Iconic frozen yogurt chain makes comeback after closing 2,650 stores

To those who grew up in the early 2000s, frozen yogurt wasn't just a dessert; it was the sweet treat of the era.

Whether hanging out at the mall with friends, heading to the movies, or grabbing an after-school pick-me-up, frozen yogurt was always a crowd pleaser and quickly became a nostalgic symbol of many people's childhoods.

With endless flavor combinations and toppings piled high, it offered something for everyone, making it nearly impossible to have a favorite order. However, when it came to choosing a brand, one name stood out above the rest.

Founded in 1981 in Little Rock, Arkansas, TCBY is one of the most well-known frozen yogurt brands and the first national chain in the U.S. Due to its almost immediate popularity, the company went public only two years later and operated around 3,000 locations across 50 states and 68 countries at its peak.

But today, longtime fans have noticed a change. Shops that once seemed to be on every corner have quietly vanished, leaving entire communities without a nearby location and depriving newer generations of experiencing the same joy.

TCBY slowly disappears

In 2000, The New York Times reported, TCBY was sold to Capricorn Investors for $140 million, marking the end of its family ownership and adding it to the company's portfolio of well-known mall staples, which included Mrs. Fields cookies, Great American Cookies, Pretzelmaker, and Pretzel Time.

Though it seemed like an odd move for such a seemingly successful brand, TCBY was losing its momentum. Its earnings had slipped, and the hope was that this new ownership would reignite its popularity and continue its growth.

However, that hope crumbled a few years later. Forbes reported that Mrs. Fields Famous Brands filed for Chapter 11 bankruptcy in 2008 after Great American Cookies, Pretzelmaker, and Pretzel Time were sold to Nexcen Brands.

A second bankruptcy filing almost happened again, but the company was ultimately rescued by The Carlyle Group and Z Capital, which became majority stakeholders.

By 2022, TCBY had shrunk to 168 domestic franchised locations, according to QSR magazine, and a year later, Pearl Street Equity acquired the brand after it purchased Mrs. Fields Famous Brands, reported Business Wire.

TCBY's website indicates that it now operates about 350 shops nationwide, an 88% decline from its peak, and also sells a pre-packaged product line in U.S. grocery stores.

TCBY reopens its first store in 2025

Despite its challenges, TCBY refuses to give up. The company is reopening a franchise location at 2840 U.S. Highway 34 in Oswego, Illinois, on November 22. To celebrate its grand opening, the shop will offer a "buy one, get one free" frozen yogurt promotion, according to a TCBY announcement on its website.

"Our goal is to create a go-to destination for kids, families, and dessert lovers. We’re excited to bring TCBY back as a healthier dessert option for the community," said TCBY franchise operator Samad Khan in a press release. "We want to offer consistent quality, a welcoming environment, and fun experiences for everyone who visits."

This latest opening marks TCBY's first U.S. store opening since 2024, when a new location debuted in Albany, Georgia, as confirmed by a press release. Yet the brand's new strategy suggests that international markets may play an even bigger role in its comeback.

TCBY is expanding to the Middle East

In January 2025, TCBY signed a multi-unit franchise development agreement with Sterling Restaurants to introduce the brand to malls across Qatar.

The company plans to open more than 10 new TCBY locations in the country over the next five years, with the potential to eventually bring its sister brand, Mrs. Fields Cookies, to the region as well.

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"We recognize the nostalgic appeal of TCBY resonates deeply with the local community, and the growing demand for premium frozen yogurt presents an exceptional opportunity for growth," said Sterling Restaurants CEO Seamus MacTreinfhir in a press release.

"Leveraging our expertise and deep connection to the region, we're ready to take TCBY to new heights."

Joe Lewis, CEO of Famous Brands International, stated that TCBY has achieved consistent, positive same-store sales over the past five years and that its expansion in Qatar reflects the company's commitment to reviving the brand both in the U.S. and abroad. 

TCBY debunks a retail trend

Despite being a longstanding brand, TCBY isn't alone in its financial struggles.

The U.S. Bureau of Labor Statistics reports that around 17% of new restaurants close within their first year. Long-term survival is even more challenging, with approximately half of businesses closing within five years and less than 35% surviving past the 10-year mark, according to Oysterlink.

Traffic across the food service industry is also challenged, dropping by 1% in the quarter ending June 2025, according to Circana.

Coresight Research projects that U.S. store closures will reach 15,000 in 2025, more than double the 7,325 closures recorded in 2024.

As of January 17, 2025, over 2,000 planned closures had already been tracked, with major U.S. retailers announcing 29.6% fewer openings and 334.3% more closures year over year.

"It is important to recognise that despite the many store closures in recent times, retail is not dying, but evolving. Therefore, it is essential that businesses constantly adapt and react to the market," said industry experts at Amazon Accountants Archimedia Accounts. "Store closures themselves don’t always need to signal a ‘downfall’ or an ‘end’; sometimes they can signify a key step toward financial recovery and a shift in focus on areas such as e-commerce."

For many nostalgic fans, these closures felt almost personal, serving as a reminder that even longstanding chains aren't immune to economic challenges.

However, TCBY's 44-year legacy is far from over, and nostalgic fans may soon see more frozen yogurt shops emerge not only nationally, but also worldwide.

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