Business Opportunities Weblog

June 14, 2007 by Rich Whittle | 2 Comments

Small Biz Scene:

Failing at one business venture is enough to ruin most people, but not Shelly Hwang. The 33-year-old Southern California entrepreneur ran two unsuccessful franchises before hitting the jackpot with the wildly popular frozen yogurt shop Pinkberry.

After graduating from the University of Southern California and losing money on two stores, Hwang actually had her mind set on opening a teahouse. She found a place straddling business and residential neighborhoods, a spot she hoped would attract a mix of clients.

When the city denied the partners a liquor license and neighbors wouldn’t let them open up a patio crucial for extra seating, Hwang finally relented, and the pair moved on to what for Hwang was Plan D. Pinkberry yogurt isn’t a revival of the 1980s’ cloying sweet treat but a more modern version. It pairs tart, fat-free plain or green-tea yogurt with toppings like fresh fruit or cereal. Not a bad idea for the perfect climes of Southern California,

Lee says Pinkberry’s appeal goes beyond yogurt. Like any good retailing concept, it often has more to do with the experience of shopping than the purchase itself. He designed the interior for the “iPod generation,” with lots of reflective glass surfaces and Philippe Starck tables. “It’s like when you get something at Bloomingdale’s,” he says. “It makes you feel special.”

To keep up with growing demand, Hwang and Lee franchised out the concept. Pinkberry has 16 stores, including three that opened in New York within the past seven months. By the end of the year Lee expects 40 Pinkberrys to blanket California and dot Manhattan, with about 18 owned by the pair. The stores get between 800 and 1,500 customers a day.

Photo by Pinkberry.

In Niche, Startup, Success | 2 Comments