Guide to setting up a Frozen Beverage Program

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.

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.

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:

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.

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.

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.

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.

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.

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.

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:

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

Foot traffic and capacity

Does your location get low, medium, or high amounts of foot traffic? Make sure your Frozen Beverage Partner offers equipment with the right capacity to meet the demand at your location. You don’t want to over-invest in equipment with higher capacity than you need, but you also don’t want to run out of product and lose sales due to equipment with capacity that’s too low.

Counter space limitations

How much counter space can you realistically devote to your Frozen Beverage equipment? Make sure to choose a Frozen Beverage Partner that offers equipment with the smallest footprint possible, in order to maximize sales-per-square-foot.

Staff limitations

How many staff members do you have at any given time, and how much time can they realistically devote to operating your Frozen Beverage equipment? Make sure to choose a Frozen Beverage Partner who offers equipment that’s easy to operate and requires minimal maintenance in order to minimize training costs and downtime.

Changing consumer demand

Is your Frozen Beverage Program flexible enough to adapt to your consumer’s constantly-evolving drink preferences? Are you prepared to deal with changing demand due to factors like seasonality? Can you keep up, even if competitors introduce new, innovative products that excite consumers? Make sure that your Frozen Beverage Partner can provide you the guidance and products to effectively meet all of your customer’s needs and preferences.

Equipment versatility

One of the most important factors that enable you to meet changing consumer demand is having Frozen Beverage equipment that is versatile enough to accommodate a large variety of different types of beverages, such as frozen energy drinks, coffee, tea, lemonade, alcoholic beverages, etc. Consider whether your Frozen Beverage Partner offers equipment that will enable you to swap out the types of beverages you can offer, without having to buy new equipment every time your consumer’s preferences change.

Equipment customizability

Lastly, you will need to consider equipment customizations. Do you need self-contained condensing, remote condensing, or water-cooled condensing? What color machines do you prefer? What kind of dispenser valves; SDV, DDV, domed, or pneumatic dispense? In addition, some machines have optional touchscreens and digital/video merchandising (so you can place eye-catching, video advertising directly on the front of the machine). Make sure to discuss all of these customization options with your Frozen Beverage Partner prior to purchasing equipment.

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

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%.

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.

Staff

When equipment is easy to operate by staff, business owners don’t have to spend nearly as much time on training. In addition, maintenance, service, and repairs all become much easier and faster, which maximizes uptime and profitability.

Consumers

When your equipment is easy and enjoyable to use by consumers, expect to see much higher customer loyalty, repeat sales, and word-of-mouth.

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.

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.

Downsides of ownership

The downsides of ownership are the high, upfront costs and ongoing equipment maintenance costs.

Once you purchase equipment outright, you are committed to that equipment and responsible for maintaining it until you either sell it or replace it with another piece of equipment.

Your company’s image

The physical appearance of your equipment communicates a lot about your business.

If your equipment looks old or broken down, what impression do customers get of the product inside and of your business overall?

How likely are customers to purchase a drink from a used, beat up machine vs a brand new, clean, shiny piece of equipment?

Repair costs

Used equipment that has been in heavy operation by another business will almost always need at least some work. Oftentimes, after you factor in repair costs and downtime (plus the added hassle), it’s just as expensive to buy used equipment as it is to buy it new.

You may be able to find relatively new, gently-used equipment, but more often than not, the used options that are available need costly repairs, are nearing the end of their lifecycles, and will need to be replaced soon, anyways.

Warranty and support

When you purchase new equipment from a reputable vendor, responsive support and a strong warranty are included in your purchase. High-quality vendors will stand behind their product. This means helping you get the equipment installed and running at your location, and helping you fix any issues that may come up during the life of the equipment’s operation.

If the equipment proves to be defective, a reputable vendor will simply repair or replace it, according to their warranty.

In addition, when you buy equipment new from the manufacturer, every piece of equipment should be fully inspected at the factory for flaws and defects.

When you buy equipment used, the responsibility to inspect it for flaws is on your shoulders, and you often have no way of knowing what condition the equipment is really in.

Technological advances

When you buy new equipment, one of the biggest advantages is that you are getting the “latest and greatest” when it comes to technology.

This technology typically makes the newest versions of equipment smaller, easier to use (requiring less employee training), more efficient, more durable, and more profitable than older versions.

While it might be slightly cheaper up-front to buy used equipment, if that older piece of equipment lacks these technological advancements, it could actually end up being more difficult and expensive to operate in the long-run.

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:

You’ve just started your business

The first few years in business are crucial and extremely difficult. In the beginning, it’s important to track costs carefully and keep overhead to a minimum.

Frozen beverage dispensers often cost thousands of dollars to purchase outright, and could be out of your budget for a while. When you’re just getting started and have limited cash flow and credit, renting can be a great option to consider.

Rentals for specific events or seasons

Not every business needs a frozen beverage dispenser year-round. You might only need it for a specific event or season. Regardless, it doesn’t make financial sense to invest so much money up-front if you’re only using the machine temporarily.

Testing the idea of adding Frozen Beverages

You might be unsure if a frozen beverage dispenser is right for your particular business or circumstance. If you don’t want to make a permanent commitment, and would rather try out a frozen beverage machine for a few months to see if it generates the profits you are looking for, renting might be a good option for you.

If you discover that your frozen beverage machine is successful and you are seeing satisfactory profit margins, you can later make the decision to purchase a machine and make frozen beverages a permanent option at your location.

Downsides of renting

The downsides of renting are that you may not be getting the newest equipment, and you are limited only to the equipment available in a renter’s inventory.

In addition, you will most likely pay a higher monthly rate than if you obtained a loan or a long-term lease.

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.

Downsides of leasing

The downsides of leasing are that you are paying a long-term, monthly rate for your equipment and are usually responsible for at least some maintenance, but at the end of the lease term, you still do not own the equipment.

Once the lease is completed, you must either return the equipment, arrange to purchase the equipment, or lease another piece of equipment and continue paying a monthly rate.

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.

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

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.