Tart touch: California yogurt chain Pinkberry plans Las Vegas entry

A California frozen-yogurt franchise says it will give the local economy a boost in the first half of 2012.

Pinkberry, based in Los Angeles, said Tuesday that it signed an agreement with the A5 Group of Las Vegas to bring six stores to Southern Nevada.

Deborah Krause, CEO of A5 Group, said the company would start hiring hundreds of workers in March to prepare for spring store openings.

A5 Group plans to place its first Pinkberry stores on or around the Strip. It's looking to lure tourists who enjoy Pinkberry back home, as well as resort workers who want a "great little escape that's easy, affordable and approachable," Krause said.

Pinkberry is entering a market with plenty of competitors, including traditional ice cream stores, fast-growing self-serve, frozen-yogurt franchises and smoothie chains, said Darren Tristano, executive vice president of Chicago food consultant Technomic. Pinkberry's price point, which Krause pegged at $3 to $7 per order, is also an issue in an industry evolving away from pricier gourmet concepts and toward less-expensive self-serve, Tristano said.

But Tristano said there's room for Pinkberry, which stands out with tart yogurt in flavors such as pomegranate, chocolate, mango and green tea. Pinkberry also emphasizes its yogurt's health profile, pointing to certification through the National Yogurt Association and its Live & Active Cultures seal.

Pinkberry fills a niche for affluent women ages 16 to 35 who want "a more healthful, contemporary and hip style of snack," Tristano said.

Tristano likened the market to the coffee sector, which has consumers for both Starbucks and its more affordable competitors, such as McDonald's and Dunkin' Donuts.

Pinkberry should also benefit from growth in the frozen-yogurt segment. Frozen yogurt makes up roughly 15 percent of sales in the $6 billion frozen-dessert business, but that share could double in coming years, Tristano said.

Nikoleta Panteva, a senior retail analyst with California market-research firm IBISWorld, agreed Pinkberry could set itself apart. It will benefit from constant tourist turnover, as well as its tangy taste.

"The main thing Pinkberry can bring to the table at this point is probably its flavor," Panteva said. "I don't know if there are any other tart-flavored frozen yogurts there. That's probably the space they're trying to fill. They do provide a certain flavor that's very unique, and they do have a specific demand."

The Pinkberry experience isn't just about taste, Krause said.

"It's very much service-oriented. It's not self-serve, so it's about having an experience, and having someone guide you through your yogurt-tasting," she said. "And it comes down to the product, with its freshness and quality standards. Those are things we chose to get behind because we really believe in them. We think everyone should be able to have that little luxury without a big price tag."

Pinkberry has more than 100 locations across the U.S. and in countries such as Saudi Arabia, Morocco, Russia, Peru and the Philippines.

Contact reporter Jennifer Robison at jrobison@reviewjournal.com or 702-380-4512.