Amos discovered a group of zealous Tasti D-Lite aficionados, hooked on the chain's 100-plus flavors, stores' willingness to customize orders according to consumers' whimsy as well as the product having fewer calories than real ice cream. Amos said.ĭigging into consumer research, Mr. "It made no sense - there was a line going out the door," Mr. What changed his mind was visiting stores on an 18-degree winter day. Amos said the poor condition of the stores made him skeptical about the chain's prospects when initially considering purchasing the business. But the new owners, working with franchisees, plan to renovate existing stores. One complication: Many of the New York stores are run-down, Mr. Amos hopes the new Manhattan stores, particularly the Empire State Building outlet, will snag more attention from Big Apple tourists. Who just signed on to expand Tasti D-Lite to Nashville, Tenn., and surrounding areas, said he has been eating the product during visits to Manhattan for 15 years and is counting on Nashville's large population of transplants having done the same. Instead, franchisees in new markets are banking on customers already having some familiarity with Tasti D-Lite from visits to New York. Amos nor other franchisees are planning the kind of national advertising often used by companies expanding across the country. Of the chain's 75 licensed stores or resellers, few are outside New York City - including the seven in New Jersey and one each in Florida and Texas.
The chain's biggest challenge may be simply translating a distinctly New York phenomenon to the rest of the country and international markets. Tasti D-Lite's business reflects the trends, slowing over the last four to five years, Mr. Coffee has risen to 12% of all afternoon or evening snacks bought at a restaurant from 8% 20 years ago. Frozen treats account for 16% of all afternoon or evening snacks bought at a restaurant in the 12 months ended in February, down from 20% in the 12 months ended February 1989, according to market-research firm NPD Group. What's more, the frozen-treats market continues to face pressure from coffee, which has increased in popularity among snacking Americans during the past two decades. Red Mango's 100-plus stores in South Korea and Pinkberry's Los Angeles headquarters motivated Tasti D-Lite to plan future stores in both locations, says Since last year, Pinkberry has opened 10 stores in New York, adding to the three it opened there the year before, while Red Mango has opened six. and recently entered Tasti D-Lite's home turf, New York. The expansion is a risky gambit, as more rivals enter the market. Next month, Tasti D-Lite plans to open two flagship stores in New York, including one on the ground floor of the Empire State Building. It is working on expanding into California and adding to the seven stores already in New Jersey. Late last month, Tasti D-Lite signed franchising deals for a minimum of 16 stores in Tennessee and at least 40 in Texas, including San Antonio, Austin and Houston. Two Tasti D-Lite stores opened this month in Seoul expansion into Israel and Mexico is in negotiation. Who, along with New York private-equity firm Snow Phipps Group LLC, acquired the New York-based frozen-dessert business for $21 million last year, is forging deals to expand the chain nationally and internationally with new store formats, additional flavors and new products such as energy drinks and baked goods.