From Wall Street to Frozen Yogurt: Neil Hershman’s Turnaround of 16 Handles
At just 30 years old, Neil Hershman has redefined the trajectory of 16 Handles, a New York-based self-serve frozen yogurt chain. Since acquiring majority ownership in 2022, Hershman has revitalized what was once a stagnant brand, driving systemwide sales to $20.6 million in 2024 and $12.5 million in the first half of 2025.
Reviving a ‘Stale’ Brand in a Shrinking Market
Founded in 2008 by Solomon Choi, 16 Handles initially gained traction with its 16-flavor self-serve concept. However, by the time Hershman stepped in, the brand had lost momentum amid a contracting frozen yogurt market. According to food service research firm Technomic, the self-serve frozen yogurt sector has been shrinking since 2016.
Hershman, who transitioned from a career in asset management, purchased his first 16 Handles franchise in 2019 after saving $160,000 and securing additional financing. By 2022, he owned six locations and became the chain’s largest franchisee. Noticing a lack of innovation and energy within the company, he acquired the entire business, leveraging his franchise holdings as collateral.
Growth Through Innovation and Consumer Engagement
Under Hershman’s leadership, 16 Handles has introduced limited-edition flavors such as French fry, butter beer, and black matcha to attract customers. Concurrently, the brand revamped its digital marketing efforts to boost visibility and engagement.
These initiatives have yielded tangible results: same-store sales have climbed more than 10% year-over-year, in-store traffic and customer spending have increased, and the chain has added around 10 new locations. Hershman is currently collaborating with 18 franchisees planning new stores, with five to six openings anticipated this year.
Frozen Yogurt’s Resurgence Amid Health Trends
Market data suggests Hershman’s timing aligns with a broader resurgence in frozen yogurt consumption. David Portalatin, food service analyst at Circana, notes a 10% increase in frozen yogurt servings consumed nationally as of July 2025 compared to the previous year, bucking a flat to declining food service market.
This renewed interest is partly attributed to consumers seeking healthier dessert alternatives. However, registered dietitian Leah Kaufman cautions that frozen yogurt can contain sugar levels comparable to soda and ice cream, urging consumers to consider this when choosing desserts.
Positioning 16 Handles as an Affordable Luxury
16 Handles emphasizes a premium experience, from its exclusive frozen mixes sourced from a California creamery to its self-serve model. Customers typically spend between $8 and $10 per visit, with pricing based on weight.
Hershman characterizes the product as an “affordable luxury,” meant for enjoyment a few times per week rather than daily consumption. His vision extends beyond immediate growth; he aims to expand the chain to about 100 locations over the next several years and elevate 16 Handles to a household name status.
Looking Ahead
Drawing on his finance background, Hershman applies risk management principles to his new industry, balancing operational challenges with growth opportunities. His hands-on approach—from managing inventory to innovating flavors—underscores a commitment to restoring frozen yogurt’s appeal in a competitive snack market.
FinOracleAI — Market View
The revitalization of 16 Handles under Neil Hershman’s leadership signals a positive development for the frozen yogurt segment, which has faced declining demand in recent years. The brand’s sales growth, expansion of locations, and successful marketing initiatives reflect effective execution in a niche category benefiting from shifting consumer preferences toward healthier indulgences.
Risks include the inherent volatility of the food service industry and potential consumer sensitivity to pricing and health considerations. Monitoring consumer trends and the chain’s ability to sustain same-store sales growth and franchise expansion will be critical.
Impact: positive
