Cold Stone Talks Dual-branding, New products
February 4, 2010 by Jim Coen
Filed under Competitors News
A co-branded Tim Hortons and Cold Stone
Lisa Jennings reports at Nation’s Restaurant News that Cold Stone Creamery is pushing ahead with the growth of dual-branded units and new menu items to drive sales in 2010.
The more than 1,450-unit premium ice cream franchise chain has a slew of new products planned for 2010, including ice cream cookie sandwiches to be sold in four packs. It also plans to continue growing combined units with both candy maker Rocky Mountain Chocolate Factory and Canada-based, fast-casual chain Tim Hortons.
Dual branding, product innovation and brand licensing have been key initiatives launched by Dan Beem, who stepped into the role of president at Cold Stone in late 2007, a few months after the brand merged with Scottsdale, Ariz.-based Kahala Corp., a multi-brand franchisor with 12 foodservice brands in its portfolio.
In an interview with Nation’s Restaurant News on Thursday, Beem said economic headwinds took their toll last year, resulting in store closures that left the chain with a net loss of 16 locations. Sales, however, were only “slightly down” at the end of 2009 compared with the previous year.
“It was a rough year for everyone, but we fared better than most for the category,” said Beem.
Looking forward, new product introductions scheduled for this year and the success of dual-branded locations promises to spark new growth for the chain, he said.
In late 2008, Cold Stone announced the test of co-branding, combining the ice cream chain with both Rocky Mountain and with Tim Hortons locations.
Beem said existing franchisees who added products from either the Rocky Mountain or Tim Hortons brands increased their average unit volumes by between $75,000 and $100,000 last year.
“We couldn’t be more pleased with those relationships,” said Beem of the co-branding opportunities.
Cold Stone and Tim Horton’s
Tim Hortons, which is known for its premium coffee, baked goods, soups and sandwiches, tends to drive traffic during morning and midday hours, where ice cream tends draw customers in the afternoons and evenings. Together, the two brands allow for broader daypart sales.
Four of the U.S. units are Cold Stone locations offering Tim Hortons products, but the remaining 62 are Tim Hortons that have added Cold Stone Creameries.
The company expects to see another 30 dual-brand Tim Hortons/Cold Stone conversions this year, and the company is also looking for franchisees that will build ground up co-branded locations.
When asked whether Cold Stone would be looking for other brands for similar partnerships, Beem said, “I won’t rule out other co-brands, but there are none on the horizon right now. It’s rare to find two brand with comparable brand equity.”
Read the whole article from Nation’s Restaurant News at: Cold Stone Talks Dual-branding, New products
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Either Dan Beem is a lier or he is talking about netting 232 stores opening over seas to 248 closing is the US. Who cares about what’s happening in Korea when the franchisees here are closing their stores by the dozens. And when you do finally find a buyer for your store, the word is out among franchisees that Cold Stone’s legal dept. will come in a take away your franchise and sell the store to the buyer that you went out a found, which leaves the franchisee with nothing. Cold Stone has no right to steal says like that.
I’m a franchisee and we’ve loss nearly 20 stores in our area alone in the past year. Dan Beem is the biggest liar. He knows those franchisees who still have their stores open are all struggling financially–throwing our very last bit of cash into our stores to keep them above water, while he and other Cold Stone Creamery and Kahala executives continue to lie about the franchisees’ financial fix. They said cakes were going to save our franchises, then shakes and smoothies, then cupcakes, not its ice cream sandwiches. Yeah right!!!!!!
Cold Stone’s been promising for the past six years that they were going to fix the franchisees’ unprofitablility situation, but all they do is tell lies and beg you to keep your store open. Meanwhile I’ve loss nearly $270,000 from my 401k and savings. I’ve had my store up for sale for four years now and I can’t give it away because everyone knows that when you invest in a Cold Stone Creamery franchise, you’ve bought a one-way ticket to bankruptcy.