Cold Stone Creamery Winterizes Its Desserts

Categories: Food News

cold stone creamery.jpg
Cold Stone Creamery execs are perhaps the only people celebrating today's wintry weather, perfectly timed to coincide with the nationwide rollout of its first-ever heated desserts.

"It's in our favor that it's such a cold day," says Veronica Graves, clarifying the chain's not to blame for the record snowfalls and remarkably cold temperatures:

"Obviously, we didn't plan it, " Graves adds. "We can't control the weather."

But if they could, they couldn't have ordered up a better day to start serving warm churros, funnel cake, chocolate lava cake and a hot brownie sundae -- all of which sound infinitely more appealing than a strawberry ice cream cone when it's 14 degrees outside.

"People still want an indulgence when it's cold," Graves says. "It adds to our seasonality."

Graves says a few Cold Stone customers crave ice cream in winter months, but concedes, "Typically, winter is not our best season."

The microwaved pastries -- all of which are topped with vanilla ice cream, whipped topping and coordinated garnishes -- will retail for $4.99 through the end of April, when franchisees will set the price.

My Voice Nation Help
8 comments
restom
restom

restomCold StoneAn open letter to all current Cold Stone Creamery operators.Stand up a make your voice heard. In its infancy, Cold Stone was an attractive decorated franchise that provided Ice cream products. Most were located in a busy market area. Stores were very crowded with lines extending out the door. At the end of the day no one make money .Our operators were well trained and our stores experienced high sales volume. So then why are our businesses failing at such an extraordinary pace? If it was Cold Stone that chose the operators and trained them, how can they now blame the high percentage of store failures on poor franchisees?In most Cold Stone franchise systems, the owner is working 7 days a week for 14 - 16 hours per day, the operator is not making money. He can only hope to keep from losing his shirt due to labor costs by working long hours and covering 2 or 3 employee hours.In my case, when I applied to construct my first store, Cold Stone offered me a second store existing store for $50k - $80k and they assured me they would fully support me. At the time I thought, wow what a great fortune with an outstanding company. Not realizing how badly we had been set up for failure, my wife and I celebrated as if we had won the lottery. Our family and friends traveled near and far to be with us during our grand opening.From the very start, we had excellent cash flow. At the end of the first month however, our income statement showed that we were unprofitable. Upon consulting with the AD, he advised us to invest additional monies into our advertising budget and increase our cake drops. One month later, we had the same result. The AD then said that all businesses are going to struggle to turn a profit early on. He advised me I was going to have to invest money into the business to keep it operating and I would begin to turn a profit shortly. I was skeptical of his response because this was an existing business and the profits should have been immediate.This was the beginning of a series of lies by my AD to cover for Cold Stone’s broken business model. Things never improved, they only continued to spiral downward. Eventually Cold Stone terminated my store and sold it to yet another victim. Kahala’s hope is that I would be embarrassed for having lost my store and therefore tell my family and friends that I sold the store and then I would go away quietly. They also hope that I would not contact the new owner to tell him just haw troubled the store is. They know that many franchisees in my situation end up divorced and serious health problems due to the stress associated with these failed businesses.This is exactly what happened to me and so many other Cold Stone owners until I decided to join Cecil and fight against all that is so wrong with Cold Stone. What happened to me, my wife, my kids, my family can happen to you as well. It is therefore important that we all come together and fight Cold Stone until they repay what they owe us and promise to stop hurting others.

Franchisee777
Franchisee777

I love desserts but I hate what Kahala is doing to their franchisees. If it wasn’t bad enough that they ruined the businesses of 400+ franchisees by not giving area support, sold additional stores too close to others, and the kickbacks they received and continues to receive at our expense, it’s not easy to get excited about any expansion they have in mind. We lost our franchise in 2008 and in 2009 I read about them expanding overseas. Oh my gosh!!! Why don’t they take care of those who invested 100s of 1000s of dollars to open one or more of their franchisees in America? One franchisee wrote,

“I compare Cold Stone Creamery to Bernie Madoff. They did the exact same thing to me and every other past or current franchisee that Bernie Madoff did to his investors. Lied, cheated and stole. And Cold Stone franchisees are smart, intelligent people just like Bernie Madoff's clients. It's just that Cold Stone Creamery and Kahala are very good at manipulation and deception such as the hiding and misuse of MILLIONS OF DOLLARS OF KICKBACKS FROM PRODUCTS THE FRANCHISEES PURCHASED!!!”

This was exactly my sentiment when we lost our store and later learned about the Bernie Madoff scandal. We are all intelligent owners who got screwed by Kahala. Now matter how great their vision for expansion may be, you can’t put fresh milk in a soured container.

evilstone
evilstone

Here we go again! Just pile up more labor and food cost on to an already non profitable business. I guarantee you in the beginning at the opening price --the food will sell at absolutely no profit. When it is time to raise the price to make a profit----Guess what?-- it will have run its coarse and dry up like all the rest or the new and unsucessfull ideas Kahala has come up with. Of coarse Kahala will think it is a great sucess because it is more kickbacks in their pockets. Here are more hours you (franchisee) will have to spend in the store to prep all of this nonsense that will not benifit you in the lest. Wake up franchisee's "Stop drinking the Kool Aid" it is not going to work nor will it get any better. Get out! Love a former franchisee!!

bactor
bactor

Does current market research show that churros, funnel and chocolate lava cakes are in high demand now? Will this really be the answer to drive customers to go to Cold Stone? Is this what customers are craving from Cold Stone? Like stated below, Cold Stone has tried other dessert concepts without much success. Why would this be different? We had a gym right next to one of our locations and were told how well Nrgize smoothies had done in market research studies, beating other industry leaders. After lots of sampling, leaving coupons and fliers at the gym, we hardly noticed an increase in smoothie business and sales.

Help the franchisees
Help the franchisees

Unfortunately all the franchisees will be forced to implement this program and purchase expensive equipment and sell at a discount for no profit. (Remember the smoothie program AND who can forget Wasabi flavor....what?!) I compare Cold Stone Creamery to Bernie Madoff. They did the exact same thing to me and every other past or current franchisee that Bernie Madoff did to his investors. Lied, cheated and stole. And Cold Stone franchisees are smart, intelligent people just like Bernie Madoff's clients. It's just that Cold Stone Creamery and Kahala are very good at manipulation and deception such as the hiding and misuse of MILLIONS OF DOLLARS OF KICKBACKS FROM PRODUCTS THE FRANCHISEES PURCHASED!!!

I invested over $700,000 just to get started and tens of thousands of dollars over 2+ years before being bullied out of one stores and forced to shut another store down because of NO INCOME, NO WAY TO KEEP STORE OPEN AND NO HELP FROM MY FRANCHISOR (COLD STONE CREAMERY) They "left me for dead" with my stores. I received ZERO help from CS (unlike the promise of unlimited help and resources in the beginning) to increase sales. I was forced to use products they required me to use which THEY WERE RECEIVING MILLIONS OF DOLLARS IN KICKBACKS ON. I was forced to do so many UNPROFITABLE things in my store and keep paying my royalties and advertising fees (what a joke!!!) or they would bully me and threaten to take my stores away with no compensation. Again, Madoff. They were my best freind with Sku'd numbers, false statements and empty promises in the beginning....Then, they turned on me. And basically stole from me....my money, my credit (I was forced to file bankruptcy) my home (foreclosure) my savings/investments (gone) and my sanity. Franchisees aren’t dumb. It’s hard to have access to hundreds of thousands of dollars when you’re dumb. In fact, some of us, including myself, have owned and operated other franchises quite successfully. We know how to work with a successful business model and COLDSTONE DOES NOT HAVE A SUCCESSFUL BUSINESS MODEL!! COLDSTONE IS LIKE THE MAFIA. They take, take, take until there is nothing left to take and then they get rid of you. COLDSTONE = BERNIE MADOFF.

Bobhitachi12
Bobhitachi12

Another "NEW AND EXITING" attempt by CSC to fill their own pocket. The only difference is that this time the franchisees did not have to come up with thousands of dollars to buy new equipments to support their "NEW AND EXITING" programs. During the time that the every franchisee is on the verge of bankruptcy or closing their stores, CSC should focus on their existing line of product, not to introduce another labor intensive product that will cost franchisees in the long run. It kinds of reminds me of the movie I saw long time ago, WAG THE DOG. They are trying to take the attention away of what is important by focusing and heavily marketing another "NEW AND EXITING" program or by accidentally sending free coupons to about one million customers and calling it an early birthday!!!!! All are co incidents of course

YetAnotherGimmick
YetAnotherGimmick

Here Cold Stone goes again... yet another swing (and a miss) at profitability.

What this announcement means to each franchise owner is additional paper product costs, additional equipment costs, additional labor at times to keep the flow of business moving and a more complexity to the operations. This addition will simply take the current ice cream customers and move them over to "warm" creations for a few months. Eventually this profit gimick will go the way of Wasabi ice cream, Black Licorice ice cream, Red Pan Promos, Cereality cereal bar, Soupman Soup Bar, Ghirardelli chocolate, Cup Cakes, Grab-n-Go's, CS\Tim Horton Combo, and the Cold Stone Yogurt BAR.

CS Franchisees need to wake up and realize that Corporate doesn't think about the profitability of the franchisee, they continue to JUST PILE ON more labor costs, more product costs, more complexity.... pathetic.

Faith
Faith

I’m surprised to hear Cold Stone is focused on changing their menu when it seems that their entire franchise system is about to collapse. Given their longstanding issues related to their unprofitable franchisees under their current failed business model, I would think this would be their first priority. This was reported nationally by the Wall Street Journal in 2008 and most recently, CNBC revealed in their documentary “Behind the Counter: The Untold Story of Franchising” that the company took more than $13 million in kickbacks in 2009. That was followed by some very messy legal jostling by Cold Stone’s attorney Robert Zarco.

Shouldn’t Cold Stone first focus on their franchisee profitability issues under their current business model? The company was founded in the 1980’s. Shouldn’t they have figured this out by now? Kahala needs to demonstrate they have a proven ice cream business model for Cold Stone before they establish another menu item. Maybe it’s just that they don’t care that these franchisees are going bankrupt and losing their homes so long as they are making big profits. Can you say CORPORATE GREED?

Now Trending

From the Vault

 

Loading...