Cold Stone Creamery
Encyclopedia
Cold Stone Creamery is an American
United States
The United States of America is a federal constitutional republic comprising fifty states and a federal district...

-based ice cream parlor
Ice cream parlor
Ice cream parlors are places that sell ice cream and frozen yogurt to consumers. Ice cream is normally sold in two varieties in these stores: soft-serve ice cream , and hard-packed, which has an assortment of flavors, as well as frozen yogurt, which is a low-fat alternative and tastes slightly...

 chain. The company, based in Scottsdale, Arizona, is owned and operated by Kahala Franchising, L.L.C. The company's main product is premium ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...

, or ice cream made with approximately 12-14% butterfat
Butterfat
Butterfat or milkfat is the fatty portion of milk. Milk and cream are often sold according to the amount of butterfat they contain.- Composition :The fatty acids of butterfat are typically composed as follows :...

, that is made on location and customized to order for customers at the time of purchase. Cold Stone has also expanded its menu with other ice cream related products such as ice cream cakes, pies, cookie sandwiches, smoothies, shakes and iced & blended coffee.

Since 2008, the company has been co-branding its locations with other chains in an attempt to increase its presence outside the United States and open up its business model from the traditional summertime season to a more rounded, year round one.

History

The company was co-founded in 1988 by Susan and Donald Sutherland, who sought ice cream
Ice cream
Ice cream is a frozen dessert usually made from dairy products, such as milk and cream, and often combined with fruits or other ingredients and flavours. Most varieties contain sugar, although some are made with other sweeteners...

 that was neither hard-packed nor soft-serve. Publicity materials describe it as "smooth and creamy super-premium ice cream." Cold Stone Creamery opened its first store that year in Tempe, Arizona
Tempe, Arizona
Tempe is a city in Maricopa County, Arizona, USA, with the Census Bureau reporting a 2010 population of 161,719. The city is named after the Vale of Tempe in Greece. Tempe is located in the East Valley section of metropolitan Phoenix; it is bordered by Phoenix and Guadalupe on the west, Scottsdale...

. While the company was originally headquartered in Tempe, in 1997 the company moved its headquarters to Scottsdale, Arizona. The company moved to its current headquarters in Scottsdale in 2005. The original Cold Stone Creamery, store #0001, is still in operation today at the original location in Tempe.

The company's business model is the same as the one originally created by Steve's Ice Cream
Steve's Ice Cream
Steve's Ice Cream was an ice-cream parlor chain which attracted media attention and long lines when owner Steve Herrell opened his first establishment at 191 Elm Street in Somerville, Massachusetts in 1973. It introduced the concept of super-premium ice cream and customized ice cream desserts using...

's founder Steve Herrell. The company uses in-store made ice cream that is combined with mix-ins, candy or other items that is folded into the ice cream to make a new flavor. Cold Stone's name comes from the frozen granite
Granite
Granite is a common and widely occurring type of intrusive, felsic, igneous rock. Granite usually has a medium- to coarse-grained texture. Occasionally some individual crystals are larger than the groundmass, in which case the texture is known as porphyritic. A granitic rock with a porphyritic...

 stone, used to mix "mix-ins": candy
Candy
Candy, specifically sugar candy, is a confection made from a concentrated solution of sugar in water, to which flavorings and colorants are added...

, nuts, or other edibles into various flavors of ice creams.

In 1995, Cold Stone Creamery opened its first franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 store in Tucson, soon followed by a store in Camarillo, California
California
California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area...

, its first out of state. Almost 1,400 franchises are in operation. Cold Stone Creamery is now the sixth-best-selling brand of ice cream in the U.S. and now operates stores in Japan
Japan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...

, Taiwan
Taiwan
Taiwan , also known, especially in the past, as Formosa , is the largest island of the same-named island group of East Asia in the western Pacific Ocean and located off the southeastern coast of mainland China. The island forms over 99% of the current territory of the Republic of China following...

, South Korea
South Korea
The Republic of Korea , , is a sovereign state in East Asia, located on the southern portion of the Korean Peninsula. It is neighbored by the People's Republic of China to the west, Japan to the east, North Korea to the north, and the East China Sea and Republic of China to the south...

, Thailand
Thailand
Thailand , officially the Kingdom of Thailand , formerly known as Siam , is a country located at the centre of the Indochina peninsula and Southeast Asia. It is bordered to the north by Burma and Laos, to the east by Laos and Cambodia, to the south by the Gulf of Thailand and Malaysia, and to the...

, Puerto Rico
Puerto Rico
Puerto Rico , officially the Commonwealth of Puerto Rico , is an unincorporated territory of the United States, located in the northeastern Caribbean, east of the Dominican Republic and west of both the United States Virgin Islands and the British Virgin Islands.Puerto Rico comprises an...

, Indonesia
Indonesia
Indonesia , officially the Republic of Indonesia , is a country in Southeast Asia and Oceania. Indonesia is an archipelago comprising approximately 13,000 islands. It has 33 provinces with over 238 million people, and is the world's fourth most populous country. Indonesia is a republic, with an...

, Guam
Guam
Guam is an organized, unincorporated territory of the United States located in the western Pacific Ocean. It is one of five U.S. territories with an established civilian government. Guam is listed as one of 16 Non-Self-Governing Territories by the Special Committee on Decolonization of the United...

, China
China
Chinese civilization may refer to:* China for more general discussion of the country.* Chinese culture* Greater China, the transnational community of ethnic Chinese.* History of China* Sinosphere, the area historically affected by Chinese culture...

, Mexico
Mexico
The United Mexican States , commonly known as Mexico , is a federal constitutional republic in North America. It is bordered on the north by the United States; on the south and west by the Pacific Ocean; on the southeast by Guatemala, Belize, and the Caribbean Sea; and on the east by the Gulf of...

, Bahrain
Bahrain
' , officially the Kingdom of Bahrain , is a small island state near the western shores of the Persian Gulf. It is ruled by the Al Khalifa royal family. The population in 2010 stood at 1,214,705, including 235,108 non-nationals. Formerly an emirate, Bahrain was declared a kingdom in 2002.Bahrain is...

, United Arab Emirates
United Arab Emirates
The United Arab Emirates, abbreviated as the UAE, or shortened to "the Emirates", is a state situated in the southeast of the Arabian Peninsula in Western Asia on the Persian Gulf, bordering Oman, and Saudi Arabia, and sharing sea borders with Iraq, Kuwait, Bahrain, Qatar, and Iran.The UAE is a...

, Kuwait
Kuwait
The State of Kuwait is a sovereign Arab state situated in the north-east of the Arabian Peninsula in Western Asia. It is bordered by Saudi Arabia to the south at Khafji, and Iraq to the north at Basra. It lies on the north-western shore of the Persian Gulf. The name Kuwait is derived from the...

, Trinidad
Trinidad
Trinidad is the larger and more populous of the two major islands and numerous landforms which make up the island nation of Trinidad and Tobago. It is the southernmost island in the Caribbean and lies just off the northeastern coast of Venezuela. With an area of it is also the fifth largest in...

 and Qatar
Qatar
Qatar , also known as the State of Qatar or locally Dawlat Qaṭar, is a sovereign Arab state, located in the Middle East, occupying the small Qatar Peninsula on the northeasterly coast of the much larger Arabian Peninsula. Its sole land border is with Saudi Arabia to the south, with the rest of its...

. Cold Stone opened their first franchise in Europe
Europe
Europe is, by convention, one of the world's seven continents. Comprising the westernmost peninsula of Eurasia, Europe is generally 'divided' from Asia to its east by the watershed divides of the Ural and Caucasus Mountains, the Ural River, the Caspian and Black Seas, and the waterways connecting...

 in 2008 in Copenhagen
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...

, Denmark
Denmark
Denmark is a Scandinavian country in Northern Europe. The countries of Denmark and Greenland, as well as the Faroe Islands, constitute the Kingdom of Denmark . It is the southernmost of the Nordic countries, southwest of Sweden and south of Norway, and bordered to the south by Germany. Denmark...

. Three more shops were later opened in other parts of the country. The company was also named the 11th fastest-growing franchise
Franchising
Franchising is the practice of using another firm's successful business model. The word 'franchise' is of anglo-French derivation - from franc- meaning free, and is used both as a noun and as a verb....

 by Entrepreneur Magazine
Entrepreneur Magazine
Entrepreneur is a publication that carries news stories about entrepreneurialism, small business management, and business opportunities. It is published by Entrepreneur Media Inc., headquartered in Irvine, California....

 in January 2006. In June 2009 the company opened up its first location in Canada
Canada
Canada is a North American country consisting of ten provinces and three territories. Located in the northern part of the continent, it extends from the Atlantic Ocean in the east to the Pacific Ocean in the west, and northward into the Arctic Ocean...

 in the city of Mississauga, Ontario
Ontario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....

. Recently a store was also opened in Price Plaza Trinidad and Tobago and is presently doing very well.

In May 2007, Cold Stone Creamery merged with Kahala Corp to form the company Kahala-Cold Stone
Kahala-Cold Stone
Kahala Corp. is a private corporation and the parent entity of Kahala Franchising, L.L.C., the franchisor of Blimpie, Cereality, Cold Stone Creamery, Frullati Cafe & Bakery, Great Steak, Johnnie’s New York Pizzeria, NRgize Lifestyle Cafe, Ranch1, Rollerz, Samurai Sam's Teriyaki Grill, Surf City...

, which collectively owns 13 brands. Doug Ducey, former president and CEO of Cold Stone Creamery, was named CEO of the new company. Kevin Blackwell, the former CEO of Kahala, became chairman of the board and chief strategist. In September 2007, Ducey announced he was leaving the company. Blackwell was named CEO.

Co-branding

The parent company of Cold Stone Creamery, Kahala, announced in February 2009 that it had reached an agreement with Canadian coffee shop chain Tim Hortons
Tim Hortons
Tim Hortons Inc. is a Canadian fast casual restaurant known for its coffee and doughnuts. It is also Canada's largest fast food service with over 3000 stores nationwide. It was founded in 1964 in Hamilton, Ontario, by Canadian hockey player Tim Horton and Jim Charade, after an initial venture in...

 to open up to 100 co-branded stores in the United States after successfully testing two locations in Rhode Island
Rhode Island
The state of Rhode Island and Providence Plantations, more commonly referred to as Rhode Island , is a state in the New England region of the United States. It is the smallest U.S. state by area...

. The strategic alliance will allow Tim Hortons to operate in more U.S locations, while allowing Cold Stone Creamery to expand into Canada. The most notable co-branded store opened in August 2009 when Tim Hortons will move into three Cold Stone Creamery locations in New York City
New York City
New York is the most populous city in the United States and the center of the New York Metropolitan Area, one of the most populous metropolitan areas in the world. New York exerts a significant impact upon global commerce, finance, media, art, fashion, research, technology, education, and...

, including its flagship Times Square location.

In June 2009, Cold Stone Creamery started testing the Canadian market by opening seven co-branded locations with Tim Hortons located in Toronto
Toronto
Toronto is the provincial capital of Ontario and the largest city in Canada. It is located in Southern Ontario on the northwestern shore of Lake Ontario. A relatively modern city, Toronto's history dates back to the late-18th century, when its land was first purchased by the British monarchy from...

, Oakville
Oakville, Ontario
Oakville is a town in Halton Region, on Lake Ontario in Southern Ontario, Canada, and is part of the Greater Toronto Area. As of the 2006 census the population was 165,613.-History:In 1793, Dundas Street was surveyed for a military road...

, Mississauga, Hamilton
Hamilton, Ontario
Hamilton is a port city in the Canadian province of Ontario. Conceived by George Hamilton when he purchased the Durand farm shortly after the War of 1812, Hamilton has become the centre of a densely populated and industrialized region at the west end of Lake Ontario known as the Golden Horseshoe...

, Pickering
Pickering, Ontario
Pickering is a city located in Southern Ontario, Canada immediately east of Toronto in Durham Region. It is part of the Greater Toronto Area, the largest metropolitan area in Canada.- Early Period :...

, Sudbury, Ontario, and Halifax, Nova Scotia. They now have locations in every Canadian province except for Newfoundland and Labrador
Newfoundland and Labrador
Newfoundland and Labrador is the easternmost province of Canada. Situated in the country's Atlantic region, it incorporates the island of Newfoundland and mainland Labrador with a combined area of . As of April 2011, the province's estimated population is 508,400...

.

The Tim Hortons venture follows on the footsteps of a similar co-branding efforts in 2007 and 2008. Cold Stone franchisees in New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...

 began partnering with Soup Kitchen International
Soup Kitchen International
Soup Kitchen International is a well-known soup restaurant at 259-A West 55th Street, near 8th Avenue, in Manhattan, New York City, run by Ali "Al" Yeganeh. It is part of the Original Soup Man chain of stores, which is also run by Yeganeh....

 to sell soup in their stores beginning in late-2007. In 2008, the company signed an agreement with the Rocky Mountain Chocolate Factory
Rocky Mountain Chocolate Factory
Rocky Mountain Chocolate Factory is an international franchisor, confectionery manufacturer and retail operator in the United States, Canada and the United Arab Emirates. The Company is based in the town of Durango located on the western slope of the Rocky Mountains in southwestern Colorado...

 to open seven locations in the Western US. The venture is designed to bring in customers on a year round basis as opposed to the seasonal draws that each company experiences. The mingling of Cold Stone and Rocky Mountain led to more than 10% increase in weekly sales in Rocky Mountain stores after co-branding.

Products

All ice cream creations are offered in three sizes: "Like It" (5 oz (141.7 g)), "Love It" (8 oz (226.8 g)), and "Gotta Have It" (12 oz (340.2 g)). There is also a kids' size (3 oz (85 g)). Also offered are shakes and smoothies, among them the Cold Stone PB&C, which was singled out by Men's Health Magazine in its list of most unhealthy American drinks for two consecutive years. All ice cream is made in house using natural ingredients and waffle cones and bowls are baked daily. Cold Stone also offers dipped waffle bowls. The company also has a line of ice cream cake
Ice cream cake
Ice cream cake is either ice cream in the shape of a cake or ice cream and cake layered together to make a single form. The idea of ice cream cake came from desserts composed of cream and cookies or cake called trifles, which first turned up in the Renaissance...

s, pies. Ice cream cupcakes and ice cream cookie sandwiches are also available, most of which are made on-site. Stores also offer the option of customizing these frozen desserts much like their ice cream creations. Most recently, Cold Stone Creamery has come out with various desserts. Ranging anywhere from hot brownies to warm churros.

Licensing

Cold Stone has entered into partnerships with other companies to promote brand name products inside its stores. The first major partnership the company entered into was with Kraft Foods
Kraft Foods
Kraft Foods Inc. is an American confectionery, food and beverage conglomerate. It markets many brands in more than 170 countries. 12 of its brands annually earn more than $1 billion worldwide: Cadbury, Jacobs, Kraft, LU, Maxwell House, Milka, Nabisco, Oscar Mayer, Philadelphia, Trident, Tang...

 for its Jell-O
Jell-O
Jell-O is a brand name belonging to U.S.-based Kraft Foods for a number of gelatin desserts, including fruit gels, puddings and no-bake cream pies. The brand's popularity has led to it being used as a generic term for gelatin dessert across the U.S. and Canada....

 brand in 2009. Cold Stone introduced a series of flavors of ice cream based on popular Jell-O pudding flavors; Chocolate, Butterscotch, Banana, and Vanilla. Because the pudding additives cause the ice cream to gel, it was recently noted that these flavors do not melt.

Externally, a 2008 licensing agreement with Jelly Belly
Jelly Belly
The Jelly Belly Candy, or simply Jelly Belly, is the maker of The Jelly Belly and other candy, formerly known as The Herman Goelitz Candy Company...

 had a line of jelly beans flavored like some of Cold Stone's most popular ice cream flavors.

Store design

In the spirit of joviality, and to encourage customers to give tips, Cold Stone instructs employees to sing a Cold Stone song, usually to the tune of recognizable melodies such as Take Me Out to the Ball Game
Take Me Out to the Ball Game
"Take Me Out to the Ball Game" is a 1908 Tin Pan Alley song by Jack Norworth and Albert Von Tilzer which has become the unofficial anthem of baseball, although neither of its authors had attended a game prior to writing the song. The song is traditionally sung during the seventh-inning stretch of...

, I've Been Working on the Railroad
I've Been Working on the Railroad
"I've Been Working on the Railroad" is an American folk song. The first published version appeared as "Levee Song" in Carmina Princetonia, a book of Princeton University songs published in 1894...

, or Bingo
Bingo (song)
"Bingo", also known as "Bingo Was His Name-O" and "There Was a Farmer Who Had a Dog", is an English language children's song of obscure origin...

, when a customer places money in the tip jar. Lyrics include short, catchy phrases, such as, "This is our Cold Stone song, it is not very long".

Legal issues

There have been allegations by independent franchises that Cold Stone's business practices have put them at a competitive disadvantage. These former franchises claim that the parent company opens locations too close to each other, requires expensive remodeling and overstates potential revenues and income. Other franchises have contended that that is not the case and that they are experiencing growth amid financial uncertainties and higher costs associated with fuel and energy prices.

In June 2008, the Wall Street Journal examined the issue. The article stated that a large number of locations, approximately 16-20%, of Cold Stone Creamery franchises have closed or were put up for sale by their owners, many of whom had suffered significant financial losses due to their investment. The article included claims by franchisees that the company had misrepresented the average revenues of Cold Stone stores and acted in ways that reduced stores' profit margins. A company spokeswoman said that the number of stores for sale was "at par with industry expectations" in light of "the economically challenging times."

CNBC Documentary and Lawsuit

In December 2010 lawyers from Coldstone Creamery threatened a lawsuit over some of the contents of an upcoming documentary by CNBC
CNBC
CNBC is a satellite and cable television business news channel in the U.S., owned and operated by NBCUniversal. The network and its international spinoffs cover business headlines and provide live coverage of financial markets. The combined reach of CNBC and its siblings is 390 million viewers...

.

"Behind the Counter: The Untold Story of Franchising," reported on the failures and successes of franchising. After several edits the program was broadcast on CNBC on March 21, 2011. Brands such as Dunkin Donuts and Five Guys
Five Guys
Five Guys is a fast casual restaurant chain focused on hamburgers, hot dogs, and French fries. Originating in Arlington, Virginia, the company's headquarters are now in Lorton, Virginia.-Food:...

 were highlighted as successful franchise brands. Cold Stone Creamery's executives and corporate lawyers were interviewed. The lawsuit was discussed with former franchisees and the litigation threats with CNBC. An apparently successful Cold Stone franchise was also featured.

Health effects of its products

In an item at Men's Health
Men's Health (magazine)
Men's Health , published by Rodale Inc. in Emmaus, Pennsylvania, United States, is the world’s largest men’s magazine brand, with 44 editions around the world. It is also the best-selling men's magazine on U.S. newsstands. It covers fitness, nutrition, sexuality, lifestyle and other aspects of...

magazine, Cold Stone's PB&C drink was ranked "Worst Beverage of America" in terms of health. The drink has 2,010 calories. 131 grams of fat
Fat
Fats consist of a wide group of compounds that are generally soluble in organic solvents and generally insoluble in water. Chemically, fats are triglycerides, triesters of glycerol and any of several fatty acids. Fats may be either solid or liquid at room temperature, depending on their structure...

 with 68 grams saturated fat
Saturated fat
Saturated fat is fat that consists of triglycerides containing only saturated fatty acids. Saturated fatty acids have no double bonds between the individual carbon atoms of the fatty acid chain. That is, the chain of carbon atoms is fully "saturated" with hydrogen atoms...

, and 153 gram of sugar
Sugar
Sugar is a class of edible crystalline carbohydrates, mainly sucrose, lactose, and fructose, characterized by a sweet flavor.Sucrose in its refined form primarily comes from sugar cane and sugar beet...

.

Corporate headquarters

In July 2005 Cold Stone moved into its current headquarters. The two story building has classroom space, a product development laboratory kitchen, and a training store.

External links

The source of this article is wikipedia, the free encyclopedia.  The text of this article is licensed under the GFDL.
 
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