Photo by Minnaert
pinkberry’s success story
- Shelly Hwang, a USC graduate now in her mid-30s, ran two unsuccessful franchises before opening Pinkberry. She partnered with Young Lee, a South Korean bouncer turned architect and tried to open a teahouse in West Hollywood in a 600 sq. ft. former tattoo parlor.
- Due to uncooperative neighbors and the denial of their liquor license, Hwang and Lee gave up on the teahouse and decided instead to convert the location to a frozen yogurt (fro-yo) shop.
- Pinkberry opened in January 2005 and only sold $70 their first month, but within four months they were turning a profit. Their first major break came in August 2005 when they were mentioned by Daily Candy.
- The popularity brought with it problems: parking problems and trash, due to the long lines of customers willing to wait 20 minutes or more for the yogurt. In one month customers racked up $175,000 in parking tickets; their first location currently averages 1,300 to 1,600 customers per day.
- There are now 50 Pinkberry locations, most of them in New York and California but plans for expansion to London, Las Vegas, Seattle and San Diego. They recently received a $27.5 million investment from Maveron, a venture capital firm founded by Starbucks’ Howard Schultz and former investment banker Dan Levitan.
did you know…
- … Pinkberry’s appeal is minimalist and healthy? Customers choose between fat-free plain or green-tea yogurt and toppings that include fresh fruit, granola and cereal. Orders range from $5-$10.
- … part of Pinkberry’s success is the store itself? It’s painted in bright colors and filled with modern decor from Philippe Starck and Le Klint. So addictive is the experience that regulars sometimes call it “Crackberry”.
- … many of Pinkberry’s customers are celebrities? Jerry Seinfeld, Ellen Degeneres, David Duchovny, Kirsten Dunst, Salma Hayek and Paris Hilton are all fans, but their clientele includes everything from teenagers to affluent families.
- … Pinkberry success has seen a slew of competitors? They include Kiwiberri, Snowberry, Roseberry and Berri Good. Their stiffest competition is from Dan Kim’s Red Mango, who already owns 130 locations in South Korea and over 30 in the US.