What's Happening?
Neil Hershman, the 30-year-old CEO of 16 Handles, has successfully revitalized the frozen yogurt chain, leading to a significant increase in sales. After leaving a career in finance, Hershman purchased his first 16 Handles franchise in 2019 and eventually became the majority owner in 2022. Under his leadership, the company has seen a surge in customer demand, with systemwide sales reaching $20.6 million in 2024 and $12.5 million in the first half of 2025. Hershman has introduced innovative marketing strategies and limited edition flavors to attract customers, resulting in a 10% increase in same-store sales year over year. The chain, founded in 2008, now operates 40 locations primarily on the East Coast.
Why It's Important?
Hershman's success with 16 Handles highlights a broader trend of revitalizing traditional businesses through innovative strategies. His approach has not only increased sales but also expanded the brand's presence with new locations. This case exemplifies how fresh leadership and creative marketing can rejuvenate a seemingly declining industry. The resurgence of frozen yogurt, viewed as a healthier alternative to ice cream, aligns with growing consumer health consciousness. Hershman's efforts demonstrate the potential for growth in niche markets by adapting to changing consumer preferences and leveraging digital marketing.
What's Next?
Hershman plans to continue expanding 16 Handles by opening additional locations and enhancing the brand's digital presence. With 18 franchisees interested in opening new stores, the company expects to add five to six more locations this year. The ongoing investment in marketing and product innovation is likely to sustain the brand's growth momentum. As consumer interest in frozen yogurt rises, 16 Handles is well-positioned to capitalize on this trend and further solidify its market position.
Beyond the Headlines
The revival of 16 Handles under Hershman's leadership underscores the importance of adaptability and innovation in business. By introducing unique flavors and enhancing customer engagement through digital platforms, Hershman has set a precedent for other businesses in the food service industry. This case also raises awareness about the sugar content in frozen yogurt, prompting consumers to make informed choices about their dietary habits.
