Cold Stone Creamery

Cold Stone Creamery is an American international ice cream parlor chain whose defining service is the preparation of customized ice cream on a frozen granite stone. Customers select an ice cream flavor, choose mix-ins such as candies, nuts, brownies, cookies or syrups, and watch employees fold the ingredients into the ice cream at the time of order. The brand’s name refers to the cold stone surface used for this preparation method. Donald and Susan Sutherland founded Cold Stone Creamery in 1988 after seeking an alternative to both hard-packed ice cream and soft-serve. The first store opened in Tempe, Arizona, and the original store, identified as location number 0001, continues to operate near the intersection associated with the brand’s origins. The concept drew on an earlier style of ice cream customization associated with Steve Herrell’s Steve’s Ice Cream, but developed its own franchise-oriented operating model and theatrical in-store service. Cold Stone’s core product is premium ice cream with approximately 12–14% butterfat, produced or finished at the store and customized for each customer. Its menu has expanded beyond individual servings to include ice cream cakes, pies, cookie sandwiches, shakes, smoothies, and iced or blended coffee beverages. The chain generally positions itself above conventional mass-market ice cream through product richness, customization, made-to-order preparation, entertainment value and a broad mix-in selection. The business began franchising in 1995, first expanding in Tempe and then into California. During the 1990s and 2000s, Cold Stone developed into a substantial U.S. franchise system and began international expansion. Its first European franchise opened in Copenhagen in 2008. The company subsequently entered Canada, Singapore, Nigeria, Turkey, El Salvador and the United Kingdom, among other markets. International performance has varied by country; for example, the Singapore operation closed all of its outlets in January 2020, while the brand opened its first United Kingdom location in London in April 2023. Cold Stone has also pursued co-branding and licensing arrangements. These have included relationships with Tim Hortons, Rocky Mountain Chocolate Factory, Soup Kitchen International, Kraft’s Jell-O brand and Jelly Belly. The Tim Hortons alliance involved experimental and co-branded locations in the United States and Canada, but ended in 2014. Such arrangements reflected Cold Stone’s broader effort to use its stores as platforms for complementary desserts, beverages and branded flavors. Corporate control changed in 2007, when Cold Stone merged with Kahala Corp. to form Kahala-Cold Stone. In 2013, the Serruya family acquired a majority interest in the parent organization, which was renamed Kahala Brands. Cold Stone remains part of that privately held multi-brand franchising group. Its principal business continues to be franchised and company-supported ice cream stores, with the brand differentiated by customization, store-level preparation and the sensory performance of mixing ingredients on a chilled stone.

Cold Stone Creamery was established in 1988 by Donald and Susan Sutherland in Tempe, Arizona. The founders wanted to create an ice cream product positioned between hard-packed ice cream and soft-serve. Their solution combined rich ice cream with a made-to-order preparation ritual: customers selected a base flavor and mix-ins, while employees combined them on a chilled granite slab. The stone provided both the required cold working surface and the visual identity that gave the chain its name. The original Tempe store opened in 1988 and remains associated with the company’s founding. Although the store later moved from its initial premises to a nearby location, it continued operating as the chain’s first numbered outlet. Cold Stone’s operating concept was influenced by the customization approach associated with Steve Herrell and Steve’s Ice Cream, but the Sutherlands developed the concept as a scalable retail and franchising business. The first franchise store opened in Tempe in 1995, followed soon afterward by a location in Camarillo, California. Franchising allowed Cold Stone to expand across the United States while preserving its signature preparation method. In 1997, the company moved its headquarters from Tempe to Scottsdale, Arizona. In July 2005, it moved into a larger headquarters facility containing training classrooms, a product-development kitchen and a training store. During the 2000s, Cold Stone broadened its menu and brand partnerships. In 2007, some New York franchisees partnered with Soup Kitchen International to sell soup in selected stores. In 2008, Cold Stone entered a licensing relationship with Rocky Mountain Chocolate Factory, and it also began international expansion in Europe with a franchise in Copenhagen. The company later developed licensed products with Jelly Belly and introduced ice cream flavors based on Kraft’s Jell-O pudding brand. Corporate consolidation occurred in May 2007, when Cold Stone merged with Kahala Corp. The resulting Kahala-Cold Stone organization combined the ice cream chain with other franchised brands. Doug Ducey, who had led Cold Stone as president and chief executive since 1995, became chief executive of the combined business, while former Kahala chief executive Kevin Blackwell became chairman and chief strategist. Ducey announced his departure in September 2007, after which Blackwell became chief executive. The company pursued a notable co-branding strategy with Tim Hortons. After tests in Rhode Island, the parent company announced in February 2009 an agreement aimed at creating as many as 100 U.S. co-branded locations. Cold Stone and Tim Hortons also tested Canadian locations beginning in June 2009, including stores in Ontario and Nova Scotia and later locations in other provinces. The venture was intended to give Tim Hortons greater access to U.S. markets while helping Cold Stone establish a presence in Canada. The co-branding arrangement ended in 2014. Cold Stone continued international franchising during the 2010s. It entered Canada in 2009, operated several stores in Singapore by 2012, opened its first Sub-Saharan African location in Nigeria in 2012, entered Turkey through Ankara in 2015, and opened its first El Salvador location in the same year. The Singapore business ultimately closed all outlets on January 31, 2020. In April 2023, Cold Stone opened its first United Kingdom location on Charing Cross Road in London. The chain has faced criticism and legal disputes concerning franchise economics. Some former franchisees alleged that the company placed stores too close together, required costly remodeling, and overstated expected sales or income. A 2008 Wall Street Journal report discussed closures and resale activity among Cold Stone franchise locations, while a company representative characterized the level of stores being offered for sale as consistent with broader industry conditions during a difficult economic period. Cold Stone executives and lawyers were also involved in a dispute over a CNBC documentary about franchising that aired in 2011 after threatened litigation and editorial changes. Food and workplace safety have been additional areas of concern. In 2005, public-health investigators identified a multistate Salmonella outbreak in which most reported patients had eaten cake batter ice cream from Cold Stone stores. In 2015, the FDA alerted consumers about a separate cake batter product concern and Cold Stone removed related products from U.S. stores. Workplace incidents have also been reported, including a 2007 case in which an employee lost a finger in an ice cream machine and a 2023 Oregon incident in which an employee lost three fingers after a towel was pulled into machinery. Despite these controversies and market exits, Cold Stone remains an active international ice cream franchise brand under Kahala Brands.

• 2023

  First United Kingdom store opens

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone entered the United Kingdom with a store on Charing Cross Road in London.

• 2020

  Singapore operation closes

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone closed all of its Singapore locations on January 31, 2020.

• 2015

  Cake batter products removed after food-safety alert

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone removed cake batter ice cream products from U.S. stores following an FDA alert concerning Salmonella exposure.

• 2013

  Kahala renamed Kahala Brands

  [1]Cold Stone Creameryen.wikipedia.org

  The Serruya family acquired a majority interest in Kahala and the organization adopted the Kahala Brands name.

• 2009

  Tim Hortons co-branding expands

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone and Tim Hortons developed co-branded stores in the United States and Canada.

• 2008

  European expansion begins

  [1]Cold Stone Creameryen.wikipedia.org

  The company opened its first European franchise in Copenhagen, Denmark.

• 2007

  Merger with Kahala Corp.

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone merged with Kahala Corp. to form Kahala-Cold Stone.

• 1997

  Headquarters moves to Scottsdale

  [1]Cold Stone Creameryen.wikipedia.org

  The company relocated its headquarters from Tempe to Scottsdale, Arizona.

• 1995

  First franchise store opens

  [1]Cold Stone Creameryen.wikipedia.org

  Cold Stone began franchising with a store in Tempe, followed shortly by expansion into California.

• 1988

  Cold Stone Creamery founded in Tempe

  [1]Cold Stone Creameryen.wikipedia.org

  Donald and Susan Sutherland opened the first Cold Stone Creamery store in Tempe, Arizona, introducing the brand’s made-to-order ice cream and mix-in preparation method.

A premium, experiential and customizable ice cream chain emphasizing made-to-order preparation, theatrical mixing and a wide selection of mix-ins.

• Ice cream · 1988

  Premium ice cream

  Cold Stone’s principal product is rich ice cream made with approximately 12–14% butterfat. Customers choose a base flavor and serving size, then personalize the order with mix-ins. The product is prepared or finished at the store and served as an individualized creation rather than a preassembled packaged item.

• Custom dessert · 1988

  Mix-in creations

  Mix-in creations are the brand’s signature offering. Employees fold customer-selected candies, nuts, brownies, cookies, fruit, syrups or other ingredients into ice cream on a frozen granite slab. The preparation combines customization with an element of in-store performance and is central to Cold Stone’s brand identity.

• Frozen dessert

  Ice cream cakes and pies

  Cold Stone sells celebratory frozen desserts built around its ice cream, including cakes and pies. These products extend the brand beyond individual servings and are designed for birthdays, parties and other group occasions.

• Frozen dessert

  Cookie sandwiches

  Cookie sandwiches combine Cold Stone ice cream with cookie components in a portable dessert format. They form part of the chain’s broader range of ice cream-based products.

• Beverage

  Milkshakes and smoothies

  The beverage menu includes milkshakes and smoothies, allowing the brand to serve blended ice cream and fruit-oriented drinks alongside scooped products. The Cold Stone PB&C became a particularly discussed high-calorie shake, although specific nutritional values can vary by size and preparation.

• Beverage

  Iced and blended coffee drinks

  Cold Stone’s expanded menu includes iced coffee and blended coffee beverages, giving franchise locations a way to compete in dessert-and-specialty-drink occasions beyond traditional ice cream service.

• 2023

  Oregon workplace machinery injury

  An Oregon employee reportedly lost three fingers after a towel was pulled into an ice cream machine. The incident prompted reported employee resignations and renewed attention to workplace machine safety.

  Source

• 2015

  Cake batter ice cream safety alert

  The FDA alerted the public that cake batter ice cream products sold at Cold Stone stores could be associated with a Salmonella outbreak. Cold Stone removed the relevant products from U.S. locations.

  Source

• 2011

  Dispute over CNBC franchising documentary

  Cold Stone lawyers threatened legal action concerning portions of CNBC’s documentary Behind the Counter: The Untold Story of Franchising. The program ultimately aired after edits and discussed the dispute alongside interviews with company representatives and former franchisees.

  Source

• 2008

  Franchisee complaints over store economics

  Some independent and former franchisees alleged that Cold Stone opened stores too close together, required expensive remodeling and overstated expected revenues. The company disputed the characterization and said store-sale levels were consistent with industry conditions.

  Source

• 2005

  Multistate Salmonella outbreak investigation

  Health investigators identified 25 Salmonella cases across nine states. Twenty-four patients reportedly had eaten cake batter ice cream from Cold Stone stores, making the product the common exposure in the investigation.

  Source

Read more

• 2009Tim Hortons co-branded stores

  United States · Canada

  Cold Stone and Tim Hortons tested and expanded co-branded stores, combining ice cream with Tim Hortons coffee and baked-goods offerings. The alliance included U.S. locations and a Canadian market test.

  Outcome. The co-branding venture ended in 2014.

  Source
• 2009Jell-O licensed ice cream flavors

  United States

  Cold Stone partnered with Kraft Foods to introduce ice cream flavors inspired by Jell-O pudding varieties, including chocolate, butterscotch, banana and vanilla.

  Outcome. Expanded the chain’s licensed flavor portfolio and connected the store experience with a recognizable packaged-food brand.

  Source
• 2008Rocky Mountain Chocolate Factory licensed locations

  United States

  Cold Stone signed an agreement with Rocky Mountain Chocolate Factory to open licensed locations carrying the chocolate company’s products.

  Outcome. Created a complementary dessert and confectionery format within selected Cold Stone locations.

  Source
• 2008Jelly Belly licensed products

  United States

  A licensing agreement with Jelly Belly produced jelly beans flavored after some of Cold Stone’s popular ice cream creations.

  Outcome. Extended Cold Stone flavors into an externally sold confectionery product.

  Source
• 2007Soup Kitchen International partnership

  United States · New York City

  Selected New York City Cold Stone franchisees partnered with Soup Kitchen International to sell soup in their stores, extending the locations beyond their traditional dessert menu.

  Outcome. A limited co-branding and menu-extension initiative; the long-term continuation is not established in the supplied sources.

  Source

• 2020

  Exit SingaporeStrategy

  Background

  After approximately a decade of operating in Singapore, the local business announced its withdrawal from the market.

  Action taken

  All Singapore outlets were scheduled to close on January 31, 2020.

  Aftermath

  Cold Stone no longer operated stores in Singapore after the announced closure.

  Source

• 2015

  Remove cake batter productsOther

  Background

  A U.S. food-safety alert identified a possible association between cake batter ice cream products and Salmonella infections.

  Action taken

  Cold Stone agreed to immediately remove cake batter ice cream products from its U.S. stores.

  Aftermath

  The action was intended to reduce consumer exposure while the food-safety concern was investigated.

  Source

• 2009

  Develop Tim Hortons co-branded storesStrategy

  Background

  Cold Stone wanted to expand its presence in Canada, while Tim Hortons sought additional opportunities to operate in the United States.

  Action taken

  The parent company announced a plan for as many as 100 U.S. co-branded stores and tested a group of Canadian locations.

  Aftermath

  The co-branding arrangement ended in 2014.

  Source

• 2007

  Merge with Kahala Corp.M&A

  Background

  Cold Stone sought to combine with Kahala Corp., a franchising organization with multiple restaurant and food brands.

  Action taken

  The companies merged to form Kahala-Cold Stone, with Doug Ducey appointed chief executive and Kevin Blackwell appointed chairman and chief strategist.

  Aftermath

  The combined organization later operated under the Kahala Brands name after a majority interest was acquired by the Serruya family in 2013.

  Source

1. 1Cold Stone Creameryen.wikipedia.org
2. 2Cold Stone Creamery official websitecoldstonecreamery.com