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Recent out of an unfulfilling finance profession, Neil Hershman was searching for one thing completely different — one thing he may construct along with his personal arms. 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 operating the shop from open to shut.
What began as a facet venture rapidly spiraled into one thing greater. “Open and shut, each single shift I used to be working,” Hershman says. “I used to be in a position to advance the enterprise [and] usher in extra income to the purpose the place the revenue was so nice that I made a decision to depart all my different tasks and simply concentrate on 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 operating places. He was main the complete firm.
Since buying the model from founder Solomon Choi in 2022, Hershman has led a nationwide growth of the froyo chain from 30 to 150-plus places. His surprising journey from buyer to franchisee to CEO provides him a singular edge in at present’s crowded dessert market.
Hershman is behind a few of the model’s wildest flavors, starting from Harry Potter references to “french fry frozen yogurt” (a play on McDonald’s continuously damaged ice cream machines). “I’m a part of the shopper base,” he says. “My household, my pals, everyone seems to be a part of the shopper base. So it is simply concepts that we now have.”
The outcomes communicate for themselves. “Our gross sales development has been phenomenal, like after 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 prospects, however from the staff. 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. “Anyone who’s bought 13 years of operating a retailer open to shut and is aware of buyer interactions and [what] prospects need, the right way to make the very best bang on 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 evaluations.
“We used to have one woman who ordered each single day, and it will at all times come by way of across the similar time, to the purpose the place whenever you heard the printer printing at the moment, we knew it was her order and what to do,” he says.
Someday, she left a five-star overview 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 any person on the different finish who all day might be wanting ahead to this second of opening up this bag,” he says.
Hershman careworn the significance of paying shut consideration to evaluations, whether or not constructive or essential.
“[Loyal customers] know what to search for greatest,” he says. “These are actually necessary for us as a franchisor to know what is going on on with our places, and for retailer operators to know what is going on on within the buyer’s thoughts.”
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Hershman and his staff maintain a detailed eye on overview platforms like Yelp to assist refine operations and construct belief whereas retaining in thoughts that not each critique is a name to motion.
For instance, one of many challenges Hershman recognized shouldn’t be getting the total image of a buyer’s expertise based mostly on their overview. “You simply get the perimeters, so it makes it just a little exhausting to make use of these evaluations as a long-term resolution maker,” he says.
However, essential evaluations can present readability, and good evaluations 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 patrons, 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 straightforward however highly effective:
- Obsess over the shopper expertise. From staple merchandise to add-on providers, all the pieces will be improved to construct belief and domesticate repeat enterprise.
- Construct buyer loyalty at each flip. Studying and responding to buyer suggestions lets prospects know their voices are heard.
- Innovate with goal. Not each enterprise concept will see the sunshine of day, however specializing in fixed enchancment will maintain your small business aggressive.
- See your small business by way of the eyes of a buyer. Spending time on the entrance strains may give you a recent perspective on what’s working and what must be improved.
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Editorial contributions by Jiah Choe and Kristi Lindahl
