Wednesday, July 2, 2008

Like It, Love It, HATE IT!


I told yall this stuff was overrated, and now I got entrepreneurs to back me. A large number of people who bought their own Cold Stone Creamery franchise, are selling their store, filing for bankruptcy, or going bankrupt trying to keep it open. Word is the business model they got when they bought their franchise, presented numbers that didn't add up in the end.

The cost of running a shop made it hard to see a profit, especially with a "Like It" scoop costing as much as a gallon of gas. Franchisees also said that the company made it harder on them by requiring them to buy ingredients from a costly single supplier, instead of allowing them the freedom to look for reasonable prices somewhere else. The company also put out "Buy One Get One Free" coupons, that hurt profits for even the most optimistic franchise owners. Some people even said that the company gave them inaccurate revenue numbers from existing stores.

Last year 100 stores closed, and according to a Cold Stone website, 303 were up for sale (more than 20% of the amount of existing stores) as of the beginning of this year. Some franchisees say the company expanded too much, and made a once unique, premium product, seem common.

From the first time I walked in a Cold Stone, I was disgusted. Their prices were ridiculous, and then they told me they didn't make orange sherbert (my fav), instead offering me tangerine sorbet. Needless to say I cussed and walked out, but I knew that day that they were up to no good.

-Ant

1 comment:

  1. I dont like coldstone either. It doesnt make sense y not already have the ice cream mixed instead of trying to do it by hand...you pay for the show I guess

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