Cold Stone Creamery

Just read that the folks who bought in and own stores are going broke. Even at top dollar they can not make it work. That is a shame---people have invested all to get into the business and now
disaster.

I guess that's a good reason not to "put all your eggs in one basket", as grandma used to say!
But of course, it's still a shame

ellen

p.s. Where did you see the article?

There are six or seven of them around here, including one that just opened in the town where I live. As I understand it employees mix up a bunch of different flavors on a piece of marble or something when you order. Sounds terrible to me.

Here you go. This appeared today on MSNBC. Quiznos is the same kind of operation......a business plan that doesn't work and gouging of franchisees by corporate via kickbacks from mandated suppliers.

http://articles.moneycentral.msn.com/Investing/Extra/ColdStoneFranchiseesFeelChill.aspx

Thanks for the link, kensandyeggo...
There was one key sentence that really stood out in my mind; and that is what that one francisee said "Hey, the stores always looked so busy, so I equated BUSY with PROFITS"

Ellen, I guess it is pretty common to equate busy with profits.
"How could they go broke, they were always so busy" Sometimes busy
equates to running around in circles. Sometimes it means more help
is needed and therefore more overhead, etc.

I guess the article is right when it stated there was a lack of a
good business plan to start with.

The trick is to make a lot of money doing very little and enjoying
life while you are doing nothing. That is a perfect business plan.

I can recall a couple of 'Ice Cream Threads'on this site that hit both Cold-Stone and Marble-Slab Stores as selling an inferior product at inflated prices. The major complaint by the posters seemed to center on the ice-cream being very 'gummy' and overly sweet.

If you add to that an investor-exploiting Franchise agreement and a real question about the health and sanitary conditions in the 'slab' serving situation, it would seem to be a poor choice for customers and investors alike.

Al, I found the ice cream average at best, and priced fairly high. Not a good combination.

They seem to have saturated the market as well, as I have read complaints about the main company selling too many stores in a small area.

I think that there was a time when the objective of franchise operations was to provide a good business model that would last for years, and provide the franchise seller with long term income selling supplies to franchisees. Now it seems they sell as many stores as possible, with little regard for the future. A sad situation for people who don't do their homework and lose their savings, but as they say...buyer beware!

I went to the new Marble Slab downtown last evening. They charged me $11.50 for two small waffle cones. The ice cream was just OK. I got vanilla and my friend got raspberry.

I could have bought a gallon of good local Mayfield's ice cream for that. No more for me.

Paul E. Smith
Knoxville, TN

quote:

Originally posted by Sundancer7

I went to the new Marble Slab downtown last evening. They charged me $11.50 for two small waffle cones. The ice cream was just OK. I got vanilla and my friend got raspberry.

I could have bought a gallon of good local Mayfield's ice cream for that. No more for me.

Paul E. Smith
Knoxville, TN

We have a Mayfield dairy here in Braselton. They just raised the prices for the cones at the in-house store to $1.50 for a very large scoop. It used to be a buck, but still is a heck of a deal. Excellent ice cream too! pb

Hola!

To me, ice cream shops are one of the worst ripoffs ever. Baskin*Robbins included. $4 dollars a scoop? That's crazy.

Let's get real. Ice cream is ice cream. There is really no difference in quality of the product if the product was made correctly with fresh ingredients. Milk, cream, sugar, flavorings. Not rocket science and not that expensive. Vanilla, Chocolate, strawberry, or sherbert on a stick is cheap.

I am an American living in China and I went to Shanghai where there was a "Cold Stone Creamery" nearby. I stuck my head in and saw the inflated prices and giggled at all the foreigners eating it. There is a Haagan Daas and a Dairy Queen here, but they are a ripoff. If I want ice cream, I just go to the store and buy one on a stick for 50 cents, or KFC or McD's for a soft serve with topping for less than $1 USD.

I have an idea, a Japanese Ice Cream shop called "Kobe Ice-Cream", where the ice cream is made from the cream of the cattle that is Kobe steaks, luxurious beasts who ear golden grain and drink honey all day and gets backrubs in the evenings by a gaggle of Japanese schoolgirls. The stupid and the rich would eat it up.

Senor

Steve Herrell, as I understand it was the innovator of the "smoosh-in" he had stores around Boston, sold them, and from what I've heard the Steve's stores have declined.

He moved to Northampton, Massachusetts, opened "Herrell's" makes his own (delicious) ice cream and does smooch-ins and is very popular and, in view od the fact he's been there for 20+ years, I think he is doing just fine.

An aside, a few years ago, some genius decided to put a Cold Stone on a store front on the same block as Herrell's (A) chains never do well in downtown Northampton and (B) CS was no exception ... in rrecord time at that.

I could never understand the appeal of Cold Stone, and they started springing up everywhere, despite modest reception from those I knew who tried it. I mean, ice cream isn't a niche thing, considering how many menus you can find it in some form, but if you're going to do what Cold Stone does, have an ice cream that knocks the socks off its patrons, please!

I think the move to keep "blank canvas" flavors, like mint w/o chocolate chip, so that those standards can be made at an added cost is their undoing...simply because the texture is tampered. Interesting theory, not exactly good in practice...

In California it's also the Triple Net landlords with their yearly cost of living increases that are ruining businesses.

It's hard enough selling your wares whether good or bad.

I have a Coldstone directly across the street from where I work.

I get into my car and drive to the nearest BR if I need an ice cream fix.

Yes I remember paying 15¢ a scoop, but I love their quality and flavors. I can always count on my favorite flavors being consistant.

quote:

Originally posted by mar52

Yes I remember paying 15¢ a scoop, but I love their quality and flavors. I can always count on my favorite flavors being consistant.

You must be a young'un. I remember riding my bike to Ball's Ice Cream where you could get a single big dip for a nickel or a double dip for a dime.

Ha!

31 Flavors was premium at 15¢. A scoop at Sav-On Drugs was a nickel and their candy was 3 for a dime.

I also rode my bike to get my fix or just walked around the corner.

This franchise had bankruptcy written all over it from the beginning.

MAR 52 I do recall walking to the Sav-on. They used Carnation Ice Cream for their cones ! English Toffee was my first choice with Burgandy Cherry or Rocky Road as the second scoop! Best dime ever spent!

The candy choices became more difficult when Baby Ruth started making the quarter-pounder! Do I get 3 small B R Bars or Mars Bars for a dime or spend the 'Big Bucks' and lay out 15 cents for two of those monster quarter-pound Baby Ruths or Butterfingers??

Our Sav-on was next to the Park Theater, so purchasing a double features worth of snacks was a major part of the Saturday activities!

In more recent years the Thrifty drug Store chain...before Rite-Aid bought them out, had counter service for ice cream. Many still do that. The prices have increased tenfold, but the quality of the cones we have enjoyed on roadtrips seems to still be pretty good. Our favorite Thrifty flavor has always been"Apricot Mango" it is so refreshing on a hot day!!

I had a Rite-Aid double cone last night. $1.69 did it.

They still use the cylindrical scoop for their servings.

I miss Thriftys and Sav-On!

I have been there twice on the request of someone else. The French Toast flavor was good, but the price was too much & they kept wanting to know what I wanted added to it. I only add things to my food if I need to cover up the taste, so I didn't want anything & was treated like a leper. "...They're free...you can choose up to 3..." It blew the kid's mind that all I wanted was ice cream. Finally I relented & let them add coconut. Like I said, it was good, but so not worth the price.

I have a gelato shop 4-5 blocks from me. I'd much rather go get something there than go to CSC.

quote:

Originally posted by mar52

I had a Rite-Aid double cone last night. $1.69 did it.
They still use the cylindrical scoop for their servings.
I miss Thriftys and Sav-On!

YES, I miss Thrifty's (pre Rite-Aid). I used to occasionally go to the one in Beverly Hills on Canon Dr.
That Thrifty's was definitely the great "equalizer". I used to stand with those Beverly Hills ladies dressed in their finest tennis and jogging outfits. But we were all there for that 69 cents ice cream

Ellen, I've been there. Can you believe how those women dress to go shopping?

The 99¢ Stores wants a location in Beverly Hills, but the city won't let them. I'd love to see it happen. What would those women wear?

Are there Rite-Aids without the Thrifty Ice Cream counter ?

Every one I've been to has it.

It was the only feature of Thrifty especially at 10/15/20 cents for the three sizes.

And it's still the only feature at Rite-Aid.

I prefered F.W.Woolworth's and W.T. Grant for cheap stuff.

Or even S.S. Kresge even though I don't remember them. What do you miss about Thrifty ?

I miss Grants the most. I used to watch the parakeets for what seemed like hours.

My W.T. Grants was in Culver City.

Which reminded me of Curry's Ice Cream. The served ice cream in cones and the scoops looked like cone heads.

quote:

Originally posted by mar52

Ellen,

The 99¢ Stores wants a location in Beverly Hills, but the city won't let them. I'd love to see it happen. What would those women wear?

Too funny, mar52! You gave me a good Sunday morning chuckle!

I'm sure they would still be decked out in their finest, and of course their hair and makeup would be perfect, too.