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How the Cold Stone Creamery Doesn’t Work

by Marshall Brain

This report from the WSJ talks about a problem with Cold Stone Creamery franchises:

Cold Stone Creamery attracted a lot of franchisees thinking it was a sure thing. It wasn’t.

From the article:

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…

If you have never been to a CSC, here’s the basic idea:

[See previous Doesn't Work]

 

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