Crains New York - July 9, 2012 - (Page 4)

NY’s frozen-yogurt market swirls with new entrants As franchisors flood the area, shops try topping each other with unique gimmicks BY ADRIANNE PASQUARELLI Several out-of-town frozen yogurt chains are choosing to beat summer’s heat with expansive New York City rollouts. Franchisors including Let’s Yo! Yogurt, Yogurtland and Menchie’s are each dipping into the Big Apple, with dozens of planned locations. “The next great market is New York,” said Larry Sidoti, vice president of development and operations at Irvine, Calif.-based Yogurtland, which has 190 shops in the U.S., Mexico and Guam, and expects to have 65 metro-area stores by 2017. “It’s always been on our radar.” Even Dairy Queen, the 6,000unit international chain owned by Warren Buffett’s Berkshire Hathaway Inc., recently announced plans to open a handful of outposts in the city, its first foray into the territory. shuttered due to oversaturation. “There’s going to be a shakeout,” said restaurant consultant Arlene Spiegel, noting that Red Mango has closed units here in recent years. “The people who are going to be left standing are the ones who really differentiate themselves.” IN THE MARKETS by Aaron Elstein CEO ROBERT BENMOSCHE wants to resume selling insurance under the once-toxic brand name AIG. bloomberg news Even Warren Buffett’s Dairy Queen plans outposts here perts wonder how even a city as big as New York—and one with a long winter—can sustain such a plethora of newcomers. And though out-ofhome consumption of the frozen treat in the U.S. was up 6% for the 12 months ended in April, according to research firm NPD Group Inc., some stores in the area have Plenty of competitors New stores will have to contend with existing neighbors. New York is already host to the likes of Pinkberry, Red Mango, 16 Handles and many smaller shops,so some ex- Like ‘an Apple store with yogurt’ One vying to be the most unique is Let’s Yo!, a Colts Neck, N.J.based self-serve chain that plans to open 60 stores in New York City and Long Island within the next five years. Founder Eric Casaburi, who also launched Retro Fitness, a 7year-old gym chain, is banking on technological splash to lure customers. Each location, which ranges in size from 1,300 to 2,800 square feet, is outfitted with iPads and flatscreen TVs that consistently refresh Let’s Yo!’s Facebook and Twitter feeds. The 14-unit company, which plans to also offer European-style waffles starting this month, has secured stores in Bay Ridge and Park Slope, Brooklyn. Both sites should open by the end of the summer. “We call ourselves an Apple store with yogurt,” said Mr. Casaburi. “Self-serve is only going to be popular for so long—you have to have other models.” By contrast, Menchie’s, a Los Angeles-based franchisor, follows a more basic approach. The 195-unit See FROZEN YOGURT on Page 24 I AIG comes back from the dead t’s another bummer of a summer on the Street. JPMorgan Chase could see half a year’s profits consumed by its massive trading loss when it reports quarterly results this week. Facebook’s bungled initial public offering all but killed the market for new stock deals. Corporate mergers are running at their slowest pace in nine years. Yet amid all the gloom, there’s a shockingly bright light: American International Group. The $182 billion mother of all Gearing Up for Your Next Corporate Event or Holiday Party? Crain’s New York Business Special Section Corporate Events & Holiday Parties 2012 Expert Tips Advice Vendor Options And More Issue Date: September 10, 2012 Close Date: August 23, 2012 bailed-out corporate basket cases Business has improved so much was the best-performing financial that CEO Robert Benmosche said stock in the Bloomberg/Crain’s in- last month his company would redex of 200 New York-area compa- sume selling P&C insurance under nies in the first half—up 35%, to the AIG banner, ditching the Chararound $31 a share last week. tis brand adopted in 2009. Its The rally is important to AIG’s SunAmerica financial planning and largest shareholder, Uncle Sam, life insurance unit will be renamed which needs the insurer’s stock trad- AIG Life & Retirement. Yes, AIG ing above $28.73 to sell its position feels its name is no longer toxic. at a profit. And selling is just what Even the mortgage-related secuthe government rities that AIG stuhas been doing pidly guaranteed over the past year. and was nearly deIn May,it unloaded stroyed by are fadanother 189 miling into memory. lion shares, driving During the first 96% 84% down its stake to quarter, the gov72% 61% from 96% in ernment sold all of 61% early 2011. the remaining seThe underlying curities in one trends at AIG sugportfolio it held at a gest the govern$2.8 billion gain. Jan. May March May ment should be Meanwhile, a $24 2011 2011 2012 2012 able to continue billion loan made Dates reflect when U.S. gov’t sold AIG shares. profitably selling during the darkest Source: Bloomberg its stake in the firm. days of 2008 has AIG’s biggest business—prop- shrunk to $9 billion because the valerty and casualty insurance—is en- ue of AIG’s once-dodgy assets injoying powerful tailwinds, with rev- creased and the government sold enue in the U.S. jumping 11% in the them at a profit. first quarter. In part, that reflects While AIG has a long way to go, how P&C insurers are raising prices it looks as though this former mess after paying out large claims post- will be able to stand on its own Hurricane Irene and other disasters. again in a few years. More imporOnce rates start rising (known in the tant, it’s becoming conceivable that insurance world as “hard cycle”) the taxpayers could actually make trend can continue for years. money from the rescue of AIG. SHRINKING U.S. STAKE For advertising opportunities, please contact Trish Henry at thenry@crainsnewyork.com or (212) 210-0711. AIG’S STOCK PRICE $35 30 25 20 $31.56 12/11/11 Source: Bloomberg 2/27/12 4/30/12 7/6/12 4 | Crain’s New York Business | July 9, 2012

Table of Contents for the Digital Edition of Crains New York - July 9, 2012

Crains New York - July 9, 2012
Contents
In the Markets
The Insider
Small Business
Business People
Executive Moves
Real Estate Deals
Opinion
Greg David
For the Record
Classifieds
From Around the City
New York, New York
Source Lunch
Out and About
Snaps

Crains New York - July 9, 2012