F&H chronicles the Canadian Menchie’s invasion
“Let’s pull down a little love.” To the uninitiated, that saying references the small thrill customers get when they build their own sundae by choosing and pumping out their favourite flavour from a wall of options. And that’s just for starters. The Menchie’s experience that follows helps explain why the dessert concept, founded in 2007 in Encino, Calif., is the new hot.
The brand was co-founded by Danna and Adam Caldwell, a couple who love frozen yogurt and saw an opening in the market. Understanding their limitations, but eager to expand, the founders named Amit Kleinberger CEO. Today Danna is president, and Adam is COO.
“The first location was conceived in Valley Village, Los Angeles in 2007,” says Kleinberger. “The brand from that point — less than a year after opening — took off by virtue of a special philosophy. We do not sell the product, we sell an experience that’s fun and designed to make you smile,” says Kleinberger.
Perhaps that’s why simple word of mouth set the concept on fire in Canada. Michael Shneer, the 52-year-old Toronto business man who brought L.A. Weight Loss, Party City and other franchises to Canada, was persuaded by friends to experience Menchie’s first-hand. “I was completely blown away,” Shneer declares.
The businessman believed the chain’s impressive U.S. receipts could be duplicated in Canada. In fact, research revealed the frozen-yogurt category was expected to grow by 15 per cent per year between 2008 and 2012, reaching $28 billion in sales. Shneer pursued Canadian rights to the brand in 2009. Eventually the president of Yogurtworld Corporation, was appointed master franchisor of Menchie’s in Canada.
The first sprinkles landed in Vaughan, Ont., in autumn 2010. “When we launched in Canada there was nothing like it,” says Shneer, explaining the unique appeal of selling self-serve frozen yogurt, based on weight, with a variety of flavours and toppings. “We rotate 100 flavours, but I’m not sure the concept would’ve been as hot if we only had four flavours that never rotated but people could mix, weigh and pay. We have to have that selection,” says the master franchisor.
And, in 2010, when the brand launched in Canada, Menchie’s earned first place on Restaurant Business magazine’s annual ‘Future 50’ list, where it was pegged as the fastest-growing franchise in the restaurant industry. “We opened the first store in 2010; as we speak we have 11 open, with another 12 opening in the next 90 days. In 2011, we sold 71 franchises.” (Each unit is sold at a cost of about $35,000 plus construction fees, which average $500,000, depending on store size.) It’s no surprise to hear the Canadian arm of the company will realize significant growth in the months ahead, considering the international growth and acceptance of the brand.
Endorsements from celebrities such as Adam Sandler, pictured spooning his favourite flavour, and a frumpy Britney Spears cradling a cup, haven’t hurt the chain’s growth. Today the family friendly chain boasts 170 locations worldwide, and the opening of an additional 250 locations within the next 24 months will make Menchie’s the world’s largest self-serve retailer of frozen yogurt, according to Kleinberger. By the end of 2013, the chain will have 500 locations worldwide. “We’re currently building in Australia, India, Jordan, Mexico, U.A.E., Kuwait and more countries around the world.” In Canada, the plan is to open 100 stores by 2015.
The company’s meteoric growth can be attributed to several factors, ranging “from the music selection to the decor, to the freebies we give our guests — stickers and tattoos — to a chalkboard where guests write whatever they want,” explains the Canadian master franchisor. It’s all part of the family friendly experience. “We give little toys to children — all of those things go into making the experience.” Then there’s the generous samples that differentiate Menchie’s from its competitors. “We encourage our guests to try the flavours, and they help themselves. So as opposed to trying to limit sampling, we actually encourage it.”
The Menchie’s team takes pride in its food and how it’s sourced, too. For example, free-range cows raised for Menchie’s on proprietary farms aren’t injected with hormones. “Even our product comes from happier cows,” Kleinberger jokes. As for the toppings at the Canadian stores, they’re purchased from a Canadian distributor.
The non-fat and no-sugar-added yogurt options also provide guests with healthier choices. “We satisfy your sweet tooth while we’re kind to your waistline,” says Kleinberger. His chain’s frozen yogurt contains two live active bacteria cultures, Lactobacillus Bulgaricus and Streptococcus Thermophilus, which bear the Live and Active Culture seal by the National Yogurt Association. The Menchie’s Private Label yogurt contains an additional four bacteria cultures with probiotic properties: Lactobacillus Acidophilus, Lactobacillus Casei, Lactobacillus Rhamnosus and Bifidobacterium Bifidum. According to Dr. Neil Rau, a Canadian infectious diseases specialist and medical microbiologist, probiotic cultures are good for our health. “Live and probiotic bacteria theoretically may compete with disease-causing bacteria,” he explains, before adding: “These are not yet proven methods for preventing infections.”
The brand’s appeal is varied, but Krystine Renwick, Canadian franchise owner of the Queen Street Toronto store in the city’s Beach neighbourhood, was drawn to the company motto: we make you smile. “Since our grand opening things have been fantastic,” Renwick says, of the store she opened with her husband earlier this year. “The customer experience is everything to us…. We knew we could make a difference in the community.”
In any crowded dessert market, offering a unique, positive experience is vital. So, it makes sense that Menchie’s is pulling in huge profits by letting patrons pull down a little love, giving Kleinberger, Shneer and worldwide franchisees, like Renwick, reason to smile.
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