― donut bitch (donut), Thursday, 18 March 2004 00:40 (twenty-two years ago)
― oops (Oops), Thursday, 18 March 2004 00:42 (twenty-two years ago)
― JaXoN (JasonD), Thursday, 18 March 2004 00:43 (twenty-two years ago)
― Ned Raggett (Ned), Thursday, 18 March 2004 00:44 (twenty-two years ago)
― JaXoN (JasonD), Thursday, 18 March 2004 00:44 (twenty-two years ago)
― oops (Oops), Thursday, 18 March 2004 00:45 (twenty-two years ago)
― JaXoN (JasonD), Thursday, 18 March 2004 00:47 (twenty-two years ago)
― luna (luna.c), Thursday, 18 March 2004 00:48 (twenty-two years ago)
― Ned Raggett (Ned), Thursday, 18 March 2004 00:50 (twenty-two years ago)
― oops (Oops), Thursday, 18 March 2004 00:52 (twenty-two years ago)
― dean! (deangulberry), Thursday, 18 March 2004 00:54 (twenty-two years ago)
deangulberry! what is that awesome place in santa cruz (meroni's?)
― gygax! (gygax!), Thursday, 18 March 2004 00:54 (twenty-two years ago)
― gygax! (gygax!), Thursday, 18 March 2004 00:55 (twenty-two years ago)
― dean? (deangulberry), Thursday, 18 March 2004 00:58 (twenty-two years ago)
― Michael Daddino (epicharmus), Thursday, 18 March 2004 01:05 (twenty-two years ago)
― luna (luna.c), Thursday, 18 March 2004 01:07 (twenty-two years ago)
― oops (Oops), Thursday, 18 March 2004 01:07 (twenty-two years ago)
From what I remember in the California days, the Cali Cold Stones mostly have a lot of dejected rude teens working there in an otherwise none-so-amazing weird hybrid ice cream chain.
However, The Cold Stone that opened in my neighborhood here in Seattle has those... those... those singing people.
The single people that, well, just sets off in me, word for word, I HATE YOU AND EVERYTHING YOU STAND FOR AND I HAVE LASER BEAMS IN MY EYES THAT WILL DESTROY YOU WITH A SINGLE GLANCE! DIE! DIE! DIE! DIE! feelings... exactly.
So, I feel we should map out the regions of the country where the singing and non-singing Cold Stone Creameries are for future strategists.
― donut bitch (donut), Thursday, 18 March 2004 01:09 (twenty-two years ago)
http://www.mariniscandies.com/
― gygax! (gygax!), Thursday, 18 March 2004 01:22 (twenty-two years ago)
― oops (Oops), Thursday, 18 March 2004 01:24 (twenty-two years ago)
― A Nairn (moretap), Thursday, 18 March 2004 01:43 (twenty-two years ago)
― ModJ (ModJ), Thursday, 18 March 2004 06:12 (twenty-two years ago)
― cinniblount (James Blount), Thursday, 18 March 2004 13:37 (twenty-two years ago)
― cinniblount (James Blount), Thursday, 18 March 2004 13:39 (twenty-two years ago)
― NA (Nick A.), Thursday, 18 March 2004 14:03 (twenty-two years ago)
― dean? (deangulberry), Thursday, 18 March 2004 18:16 (twenty-two years ago)
― NA (Nick A.), Thursday, 18 March 2004 18:57 (twenty-two years ago)
― dean! (deangulberry), Thursday, 18 March 2004 19:19 (twenty-two years ago)
― gygax! (gygax!), Thursday, 18 March 2004 20:13 (twenty-two years ago)
Sounded like the place to be until I realized the reason why so many women would be getting ice cream when it was 20 degrees out and snowing...
― chopher, Thursday, 18 March 2004 21:07 (twenty-two years ago)
― NA (Nick A.), Thursday, 18 March 2004 22:56 (twenty-two years ago)
― dean! (deangulberry), Thursday, 18 March 2004 23:00 (twenty-two years ago)
― Elvis Telecom (Chris Barrus), Thursday, 20 October 2005 17:22 (twenty years ago)
And there's always something similar but better in every city. In Seattle, there's The Mix in the U-district.. MUCH better in every respect, and not as expensive either. Cold Stone ice cream is sub-Baskin-Robbins at best.
― iDonut B4 x86 (donut), Thursday, 20 October 2005 17:33 (twenty years ago)
― Tripmaker (SDWitzm), Thursday, 20 October 2005 17:36 (twenty years ago)
― Eisbär (llamasfur), Thursday, 20 October 2005 17:37 (twenty years ago)
I don't get this still!
― teeny (teeny), Thursday, 20 October 2005 17:37 (twenty years ago)
― Tripmaker (SDWitzm), Thursday, 20 October 2005 17:38 (twenty years ago)
― kyle (akmonday), Thursday, 20 October 2005 17:47 (twenty years ago)
you had cold stone that time in catalina!
― astor riviera (Jody Beth Rosen), Thursday, 20 October 2005 17:49 (twenty years ago)
― Eisbär (llamasfur), Thursday, 20 October 2005 17:50 (twenty years ago)
― astor riviera (Jody Beth Rosen), Thursday, 20 October 2005 17:52 (twenty years ago)
― Allyzay knows a little German (allyzay), Thursday, 20 October 2005 17:52 (twenty years ago)
― svend (svend), Thursday, 20 October 2005 17:53 (twenty years ago)
― iDonut B4 x86 (donut), Thursday, 20 October 2005 17:54 (twenty years ago)
Anyway, this place sucks ass. It's overpriced and the ice cream is NOT THAT GREAT, and the singing makes it worse.
xpost
― Jordan (Jordan), Thursday, 20 October 2005 17:54 (twenty years ago)
― Eisbär (llamasfur), Thursday, 20 October 2005 17:55 (twenty years ago)
!
can you TELL them what to sing? if i, say, request that they sing a ying yang twins song then they will do that?!?
― Eisbär (llamasfur), Thursday, 20 October 2005 17:56 (twenty years ago)
― O'so Krispie (Ex Leon), Thursday, 20 October 2005 17:56 (twenty years ago)
― kyle (akmonday), Thursday, 20 October 2005 17:58 (twenty years ago)
― astor riviera (Jody Beth Rosen), Thursday, 20 October 2005 17:59 (twenty years ago)
</making horrible generalizations here, granted>
― iDonut B4 x86 (donut), Thursday, 20 October 2005 18:00 (twenty years ago)
(since someone mentioned the whole cultural aspect, I'll briefly mention that the previously mentioned Johnny Rockets is the summer working home to many gay men. however, being that its at Cedar Point, much like pretty much anything at Disney or Universal, that's gonna be a given anyways, so no matter what, its gonna be a outlier)
Anyways, Cold Stone. On one hands, its a big corporate ice cream shop with just okay ice cream. On the other hand, its brought back the old school mixing of flavors visa-vis stone counter and utencils, so I can't entirely hate it. So, uhh, mediocre?
― Alan Conceicao (Alan Conceicao), Thursday, 20 October 2005 18:07 (twenty years ago)
― Jazz Funeral in the Chinese Quarter (nordicskilla), Thursday, 20 October 2005 18:12 (twenty years ago)
― fortunate hazel (f. hazel), Thursday, 20 October 2005 18:37 (twenty years ago)
― astor riviera (Jody Beth Rosen), Thursday, 20 October 2005 18:39 (twenty years ago)
― astor riviera (Jody Beth Rosen), Thursday, 20 October 2005 18:41 (twenty years ago)
Fosselman's in Alhambra and McConnell's in Santa Barbara
― Elvis Telecom (Chris Barrus), Thursday, 20 October 2005 18:49 (twenty years ago)
― Stuh-du-du-du-du-du-du-denka (jingleberries), Thursday, 20 October 2005 19:26 (twenty years ago)
Be that as they may, I have never seen one sing, despite tipping. I mean how much of a tip do they need to sing, I just usually throw the $1 or $.75 change I get in there. And no singing.
― Allyzay knows a little German (allyzay), Thursday, 20 October 2005 19:31 (twenty years ago)
― Eisbär (llamasfur), Thursday, 20 October 2005 19:33 (twenty years ago)
― Allyzay knows a little German (allyzay), Thursday, 20 October 2005 19:34 (twenty years ago)
the whole fucking block! it is nauseating. so much sugar! BLECH
― kyle (akmonday), Thursday, 20 October 2005 19:35 (twenty years ago)
The last time I ate ice cream at Cold Stone I got DEATHLY ILL. But I preceeding the ice cream with Chinese food from a questionable buffet so I'm not sure which of those two restaurants carried the bacteria. I have not eaten at Cold Stone or a Chinese buffet since, however.
There's a Marble Slab in Chicago, but the name is too morgue-esque for me. I hear that Margie's Candies is the place to go for good ice cream 'round these parts but I have yet to go.
― pullapartgirl (pullapartgirl), Thursday, 20 October 2005 20:04 (twenty years ago)
Maybe someone took the tip jar one day when they sang, and the staff and store manager learned their lesson.
― iDonut B4 x86 (donut), Thursday, 20 October 2005 20:59 (twenty years ago)
― iDonut B4 x86 (donut), Thursday, 20 October 2005 21:00 (twenty years ago)
― fortunate hazel (f. hazel), Thursday, 20 October 2005 21:13 (twenty years ago)
― Good ol' Jim "JR" Ross, Thursday, 20 October 2005 21:23 (twenty years ago)
― walter kranz (walterkranz), Thursday, 20 October 2005 21:29 (twenty years ago)
― emilys. (emilys.), Thursday, 20 October 2005 22:16 (twenty years ago)
― fortunate hazel (f. hazel), Thursday, 20 October 2005 22:44 (twenty years ago)
― j blount (papa la bas), Thursday, 20 October 2005 22:47 (twenty years ago)
― geoff (gcannon), Thursday, 20 October 2005 23:39 (twenty years ago)
― disco violence (disco violence), Friday, 21 October 2005 00:25 (twenty years ago)
I went to a Cold Stone in DC, I always try to get the weirdest flavor, so I got licorice ice cream & they put raspberries in it. It was pretty good but how do people eat those massive servings of that stuff? I had the smallest size and could only finish half, I put the rest in the freezer for the next day.. too sweet.
― dar1a g (daria g), Friday, 21 October 2005 00:35 (twenty years ago)
If they do, good. If not, they go to hell and tell 'em the lactose intolerant sent 'em.
― King Money, Friday, 21 October 2005 01:05 (twenty years ago)
― M. V. (M.V.), Friday, 21 October 2005 02:38 (twenty years ago)
― Hurting (Hurting), Friday, 21 October 2005 02:43 (twenty years ago)
― luna (luna.c), Friday, 21 October 2005 02:57 (twenty years ago)
― Matos-Webster Dictionary (M Matos), Friday, 21 October 2005 03:00 (twenty years ago)
― Hurting (Hurting), Friday, 21 October 2005 03:05 (twenty years ago)
― luna (luna.c), Friday, 21 October 2005 03:08 (twenty years ago)
― Hurting (Hurting), Friday, 21 October 2005 03:09 (twenty years ago)
― Eisbär (llamasfur), Friday, 21 October 2005 03:24 (twenty years ago)
― Hurting (Hurting), Friday, 21 October 2005 03:26 (twenty years ago)
Defend the Indefensible: Theme Restaurants
― Hurting (Hurting), Friday, 21 October 2005 03:27 (twenty years ago)
― Eisbär (llamasfur), Friday, 21 October 2005 03:33 (twenty years ago)
― oops (Oops), Friday, 21 October 2005 03:36 (twenty years ago)
― luna (luna.c), Friday, 21 October 2005 03:37 (twenty years ago)
The other top attraction was the balloon lady who would blow up weiner ballons from a valve projecting out just below her navel and do it with the straightest poker face I ever saw.
Back to Cold Stone, the idea seemed way more appealing than the actual experience. Years ago, I went to the one in Northridge in like, omigod, the Valley! Having worked in shitty service industry jobs as a yoof, I tip generously. However, I regretted doing so at CS because that singing makes me cringe. Yeah, as someone commented earlier, it is so terribly servile. I'd tip them NOT to sing.
The last time I ate there was in Dec. 2001. I remember because it was fucking freezing (for L.A.), and my friend thought I was mad for wanting to eat ice cream in the winter. I recall enjoying it despite the cold weather and feeling a bit sick over the overly sticky sweetness of it. I ate some kind of caramel nutty thing in a waffle dish.
When I'm at that location, I usually plump for Jamba Juice over CS (they are right next to each other) because slightly pricey freshly squeezed carrot juice makes me feel better than an overpriced dish of so-so ice-cream delivered by servile servers.
I have a relative who lost his job when a high-profile scandal-ridden company based in Shrub's state went bust. Now he operates a CS franchise. I don't know if there is any singing at his store. I hope not.
― Melinda Mess-injure, Friday, 21 October 2005 04:23 (twenty years ago)
there used to be one (two? i forget) in manhattan. it was AWESOME. i miss it so.
― katrina vanden roffle (Jody Beth Rosen), Friday, 21 October 2005 04:39 (twenty years ago)
― katrina vanden roffle (Jody Beth Rosen), Friday, 21 October 2005 04:43 (twenty years ago)
― gunther heartymeal (keckles), Friday, 21 October 2005 04:53 (twenty years ago)
White Mountain Creamery in Brighton.
― bingo (Chris V), Friday, 21 October 2005 08:47 (twenty years ago)
― lauren (laurenp), Friday, 21 October 2005 10:59 (twenty years ago)
I work like two blocks away from a huge Ed Debevic's but I've never eaten there. Should I?
― n/a (Nick A.), Friday, 21 October 2005 12:57 (twenty years ago)
Best coffee shake ever!
― Elvis Telecom (Chris Barrus), Friday, 21 October 2005 17:24 (twenty years ago)
― Allyzay knows a little German (allyzay), Friday, 21 October 2005 17:33 (twenty years ago)
― Eisbär (llamasfur), Friday, 21 October 2005 17:43 (twenty years ago)
― Tape Store (Tape Store), Friday, 21 October 2005 17:47 (twenty years ago)
Anyone from the South (possibly elsewhere?) have experience with Steak 'n' Shake?
― Jessie the Monster (scarymonsterrr), Friday, 21 October 2005 18:03 (twenty years ago)
― Matos-Webster Dictionary (M Matos), Sunday, 23 October 2005 06:18 (twenty years ago)
(that said cold stone is good to satisfy a craving now and then)
― maura (maura), Sunday, 23 October 2005 20:10 (twenty years ago)
― maura (maura), Sunday, 23 October 2005 20:11 (twenty years ago)
(i know you all care)
― maura (maura), Sunday, 23 October 2005 20:24 (twenty years ago)
― geeta (geeta), Sunday, 23 October 2005 20:56 (twenty years ago)
I stick by my Hans' choice.
― Ned Raggett (Ned), Sunday, 23 October 2005 21:20 (twenty years ago)
― emilys. (emilys.), Friday, 28 October 2005 05:41 (twenty years ago)
― j blount (papa la bas), Friday, 28 October 2005 05:48 (twenty years ago)
― Eisbär (llamasfur), Friday, 28 October 2005 05:49 (twenty years ago)
― Matthew C Perpetua (inca), Friday, 28 October 2005 09:57 (twenty years ago)
― The Ghost of Black Elegance (Dan Perry), Friday, 28 October 2005 14:09 (twenty years ago)
― The Ghost of Black Elegance (Dan Perry), Friday, 28 October 2005 14:10 (twenty years ago)
― fauxhemian (fauxhemian), Friday, 28 October 2005 14:46 (twenty years ago)
xpost, emilys holla!
― jxnx (jxnx), Friday, 28 October 2005 17:22 (twenty years ago)
― emilys. (emilys.), Friday, 28 October 2005 20:58 (twenty years ago)
― emilys. (emilys.), Saturday, 29 October 2005 00:01 (twenty years ago)
― emilys. (emilys.), Saturday, 29 October 2005 00:03 (twenty years ago)
― emilys. (emilys.), Saturday, 29 October 2005 00:08 (twenty years ago)
― emilys. (emilys.), Sunday, 30 October 2005 19:20 (twenty years ago)
― iDonut B4 x86 (donut), Monday, 31 October 2005 03:32 (twenty years ago)
― emilys. (emilys.), Saturday, 26 November 2005 23:00 (twenty years ago)
Goodbye and good riddance...
The Inside ScoopCold Stone Creamery attracted a lot of franchisees thinking it was a sure thing. It wasn't.By RICHARD GIBSONEarlier in this decade, Cold Stone Creamery was one of the hottest franchises around. The super-premium ice-cream stores attracted scores of franchisees hungry for a piece of the "Ultimate Ice Cream Experience."Now many franchisees are selling their stores, overwhelmed by soaring bills and shrinking profits. Some have lost their homes, broken their retirement nest eggs or filed for bankruptcy.What happened?Even as they rave about the quality of the ice cream, numerous franchisees say the numbers in Cold Stone's business model didn't add up. The cost of running one of the shops was so steep that making a profit was daunting, especially in an economy where a $4 scoop was a pricey indulgence, they argue. They also contend the company cut their margins even further by offering two-for-one coupons and making them buy costly ingredients from a single supplier. Some argue that the company's rapid expansion crowded stores too close together -- and brought in too many inexperienced franchisees.A number of franchisees also contend the company misled them, giving them promises of profit potential that proved unrealistic or inaccurate revenue numbers from existing stores. And some say that they got little help from the company as their stores went under."They have a defective business model, there's no question about it," says Ken Gornall, a former franchisee who closed his Glendale, Ariz., store last October. He adds that the average revenue numbers he received before signing up "were quite misleading," exaggerating likely annual sales.Cold Stone says more than 100 of its stores closed last year. That's up from 60 in 2006. One list on a Cold Stone Web site recently had 303 stores for sale -- more than 20% of the company's 1,384 as of last December.This "combination of numbers is very, very high," says franchise attorney Eric Karp of Boston law firm Witmer, Karp, Warner & Ryan LLP. "I think it's a symptom of bad news and not good news." (Mr. Karp, who specializes in representing franchisee associations and individual franchisees, hasn't represented Cold Stone store owners.)Cold Stone has been franchising only since 1995, and Mr. Karp concludes that 12 years or so would be an unusually short time for first-generation franchisees to be cashing out and retiring.Chris Prasifka, Cold Stone's president, acknowledges that the "inventory of stores for sale now is higher than it has been." But a company spokeswoman terms the for-sale number "at par with industry expectations," given "the economically challenging times." She adds that about 230 of those listed for sale are stores in operation; the rest are "awards" to develop future stores.The company also contests the franchisees' charges. Cold Stone insists it doesn't provide profit potential to prospective franchisees. It also says the revenue figures it gave for existing stores were based on franchisee reports.Costs, meanwhile, "will depend on how well a store is operated," Mr. Prasifka says. Cold Stone says it uses a one-stop distributor to ensure efficiency, quality and economies of scale. It adds that franchisees can buy ingredients elsewhere at lower prices if the product is identical. Cold Stone says it won't distribute national two-for-one coupons this year, after franchisee complaints.And the company says that it's selective about adding franchisees, typically approving about 2% of applicants. As for their chances of succeeding, Mr. Prasifka asserts that "it's no different from any other business. You've got to work it." He adds, "It does take a year or two to understand the business."Overall, Mr. Prasifka says, "We want all franchisees to succeed. However, minimal restaurant experience, a lack of desire to do local-store marketing or the inability to be operationally excellent can all contribute to a franchisee's inability to succeed."Cold Stone was a stand-alone brand for 19 years before being acquired by fast-food franchiser Kahala Corp. last year. Other Kahala brands include Blimpie sandwiches and TacoTime Mexican food. Kahala's plans call for slowing Cold Stone's expansion, reducing new-store construction costs and finding ways to grow average annual store sales to about $500,000 from about $360,000 now.For many franchisees, the new ownership comes too late. Formerly an independent real-estate agent, Mr. Gornall signed up for a Cold Stone franchise in June 2004. "The stores seemed busy all the time. You assume that 'busy' equates to profitability," he says.Before buying, Mr. Gornall called half a dozen franchisees. "No one said, 'This is a bad deal,' " he remembers. But it soon became clear that something was amiss. Mr. Gornall already faced high overhead such as a $3,700-a-month lease, he says. Then, he says, the company squeezed his margins further by mandating that he buy what he considered expensive ingredients, in larger quantities than he needed. Mr. Gornall adds that the company's promotional couponing shrank his profits.Along the way, he says, he didn't get much help, either from Cold Stone or the area developer -- a company representative assigned to sell franchises in the area and monitor the franchisees. The area developer, Sean Brown, visited his store only once, Mr. Gornall recalls, and didn't have any good ideas for boosting sales.Mr. Gornall and his wife borrowed on their personal credit cards to pay the store's bills. But after their losses exceeded $100,000 last fall, they gave up and closed their store. They lost their house and are filing for bankruptcy. "It's been pretty devastating," he says.Still, "I share some responsibilities" for failing, Mr. Gornall adds. "Maybe I should have closed sooner, but I kept on thinking things would be better."The company wouldn't comment directly on the Gornalls' case. But Mr. Prasifka says, "When a franchisee asks for support, we make it a priority to get someone from our team to visit them, discuss their situation and get to the root cause."He says if franchisees aren't satisfied with the support they receive from their area developer, there are "multiple resources," including an ombudsman, available. But he acknowledges that "during tough times, we will have some franchisees who will struggle."The company didn't comment on Mr. Gornall's complaints about Mr. Brown, which were echoed by several other ex-franchisees. Cold Stone terminated Mr. Brown in January 2007 after he "habitually failed to pay royalties, rent, advertising and other amounts" on Cold Stone stores he owned, according to a company document in a tax-levy dispute with the government in U.S. District Court in Houston. The dispute arose over who should pay income and employment taxes owed on Mr. Brown's stores. The government looked to Cold Stone, but the company argued that Cold Stone didn't have an interest in Mr. Brown's properties at the time the lien arose. Mr. Brown declined to comment.Citing surveys of franchisees, Mr. Prasifka says that overall "they're very satisfied with their area developers," whom he calls "world class." He says three of the two dozen or so have left the system in the past two years.Some franchisees argue that the chain expanded too rapidly in its early years. "They did overbuild across the country, no question about it," says Michael Goldman, a Northern California franchisee with seven stores and a seat on Cold Stone's National Advisory Board, a group of franchisees who meet to discuss the business and give franchisee feedback to management.The rapid growth meant new stores were frequently close to old ones, cannibalizing sales, Mr. Goldman argues. "I'm sure there are sites that should never have been picked and franchisees that should never have been picked" because of their lack of experience, he says.But while many failed Cold Stone franchisees were new to franchising, experienced franchisees also have lost money. "This was not our first rodeo," says Deborah Lickteig, whose family had operated KFC chicken outlets in Arizona and New Mexico."We worked it real hard for a year," she says. But she and her husband sold their store in June 2006 after weekly sales at the San Antonio outlet fell several thousand dollars short of what she calls "skewed" pro-forma figures from the company. A glut of Cold Stone stores in the area, high food costs and the buy-one, get-one-free coupons made things worse, she says. Cold Stone wouldn't comment directly on the Lickteigs.Former Florida franchisee Cecil Rolle has become more nettlesome to Cold Stone than most. After the company terminated him last year, it alleged in a Florida circuit court action that he had been caught removing equipment from one of his three Florida stores in the middle of the night. The company also filed suit in federal district court in Tallahassee to recover what it said are substantial sums he owes.Mr. Rolle acknowledges seeking to remove equipment and withholding payments. But he and his wife have countersued, contending among other things that they were misled when told they would make "right around a 20% profit" on a mall store they bought. Cold Stone wouldn't comment on Mr. Rolle's allegations, but in a recent email to franchisees, a Cold Stone attorney sought to counter what he termed "Mr. Rolle's inaccurate and misleading attacks against us."Mr. Rolle is trying to organize other franchisees for a possible class-action suit seeking some remedy from Cold Stone and Kahala. He spends much of his days at his Gainesville, Fla., home emailing with disillusioned former and current franchisees. "I feel like I'm doing something good," he says. And last month, Mr. Rolle opened an ice-cream shop in Tallahassee -- on the site of a former Cold Stone store.—Mr. Gibson is a special writer for Dow Jones Newswires in Des Moines, Iowa.
Now many franchisees are selling their stores, overwhelmed by soaring bills and shrinking profits. Some have lost their homes, broken their retirement nest eggs or filed for bankruptcy.
What happened?
Even as they rave about the quality of the ice cream, numerous franchisees say the numbers in Cold Stone's business model didn't add up. The cost of running one of the shops was so steep that making a profit was daunting, especially in an economy where a $4 scoop was a pricey indulgence, they argue. They also contend the company cut their margins even further by offering two-for-one coupons and making them buy costly ingredients from a single supplier. Some argue that the company's rapid expansion crowded stores too close together -- and brought in too many inexperienced franchisees.
A number of franchisees also contend the company misled them, giving them promises of profit potential that proved unrealistic or inaccurate revenue numbers from existing stores. And some say that they got little help from the company as their stores went under.
"They have a defective business model, there's no question about it," says Ken Gornall, a former franchisee who closed his Glendale, Ariz., store last October. He adds that the average revenue numbers he received before signing up "were quite misleading," exaggerating likely annual sales.
Cold Stone says more than 100 of its stores closed last year. That's up from 60 in 2006. One list on a Cold Stone Web site recently had 303 stores for sale -- more than 20% of the company's 1,384 as of last December.
This "combination of numbers is very, very high," says franchise attorney Eric Karp of Boston law firm Witmer, Karp, Warner & Ryan LLP. "I think it's a symptom of bad news and not good news." (Mr. Karp, who specializes in representing franchisee associations and individual franchisees, hasn't represented Cold Stone store owners.)
Cold Stone has been franchising only since 1995, and Mr. Karp concludes that 12 years or so would be an unusually short time for first-generation franchisees to be cashing out and retiring.
Chris Prasifka, Cold Stone's president, acknowledges that the "inventory of stores for sale now is higher than it has been." But a company spokeswoman terms the for-sale number "at par with industry expectations," given "the economically challenging times." She adds that about 230 of those listed for sale are stores in operation; the rest are "awards" to develop future stores.
The company also contests the franchisees' charges. Cold Stone insists it doesn't provide profit potential to prospective franchisees. It also says the revenue figures it gave for existing stores were based on franchisee reports.
Costs, meanwhile, "will depend on how well a store is operated," Mr. Prasifka says. Cold Stone says it uses a one-stop distributor to ensure efficiency, quality and economies of scale. It adds that franchisees can buy ingredients elsewhere at lower prices if the product is identical. Cold Stone says it won't distribute national two-for-one coupons this year, after franchisee complaints.
And the company says that it's selective about adding franchisees, typically approving about 2% of applicants. As for their chances of succeeding, Mr. Prasifka asserts that "it's no different from any other business. You've got to work it." He adds, "It does take a year or two to understand the business."
Overall, Mr. Prasifka says, "We want all franchisees to succeed. However, minimal restaurant experience, a lack of desire to do local-store marketing or the inability to be operationally excellent can all contribute to a franchisee's inability to succeed."
Cold Stone was a stand-alone brand for 19 years before being acquired by fast-food franchiser Kahala Corp. last year. Other Kahala brands include Blimpie sandwiches and TacoTime Mexican food. Kahala's plans call for slowing Cold Stone's expansion, reducing new-store construction costs and finding ways to grow average annual store sales to about $500,000 from about $360,000 now.
For many franchisees, the new ownership comes too late. Formerly an independent real-estate agent, Mr. Gornall signed up for a Cold Stone franchise in June 2004. "The stores seemed busy all the time. You assume that 'busy' equates to profitability," he says.
Before buying, Mr. Gornall called half a dozen franchisees. "No one said, 'This is a bad deal,' " he remembers. But it soon became clear that something was amiss. Mr. Gornall already faced high overhead such as a $3,700-a-month lease, he says. Then, he says, the company squeezed his margins further by mandating that he buy what he considered expensive ingredients, in larger quantities than he needed. Mr. Gornall adds that the company's promotional couponing shrank his profits.
Along the way, he says, he didn't get much help, either from Cold Stone or the area developer -- a company representative assigned to sell franchises in the area and monitor the franchisees. The area developer, Sean Brown, visited his store only once, Mr. Gornall recalls, and didn't have any good ideas for boosting sales.
Mr. Gornall and his wife borrowed on their personal credit cards to pay the store's bills. But after their losses exceeded $100,000 last fall, they gave up and closed their store. They lost their house and are filing for bankruptcy. "It's been pretty devastating," he says.
Still, "I share some responsibilities" for failing, Mr. Gornall adds. "Maybe I should have closed sooner, but I kept on thinking things would be better."
The company wouldn't comment directly on the Gornalls' case. But Mr. Prasifka says, "When a franchisee asks for support, we make it a priority to get someone from our team to visit them, discuss their situation and get to the root cause."
He says if franchisees aren't satisfied with the support they receive from their area developer, there are "multiple resources," including an ombudsman, available. But he acknowledges that "during tough times, we will have some franchisees who will struggle."
The company didn't comment on Mr. Gornall's complaints about Mr. Brown, which were echoed by several other ex-franchisees. Cold Stone terminated Mr. Brown in January 2007 after he "habitually failed to pay royalties, rent, advertising and other amounts" on Cold Stone stores he owned, according to a company document in a tax-levy dispute with the government in U.S. District Court in Houston. The dispute arose over who should pay income and employment taxes owed on Mr. Brown's stores. The government looked to Cold Stone, but the company argued that Cold Stone didn't have an interest in Mr. Brown's properties at the time the lien arose. Mr. Brown declined to comment.
Citing surveys of franchisees, Mr. Prasifka says that overall "they're very satisfied with their area developers," whom he calls "world class." He says three of the two dozen or so have left the system in the past two years.
Some franchisees argue that the chain expanded too rapidly in its early years. "They did overbuild across the country, no question about it," says Michael Goldman, a Northern California franchisee with seven stores and a seat on Cold Stone's National Advisory Board, a group of franchisees who meet to discuss the business and give franchisee feedback to management.
The rapid growth meant new stores were frequently close to old ones, cannibalizing sales, Mr. Goldman argues. "I'm sure there are sites that should never have been picked and franchisees that should never have been picked" because of their lack of experience, he says.
But while many failed Cold Stone franchisees were new to franchising, experienced franchisees also have lost money. "This was not our first rodeo," says Deborah Lickteig, whose family had operated KFC chicken outlets in Arizona and New Mexico.
"We worked it real hard for a year," she says. But she and her husband sold their store in June 2006 after weekly sales at the San Antonio outlet fell several thousand dollars short of what she calls "skewed" pro-forma figures from the company. A glut of Cold Stone stores in the area, high food costs and the buy-one, get-one-free coupons made things worse, she says. Cold Stone wouldn't comment directly on the Lickteigs.
Former Florida franchisee Cecil Rolle has become more nettlesome to Cold Stone than most. After the company terminated him last year, it alleged in a Florida circuit court action that he had been caught removing equipment from one of his three Florida stores in the middle of the night. The company also filed suit in federal district court in Tallahassee to recover what it said are substantial sums he owes.
Mr. Rolle acknowledges seeking to remove equipment and withholding payments. But he and his wife have countersued, contending among other things that they were misled when told they would make "right around a 20% profit" on a mall store they bought. Cold Stone wouldn't comment on Mr. Rolle's allegations, but in a recent email to franchisees, a Cold Stone attorney sought to counter what he termed "Mr. Rolle's inaccurate and misleading attacks against us."
Mr. Rolle is trying to organize other franchisees for a possible class-action suit seeking some remedy from Cold Stone and Kahala. He spends much of his days at his Gainesville, Fla., home emailing with disillusioned former and current franchisees. "I feel like I'm doing something good," he says. And last month, Mr. Rolle opened an ice-cream shop in Tallahassee -- on the site of a former Cold Stone store.
—Mr. Gibson is a special writer for Dow Jones Newswires in Des Moines, Iowa.
― Chris Barrus (Elvis Telecom), Tuesday, 30 December 2008 21:28 (seventeen years ago)
they do have really great ice cream - the prob is that ppl fuck it up by putting 5 million things inside
― jordan s (J0rdan S.), Tuesday, 30 December 2008 21:31 (seventeen years ago)
the ice cream is really not very special! the way they scoop, fold, spindle, and otherwise manhandle the ice cream actually makes it taste better, from what i understand.
― marlon brando baby tiger (elmo argonaut), Tuesday, 30 December 2008 21:40 (seventeen years ago)
why because it breaks down large ice crystals in the ice cream and it tastes creamier as a result?? i guess.
science!
― marlon brando baby tiger (elmo argonaut), Tuesday, 30 December 2008 21:42 (seventeen years ago)
No more CSC? YAAAAAAAAAAAAY
I'm being an asshole today. sorry.
― soyrizo headache (Mackro Mackro), Tuesday, 30 December 2008 21:43 (seventeen years ago)
It's almost too bad Cold Stone never had a chance to get into a more dormant, skeezy phase like Sbarro or Dairy Queen.
― soyrizo headache (Mackro Mackro), Tuesday, 30 December 2008 21:44 (seventeen years ago)
their ice cream is like frozen butter wtf
― ill c u n may Schwwwwwww (harbl), Tuesday, 30 December 2008 21:45 (seventeen years ago)
What happened?Even as they rave about the quality of the ice cream
Even as they rave about the quality of the ice cream
see this is where you can justifiably tl;dr the article.
― soyrizo headache (Mackro Mackro), Tuesday, 30 December 2008 21:47 (seventeen years ago)
i've never heard any singing in cold stone (then again, i've been there maybe a total of four times).
Suggest Ban Permalink― astor riviera (Jody Beth Rosen), Thursday, October 20, 2005 10:52 AM Bookmark Suggest Ban Permalink
― The Reverend, Tuesday, 30 December 2008 22:50 (seventeen years ago)
They were probably kind of housing-boom dependent. There seemed to be so many of them in McMansion nu-suburbs.
― ichard Thompson (Hurting 2), Tuesday, 30 December 2008 23:11 (seventeen years ago)
They were way too $$$$ for mediocre stuff and I always felt so bad for those poor employees.
Their ubiquity was/is pretty weird tho, that's pretty wicked to run such a manipulative franchising racket.
― Abbott of the Trapezoid Monks (Abbott), Tuesday, 30 December 2008 23:14 (seventeen years ago)
Jordan offtm. The tons of topping are fun, and are the only way to justify eating such shitty ice cr?m
― Whiney G. Weingarten, Wednesday, 31 December 2008 00:53 (seventeen years ago)
otm like hotcakes
― The Reverend, Wednesday, 31 December 2008 01:10 (seventeen years ago)
I tried the stuff for the first time about a year ago just to see what all the fuss was about. I didn't go back. Ice cream is my favorite dessert, CSC was ok, but nothing all that special. I will stick to B&J or... gasp! pedestrian Baskin Robbins.
I prefer cheese as dessert - I like savory more than sweet.
― Wiggy Woo, Wednesday, 31 December 2008 01:20 (seventeen years ago)
they sing if u tip them
― ⠾⠣⠙⠢⠉⠽⠪ (cozwn), Wednesday, 31 December 2008 01:43 (seventeen years ago)
pretttttttttttttttttttttttty annoying
― ⠾⠣⠙⠢⠉⠽⠪ (cozwn), Wednesday, 31 December 2008 01:44 (seventeen years ago)
the last time i went to cold stone was on a hot day on a whim. after like five minutes of staring at a million flavors that all looked about as refreshing as guzzling a two-liter of crisco, i bought a bottled water.
― (The Other) J.D. (J.D.), Wednesday, 31 December 2008 02:13 (seventeen years ago)
The consumer experience at Cold Stone was so irritating. All of their stores were chronically understaffed and once you add in the time it took for the staff to custom blend orders and sing their stupid songs you've burned up 15 minutes of wait time - more if there's any kind of line. I always suspected that the company was badly managed - how else could a ice cream shop go bust mid-summer three blocks away from the beach? (Belmont Shore, Long Beach)
I suppose I'd care if I lived in an exurb when it was the only game in town, but I've got Dr. Bob's, Fosselman's, McConnells and three different gelato places all nearby. Good riddance indeed.
― Chris Barrus (Elvis Telecom), Wednesday, 31 December 2008 03:04 (seventeen years ago)
waiting in line at two of their locations in provo, ut might just be the most irritating thing i've ever done. all for a few sweet cream + blackberry shakes when i was in college (they were pretty good).
― Matt P. (Matt P), Wednesday, 31 December 2008 03:10 (seventeen years ago)
Microwave a pint of B&Js for 30 seconds and you'll be surprised at how much better it tastes too.
― яσσʍ♭ⱥȵℹҁᔔ ᴗȵȴℹʍℹȶ∊∂ (libcrypt), Wednesday, 31 December 2008 03:23 (seventeen years ago)
was pretty underwhelmed by my one experience of B&J's. chocolate sludge milkshake from CSC was pretty amazing, though.
― just1n3, Wednesday, 31 December 2008 03:31 (seventeen years ago)
Ice cream tastes a lot better when it's melted a bit. The CSC hurry up that process in a unique way, perhaps, but it doesn't mean that the underlying product is special.
― яσσʍ♭ⱥȵℹҁᔔ ᴗȵȴℹʍℹȶ∊∂ (libcrypt), Wednesday, 31 December 2008 03:34 (seventeen years ago)
yes i can't eat ice cream straight outta the freezer - it's got melt a little. it should also have peanuts in it.
― just1n3, Wednesday, 31 December 2008 03:35 (seventeen years ago)
Heh, had a similar experience as JasonD way, way upthread. Only it was Chipotle that proceeded CSC. And also it happened like five times.
We don't have much in terms of ice cream options around here. I dunno, I like it, you can avoid the jingles (this isn't 100% obv) by saying you'll only tip if they DON'T sing, and the ice cream is pretty alright.
― that karate douche (╓abies), Wednesday, 31 December 2008 03:56 (seventeen years ago)