Industry News | April 9, 2014

Orange Leaf Inks First Domestic and Int'l Kiosk Deal

Orange Leaf Frozen Yogurt signed its first kiosk agreements with franchisees in both the U.S. and abroad. Initial kiosks are slated to open in malls in San Antonio; Sterling Heights, Michigan; and Richmond, Victoria, Australia this summer; and in the Westborough Travel Service Plaza in Westborough, Massachusetts, late summer.

 

Orange Leaf kiosks will offer customers the same self-serve, choose-your-own-toppings froyo experience in a compact layout that can be customized by franchisees to suit the square footage and building specifications of smaller retail spaces in locations such as malls, airports, stadiums, theme/amusement parks, office buildings, university campuses, casinos, and train or bus stations. The kiosk model can be about half the cost of a traditional store depending on its size, and offers a more dynamic and flexible layout. Kiosk size options range from 50 to 500 square feet and can accommodate up to eight machines and a toppings bar.

 

“We’re excited to be able to offer franchisees a kiosk option that can help them expand with less overhead as well as a more flexible model that can be deployed in a wide variety of properties,” says Vincent Provenzano, franchise development manager at Orange Leaf. “We have seen a significant amount of interest from franchisees both in the U.S. and abroad and expect to have more signed contracts for kiosks in the coming months.”

 

The first Orange Leaf kiosk is slated to open by July 1 inside the Rolling Oaks Mall in San Antonio. The kiosk is owned and operated by existing Orange Leaf franchisees, Richard and Alicia Kuhn, who operate two Orange Leaf franchises in San Antonio. The kiosk will be approximately 200 square feet with four machines and a toppings bar. The second Orange Leaf kiosk is expected to open in August in the Lakeside Mall in Sterling Heights, Michigan. The kiosk is owned and operated by Hank Upadhay, an Orange Leaf franchisee with two locations in Michigan.

 

“The Orange Leaf kiosk model opened up different options for us in terms of real estate opportunities for expanding our business,” says Richard Kuhn. “It’s also allowed us to save money in the development and operations of the unit by being able to employ and train existing staff.”

 

The first international Orange Leaf Kiosk is slated to open by September and will be housed in Victoria Gardens Shopping Centre in Richmond, Victoria, Australia. This kiosk is owned and operated by Margaret Whelan, a new Orange Leaf franchisee.

 

“In many cities in Australia, high real estate prices and commercial rents can create a barrier to business development. In addition, our rapidly changing climate can negatively affect foot traffic for outdoor locations,” Whelan says. “The Orange Leaf kiosk sidesteps those issues with its smaller footprint, and our choice of locating it within a shopping center means we can tap into the consistent flow of customers.”

 

Initially, Orange Leaf is only offering the kiosk model in international markets and domestically to existing franchisees, but the company will begin offering the kiosk model to new U.S. franchisees in September.

 

With more than 300 locations across the country, Orange Leaf has more than 200 franchisees and is adding new locations – both traditional and non-traditional models – continually, with more than 70 percent of stores currently under construction being built by existing franchisees. Compared to its peers, Orange Leaf's up-front franchise and royalty fees are some of the lowest in the industry. Orange Leaf combines an experienced franchise sales organization and compelling unit economics with a commissary model to drive a strong profitability profile and scale.

 

The frozen dessert industry is one of the fastest growing franchised food and beverage segments and is expected to bring $6.6 billion in revenue annually in the U.S., according to food industry consulting firm Technomic. Flavor and product innovation, new distribution channels, and new store prototypes are core components of Orange Leaf’s business strategy.

News and information presented in this release has not been corroborated by QSR, Food News Media, or Journalistic, Inc.