This thread is a continuation of the Pinkberry Yogurt Franchise blog posted back in December 2006. I like to further explain the business aspect of venturing into this particular business. And if you are reading this, I assume that you are either interested in pursuing the Pinkberry franchise, learning about the so-called Pinkberry, or to open a similar small business. Let me remind you that I am not associated with Pinkberry, Inc. and its staffs, and the information here are deemed reliable but not guaranteed.

A new 600 to 800 square foot retail store attracts more foot traffic in any given time of day than the neighboring tenants that started their business years before. The neighbors wonder how a new entrant is doing so well in a short period of time. Securing a set amount of advertising expense is not necessary as each Pinkberry yogurt stores thrive simply through a word of mouth and online marketing. Within a few days after a grand opening, an ongoing customer base has been created without any effort by the business owner(s).

According to Pinkberry.com (as of January 22, 2007), nine stores are operating today in Southern California: Koreatown, Larchmont, Little Santa Monica, Melrose, Studio City, Temecula, West Hollywood, West Los Angeles, and Westwood. Three stores are operating in the east coast: 2nd Ave., 32nd St., and Chelsea in New York City. A year from today, there were less than five stores opened.

The growth rate will not be increasing steadily but rather escalating at a higher rate starting 2007. A vigorous expansion plan is already in progress that involves many new stores lined up for opening in the State of California and New York. It would make economical sense if a limited amount of stores would be opened in Las Vegas or Henderson in Nevada since a large percentage of the residents are middle class and their discretionary income are fairly high. New expansions are inevitable especially in this early stage of the thriving business because the demand exceeds the supply.

Current Pinkberry owners wouldn't want to see new stores opening near the vicinity of their store due to competition and the likelihood of a saturation problem in the Los Angeles City. Therefore new Pinkberrys are scheduled to open in the Inland Empire and in Orange County.