Entrepreneur magazine decided to look back at some wacky ideas that went boom and bust in an instant. Are there lessons to be learned? Certainly. Do they help predict if, in the long run, the new ideas will be brilliant or harebrained? Sorry, only time will tell.
Frozen yogurt–in or out? In the late ’80s and ’90s, companies such as TCBY led the phenomenon, peaking in 1999 with 3,033 locations. But by 2000, only 2,540 franchises remained. TCBY shops continued to melt away, and the company quit submitting numbers to our Franchise 500® in 2002.
Then, in 2007, a crazy thing happened: Fro-yo became hot again. Led by Pink-berry and Red Mango, the second-generation shops repositioned fro-yo as a “premium” treat sold in stylish shops. So far, Pinkberry has 73 locations and Red Mango has 48; both have more planned.
Is there another meltdown ahead? Hard to say. But in the meantime, we’ll have a green tea swirl with mochi sprinkles.
Photo by en.wikipedia.org.