Cupcake chain Crumbs shut down last week, and an insider believes frozen yogurt could be next.
Scott Colwell, president of ice cream company Carvel, told The Wall Street Journal that he said no to investing in frozen yogurt.
“I absolutely believe we’ll see a frozen yogurt bubble,” he told WSJ, adding that “only the strongest brands will survive long-term.”
Carvel dipped into the fro-yo world in the late 1980s with TCBY.
But Colwell said the company couldn’t keep up with the booming fro-yo industry today.
“We don’t have the capability to offer that variety,” Colwell told WSJ.
Carvel recently changed the look of its 400 franchised stores. The brand also released a new line of Nutella ice cream.
“We’re being the best at what we do well,” Colwell said. “We’re not trying to be everything to everyone.”
CNBC host Marcus Lemonis announced a plan to buy Crumbs last week.