Can Cold Stone Creamery Last in a Bad Economy?

Ice Cream. Who doesn’t love it? But what if we add special toppings like, peanut butter cups and brownies, candy and cookie bits, and then mix them in by hand on a cold stone slab? Well, then you might have a winner. As far as franchises go, Cold Stone Creamery is No. 1 in its category according to Entrepreneur magazine (2007) and it is a popular destination for families everywhere.

Owners are sensitive to the fact that you might want to take some of this yumminess home and have created the grab-in-go feature with 8 prepackaged flavors. Also impressive is the company’s charitable slant. Community projects and fundraisers are important to this franchisor, and that kind of advertising gives Cold Stone Creamery a positive national presence that is important to patrons.

We all love their ice cream but what about their prices? Are people really willing to pay $4 for a scoop of ice cream in this economy? The answer… No. According to Richard Gibson of the Wall Street Journal, many franchisees are selling their stores, overwhelmed by soaring bills and shrinking profits. Some have lost their homes, broken their retirement nest eggs or filed for bankruptcy.

We all love their concept and love their ice cream but if you plan on investing in a Cold Stone Creamery be sure to do your homework.