The next nostalgia comeback: Fro-yo
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Illustration: Sarah Grillo/Axios
Frozen yogurt is making a comeback, with new shops that look more like Starbucks than the candy playgrounds of the 2010s.
The big picture: The once-crowded fro-yo scene has been shrinking for years, industry data shows.
- But nostalgic fans are returning — and 16 Handles is betting the craving never went away.
- The chain plans to open several new stores next year, offering a "high-end" take on the frozen treat, CEO Neil Hershman tells Axios.
What we're hearing: "I don't think that consumers stopped wanting fro-yo," Hershman says. "I think they just stopped wanting to go to the stores that were available to them."
- 16 Handles is going for a minimalist look inspired by Starbucks and Panera instead of the kid-centric decor common in fro-yo shops, Hershman says.
- At night, the music bumps up, creating a "cool" vibe without being "nightclub-esque."
- "We still get the [after-school] rush, but our stores are not catered toward that."
State of play: Roughly 128,000 TikTok posts were tagged #froyo during the first 10 months of 2025 — up over 16% from the same time last year, according to internal data shared with Axios.
Some customers are heading to chains like Menchie's and Pinkberry for what they're calling "Obama era froyo."
- Others want after-work hangouts or dates that don't involve booze.
- In New York City, a spate of "chic" fro-yo shops has turned $10 cups into status symbols, Time Out reports.
Between the lines: Fro-yo has long been marketed as a healthier dessert, and businesses continue to lean into the idea with low-carb and no-sugar-added options.
- 16 Handles has rolled out vegan, high-protein and keto flavors. A probiotic-packed kefir soft serve is on the way.
Follow the money: Unsurprisingly, the days of 35-cent-per-ounce swirls are long gone.
- Higher costs, including for labor and ingredients, have hit fro-yo stores just as they have others in food service.
Reality check: Don't expect a new fro-yo shop in every city. There are fewer than 4,000 total fro-yo stores nationwide, according to Technomic, a food service research firm. By comparison, Dairy Queen alone has over 4,200.
"The overall frozen yogurt space is probably smaller than most would think," Technomic's Kevin Schimpf tells Axios. "I'd expect this category to continue to shrink overall."
- To stay relevant, top players have launched "digital makeovers" and pop culture-inspired flavors.
The bottom line: Fro-yo's having a moment, but it's looking more glow-up than boom.
