Let's take a look at the breakdown of each of the primary proforma business elements.
The number of Cold Stone creations ($4.99 average) required to sell to break even on each of the proforma items is shown to the right.
Monthly Expenses Number of Creations
Cold Stone Fees (9%) ..... ($2250) ------ 450 Creations
Lease (%12) ...... ($2950) ------ 590 Creations
Debt Service (13%) ..... ($3100) ------ 620 Creations
Labor Costs (20%) ....... ($5000) ------ 1000 Creations
Product (20%) .......... ($5000) ------ 1000 Creations
Utilities (9%) ........... ($2075) ------ 415 Creations
Misc Expenses (4%) . ($974) ------ 195 Creations
Taxes (14%) ......... ($3591) ------ 718 Creations
Minimum Monthly Total - $24640 ------ 4988 Creations
So, based on a month of solid sales of $25000, congratulations, you have just broken even for the month. The only items that will be adjusted based on a slow down or increase in customer traffic is Labor and amount of products used.
All of these figures are based on 20% labor and 20% product costs.
Ask any Franchisee and you will find that operating a Cold Stone Creamery at 20% labor
and 20% product costs is difficult to achieve if not impossible. It is for this reason that Cold Stone Creamery concept is a "broken" business model and deeply flawed concept and
incapable of turning a profit - short term or long term, low, medium,
high volume, self-managed or absentee owned.
Reality Check. The
actual average is more around 30% labor and 30% product costs. Cold
Stone Area Developers and profitability teams try and tell you that properly
operating stores should be at 20% labor and 20% products, that level of
management burns out the crew and customer service deteriorates.
So, how many creations do I need to sell to have a $25000 month just to break even? The average creation (or smoothie or shake) sells for $4.99:
4988 Creations per month
166 Creations per day
Average day is 11am to 10pm - 11 hours.
15 creations per hour of each day of each week of each month - in order to make just $25000 per month. And remember $25000 is your break even target - that's 15 creations per hour just to break even - you haven't brought home any profit yet!
Now, of course you can sell ice cream in Buckets (48oz for $8.99) or Quarts (32 oz for $5.49) or Pints (16 oz for $4.99) or even better you can sell Cakes (large $22.95 or Small $16.95), but be ready to cover the costs of the plastic-ware, the cake training/decorating and additional product costs going into larger creations.
The Cold Stone franchise is a giant revenue hog trough with weekly
sales being poured in at one end and at the other end the franchisee
desperately waits for a financial draw. In between all of the hogs
lining up at the trough - the largest HOG of all is Cold
Stone Corporate and it's many vendors sizing you up and then snorting up
as much of your weekly revenue it can possibly get. THINK BEFORE YOU BUY!!
We encourage each visitor to send us additional information or factual corrections - see the contact link HERE.
Also, please participate in our "Be Counted Program" - find it here. Thanks!
Cold Stone News
Why Franchise Legislation? The Need for Statutory Duty of Franchisor Competency
[CSF- Cold Stone Creamery could not even get pass the first level competency - SEE CS BUSINESS MODEL]http://www.bluemaumau.org/why_franchise_legislation_needed_statutory_duty_franchisor_competency
Posted Sep 14, 2013, 7:47 PM by Cold Stone Facts
Posted Aug 24, 2013, 6:48 PM by Cold Stone Facts
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Posted Aug 11, 2013, 5:48 PM by Cold Stone Facts
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Posted Aug 3, 2013, 7:37 AM by Cold Stone Facts
The ABCs of FDDs: Item 16. Restrictions on What Franchisees May Sell
http://www.bluemaumau.org/abcs_fdds_item_16_%E2%80%93_restrictions_what_franchisees_may_sellPosted Wed, 2012-09-26 17:29 by Mike Sheehan
This is the eighth ...
Posted May 2, 2013, 4:52 PM by Cold Stone Facts
Cold Stone Set to Expand into the Philippines and Bangladesh
[CSF: After fleecing the enough from the US franchisees Cold Stone now moves to the international markets]http://finance.yahoo.com/news/cold-stone-creamery-set-expand-202800346.htmlSCOTTSDALE ...
Posted Apr 29, 2013, 9:39 AM by Cold Stone Facts
Cold Stone Unveils Saudi Arabia, Pakistan Expansion Plans
[CSF: After fleecing the enough from the US franchisees Cold Stone now moves to the international markets]http://globaltrademag.com/cold-stone-creamery-unveils-saudi-arabia-pakistan-expansion-plans/Scottsdale ...
Posted Apr 29, 2013, 9:40 AM by Cold Stone Facts
Cold Stone: Small businesses run up big debt
http://www.dispatch.com/content/stories/editorials/2013/04/22/small-businesses-run-up-big-debt.htmlDo you like the food at Quiznos and Cold Stone Creamery? Your taxes ...
Posted Apr 29, 2013, 9:27 AM by Cold Stone Facts
Puig: My Cold Stone Stores Are Profitable
Puig: My Cold Stone Stores Are Profitablehttp://www.bluemaumau.org/11846/puig_my_cold_stone_stores_are_profitable
Posted Tue, 2012-08-21 18:15 by Janet Sparks
Posted Apr 17, 2013, 9:36 AM by Cold Stone Facts
Posted Apr 17, 2013, 9:30 AM by Cold Stone Facts
Posted Aug 28, 2012, 12:35 PM by Cold Stone Facts
Posted Aug 11, 2012, 3:48 PM by Cold Stone Facts
Posted Aug 11, 2012, 12:10 PM by Cold Stone Facts
Posted Aug 1, 2012, 8:16 AM by Cold Stone Facts
Update: NIACCF, Inc. v. Cold Stone Creamery, Inc
FRANCHISEE ASSOCIATION'S LAWSUIT STAYED PENDING ARBITRATION WITH INDIVIDUAL FRANCHISEES
A recent decision in NIACCF, Inc. v. Cold Stone ...
Posted Jul 29, 2012, 3:09 PM by Cold Stone Facts
CSC Sales down due to heat in Kansas!
Too hot for ice cream? Heat driving customers awayhttp://www2.ljworld.com/news/2012/jul/28/too-hot-ice-cream-heat-driving-customers-away/
July 28 ...
Posted Jul 29, 2012, 12:58 PM by Cold Stone Facts
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