segmentation, has expanded to 36 outlets. These outlets are spread over several major cities in Indonesia, such as Jakarta, Bandung, Surabaya, and Denpasar.

Considering the enthusiastic response from people, PT BSC is weighing the option of offering a franchise called Yogu Buzz. "We're deliberately creating a second brand before offering the franchise so that the market segment would spread better," said Sagita Kwee, Brand Marketing Manager for Sour Sally, who is also in charge of the Yogu Buzz franchise.

The plan is to give Yogu Buzz a lighter pricing compared to Sour Sally; around Rp. 14,500 per cup. As a comparison, a cup of Sour Sally yoghurt costs around Rp. 17,500 to Rp. 64,000.

Yogu Buzz's outlets won't be like Sour Sally's boutique cafe concept. They will only be take-away booths. And also, Yogu Buzz only sells personal size fro-yo, or single scoops. "Yogu Buzz's slogan is 'Fro-Yo for Everyone'," Sagita said.

Though a second brand, Sagita ensures that PT BSC, as the master franchiser of Yogu Buzz will supply import quality materials.

The interest for this franchise is tremendous. It was only released last November 2009, but so far there have been 300 people interested in it. But as the starting stage, PT BSC has only chosen 5 to 10 franchisee around Jakarta, Bogor, Depok, Tangerang, and Bekasi. "We don't want to be too aggressive."

If you're interested, no need to worry. You can still join. The next selection process for the Yogu Buzz franchise is next April.

Yogu Buzz has set licensing fees around Rp. 350 million to Rp. 450 million. In return, the franchisee gains licensing rights, free material supplies for a month, production machines, all the professional tools, display booth, and an estimate of the yearly tenant fee. "The rest we would detail during a meeting with the potential franchisee," said marcus Kandou, Marketing Communications and PR Director for Sour Sally.

Sagita estimates that if one Yogu Buzz booth could earn Rp. 3 million per day, then the franchisee's capital would break-even in a year.

According to Bambang N. Rachmadi, franchise observer and also lecturer at the University of Indonesia, the business prospect for frozen yoghurt in Indonesia is still prime. His reason, "The Indonesian people's market potential is very big and the consumers' per capita income is estimated to rise."

Bambang is also very supportive of local franchises such as Yogu Buzz, and advises that "It's better for Yogu Buzz to develop its own simple business format." He also hopes that the new franchise would offer franchise prices that aren't too high. "So it can reach all levels of the people."