30-year-old bought ‘stale’ frozen yogurt chain—now it brings in $21M/year
30 -year -old CEO and Frozen Yogurt Chain 16 The majority of the handles of Neil Hershman, the self -servant sweet shops when you visit, keeps simple. His order: Strawberry, blueberry, chocolate pieces and hazelnut forks with flat tart flavored vortex.
And no, it doesn’t eat frozen yogurt every day – just a few times a week.
According to the documents examined by CNBC Make It IT, in 2024, 16 trunks based in New York -based 20.6 million dollars, and in the first six months of 2025, the system -wide sales reached 12.5 million dollars.
According to the data of the Food Service Research Company Technomic, with brands such as Tcby, Yogurtland and Menchie’s, crowded yogurt area has been smaller since 2016. However, since he took over the company in 2022, Hershman says that there is a “fluctuation” in 16 handles.
In -store traffic is increasing, people spend more in stores and have increased by more than 10% annually since they took over the same store sales.
Hershman, “Everyone thought that frozen yogurt did not fade … But we revived the category,” he says.
‘There was no energy’
In 2008, Solomon Choi founded 16 houses in the East Village of Manhattan. You can find 16 different self -service frozen yogurt, soft service ice cream or 16 different flavors for sorbet, which you can find in each store, the chain currently has 40 locations on the east coast.
After graduating from the university to work in the field of asset management and moved to New York in 2017, Hershman rarely rarely grows frozen yogurt, says that the first apartment has become quickly regular in the following Murray Hill 16 pinch of the block.
Two years later, he noticed that his career was not suitable for him, so he said in 2019, 23 -year -old, Hershman quit his job and saved at this point that he saved $ 160,000 by using “all cash” and said he was slightly less than $ 400,000 from the small business management loan and seller’s note.
“I was looking for a little more hands, the earth and something that was personally, or he says. “I worked for full shifts during the day and during the days … So I learned the job from the inside.”
Neil Hershman bought the first 16 Handle stores at the age of 23.
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By 2022, he had six 27-year-old locations at that time, and he said he was the largest franchise owner of 16 handles-but he wanted to do more. He said that he was sitting with 16 business leadership to talk about how the brand could help the growth, but realized that the company received “stale” in its operations.
“There was no energy, spark and innovation, or he says. “This was very exciting for me because he showed that there was a place to push the needle and innovate with new energy and new ideas.”
That year, he offered to buy the entire company by using all its current positions as collateral to secure the receipt at an unexplained price. Today, Hershman says that 16 stalks have the majority. Youtube comedian Danny Duncan says he has a shares in the company with a few other minorities investors.
Change the feeling of consumer
He began a limited number of flavors such as Hershman, French Fry, butter Beer and Black Matcha to pass people out of the door. Behind the curtain, he says that the company also invests in renewing its digital marketing strategy.
Hershman says that so far he has been working on the brand. The chain added about 10 new places for taking over. It is expected that the company works with 18 franchise owners who want to open their corporate operations profitable and new stores, and this year is expected to open five to six locations.
Founded in 2008, 16 Handles have 40 locations on the East coast.
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The decision to invest for frozen yogurt may be well -timed. Nationally, it seems to embrace the Frozen Yogurt of consumers once again, says a food service analyst David Portalatin a food service analyst in Circana, a market research company. The total frozen yogurt portion, which was consumed as of July 2025, increased by 10% compared to the previous year – “a major agreement in the context of a slightly diminishing food service market.”
People may be returning to frozen yogurt, which is seen as a healthier alternative to other frozen refreshments, such as ice cream, as part of a greater tendency not only from nostalgia, but also for health consciousness.
Although there is no wrong thing to enjoy a fun dessert after dinner, the registered dietitian Leah Kaufman pays attention to the sugar content in frozen yogurt, which can be as high as the levels found in soda and ice cream. Im If you are looking for the health benefits of the dessert, I would probably look another place, or he says.
‘Affordable luxury’ product
From frozen mixtures produced with a cream in California only to self -service in -store experience, Hershman, 16 Handan is priced as a “high -level” product compared to a Mister Softee truck. When customers visit an average of 16 tufts, they spend any place between $ 8 and $ 10.
He doesn’t want customers to come to his store every day. On the contrary, he sees his frozen yogurt, which is priced as weight, as a “affordable luxury” – a sweet treatment several times a week.
This is just the beginning for Hershman. He says he expects the number of places to grow to about 100 stores in the next few years, and finally wants to see that the brand has a home name.
“My career in the field of finance taught me how to model the risks, and in frozen yogurt, now I run the cookie dough inventory.” “Both are very variable markets, but one is much more fun.”
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