Huge resurgence of frozen yoghurt as Gen Z Aussies ditch nightclubs

Weekends were once reserved for nightclubs and a tad too many drinks – but a new way to spend an evening out on the town is on the rise.

It’s a Saturday night in Sydney’s Manly Beach, and queues are snaking around the LED-lit palm trees in The Corso.

Take one look at the line’s demographics, and it’ll be a perfect cross-section of the dessert-inclined population – couples wanting to extend their date nights, families post-dinner, millennial women after “a little treat”, and Gen Zs with their phones out, ready to take a blurry pic of their late-night antics.

Five years ago, you’d be correct in thinking they were waiting outside a Messina or its rival gelato empire, Anita.

But no. This crowd, hungry and bursting with a childlike energy, is waiting for yoghurt.

Yes, yoghurt, or rather its cooler (literally) older sister, frozen yoghurt, has made a comeback, and it’s single-handedly reviving Australia’s night-life.

And those who are willing to line up to get their hands on the humble dairy product are overwhelmingly young people.

Who knew the typical breakfast item would be the thing to yank hundreds of thousands of disillusioned Aussies off of their couches at 9pm, and even sway them away from the lure of a late-night at a club, and have them lining up on the streets?

The company leading the nationwide resurgence of frozen yoghurt is Yo-Chi, owned by the Allis and Marro families.

Yo-Chi works on a self-serve model where people grab their own cup, select a yoghurt flavour (there are five ‘OG’s’ and five ‘seasonal’ ones) and load up on as many toppings as their heart desires, from fruit, biscuits, nuts and the cult-favourite pourable pistachio spread, Pistachio Papi.

Founded in 2012 in Melbourne, the frozen yoghurt chain was inspired by international franchises like the US-based Pinkberry and Europe’s Llaollao.

It managed to drive a lot of the Australian froyo craze which peaked in 2014 but eventually died down.

By 2020, interest in the food trend was steadily picking back up again and Yo-Chi opened three new venues across the state.

In the four years since, it has become the fastest-growing dessert chain in Australia, with 38 locations and more on the way.

Frozen yoghurt is seeing a resurgence in Australia, with Yo-Chi leading the way. Picture: Supplied

People can load up on as many toppings as they like, with the final price being determined by how much their cup weighs. Picture: Supplied

What has led to the frozen yoghurt renaissance?

“We’ve deliberately created venue spaces that encourage people to hang out, to connect with friends, listen to good music, and obviously to create their own bespoke desert,” says Brooke Rodger, Yo-Chi’s COO, noting that creating an inclusive space for all ages has been crucial to the brand’s success.

Their extended opening hours have also been a massive drawcard, with most of their venues closing at around 10.30pm, sometimes later in the summer months.

“Nights are definitely getting busier,” Ms Rodger confirms. “We’re seeing a lot of people coming in, and the queues seem to be happening at more venues now.

“For us, it’s meant needing to make sure we’ve got an A-team on to manage the crowds and ensure no one’s waiting too long. I think at last check, we were going through something like six tonnes of strawberries per month.”

Lines are often seen around the block, with people eager to get their hands on the dessert. Picture: Supplied

People are no longer lining up to get into clubs, with frozen yoghurt joints open as late as 10:30pm. Picture: TikTok/@clairefastuca

Australia’s declining night-life and cost-of-living pressures set the stage

While many people classify Yo-Chi as a health product, attributing its popularity to the fact that the yoghurts contain probiotics and are mostly fat-free, experts say there are more sociocultural factors at play.

The declining night-life in major Australian cities is an obvious one and has laid the foundation for places like Yo-Chi to thrive.

Cost of living pressures meant people were less willing to go to bars and spend $20 on a cocktail, and changing alcohol habits in general meant there was a growing disinterest in clubbing among younger generations.

“The 2020s have seen a significant demographic shift in discretionary spending purchasing power of the emerging generations of Gen Z and Gen Alpha,” says consulting firm Titanium Food director Suzee Brain.

“Digitally savvy, and influenced by their peers, these alcohol reductionists elect to spend their hard-earned dollars with companies that visibly reflect their values, like health, experience, community and sustainability, back to them.”

Places like these have emerged as ‘third spaces’ for people to socialise outside of work and home. Picture: Supplied

The brand has capitalised on people’s desire for alcohol-free spaces. Picture: Supplied

The need for a ‘third space’ to socialise

With bar and club culture struggling and the pandemic only further eroding the Aussie habit of having a boozy night out, people have been left craving alternative spaces for social interactions.

Yo-Chi has filled this gap and capitalised on this growing demand for alcohol-free spaces, says Annette Verhoeff, founder of Thrive Hospitality.

“They’re positioning themselves as a premium evening destination where people can gather and socialise,” she says.

“Their format provides an alternative to traditional bar culture.”

But it’s not just about replicating bars, although their in-house DJ definitely contributes to that vibe.

These spots fill a gap for those looking for a “third place” – a concept urban sociologist Ray Oldenburg coined which describes an informal public gathering space separate from home (the first place) and work (the second place).

Mr Oldenburg argued that these places are essential to public life and building community and said libraries, coffee shops, parks, and other third places are central to people’s wellbeing.

Popular TikToker Katrina Matias was one of the first to share her thoughts on Yo-Chi being part of this third place phenomenon, saying it’s something she thinks is more important than ever given our increasingly online society.

“It’s one of the only places that’s not a pub, club or a restaurant that’s open late in Australia,” Ms Matias said in one of her videos. “And you don’t have to fork out $80 on a meal or drinks.”

“You’re SO right!” one commenter said on the clip, which now has over 50,000 likes.

“It’s something to do at night that isn’t drinking.”

“It’s the Max Brenner of the 2020s,” another claimed.

“Yo-Chi is my safe space,” a third admitted.

A young Aussie has said that Sydney’s night-life is coming back thanks to places like Yo-Chi. Picture: TikTok/@katrina.matias

“I’m 24, and all my friends and I found there was a lack of night-time spaces that didn’t revolve around drinking,” Ms Matias told news.com.au.

“If we went out for dinner, they would always close early and tell us we had to leave.”

The Sydney local, who is currently living in Spain, said she’s noticed a dramatic difference since moving to the lively European country.

“There’s so much night-life after work here. No matter what day of the week, people are out and about on the streets or in parks.”

Back in Sydney, Ms Matias and her friends resorted to hanging out at people’s houses, at the beach and even just sitting and chatting in their cars.

However, with Yo-Chi, she and her friends now have a low-key place to socialise.

“There’s no reservation needed and no need to get dressed up,” she says. “Sometimes we just want to go and do a Yo-Chi run in our pyjamas.”

“It’s just so accessible, plus it’s cheap in comparison to other things. I’d probably spend around $10 on average.”

What the future looks like

Yo-Chi’s pricing strategy is an integral component to their success, says Ms Verhoeff, who advises her clients on brand positioning, marketing and profit strategies.

“The innovative ‘build your own adventure’ service model resonates powerfully with younger consumers who value customisation in their dining experiences,” she says.

It also puts pricing control directly in the customer’s hands, creating a strong value proposition in today’s cost-conscious market.

She believes that the brand’s future success depends on sustaining this cost-effectiveness.

“Their target demographic has finely-tuned authenticity radars and will quickly abandon brands that prioritise profits over principles,” Ms Verhoeff emphasises.

“The challenge during expansion will be preserving the quality of the customer experience while growing their footprint,” she adds.

Whether or not this trend will hang around or is just experiencing another period in the limelight is yet to be known, but while we wait to find out, it doesn’t seem like those queues are getting any shorter.