The brand is known for causing snaking queues and retail wars in the United States and South Korea.
Now, Korean frozen yogurt Red Mango can be found on Singapore shores in the form of a 100 sq ft stall outside Carrefour supermarket in Suntec City. It opened last May.
Behind the venture is Mr Chua Wei Yang, 40, and his team, comprising his wife and another couple. They decided to take on the franchise in September 2007. Mr Chua had been introduced to the brand by an ex-colleague who was working with Red Mango. 'We were won over when we tried it, and we wanted more people in Singapore to know about it,' said Mr Chua, who also runs an IT consultancy.
'But if we started a business from scratch, there is a higher risk and it takes time to build up a brand name and a customer base.' When the stall opened, Yami Yogurt was the incumbent frozen yogurt brand while other new operators were springing up, he said.
'Beyond the brand name, frozen yogurt is a product that requires research and development and by going with Red Mango's tried-and-tested formula, the difference shows in the taste,' said Mr Bernard Ho, 44, one of Mr Chua's partners.
Before inking the franchise agreement, Mr Chua's team visited South Korea as well as Bangkok, the brand's only other Asian outpost.
They checked out outlets and spoke with franchisees as well as Mr Daniel Kim, Red Mango's founder-CEO.
Mr Chua said: 'We felt the company genuinely encouraged all its franchisees to succeed, rather than just try to sell you something.'
Citing confidentiality clauses, he declined to reveal his franchise fee and would say only that 'a few hundred thousand' was invested. A large part of the start-up cost came from buying high-end equipment, as stipulated by Red Mango's requirements, and renovation and rental fees. Mr Ho said monthly royalty fees are less than 8 per cent of revenue.
They hold the master franchise for Singapore - others who want to open outlets here will have to sign on as their franchisee - and their contract is for 10 years. There is no penalty fee for early termination.
Before the opening of the Suntec outlet, a team of four from Red Mango's South Korean headquarters, including the CEO, flew here to dispense advice, from marketing tactics to how to serve the yogurt and display the toppings.
As raw materials such as milk and fruits are sourced locally, Red Mango staff also helped tweak the frozen-
yogurt formula till it was 'only a slight variation' from the original, Mr Chua said.
Taste tests were also conducted to ensure that the formula suited local palates.
