Today, the Los Angeles Business Journal dedicated 1200+ words on the death of froyo in Southern California, something that's been underway for quite some time now. Aside from the expected items—the market has been saturated, etc.—there are some interesting tidbits, including just how rough it's been for some of the town's froyo purveyors: not only have a handful of independently owned shops gone under recently, but even Red Mango closed four shops in January alone. So how are they going to fight the melt? Glad you asked:
While Pinkberry's notoriously-tight lips are predictably sealed, here's the Red Mango reaction:
Red Mango is introducing value-priced options. It is testing bargain prices for the combinations its customers order most. [Red Mango CEO Dan] Kim declined to give specific prices.
He also said the company recently introduced a customer loyalty program that rewards every 500 “Mango Points” with a $5 coupon. The points are earned mainly by referrals and purchases.
Lower prices, rewards programs, new flavors. Yes, this story is starting to sound a lot like the plight of Starbucks, isn't it?