Franchisee Relations: Cold Stone Execs Take a Road Trip
Senior executives at Cold Stone Creamery brought the annual franchise meeting to the franchisees in a tour highlighting an ambitious vision.
By Mary Boltz Chapman, Editor-in-Chief -- Chain Leader, 12/8/2008 4:40:00 PM
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| The Cold Stone Creamery executive team--(from l.) President Dan Beem, Director, Area Developer Operations Brian Kiel; Vice President of Marketing Suzanne Schutz and Vice President of Operations Brad Nielsen--is taking a 16-city tour, outlining its vision for the concept. |
This year, as President Dan Beem and his executive team were planning the content, chock full of plans and commitments for 2009, they decided to change the format. "Given the fact that we wanted to save them money and get with them in smaller groups to have more interaction, we decided to take the annual franchise meeting to them in the form of town hall meetings." Beem explains.
The Scottsdale, Ariz.-based company hired a tour bus, wrapped it in the Cold Stone brand, and on Nov. 3 embarked on a tour that would take them to 16 cities over about 11 weeks, with a holiday break in the middle.
Beem says they are laying out the vision the team has crafted to bring each of the 1,350 stores' average unit volume to $500,000 from 2007's $353,000. He says the smaller format enables the executives to drill deep into the vision, reduces the time franchisees are away from their stores, creates dialog between the franchisor and franchisees, and allows franchisees to bring managers and other key employees into the meetings.
Globally, Beem says, "franchisees are looking for a leadership team that has their best interest in mind, and they're looking for a plan." Specifically, the team outlined Cold Stone Creamery's six-point plan.
1. Incremental sales
- Core product innovation, including ice cream novelties in the first quarter; iced, blended and frozen coffee drinks in the second quarter; partnering with Country Time lemonade for a signature sorbet and Jell-O for pudding-based treats for summer; and a line of cheesecakes in the third quarter. "These are the kinds of things that don't deviate too far from the core and our brand and will come with all the indulgence that we're known for." Beem says.
- Strategic partner alliances that will offset Cold Stone's seasonality and daypart limitations. The chain is partnering with Durango, Colo.-based Rocky Mountain Chocolate Factory, which sees more traffic in the daytime and during the holidays, planning a seven-store test. It also has a partnership with Canadian coffee and doughnuts chain Tim Horton's, with two stores in Rhode Island and more expected in the near future.
- New core programs, including a kids program; a certified catering program to make the brand's catering more consistent and better marketed; and an 800-number and online cake ordering system, meant to drive cake sales to 20 percent of revenues.
- A value offering, to be tested in Atlanta. "We're never going to win the value game, but we have to get in the value game," Beem argues, adding the offering should be ready to roll by the end of the year.
2. Marketing
Becoming an advertising-driven company to drive traffic to the stores rather than relying on in-store promotions. Cold Stone has an offer out to a celebrity spokesperson, and is waiting for confirmation.
3. Program execution
Beem says the company is focused on improving how it rolls out new products and programs, with help from lessons learned from Tim Horton's 18- to 24-month testing and implementation schedule.
4. In-store experience
Cold Stone believes that other chains can compete on ice cream quality, but that its experience, including servers who entertain customers as they mix ingredients into the ice cream, will guarantee long-term success.
5. Local community involvement
"We need to get back to being the mayors of our community," Beem says. "Shaking hands and kissing babies." In 2009 Cold Stone will hold local-store marketing symposia, tapping the best practices of franchisees throughout the country.
6. Communication and relationships
"We're making a conscious effort to increase communication with franchisees on a monthly basis, and really start rebuilding those one on one relationships," he says. "Town halls are a great first step in that direction."
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