CEO Neil Hershman Says Now’s the Time for 16 Handles to ‘Overtake the Industry’
Americans love eating healthy and eating dessert, explains Neil Hershman, CEO of 16 Handles, a self-serve frozen yogurt franchise. “Typically, those are contradictory, but they don’t have to be,” he says. “That’s one of the reasons frozen yogurt – a healthier alternative than ice cream – is and will continue to be so popular.”
The 16 Handles brand is capitalizing on that popularity to push into areas beyond its East Coast base, expanding from its New York City roots into the South and Southwest, with almost 20 stores under development. Larger competitors that have led the market in the frozen yogurt industry over the years have gotten stale by not keeping up with marketing, new technology and trends, Hershman says, leaving room for 16 Handles to grow.
“This has left a huge opportunity for 16 Handles to overtake the industry and become the fastest-growing brand,” he says. “We’ve spent so much time focused on understanding what makes our stores successful, then have built a scalable system around that, which allows us to open stores efficiently and create a craze even in new territories across the country.”
Innovative Flavors Fuel Frozen Yogurt Franchise
With an increase in demand, the value of the U.S. frozen yogurt market rose to $347.72 million in 2023 and is expected to reach $461.43 million by 2031, according to Data Bridge Market Research, which credits consumers’ desire for healthier options and unique flavors with driving the gains.
“One of our leading growth factors is our flavor creation and willingness to embrace and even create new trends in the food space,” Hershman says. “Last year we launched a French Fry, Squid Ink, and Butter Beer froyo. Each of these were marketing powerhouses and brought scores of people to new and old locations alike, if for nothing else than to sample what a French Fry frozen yogurt tastes like.”
A high-protein flavor was also new to the 16 Handles menu last year along with a keto soft serve, which Hershman believes is the first of its kind.
“No other brand is embracing marketing and taking risks like this, but it’s increasingly important when considering what goes viral with millennials and Gen Z,” he says. “We are also interacting with guests online in a fun way, with our punchy and relatable branding that can be seen across social media, emails and text.”
Putting Money Where their Mouths Are
The company’s social media strategy is assisted by Danny Duncan (above right, pictured with Neil Hershman) who is the company’s chief creative officer, a co-owner and an influencer himself. Duncan is a comedic YouTube star, with an amassed viewership of more than 1.5 billion views, and he develops new branding ideas and viral marketing techniques for 16 Handles.
Hershman first became interested in 16 Handles as a customer in New York City, “never knowing I’d one day be involved in managing the future direction of the brand,” he says. He was a fan of its cool, fun aesthetic. “It was a place you wanted to hang out,” he says. Hershman opened a franchise and eventually bought the company in 2022.
As the company expands, he aims to re-create that welcoming environment at new stores, with comfortable lounge seating and an emphasis on customer service. “We have continued to embrace that exact sentiment when we look for new locations and think about the build-out,” he says, “making sure we join great communities and create an inviting, family-friendly space centered around the neighborhood’s best-tasting dessert.”
Each store features 16 flavors at a time out of a portfolio of more than 90 flavors, including vegan and low-sugar options, and a topping bar with more than 50 choices, from fresh fruit to indulgent edible cookie dough.
Reduced Franchisee Startup Costs
The frozen yogurt franchise has found ways to significantly reduce startup costs in part through an updated store design that features in-house millwork production, saving franchisees over $30,000 on the initial build-out. In addition, the company’s self-serve model saves on labor costs.
“Being one of the only franchisee-owned and managed franchisors has been highly favorable in finding new franchise partners who can see our success and want to replicate it in their hometowns,” Hershman says. “We offer a unique sense of trust and comfort in the franchise expansion process that many can’t find with the larger private equity-owned brands.”
Duncan is the owner of a new store under construction in his hometown of Englewood, Fla. “I’m so excited to introduce 16 Handles into new cities and be part of the team creating smiles all across the country,” he says.
For more information, visit https://owna16handles.com/.
