Neil Hershman is the CEO of 16 Handles, a franchised frozen dessert brand with deep roots in NYC and the Northeast. The brand is expanding heavily across the country under Hershman’s leadership.

Hershman first frequented 16 Handles as a customer, never knowing he’d one day be involved in managing the future direction of the brand. He became the brand’s largest multi-unit franchisee and in 2022, acquired the brand from its founder.

Franchise Chatter (FC): Tell us about 16 Handles and the current state of the brand.

Neil Hershman (NH): 16 Handles is the higher-end evolution of the self-serve frozen yogurt concept, modernized for today’s customers. Our premium soft-serve ranges from decadent ice cream and frozen yogurt in all the classic flavors, to vegan, nonfat and zero sugar added soft serve and unexpected flavors, with 50+ toppings spanning from fresh fruit to edible cookie dough. Our stores also have fruit smoothies, milkshakes, acai bowls, and cookie dough.

I personally operate six stores across NYC in addition to overseeing growth and franchise support across the country.

FC: Why is now the time for a major expansion of 16 Handles?

NH: Frozen yogurt has been a strong, consistent industry for nearly a half-century, but in the past decade, the market leaders have gone stale. They forgot about the customer experience, marketing, modernizing stores and embracing new technology and trends. This has left a huge opportunity for 16 Handles to overtake the industry and become the fastest growing brand. Additionally, as labor concerns grow – both in terms of costs and labor force participation – our self-serve model is highly favorable.

We’ve spent so much time focused on understanding what makes our successful stores successful and built a scalable system around that, which allows us to open stores efficiently and create a craze even in new territories across the country.

Additionally, being one of the only franchisee-owned and managed franchisors has been highly favorable in finding new franchise partners who can see our success and want to replicate it in their hometowns. We offer a unique sense of trust and comfort in the franchise expansion process that many can’t find with the larger private equity-owned brands.

FC: What’s driving the resurgence in froyo popularity?

NH: America loves two things in my opinion: health and dessert. Typically, those are contradictory, but they don’t have to be. That’s one of the reasons frozen yogurt – a healthier alternative than ice cream – is and will continue to be so popular. We are taking market share from legacy frozen yogurt brands that have decayed, as well as larger scoop shops, where scoops now can cost upwards of $10.

Our newer builds look and feel something like a Starbucks of the night, and we attract a broad range of customers given our variety of flavors and comfortable lounge seating. We are also interacting with guests online in an engaging way, utilizing our punchy and relatable branding across paid and organic social media, emails, and text messages.

FC: What makes 16 Handles stand out compared to other froyo brands?

NH: One of our leading growth factors is our flavor creation and willingness to embrace and even create new trends in the food space. Last year, we launched a French Fry, Squid Ink, and Butter Beer froyo. Each of these was a marketing powerhouse and brought scores of people to new and old locations alike, if for nothing else than to sample what a French Fry frozen yogurt tastes like. No other brand is embracing marketing and taking risks like this, but it’s increasingly important when considering what goes viral with millennials and Gen Z.

More than just the crazy, we also launched a keto soft serve – the first of its kind as far as we know – and a high-protein flavor last year, in the spirit of finding new niche audiences and bringing them into their local 16 Handles.

FC: How do you keep stores profitable?

NH: We are a premium brand in the frozen dessert industry, and you notice the difference as soon as you enter a shop or try the first spoonful. Our lineup of frozen yogurt, sorbet, and vegan soft serve flavors are artisan and proprietary, with better ingredients and bold, addictive flavors. This, combined with the modern and comfortable setting, has led us to have higher AUVs per location than our competitors.

Many of our stores have seen consistent year-over-year sales increases and earned really positive organic reviews. We stay consistent and relevant with effective marketing and loyalty programs and, in my opinion, our tech stack is lightyears ahead of anyone else in frozen dessert.

FC: What changes have you implemented to stores since taking over as CEO?

NH: Coming into this seat having spent years as a franchisee with 16 Handles and other brands, I knew what additional support would have helped in the day-to-day store operations. I set the goal of implementing these changes and providing the additional support as the franchisor. Additionally, I wanted to improve all our operators’ bottom line, so I renegotiated many of our vendor contracts to improve margins and decrease any unnecessary expenses. We also overhauled the 16 Handles loyalty experience and app, which made it more functional and interactive for guests, while also reducing the quantity of discounts absorbed by stores.

Knowing that our new franchisees are looking to build stable long-term investments, but have an expectation for a strong ROI, we also put a lot of work on designing a scalable design package that includes all the branded and unique equipment of 16 Handles, but at a lower cost that even generic or locally sourced furniture. The updated store design now features in-house, modular millwork production to have full control of the jaw-dropping topping bar that makes 16 Handles the most unique and technical frozen yogurt concept. In addition, all key elements for the franchise are now manufactured in America, with the highest quality products less than half of what comparable brands are able to offer.

After building many stores, including in traditionally expensive cities like New York, we’ve learned a thing or two about how to control construction costs and simplify build out. We are proud that we have now created customized branded furniture that is easy to assemble for franchisees. For me, this is a big win that helps us to achieve our goal of reducing startup costs and making a better and more unique branded store for our customers.