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FROZEN TREATS 
Most Frequently Asked Questions and Answers About TCBY
What is Yogurt?  What are the differences between Ordinary Icecream & Frozen Yogurt?

Yogurt is a special type of Coagulated Dairy product manufactured in an extremely controlled conditions like temperature, acidity & hygiene. Frozen Yogurt has a Special culture which is responsible for the coagulation of the milk protein. There are many differences while compared with ordinary ice creams. Notable among them are that it is more delicious in taste & more healthier. Content wise it has lesser Fat than the normal Icecream ( Eg 10 % fat content in Ice cream Vs6%in Yogurt.)

Is there Egg content in TCBY products? Is it purely a vegetarian Food?

TCBY does not use Egg or Egg related products in any of the product categories.

Is there a market for Yogurt Ice cream in India?

Definitely Yes. NCAER ( National Council for Applied Economic Research ) says that the lcecream & Frozen Dessert market together contributes to around Rs. 1,200 crores per annum in India. Frozen Yogurt is the new & unavoidable category of the same market. In fact it is an Innovation in favour of us.

What are the Other products that will be available in my stores?

Apart from Frozen Yogurt & Ice creams, Cakes, Sorbets, Cookies ,Impulse food novelties like Birthday kit will be available. Out of the 200 plus flavours , popular ones will be added to your shelves on phased manner. The forms will be Cups, Cones, Rolls, Balls, Take-home-pack, etc providing convenience to your customers.

 

What is the profit margin?
How safe is my investment in this business?
Why should we take up this Franchise & not any other Offer?

The profit margin is good. The Wholesale-Retail margin work out from 25 to 35 %. Such level is not found in other FMCG or any other industries.
The sales is on Cash & Carry basis. Your Operating Cash is not blocked in terms of Credit thus avoiding a major headache.
TCBY is a proven success worldwide operating in Franchise route. A recent market research conducted by us with the association of a leading Research agency confirms the Preference & Saleabality oflhe product among Indians. Blind Test trials have confirmed the taste advantage compared to similar products. Hence you take a calculated business risk which is minimal compared to any other opportunity open for us.

 

How are we positioning the product? What is its USP?
Which segment of the population are we targeting?

The synergy of  Taste & Health is the Unique nature of TCBY. Innovation in product offering is another core advantage. TCBY is positioned as a Healthy & fun filled Impulse food product targeted for the entire family. While the Kids, Teens & Young adults will continue to be the prime target, we are not avoiding the DINKs ( Double Income, No Kids) & Young parents too. Benefit of the spillover segment like that of Senior citizens are also likely to add on sales. Behaviour wise, we will work towards changing the habit of once a while consumption to an addicted / weekly consumption of the average consumer.

What are the Sales support that I will get?

Apart from Mass advertising through Hoardings, Newspapers, Cable channels, Insertions & Illuminated Kiosks, many Creative media ads will be probed. During the Inauguration, efforts will be taken to invite a Celebrity from Bollywood / Cricket or a Popular person from the particular locality. Camp marketing at a High traffic retail area near your location will be carried out wherein Samples of the product will be distributed to people along with the Pamphlet where your address is mentioned. This will be carried out on the first Sales day of your stores to create awareness. Co branding & marketing Tie-ups with leading Brands are being carried out.

What is my Investment?

The total investment would range from Rs.7.5 Lacks to Rs. 12 Lacks approx., including Franchise Fees, Marketing and Promotional Support, Equipments, Display signs etc.

What could be the Daily / Monthly Sales expected in my outlet? 

Sales differ from location to location. Even for a Suburb like Dombivli, an average sales per day could be ranging 10,000 to 12,000. Depending on Premium locations & high footfalls, the average sales can be expected as not less than Rs. 25,000. This is likely as the product portfolio is large & suitable to the Indians.

 

Who are the competitors in this segment?

There is no competition in this segment. We have the Initial mover advantage.

Can you say more about how the Sales will be effected in my Outlet?
What are the possibilities of Increase in Revenue?

The First, route is the Retail Sales taking place in your counter. Secondly, you supply stocks to Premium Push-cart Vendors (Trikes). Depending on the area, 10 to 30 Trikes could purchase daily from you for values ranging from Rs. 800 to 2,500 each. Hence you are likely to get additional Sales of Rs. 8,000 to 25,000 per day. Third , you also supply to Exclusive Contact Points (ECPs) i.e. to the specific locations like Canteens of mini Hospitals, College & School's Mess ,Petrol Bunks, Malls & High Traffic Retail Outlets where the Deep freezers / Cool Display Cabins of TCBY are placed. Fourth is Sales to mini-Restaurants & Fast-food centers. Finally, the Catering Orders for Special parties, Weddings, Meetings & Occasions. All these 5 routes assimilate into good Sales volumes. Further the rate of growth in each category is quite positive.

 

Where my stocks will be supplied from?
How is the Distribution structure of TCBY?

In India, the main manufacturing unit shall be in Silvassa (Gujrat). The key ingredients come from USA. Stocks are supplied to the State Master Franchisees (SMF) from where it is distributed to the Sub Franchisee (SF). If you are the SF, you get the chance to redistribute to the Exclusive Contact Points too. (The Wholesale margin differs from that of the Retail). Stocks are transferred
in Temper proof Cool boxes / bags in temperature ranging from -20 to -10 degrees centigrade.

 

Will the Price suit the Indian market?
What are the Pricing Strategies you adopt?

It is proposed that the lowest MRP of a TCBY Frozen Yogurt cup will be Rs 5/- initially. Ranges are also available from Rs. 25 to Rs. 1,500 (Premium Birthday Cake pack). We will follow Mass market Penetrative Pricing strategy though the product appears to be Premium in nature.

What is the Expiry period of the Stocks?

Frozen Yogurt if kept under proper temperature, it can be preserved in good condition up to 1 year.

After all the Operating expenses & costs, what could be the cash profit remaining with me?

Assuming that your sales is Rs 3 to 4 lacks per month , the 25 to 35 % profit margin on Trade price will give an Operating profit of Rs. 1 lack. As you have your Own land, Rent is not incurred. Staff salaries, Electricity , Telephone bill & nominal Overheads would total to Rs. 20,000 approx. The Net profit could be around Rs 80,000* Depending on area, the net profit could range from Rs. 80,000 to Rs. 2,25,000 per month.

 

Can you tell something about the Parent company & Sai Food Sensations ?

TCBY is one of the Blue chip companies, listed in New York Stock Exchange. It has Sales T.O in excess of US $ 300 million annually & operates in 68 countries including those of Asia. Being regarded as the World leader in Frozen Yogurt, it also enjoys a reputation as one of the Most Profit making Retail Chain of restaurants. 73% of average Americans have high Brand Recall of TCBY.

Sai Food Sensations is the Unit of Sai Motels & Hotels Ltd, a division of Panoramic Group of Companies. Being a Multinational firm operating in 5 countries, it has diverse business interests, the details of which are mentioned in the enclosed papers. It is the Venture Partner & Country Master Franchisee of TCBY in India.