Reinventing the Frozen Yogurt Scene: the Revival of 16 Handles
Neil Hershman, the 30-year-old CEO and principal owner of the frozen yogurt chain 16 Handles, keeps his dessert order simple when visiting his stores. He prefers a tart-flavored swirl topped with fresh raspberries, kiwi slices, dark chocolate chunks, and a sprinkle of toasted almonds.
Although he leads a frozen yogurt empire, Hershman admits to enjoying this treat only a few times per week rather than every day.
The Origins and Evolution of an Iconic Brand
Established in Manhattan’s East Village in 2008 by Solomon Choi, 16 Handles gained its name from offering sixteen rotating flavors of self-serve frozen yogurt, soft-serve ice cream alternatives, or sorbet at each location.Today it operates roughly 40 stores primarily along the East Coast.
After relocating to New York City in 2017 for asset management work following college graduation, Hershman became a regular at the Murray Hill store near his apartment-even tho he rarely consumed frozen yogurt growing up.
A Leap into entrepreneurship: From Customer to Owner
By age 23 in 2019,disenchanted with finance and eager for hands-on experience,Hershman invested nearly all his savings-$160,000 plus close to $400,000 through loans-to purchase his first franchise store. He fully immersed himself by working long shifts behind the counter to grasp every operational detail firsthand.
The Path from Franchisee to Majority Stakeholder
Within three years Hershman expanded ownership to six locations and became the largest franchisee within the brand. Though dissatisfaction with stagnant growth and lack of innovation under previous leadership fueled bigger ambitions.
“The brand felt stagnant,” he recalls. “There was no energy or new ideas driving progress.” this realization led him to acquire controlling interest in 2022 by leveraging all existing stores as collateral for an undisclosed purchase price. Now majority owner alongside minority investors including YouTube personality Danny Duncan, Hershman has driven initiatives that have reignited consumer excitement around frozen yogurt nationwide.
A Fresh Approach: Innovation aligned with Consumer Preferences
The revival kicked off with inventive limited-edition flavors such as ube coconut swirl and honey lavender pretzel that intrigued customers. At the same time revamped digital marketing campaigns boosted brand presence across social media platforms targeting younger audiences who value experiential dining options.
- Sustained Revenue Growth: Since taking control two years ago systemwide sales have surpassed $20 million annually; just during H1 this year revenue reached $12.5 million across all outlets.
- Expanding Market Presence: The chain recently opened about ten new locations while partnering with eighteen prospective franchisees planning openings soon; five-to-six additional sites are expected before year-end alone.
The Frozen Yogurt Market’s Resurgence
This resurgence coincides well with broader industry trends showing renewed consumer interest nationwide-in fact total servings consumed increased approximately 10%, marking significant growth amid an otherwise flat foodservice market according to recent research data.
“frozen yogurt is evolving beyond nostalgia-it fits perfectly into health-conscious lifestyles seeking lower-fat alternatives compared with traditional ice cream,” says food industry analyst David Portalatin.
Caution remains necessary; registered dietitian Leah Kaufman warns many varieties contain sugar levels comparable or even higher than sodas or ice creams despite perceived health benefits.“If you want genuinely healthy desserts look elsewhere,” she advises.
An Elevated Yet Accessible Treat Experience
The product strategy highlights quality-from proprietary blends crafted exclusively at California creameries through premium toppings-to create what Hershman calls an “affordable luxury.” Customers typically spend between $8-$10 per visit based on weight pricing rather than volume alone-a treat designed more for occasional indulgence than daily consumption.
“My background in finance taught me risk modeling but managing cookie dough inventory now? That volatility is far more enjoyable,” jokes Hershman about balancing business skills with operational realities.
Aiming for National Prominence
Laying out enterprising plans beyond current milestones,
Hershman envisions rapid expansion targeting approximately one hundred locations within several years while establishing 16 Handles a household name synonymous not only with quality but also innovation within self-serve dessert culture across America.
