Guide to Setting Up a Frozen Beverage Program

Boost Your Profits By Meeting the Growing Demand for Frozen Beverages

Frozen beverages are widely considered a high-growth product category, for good reason.

51% of consumers said they ordered a frozen beverage in the last month, according to Technomic’s Beverage Consumer Trend Report, and 30% of consumers said they are purchasing frozen beverages now more than they were a few years ago.

According to Mintel's “Convenience Store Foodservice US, March 2018" report, convenience stores are broadening their drink menus by offering 64% more slush and frozen drinks, 41% more milkshakes and shakes and 38% more smoothies.

Frozen beverage sales are strong, and demand is expected to continue rising for the foreseeable future.

Not only are frozen drinks popular, refreshing, and tasty, they are also an extremely profitable product for retailers.

Commercial frozen drink dispensers require minimal ingredients, which gives them incredible potential to create a highly profitable product offering.

Frozen drinks can give you 20% greater margins than fountain drinks that use more water, and double what you'd earn from a canned beverage.

In addition, frozen beverages can command high prices and drive impulse purchases, as they are a premium product that can only be found from certain types of retailers, and they can’t easily be made at home.

Retailers can easily see gross profits of 70% to 120% with the right Frozen Beverage Program.

A Frozen Beverage Program is `Easy to Operate and Maintain`

A growing number of retailers are implementing a frozen beverage program, due to extremely high profit margins, small footprint, and little required labor, skill, or training to operate.

One of the best parts of having a Frozen Beverage Program is you can take advantage of all the benefits, without the need to install lots of large, expensive equipment.

Frozen beverage dispensers have very low maintenance and downtime, no internal cleaning, and none of the bacteria buildup and health code issues that soft-serve ice cream and other frozen dairy products can bring.

Because of the fast-growing demand and ease of operation, frozen drink machines are used in more than 80% of the world’s convenience stores and gas stations. However, these are not the only industries to realize the clear benefits of offering frozen drinks. You can also find commercial frozen beverage machines driving traffic in quick service restaurants, movie theaters, amusement parks, large retail establishments, hotels, and even bars.

Frozen-Beverage-Program-Easy-Operate-Maintain

5 Industries Achieving `Huge Success` with Frozen Drinks

As the frozen beverage category has expanded to encompass a wider range of products, and equipment manufacturers have created affordable, easy-to-operate countertop machinery, more and more industries are investing in commercial frozen drink programs.

The simplicity of the product and profitability of the program make frozen beverages an ideal add-on to businesses in the C-Store, QSR, retail, movie theater, entertainment, and hospitality industries.

Here are 5 industries achieving high profits with minimal effort by implementing a frozen beverage program:

1. Convenience Stores: Generate high frozen drink profits like QuikTrip^®

QuikTrip, the convenience store chain that has taken the Midwest by storm, has a large and fiercely loyal customer base. Known for their cleanliness, excellent customer service, and fresh food options, QuikTrip’s are stocked with c-store staples as well as hot food and prepackaged meals. Their frozen drink menu consists of Freezoni^® frozen carbonated drinks, smoothies, and frozen cappuccinos.

2. Quick-Service Restaurants: Offer limited-time, exclusive frozen drinks like Taco Bell^®

While Taco Bell is known for inventive, fast, casual Mexican food, in recent years, they have been able to generate a lot of demand and foot traffic by offering frozen beverages with exclusive partnerships, not anywhere else, such as their Mountain Dew^® Baja Blast Freeze, Rockstar Energy Drink^® Punched Freeze, Strawberry Skittles^® Freeze, and Starburst^® Cherry Freeze.

3. Retail: Make ICEE^® an essential part of your customer experience like Target^®

An ICEE^® and a bag of popcorn have been Target shopping experience staples for many years. Customers can expect the aroma of fresh popcorn and the fizziness of a tasty frozen drink as soon as they walk into the store. Some can argue that the snack combo is equally as iconic as the red shopping carts and dog with a bullseye. In fact, Target received many customer complaints when the retailer decided to remodel some stores and replace the classic café complete with pretzels, popcorn and a frozen beverage centers with new Starbucks^® coffee shops.

4. Movie Theaters: Pair a movie with a boozy frozen beverage like AMC®, Santikos, or Cinemark® Theaters

Many movie theaters, such as AMC and Cinemark have taken a different approach to frozen beverages to grow their profit margin and satisfy customers. In addition to having commercial frozen dispensers in their concession area, they have added alcoholic frozen beverages to the menu. Popular drinks include frozen margaritas, Frozen Rum & Coke, and Strawberry Daiquiris.

5. Family Entertainment: Pair fun with frozen like Main Event

Main Event Entertainment offers a one-stop shop for fun with bowling, state-of-the-art arcades, laser tag, mini golf, dining and more. The amount of activities and reasonable entry fee draw in crowds of all ages and keeps them entertained for hours.

This past summer the entertainment house got even cooler with the launch of ICEE beverages system-wide. All 41 locations around the U.S. were equipped with frozen machines and began to serve the iconic drinks in fan-favorite flavors such as cherry, blue raspberry, and sour grape.

The Different Types of Frozen Drink Machines & Products

Slush & Granita

Slush is the original frozen beverage, and they’re still popular today for dispensing flavorful favorites like frozen margaritas, frozen lemonades, and iced coffee slushies.

Although the machines require more regular maintenance than frozen carbonated beverages, they have a simple setup and are very easy to use.

Shakes & Smoothies

Serve up delicious shakes for customers looking for a convenient dessert they can take with them out the door, or smoothies for health-conscious consumers looking for more something more nutritious to keep them energized throughout the day.

Unfortunately, due to the use of dairy, shake and smoothie machines often require much more maintenance and downtime, and higher ingredient costs than other options.

Frozen Carbonated Beverages

Not all frozen beverages are carbonated, but CO₂ makes up around 50% of the volume of the ones that are. At first, that might sound like “selling air,” but it actually adds something special to the drinks that you can’t get in any other kind of frozen drink: the injection of CO2 is what gives frozen carbonated beverages their unique, crispy texture.

Because 50% of the drink is CO₂ (air), this also makes frozen carbonated beverages, by far, the most profitable type of frozen drink you can sell. A frozen carbonated beverage program can bring you 70% to 120% gross profit!

Frozen carbonated beverage machines are also extremely easy to operate and maintain. Your store staff can save up to 1-2 hours of cleaning time compared to other equipment options that require frequent cleaning.

Multi-Flavor Beverages

FBD’s Mult-Flavor technology can pour more flavors in a smaller space allowing you to create unique and innovative multi-flavor programs such as frozen lemonade, frozen coffee, margaritas, and much more, all of which drive repeat customers and more profits!

Unit can pour upto 16 different drink combinations with the touch of a finger - all while maintaining the smallest footprint in the industry.
Premier touchscreen allows customers to easily select desired flavor combination.
Interface design can be customized to any brand or program.

More reasons why frozen carbonated beverages are an extremely popular, exciting, and highly-profitable product offering:

Frozen Carbonated Beverage Superpower: Multi-Flavor & Frozen Cocktail

Frozen carbonated beverage dispensers can also come in a variation called “Multi-Flavor”.

Multi-Flavor technology can pour more flavors in a smaller space allowing you to create unique and innovative multi-flavor programs such as frozen lemonade, frozen coffee, margaritas, and much more.

Multi-Flavor dispensers are ideal for locations with limited retail space and a broader target audience (such as Millennials) with constantly changing demands.

commercial-frozen-drink-machine--easy-to-operate-with-low-maintenance--comp

What to Consider Before Starting a Frozen Beverage Program

Overview

Finding the best, most reliable equipment with superb customer support for your Frozen Drink Program is an important factor to consider in maximizing profit potential. Lower-priced options bring many headaches and additional costs that ultimately erode your profitability.

In addition, choosing the right frozen machine based on your business goals, locations, and store traffic will make a difference in how fast you see a return on investment.

With so many different equipment brands, beverage distributors, frozen drink machine models, and drink types, starting a frozen beverage program can seem intimidating.

To help simplify things and help make your decision easier, here are the top 5 things you need to consider before starting a frozen beverage program:

The Unique Needs of Your Business

When it comes to your business’s needs, goals, and objectives, there are a couple of things you’ll want to consider:

Your Budget

Complete Cost of Ownership: When it comes to budgeting, many business owners only consider the initial acquisition cost of new equipment. Unfortunately, lower-cost options tend to have much higher “hidden costs” that quickly erode ROI and profitability.

You can achieve much higher profitability if you invest a little more up-front with a higher-quality Frozen Beverage Partner that fully stands behind their products.

When considering which Frozen Beverage Partner to choose, look beyond merely the initial acquisition cost, and consider the entire cost of ownership, including:

Initial Equipment Acquisition Costs
Training and Labor Costs
Decreased Customer Satisfaction (Due to Low Drink Quality)
Cleaning, Maintenance, and Downtime
Syrup, Cups, Straws, and Lids
Water and Utility Costs
Repair and Replacement

ROI Needs: While you’re calculating the total cost of ownership, make sure to also calculate just how much ROI your Frozen Beverage Partner can actually offer you.

Consider the following questions:

What kind of frozen beverage sales numbers are you projecting at your location?
What retail price can you realistically charge for frozen beverages at your location?
What cup set size do you plan on offering at your location?
After factoring in the total cost of ownership, what are the actual profit margins your Frozen Beverage Partner can offer you?
How quickly do you need to see ROI on your investment?

You can use our ROI calculator to estimate what profit margins you can expect, and how quickly you can expect to see a return on your investment.

Equipment Reliability and Uptime

If the equipment your Frozen Beverage Partner offers is low-quality, expect frequent breakdowns and high repair costs. Not only is unreliable equipment expensive to operate and repair, but it’s also incredibly frustrating for both business owners and consumers when product is unavailable for purchase.

Low-quality equipment not only breaks down frequently but even when it is working, it rarely works properly, leading to lower drink quality and decreased consumer satisfaction. Eventually, no more repairs can be done, and you have to completely replace the entire machine far sooner than you initially expected.

In addition, lower-quality equipment typically requires more maintenance, upkeep, and cleaning in order to function properly, which only increases downtime, labor costs, and lost revenue.

When choosing a Frozen Beverage Partner, make sure to inquire about the quality of the machine, specifically:

The quality of parts and construction
Expected repair costs
Expected maintenance and cleaning time
Expected equipment downtime
Expected lifespan of equipment

Read the 4 Sons Food Stores Case Study to Learn How They Reduced Equipment Downtime by 99% >

Equipment Ease of Operation

Another important factor to consider when choosing a Frozen Beverage Partner is how easy the equipment is to operate by both staff and consumers.

Carefully designing equipment that is easy to operate takes time and expertise. This attention to detail is typically only found in higher-quality equipment options. The slightly higher price is more than made up for in labor savings and increased customer satisfaction.

Service and Support

One of the most important, yet overlooked factors to consider when choosing a Frozen Beverage Partner is the support and service you can expect to receive after the sale, especially for the most expensive part; the equipment.

Choosing lower-priced Frozen Beverage Equipment might save you money initially, but those “hidden costs” add up quickly in the form of:

Long lead times
A lack of responsive support
Inadequate product training
A lack of a strong warranty
A shortage of certified technicians
Unavailability of spare parts

Make sure to select a Frozen Beverage Partner that offers short lead times, free, 24/hour technical support, a strong warranty, a wide network of service providers, and access to any spare parts you may need.

`Purchasing Options` for Commercial Frozen Beverage Equipment

Buying

If you want to maximize your profit margins, and the equipment will be in daily, long-term use, owning a buying of equipment outright is almost always going to be the best option.

This is especially true if you go with a high-quality vendor that provides reliable and responsive service. High-quality, efficient equipment with the latest technology can enable you to achieve positive ROI in as little as 2 years, and continue generating high profit margins for many years after that.

Once the equipment is paid for, your ongoing costs are very small compared to paying a monthly rental or lease rate.

Buying: New vs. Used

When it comes time to decide whether to purchase frozen beverage equipment new or used, keep these considerations in mind:

Renting

You may not be completely sure whether you want to commit to ownership or a long-term lease, and you might only need the equipment for a very short or undetermined amount of time.

Here are a few such situations where an equipment rental might be the best option if you need the maximum amount of flexibility and don’t want the burden of maintaining equipment yourself:

Leasing

Leasing is often a good “middle ground” between renting and outright ownership.

Leasing allows you to continually get the newest equipment with the latest technology, while only paying a flat monthly rate. The monthly rate to lease equipment long-term is usually cheaper than the monthly rate to rent the equipment, but higher than the monthly rate you would pay on a loan.

Unlike equipment rentals with flexible, undefined timeframes, leases have set, specified terms (typically 12 months).

While you are usually responsible for at least some maintenance on leased equipment, you are leasing new equipment that will require less maintenance than owned equipment later in its lifecycle, so you will likely save on long-term maintenance costs.

If you are ready to make a long-term commitment, but are unable to afford the large, up-front cost or make a large down payment on a loan, an equipment lease may be your best option.

Get the Most Profitable and Trusted Frozen Beverage Program in the Industry

At FBD, your business becomes our business. We work hand-in-hand with you to adjust your Frozen Beverage Program to your specific capacity and footprint needs, and to shifting market demands.

With over 532 unique equipment configurations, we can completely transform the interface of our machines, whether crew-served or self-serve, to align with your marketing needs.

We provide a dedicated service team, along with field service trainers that offer 24-hour tech support, free training on equipment, and field support.

Our Frozen Beverage Program has the lowest total cost of ownership in the industry, and is trusted by 80% of the world’s frozen beverage retailers.

What Makes FBD Different

Lowest Total Cost of Ownership and Highest Profits in the Industry:

Maximum equipment reliability and uptime due to higher-quality materials and construction
Lower downtime, maintenance, and acquisition costs keep expenses at a minimum, which maximizes ROI and profits

Most Trusted

Trusted by 80% of the world’s frozen beverage brands
100K+ frozen equipment machines shipped worldwide
20+ Years of Experience

Most Reliable & Lowest Service Call Rate in the Industry

Responsive, knowledgeable, 24-hour Phone Supports
Free, on-site Training and Technical Support
Fewer Reactive Service Calls
5 Year Warranty on Refrigeration System
1 Year Warranty on All Parts

Most Innovative Technology

OptiPour™ technology enables a higher overrun, providing a more consistent, better-looking, and better-tasting drink
Our patented RapidFreeze™ and OptiFreeze™ technologies ensure the highest dispenser durability and product consistency
Simple and intuitive user interface with guided step-by- step LCD instructions with graphics for everyday tasks
Built-in diagnostics and on-screen QR code display for instant access to service information and procedure
Accessibility: Access from the front of the unit makes servicing FAST & maximizes uptime

Smallest Footprint and Highest Capacity

Maximize counter space with the smallest footprint in the industry
Highest proven capacity ensures you have enough product during peak times with high foot traffic and consumer demand

Industry’s Shortest Lead Times

Built-to-Order to your exact specifications with the latest technology
100% tested equipment before it leaves the factory
An order placed today can be shipped within days

Parts Availability

We have parts available for every single model and unit we’ve ever sold

Let’s Build Your Frozen Beverage Program Today!

Whether you run a movie theater, a convenience store, a quick service restaurant, a bar, or an institution, our expert team can advise you on the best way to set up a profitable frozen program, specific to your unique needs.

Schedule a call to have one of our experts help you:

Recommend the ideal products for your specific type of location
Identify the right equipment and customization
Estimate your ROI
Provide an operations implementation plan including labor, maintenance savings estimates.