Tutti Frutti ice cream franchising

Perhaps, working as an ice cream seller is one of the dreams that have haunted the minds of modern people since childhood. Of course, children grow up, the scope of what they want expands, but somewhere on the periphery of consciousness the thought still wanders: “I wish I could work as an ice cream seller!” And eat it as much as you want!” For many, it transforms into a desire to start their own sweet business. And it’s true, ice cream is in demand, bought all year round, attracts children whose parents cannot refuse, girls who are treated to caring young people. In a word, it sounds profitable. How to start your own business? The easiest way is an ice cream franchise.

Opportunities are a sea

The ice cream business is quite dependent on seasonality. In winter, you can only make money at a point located in a large shopping center with playgrounds, and selling on the street will bring money only in hot weather. The location also plays a role here: in northern cities the season is shorter, in the southern regions longer. If the town is a tourist town, then the greatest benefits can be obtained during the period when most people go on vacation - these are the summer months, mainly July and August. This trend is confirmed by reviews of the ice cream franchise written by those who have tried the business for themselves.

Mobile outlet or stationary cafe - the choice is not easy. The first is cheaper, the second is more stable and attractive. In any of the options, work begins with the formation of a business plan. Depending on the option chosen, you may have to think about how to organize a small production line. The simplest option is a franchise of ice cream sold by weight on the street, when the head office supplies everything necessary, all that remains is to simply conduct business.

Through sanctions to the stars

This area of ​​business is characterized by dependence on foreign suppliers - in Russia there is not much at all or the quality does not meet standards. In the early years, ingredients were purchased from Korea, Taiwan, Malaysia, and European countries. When Russia introduced mirror sanctions against a number of foreign countries, infant formula was banned from import, and the cost of other ingredients doubled. Due to falling profitability, some of Tutti Frutti's competitors have closed.

Alexander noted that in the current situation they had only two options: either stop working, or look for other ways to obtain ingredients. The option of closing a developing income-generating network or diversifying it was practically not considered. A certain supply of raw materials in warehouses provided several months of time, which were spent on creating our own local production. It took some time to get a result that would satisfy the creators themselves, but today we can be proud of it.

Alexander Pakhomov: “We were able to launch the production itself quite quickly, but it took about six months to get the taste we wanted. For some items, we have achieved better quality than in the international chain. For example, chocolate. Many consumers in Russia know the quality and taste of Belgian and Swiss chocolate and want exactly this level. In America and Asia, people are not gourmets in this regard; they use a cheaper product there. We purchase Swiss raw materials, which give us the required quality. As for yoghurts and dairy products, we ourselves managed to make a product that fully meets international standards, and we are very proud of this.”

Localization of production allowed us to keep prices at the same level. Despite the crisis situations of recent years, Tutti Frutti maintained market prices for two years.

Cost control plays an important role in maintaining an acceptable price level. Let's say, in a regular restaurant, calculation is done like this: for each dish, it is calculated how much food is needed, what the cost is, and then a markup is made. When self-service, calculating expenses is much more difficult, because each guest chooses the flavors of yogurt, fruits and their quantity independently. A lot of time and effort had to be spent on building this system, setting up IT programs and optimizing product accounting.

Baskin Robbins

Today it is a leader in the field of ice cream. This manufacturer has the richest selection of flavors, and there are so many cafes open around the world that it’s impossible to count. In Russia the company is represented by CJSC BRPI. The company has a European certificate, won the “Moscow Quality” competition, and is proud of more than fifty medals received at a variety of events both in Russia and around the world. Baskin Robbins has its own factories in the Russian capital. This is where the legendary, beloved ice cream of several dozen varieties is produced.

This brand's ice cream is prized for its natural ingredients that guarantee great taste. The company's head office is very careful in selecting suppliers and cooperates with the best organizations from different countries. The standards, rules of production, and business conduct for Baskin Robbins cafes in all countries are the same. This allows us to speak about the impeccable quality of the product and service, regardless of where the ice cream cafe is located. A franchise under such a big name is both a simple matter and a difficult one.

Eat sweets without getting fat

One of the main difficulties at the start, according to Alexander, was the unknown of the product to the general public.
Today, even in Moscow, people ask what frozen yogurt is, and in reviews on the Internet it is often called “ice cream”. Therefore, we will begin with a very brief excursion into history. If you want to get straight to the point, skip to the next subsection. The technology was invented back in the 70s of the last century in the USA as an alternative to high-calorie ice cream. It has gained popularity among athletes, lovers of an active lifestyle and other people who watch their weight but do not want to give up sweets. An obstacle to the popularization of the product was its taste, which was not much different from ordinary soft ice cream. It did not cause the notorious wow effect among the general public.

Frozen yogurt experienced a rebirth in the mid-2000s. The taste was refined, and the product became completely independent, acquiring a huge audience of people who wanted to try the new product. In a short time, frozen yogurts spread throughout America, reached Europe and Asia, and at the end of the decade they ended up in Russia.

Alexander Pakhomov: “If we talk about international franchises, the largest in this industry is the American Pinkberry. It was presented in Russia, but closed because it came under sanctions. There is also the South Korean Red Mango, which has a Russian branch and several locations in Moscow. There are also a number of large American brands, but they are not very widespread even in Europe. Behind Tutti Frutti are people from South Korea who came to the United States to do business and created a unique taste. This network has more than 800 locations in different countries of the world.”

Cooperation with an international company is specific in comparison with ordinary “domestic franchising”. On the one hand, you also receive ready-made technology and purchase proven equipment from its owner. On the other hand, many advantages are lost. A name known abroad may not say anything to the Russian consumer. The specifics of working in the markets of different countries vary so much that even the help of a foreign consultant will not always help.

But the franchisor is far away and therefore will rarely interfere deeply with the work - the main thing is to maintain the required level of product quality. In all other respects, you are an independent entrepreneur and even receive the exclusive right to sell a franchise in a designated territory.

Advantages and disadvantages

When you decide to start working with this company, you need to understand that you will have to meet Baskin Robbins standards. This will be monitored regularly by responsible persons. On the other hand, an influx of customers is guaranteed, since the company’s name is well-known and ordinary people are sure that it will be delicious here.

Initially, the company is foreign, so the ice cream franchise will require the organization to make payments in American dollars. To start your own business, you will have to pay 15 thousand, without royalties. An additional 4% is paid as a license fee.

What else will you have to spend money on?

Even if an entrepreneur wants to open an Italian ice cream franchise business, even if he decides to cooperate with Baskin Robbins, in any case he will have to invest money in equipment for his cafe. To do this, you first need to decide on a sales format. When choosing “BR”, expenses usually range from 30-50 thousand US dollars. Much depends on what kind of help the entrepreneur expects from the head office. The more the company helps the newcomer, the more money it will have to pay.

The BR ice cream franchise almost always shows a good return on investment. On average, the refund occurs within 10 months, sometimes the period reaches two years, after which you can start working for profit. It would not be superfluous, having made a decision in favor of BR, to contact the company's representatives. They can advise on the possibilities of a particular city and place, tell you what to expect, and analyze the market. Payback must be calculated within the framework of the agreement under which the parent company provides the entrepreneur with a business plan.

Advantages and disadvantages

Entrepreneurs who took advantage of the company's offer note both a number of undoubted advantages and some disadvantages.

A franchise business provides ready-made solutions to complex issues that an inexperienced businessman faces.

This type of running your own business greatly simplifies the organization process; the training provided makes it possible to fill gaps in this industry, both in particular and in general.

Helps to avoid mistakes at the start. A client who has become a franchise owner works with an already promoted and advertised brand known throughout the world - this significantly increases income and reduces the cost of attracting customers.

Receives a ready-made client base. Practiced collective purchasing reduces expenses. Quick payback within 1.2-2 years.

Among the disadvantages are:

Strict control over the beginning franchisee, the quality of goods and services, strict compliance with the terms of the contract. Constant need to pay royalties.

At the end of the contract, you practically leave the business, and the reputation you have earned goes to the franchisor. Another limitation may be an attempt to sell the business.

Who else can you work with: 33 Penguins

However, the BR ice cream market has not been exhausted. There are several equally attractive offers. These include a granular ice cream, frozen yogurt and waffle ice cream franchise. However, not everyone is ready for such options, because this is not a classic product, but a new product on the market. For those who prefer time-tested classics, the 33 Penguins ice cream franchise is the place to be.

The company was founded in Tomsk in 2004. The production process is based on imported equipment (Italy). From the very beginning, the company developed as a franchise network. Today, Russian and Kazakh businessmen can work with it. More than 800 points of sale have already been opened, covering 120 cities.

Create a wow effect

The demand for frozen yogurt is very spontaneous. Guests in Russia do not go to shopping centers specifically for dessert - they buy it along the way when visiting other stores. Therefore, the first stage of the “sales funnel” in this area of ​​​​business is the appearance of the island. It simply must be bright and beautiful, attract visitors with its appearance and appetizing images on the posters. If a promoter works at the point, he additionally draws the attention of people passing by, talks about the product and helps to use the freezer.

Alexander Pakhomov: “As a rule, people walk through a shopping center, and a beautiful island with lighting, fresh fruit, and beautiful toppings attracts them. At this moment the desire to buy appears. The biggest thing about frozen yogurt is that it’s a very emotional product.”

The concept, which is unusual for the market, also attracts the attention of visitors. Guests can prepare dessert using freezers themselves, using any ingredients in any quantity. It's quite simple: push a few levers and you're done. Both children and their parents can use the freezer. The cars are strong and reliable, they can withstand a large flow of people.

This format has both positive and negative sides. There are more positive ones. Firstly, you don’t need a lot of staff at the point of sale; one cashier and a promoter are enough. For normal work on the stream in normal mode, a shift of 3-4 people would be required. Secondly, the purchase becomes a kind of interactive game for the guest, and this is now in demand among buyers, regardless of age. And thirdly, there are no barriers between the guest and the product itself in the form of cafe workers or fixed menu offers; they themselves create their dessert the way they want at that moment.

The only serious drawback is the need to buy expensive high-quality freezers. The equipment must be sturdy. The cost of one freezer is about 500 thousand rubles, and 3-4 of them are needed per point.

Also, high-quality equipment has another significant bonus: it has to be repaired and replaced less often than cheaper options, so the costs are recouped. The freezers were tested in the extreme conditions of summer festivals with air temperatures above 30 degrees and an almost endless stream of people, and they proved themselves to be excellent.

It is now difficult to call competition in the frozen yogurt market exactly competition, because it intensifies if the market is oversaturated and supply significantly exceeds demand. In this area everything is different. Each player in the market works to popularize the product and convey its benefits to people. It is practically impossible for several frozen yogurt franchises to stand in one shopping center and compete with each other.

But there is noticeable competition with other types of desserts like Baskin Robbins, “Shokoladnitsa” or other ice cream stands. Here Tutti Frutti has some advantage, since the product is low in calories, contains beneficial prebiotics, and the brand itself offers an interesting service concept.

Alexander Pakhomov: “Another feature of ours is that we always let you try our product. We are not ashamed of it and do not hide it, on the contrary, we are proud of it. It happened that I myself approached an ice cream parlor and said: “Guys, I don’t know which ice cream to choose, can I try several options?” And in 80% of cases I was refused. I don't understand why this is so. I can only imagine that sometimes you buy ice cream there, try it and realize that you will never come here again. We are open in this regard. Moreover, we regularly change our tastes and come up with some new combinations and products. Recently, for example, there were “Australian Weeks” with the “spicy mango” flavor, “French Weeks” with the “strawberry-basil” flavor will soon begin, etc.”

How much to pay?

To start working with the company, you will have to pay 370 thousand rubles. Since the company is Russian, payments here are made in rubles, everything is organized within the country. In this regard, the system is somewhat simpler than BR and does not depend on currency fluctuations. The company gives entrepreneurs complete freedom of action, there are no restrictions. You can open one cafe, you can open a hundred, but you only need to pay the above amount once. There is no advertising interest or royalties. In short, the conditions are more than favorable.

To start activities, you will have to purchase a product and equipment. The amount of costs will be determined by the format and number of cafes planned for opening. Usually they count on one to one and a half million. You can count on a return on your investment in just six months - although this depends on the season, the city, and the competition. To assess the situation by choosing a specific point, you need to contact company representatives. They will analyze the market, give a detailed calculation of the situation and, possibly, offer an alternative, more profitable option.

Order a call back

Soft serve ice cream continues to conquer the vastness of our country. Today, probably, only the inhabitants of the tundra, living in yurts and engaged in reindeer herding, have not heard of it. Yes, this delicacy will not surprise anyone now. But, despite this, it is in high demand and brings good profits to the owners of cafes where there are freezers for ice cream, and various stationary outlets engaged in the sale of soft ice cream. The development of this business in our country occurred quite rapidly, and now stalls and outlets selling soft ice cream can be found in every city in Russia. But we have not yet reached America and Europe in this matter, so there is room for improvement. It should be noted that in the West the format for selling soft ice cream is somewhat different. There, individual stationary points on the street are much less common, with the exception of resort areas.

In America and Europe, the format of selling soft ice cream in specialized self-service cafes is now popular. That is, this is a room in which everything is beautifully and comfortably organized, several machines are installed for making soft ice cream, usually at least 5 units, equipped with two or three bins, so that a fairly wide range of flavors can be sold at the same time. There are also special display cases for storing various additives and toppings - various fruits, berries, chocolate, nuts, syrups and toppings. The buyer enters the cafe, chooses the flavor of ice cream he wants, takes the container he needs and pours the required amount of the flavor he likes, then goes to the checkout, weighs it and pays. There are also tables for those who want to sit down and enjoy a treat in a relaxed atmosphere.

Many people remember that ice cream cafes were very popular in the Soviet Union, but they sold mainly hardened ice cream, which was simply put into bowls and served with decoration; soft ice cream was a rarity, it could only be found in large cities. Why is this format forgotten now? Although, many entrepreneurs have long realized that the production and sale of soft ice cream is a very profitable business. The South Ural region is also no exception in this regard. The capital of the Southern Urals is rightfully considered the city of Chelyabinsk, a large, developed, beautiful, and at the same time very harsh metropolis. This city has a huge number of different shopping and entertainment centers that continue to be built and developed. And local businessmen are quite creative in organizing their business. And Chelyabinsk, one of the few cities in our country in which the first points selling soft ice cream in a self-service format began to appear. Our employees managed to come across such a point in the food court of one of the shopping and entertainment centers. Beautifully decorated and meets all food court standards. The outlet sells not only soft ice cream, there is a refrigerated display case with ice cream by weight and other delicacies. Four machines for soft ice cream with 2+1 flavors allow you to provide a wide range of flavors and satisfy the needs of any customer. I am very pleased with this approach of entrepreneurs to running their business. I would really like to see such points in every city and as often as possible, because people are always drawn to the beautiful and unusual. In our opinion, this trading format is attractive to buyers. We advise many novice entrepreneurs who don’t know how best to organize their outlet and where it’s best to install a freezer to pay attention to this format. Because it’s no secret that some of the most delicious places are located in large shopping centers and malls. And getting there is not easy, because landlords require entrepreneurs to create interesting designs for their outlets and new ideas. It is not necessary to install 4 freezers at once; you can start with two, for example.

And there is no need to be afraid of crises, scientists have found that in such times, people have a desire to relieve stress, and people want something tasty and sweet, and soft ice cream is one of the most attractive delicacies, and its price is quite reasonable for any group of buyers. Therefore, let’s expand and develop the soft ice cream trading business together. If you have any questions, please contact our specialists and we will definitely help you in resolving your issues.

Who are we working with?

To give the go-ahead for cooperation, an entrepreneur must be able to rent a retail space of at least 6 m2. For seasonal work, branded display cases and trolleys, it is better to request information in each specific case on an individual basis. The entrepreneur will have to independently select employees and train them.

Working with 33 Penguins has the following positive qualities:

• the brand is familiar to domestic buyers;
• the head office supports at every stage;
• the product is delivered and packaged by 33 Penguins;
• the company helps with equipment;
• head office consultants will help you calculate profitable and cost components;
• the head office organizes advertising campaigns.

About new products: frozen yogurt

The Tutti Frutti ice cream franchise has become increasingly in demand recently, when the company’s products were able to attract enough attention in the Russian market. The company offers not simple, familiar ice cream, but frozen yogurt. If you are ready to take a risk and try yourself with a new product, then you will have to pay 500 thousand for participation in the project. The estimated investment is estimated at five million. A royalty of 4% of the outlet’s turnover will have to be paid to the head office. The payback of such a project is estimated at 18-29 months; the specific time period depends on the city, season, chosen outlet and the presence of competitors. Monthly income – at least 310 thousand.

Who and what are we talking about?

Tutti Frutti is a frozen yogurt produced by GingerBrandMan. It is this company that is developing the Tutti Frutti franchise network in the Russian Federation and the CIS. The company supplies equipment for creating products using special technology, products necessary in the process. In addition to yogurt, the brand specializes in desserts made without added sugar. Sales are carried out in branded containers. Also, retail outlets are centrally supplied with spoons.

The manufacturer positions itself as a company that very carefully selects the ingredients for its desserts. This means that ice cream is safe for the human body, will not cause allergies, and can be eaten even by small children. Plus, it's incredibly delicious. Tutti Frutti is the world's largest frozen yogurt chain. Many establishments are organized so that customers prepare their own dessert with their own hands. In total, the brand is sold in almost fifty countries, including the USA and European countries.

Important information

GingerBrandMan has been operating in the international market since 2007. There are already more than 720 points of sale of frozen yogurt in the world. The product is valued by customers both due to its unique taste and health benefits.

The company regularly works to update flavors, which further attracts visitors. The company's slogan is to constantly give new pleasant emotions and sensations to visitors. The menu contains more than 80 items, among which even the most demanding gourmet will find something for themselves.

Difficulties

When starting a frozen yogurt business, the most time consuming part is finding a suitable location. Not every shopping center is suitable for work: in terms of traffic, availability of space in the right location, infrastructure. At the beginning of working with the network, some locations were chosen incorrectly, and Tutti Frutti had to transport the cafe to other locations. Today, serious practical experience has already been gained in choosing places and in analyzing consumer activity, so much can be predicted in advance. This helps both in working with franchisees and when opening their own cafes.

Alexander Pakhomov: “For five years, we have gained experience in negotiations with shopping centers and can explain to their owners where to stand, how to stand and why in this particular place. Well, it has become a little easier, because you don’t have to tell anyone what Tutti Frutti is. It also happens that shopping centers themselves come to us and offer to join them; they want to see our brand in their portfolio.”

An important requirement for a shopping center is the availability of communications (good water supply and sewerage), the ability to organize a kitchen in the shopping area (for a cafe) or in a separate utility room (for islands). There must be a place where mixtures are stored, fruits are cut, and there must be the ability to technically serve the cafe. Do not forget that the product is based on milk and yogurt, which means that violation of the conditions when working with it is fraught with consequences. Without risks, setting up a kitchen somewhere next to a shopping center and simply delivering groceries will not work. These are unnecessary difficulties with logistics or violations of SanPiN requirements.

In addition, freezers are washed and cleaned daily at the end of the working day. If this requirement is violated, the products will spoil. Transporting a large amount of water for washing or, even worse, constantly removing equipment from the shopping center for washing is again operational difficulties and very large additional costs.

Many mistakes were made during the development process, but there is no business without them. For example, when the first cafes were created, mistakes were made when choosing construction solutions, hiring staff, or organizing the work of the cafe. Something had to be bought again, remade or reshaped.

Marketing is a different story. During our work, we have accumulated a whole list of marketing activities that are not suitable for the concept and network.

Alexander Pakhomov: “There were problems with the development of standards. Nothing was handed to us globally, and we worked with what we saw as more logical and correct. The rules in force today are the third version of the written network standards. The first two options were useful in the first stages of work, but with the development of the network, it was decided to move to a really serious level through the implementation of the ISO9001 quality management system. Now we have standards for all operational processes of a cafe, down to, say, mango or pineapple cutting technology that minimizes waste.”

The prospects for the restaurant industry remain high today. This business is relatively little dependent on any crisis phenomena. Paradoxically, people who are already accustomed to eating in cafes and restaurants rarely give it up. If we talk specifically about frozen yogurt (and not only about it, but about any product that cannot be prepared at home), the situation is even better. Tutti Frutti did not experience a strong drop in demand in 2014-2015.

Money money

To start working with Tutti Frutti, you must first contact company representatives. The down payment varies depending on the population of the city where the shopping area is to be opened. In some cases, the brand will ask for half a million, sometimes a million. The initial investment is estimated at between five and eight million.

Benefits of working with GingerBrandMan:

• working under a popular, well-established brand;
• restaurant business license;
• design project for an establishment, selected for the region, the features of the premises;
• technology project;
• consulting in the selection of a hall;
• training of personnel, including management staff;
• at the start, a group from the head office works for the first week;
• the project is promoted using materials provided by the head office;
• The company provides furniture, equipment, and products.

Features of working under the “Tutti Frutti” brand

By choosing a franchise under this brand for cooperation, you can count on:

• large average bill;
• a unique, unparalleled self-service system;
• small investments in personnel;
• increased conversion;
• profitability;
• payback;
• increased percentage of regular customers;
• small investments in advertising;
• customer loyalty;
• positive business reputation.

Summing up

An ice cream franchise is the easiest way to start your own business in the world of delicious cold desserts. If you are ready to try your hand and have a sufficient amount of money or can take out a loan, ice cream may be the most advantageous option.

Working under a franchise is more reliable, simpler and more profitable than working completely from scratch on your own, so this option is more attractive. But the competition is high, and there are many people willing, so you need to hurry - otherwise your neighbor will grab your idea and open his own cafe in the place you like earlier.

Family business plus

In modern conditions, bringing a large international franchise to Russia has become much easier than before. There is the Internet, and it gives access to contacts of any company from anywhere in the world. If you have confidence in your abilities, you can contact brand owners and negotiate. But you need to understand that you need quite a lot of free funds, because you will have to open a back office in the same way as when creating a business from scratch.

In the case of Tutti Frutti, the main task was to find a taste that would appeal to the Russian consumer. And the name played an important role - bright, sonorous, memorable and understandable to the Russian consumer. The foreign franchise at the time of purchase was very raw: in fact, it only included the supply of raw materials, packaging, equipment and production technology. Standards for the preparation of ingredients, equipment maintenance and the work of line personnel had to be developed independently. In addition, the search and design of locations for the point of sale fell on our own shoulders. Today, Russian buyers of the Tutti Frutti franchise are offered a complete brand book.

Alexander Pakhomov: “Initially, Tutti Frutti was the idea of ​​a small family business. We planned to open several cafes in Moscow, work quietly and not worry too much about development. But in the process everything changed. In fact, we opened in 2012, and around 2013, calls to the office began with questions about how to open the same business. In general, it was such a time - a boom in franchises. They appeared in huge numbers, and the demand was also great. Then we thought: why not. If the office is located in Moscow, it is almost impossible to open such a cafe in Yekaterinburg if there is no back office and trusted people there. You need to feel how your business works, what’s happening on the ground.”

The creators plan to cover Russia and all neighboring countries with the network. Tutti Frutti cafes are already operating in Kazakhstan, just the other day (at the time of publication of the article, July 2020 - Ed.) a cafe opened in Yerevan (Armenia), negotiations are in progress with Minsk (Belarus) and Dushanbe (Uzbekistan).