Froyo Proliferation and Nothing Less

Posted by Jeff Ignacio on October 17, 2007 under Business | Be the First to Comment

Living in Los Angeles certainly has its perks: sunshine, beaches, nightlife, and froyo. Froyo is short for FROzen YOgurt. The last 12 months has seen an explosion of frozen yogurt eateries mimicking the most popular chain of them all, Pinkberry. Yesterday, it was announced that Starbucks Chairman Howard Schultz and Davin Levitan have invested $27.5M into the frozen yogurt eatery. Anyone living in Los Angeles has seen this one coming for a long time now. In fact, I mentioned Pinkberry to my friends in Ohio where no one had ever heard of it. I suppose Ohio is going to be one of the last places to have one moving in considering there isn’t even a Jamba Juice where my friend lives (Toledo).

Some people believe that Pinkberry is making the wrong by taking in outside investments to expand rapidly. I see some validity in that. However, I do not believe that the owners of Pinkberry are going to be running the show outright. Expect to see Schultz and Levitan recruiting and handpicking executives who have been there and done that. Pinkberry will be led by a team of professionals with an expert and in-depth level of knowledge of bringing small chains to the national spotlight.

Congratulations Pinkberry, you’re blowing up baby.

Other links on the subject:
Pinkberry + Starbucks + $27.5 Million = Kiss of Death
Starbucks founder bites into Pinkberry
Pinkberry Gets Seed Money From Starbucks Chairman