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Recent out of an unfulfilling finance profession, Neil Hershman was on the lookout for one thing totally different — one thing he may construct along with his personal palms. That search led him to 16 Handles, a New York-based froyo model he frequented as a buyer.
Astrophysics diploma in a single hand, finance resume within the different, Hershman discovered himself behind the counter of his first 16 Handles franchise, sleeves rolled up and working the shop from open to shut.
What began as a facet challenge rapidly spiraled into one thing larger. “Open and shut, each single shift I used to be working,” Hershman says. “I used to be capable of advance the enterprise (and) herald further income to the purpose the place the revenue was so nice that I made a decision to go away all my different initiatives and simply deal with 16 Handles.”
At a time when different entrepreneurs have been retreating, Hershman expanded. He began constructing new shops throughout New York Metropolis throughout Covid-19, when retail leases have been low cost and rivals have been shuttering. “As an alternative of getting scared, I used to be the one coming in and constructing,” he says.
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Quickly, he wasn’t simply working areas. He was main the whole firm.
Since buying the model from founder Solomon Choi in 2022, Hershman has led a nationwide enlargement of the froyo chain from 30 to 150-plus areas. His surprising journey from buyer to franchisee to CEO offers him a novel edge in right this moment’s crowded dessert market.
Hershman is behind among the model’s wildest flavors, starting from Harry Potter references to “french fry frozen yogurt” (a play on McDonald’s incessantly damaged ice cream machines). “I’m a part of the client base,” he says. “My household, my pals, everyone seems to be a part of the client base. So it is simply concepts that now we have.”
The outcomes communicate for themselves. “Our gross sales development has been phenomenal, like once we launched french fry, or the Squid Video games-inspired taste, or the butter beer out of Harry Potter,” he says. “Our gross sales are up like 30-40% the week that we launched in comparison with prior years. So it actually does make a distinction.”
However constructing a thriving model takes greater than taste. It takes belief, consistency and loyalty — not simply from clients, however from the group. That is why the primary individual Hershman employed was Lisa Mallon, who co-owned the Fairfield, Connecticut, location together with her husband for 13 years.
“Who is aware of the model higher and believes within the model greater than individuals who have been profitable with the model?” Hershman says. “Any person who’s bought 13 years of working a retailer open to shut and is aware of buyer interactions and (what) clients need, how you can make the perfect bang to your buck on this enterprise.”
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This technique helps the model keep constant, that are the callouts Hershman appreciates most in buyer opinions.
“We used to have one lady who ordered each single day, and it might at all times come by way of across the identical time, to the purpose the place if you heard the printer printing at the moment, we knew it was her order and what to do,” he says.
Sooner or later, she left a five-star evaluate with an image of her froyo on her espresso desk. “Love this place, nice chocolate,” she wrote.
For Hershman, these few phrases have been a supply of encouragement. “Though it feels monotonous that we’re packing the identical order each single day, there’s someone on the different finish who all day might be wanting ahead to this second of opening up this bag,” he says.
Hershman harassed the significance of paying shut consideration to opinions, whether or not optimistic or vital.
“(Loyal clients) know what to search for greatest,” he says. “These are actually vital for us as a franchisor to know what is going on on with our areas, and for retailer operators to know what is going on on within the buyer’s thoughts.”
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Hershman and his group preserve a detailed eye on evaluate platforms like Yelp to assist refine operations and construct belief whereas preserving in thoughts that not each critique is a name to motion.
For instance, one of many challenges Hershman recognized is just not getting the total image of a buyer’s expertise primarily based on their evaluate. “You simply get the sides, so it makes it somewhat exhausting to make use of these opinions as a long-term resolution maker,” he says.
Nonetheless, vital opinions can present readability, and good opinions can construct credibility. Each are alternatives to develop as a enterprise.
Hershman’s story is about seeing potential the place others see plateaus and making really particular moments for purchasers, who will return for the constant expertise many times.
After taking up as CEO and reimagining 16 Handles for a brand new era, Hershman’s recommendation to entrepreneurs is easy however highly effective:
- Obsess over the client expertise. From staple merchandise to add-on companies, all the things will be improved to construct belief and domesticate repeat enterprise.
- Construct buyer loyalty at each flip. Studying and responding to buyer suggestions lets clients know their voices are heard.
- Innovate with objective. Not each enterprise thought will see the sunshine of day, however specializing in fixed enchancment will preserve your corporation aggressive.
- See your corporation by way of the eyes of a buyer. Spending time on the entrance traces may give you a contemporary perspective on what’s working and what must be improved.
Take heed to the episode to listen to immediately from Neil Hershman, and subscribe to Behind the Evaluation for extra from new enterprise house owners and reviewers each Tuesday.
Editorial contributions by Jiah Choe and Kristi Lindahl
