Insight on Business

June 2013

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A closer look What's a boba? Fro-yo fanatics love their toppings – everything from gummy bears and chocolate chips to mini marshmallows and fresh fruit. But one topping generating a big following has been fairly unfamiliar in the area, until now. Enter the bobas! The tiny gummy spheres are really no more than encapsulated juice balls; when you bite them, a burst of fruity flavor escapes. In flavors like passion fruit, mango and orange, this confectionary "caviar" has become a favorite topper for frozen yogurt. "It's kind of a unique concept," says Jason Madsen, owner of several Cherryberry franchises. While bobas have long been added to Asian teas, the colorful beads are now omnipresent on most frozen yogurt shop topping bars as well. You really have to taste them to understand the addiction. Some customers love them so much, says Tony Brault, general manager of Orange Leaf in Ashwaubenon, he has even seen people fill a cup with them, without frozen yogurt, just to eat. "I haven't done that yet," says Green Bay resident and bobas fan Jessica Pyrek, "but I'm tempted!" in the Green Bay area, in April 2012 – offers similar programs. In fact, the company (which now has two locations in Green Bay and two in Colorado) notes that it was founded for just that reason – to become "the yogurt shop that gives back to schools." According to co-owner Robyn Kulhmann, the company's four stores have given more than $50,000 to schools. Profit margins tend to be pretty good with these shops, with more reasonable labor costs since the shops are self-serve, Brault says. "I think the reason we can give back (to the community) is the profit margin," he adds. He also notes that some owners tend to purchase several franchises, which can add to revenue. He says one owner gave him the advice, "If you're going to open a yogurt shop, open 10." Franchises range from about $15,000 to $25,000 per shop. Jason Madsen took that advice, purchasing seven Cherryberry franchises; two are planned for Green Bay. The store also has locations in w w w. i n s i g h t o n b u s i n e s s . c o m Sheboygan, Oshkosh and Appleton. His Appleton store, opened in 2012, was the city's first, he says. "That area hadn't seen any franchises," he notes. "If you can be the first one there, it's always a plus." And while frozen yogurt shops are now proliferating, Madsen says, "people weren't really taking a lot of chances because of the short summer we have." Even with slower winters, he notes, "It's still worth it for us." With so many shops open or poised to open in Northeast Wisconsin, will the area hit a saturation point? While Madsen says that "once there's a couple that have opened up in an area… it starts tapering off," it appears that hungry customers are welcome for the change – especially as the weather, and taste buds, warm up. Give your marketing a spicy kick. Go beyond the ordinary www.goelement.com New media options from Element are the perfect accent to your traditional marketing. Whether you want to go wild or mild, we'll cook up a complex and tasteful recipe to boost your bottom-line. EC03-0412_Element_Salsa_Insight_FINAL.indd 1 J u n e 2 013 • 6/11/12 11:24 AM Insight 43 |

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