Ranime, Rob here. I also love Pinkberry and enjoyed thinking about the drivers behind the Company’s success. I am slightly more bullish than David and Ching-Ching on their long-term viability. I think that the Company’s simplified menu and premium posting have allowed them to create a very strong brand behind a consistent customer experience. Unlike Cupcake stores, ice cream stores have been a staple of many an American town for decades. I believe that Pinkberry has repackaged this guilty pleasure into a hip, healthy indulgence and the stores ubiquity and operating elegance will give them staying power.
Amanda – Great read, thanks for posting! I very much admire the Company for its consistency in purpose through promoting a sustainable product and creating it with sustainable manufacturing practices. Like many early moving consumer products companies, I have to admit I’m fearful that they will not be able to sustain their fantastic growth over the long-term. They were lucky to time their expansion with greater consumer awareness and affinity for sustainability and managed to differentiate through attractive design. I worry that the product penetration can be copied. Their brand ethos and authenticity, however, might be able to drive their continued success. Prak mentions advertising, and I wonder if we will start to see the Company commit to more advertising to sustain growth, develop the brand and stave off competition.