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CHICAGO- With Cold Stone Creamery's increasing success in Metropolitan Chicago, the Scottsdale, AZ-based ice cream franchiser is looking to expand its Windy City-area operations by 75 stores.
Eight locations in Chicago, and locations in Evanston, Glencoe, Rockford, Romeoville, Shorewood and Woodridge have already opened in 2005, and 20 additional Cold Stone Creamerys are slated to open by year's end.
The chain owns just six corporate-owned locations, but is billed as one of the fastest-growing ice cream franchises in the nation. Last year the company picked up 362-franchise locations nation-wide and has another 414 slated to open in 2005. Boasting $405,000 in annualized average unit volume, Cold Stone Creamery 2004 systemwide revenues exceeded $283 million, up 86% from $152 million in 2003.
Franchise locations, ranging from 1,200 sf to 1,400 sf, cost a minimum of $267,300 to set up and a maximum of $399,600, according to Cold Stone Creamery's Web site. The initial franchise fee is $42,000.
Cold Stone Creamery remains consistent with positioning stores in locations that help promote the brand. Before signing a franchisee's proposed site, area developers must approve the location in accordance to standards set out by the company.
"We evaluate the potential locations and have minimum requirements such as population and the like," Kevin Donnellan, Cold Stone Creamery's public relations director, tells GlobeSt.com. "We definitely like to position ourselves around other restaurants and entertainment venues; we find our greatest success in centers where other national retailers are."
Ideally, a site will include 1,200 sf of retail space; a population of 15,000 within on mile; an average consumer age of 18- to 36-years-old; and a household income of $35,000 or higher in the immediate area. Yet Cold Stone Creamerys are often found nestled into the landscape of a lifestyle center, where neighbors are high-end retailers and the average income of the population is no less than $50,000. To the benefit of Cold Stone Creamery's demographic strategy, these destination retail centers are also seeing a surge of development.
"We're doing everything to keep up demand--not only with ice cream but with franchise aspect of the business," Donnellan says of the rapid expansion. "Ice cream is a great business to be in because people are innately attracted to it."
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