Cold Stone Creamery Co-Brands With Soup Nazi
October 9, 2007 by Sean Kelly
Filed under Business
(FranchisePick.Com) Is the Cold Stone Creamery’s franchise bowl half-empty or half-full? Amidst rumors of internal problems and a third round of layoffs at franchise amalgam Kahala Cold Stone, here’s the latest attempt at making their concepts work: sticking a couple of them together. Who knows? They can always add a Cereality franchise to the mix.
The First Co-Branded Store Makes NYC Debut on Astor Place
‘Soup and Ice Cream for Life’ Raffle Drawing During Ceremony
NEW YORK, Oct. 8 /PRNewswire/ — Soup Kitchen International, the creators of the Zagat-rated soups of Al Yeganeh, the legendary soup man who inspired the “Soup Episode” on Seinfeld, and Cold Stone Creamery, the fastest-growing ice cream concept in the United States, today announced the grand opening of the first The Original SoupMan/Cold Stone Creamery at 2 Astor Place in New York, NY in early November. Recent Penn State graduate Daniel Petryszyn is opening the first hybrid, co-branded franchise that will feature both The Original SoupMan’s world-renowned soups and Cold Stone Creamery’s super-premium ice cream. Petryszyn’s Original SoupMan/Cold Stone Creamery, in addition to ice cream, will showcase Yeganeh’s 50 varieties of soup as the “centerpiece of the meal.” Each meal will be presented with a piece of fresh, crusty baguette, fresh fruit and a piece of imported chocolate — just like Al Yeganeh served it at his original shop. As Yeganeh explains it, this is simply “the way to eat.” Alongside Yeganeh’s 50 varieties of soup there will also be an extensive line of gourmet salads and sandwiches.
“Customers demand choice and innovation,” said Dan Beem, Cold Stone Creamery President. “We’re pleased and excited to explore these opportunities with the Original SoupMan to introduce both the highest quality, most creative ice cream experience alongside premium, gourmet soups, all under one roof.”
During Petryszyn’s grand opening ceremony, one customer will win a free cup of soup every day for the rest of his life while another customer will win a free cup of ice cream as part of the “Soup/Ice Cream for Life” drawing. In addition, the first 100 customers will receive a gift bag stuffed with free merchandise.
The Original SoupMan will also donate $1,500 on behalf of Yeganeh’s charity, “Al’s Feed the Hungry Foundation,” to “City Harvest,” the world’s first and New York City’s only food rescue program. Feed the Hungry Foundation donates funds to local hunger charities every time a new Original SoupMan location opens. The charity is headed up by Baseball Hall
of Fame legend, Reggie Jackson.
About The Original SoupMan
Founded in 1984, legendary soup man, Al Yeganeh, set the standard for
delicious, world-renowned soups at his New York City location, Soup Kitchen
International. Now, with the international growth of his franchise, The Original Soup Man, Al and his team will give the whole world the opportunity to experience soup as it was meant to be. The company also sells the Original SoupMan soups in Grab-n-Go packages in grocery stores nationwide. To learn more, visit http://www.ORIGINALSOUPMAN.com.
About Cold Stone Creamery
Cold Stone Creamery delivers the Ultimate Ice Cream Experience(R)
through a community of franchisees who are passionate about ice cream. The secret recipe for smooth and creamy ice cream is handcrafted fresh daily in each store, and then customized by combining a variety of mix-ins on a frozen granite stone. Headquartered in Scottsdale, Ariz., Cold Stone Creamery is part of the Kahala-Cold Stone holding company, a leading brand-building franchisor with a portfolio of 14 diversified brands. Cold
Stone Creamery alone operates more than 1,400 locations in the U.S., Puerto Rico, Guam, Japan, Korea, China, Taiwan and United Arab Emirates. For more information about Cold Stone Creamery, visit the company’s Web site at http://www.coldstonecreamery.com.
Cereality Franchise Closes in 3 Months; Breaks Previous Record
Soup Nazi Under Fire in Franchising (No Success for YOU!)
How ‘Bout a Stone Cold Bowl of Reality?
Reality, Surreality & Cereality
HAVE AN OPINION? LEAVE A COMMENT!
Other franchise websites:
TopNewFranchises.Com: America’s Next Top… Franchise
Franchise Marketing: franchise marketing, franchise public relations, franchise sales
Franchise & Marketing Newsletters: Affordable. Stylish. Free.
__________________________________________
FREE WHITEPAPER: What’s the best way for companies to respond to online criticism and attacks? A Harvard report with multiple recent case studies compiled and is available for free download.
__________________________________________
Friggin desperation at it’s best.
Joel Libava
The Franchise King Blog
Joel:
Well said. Soupman has caused many Operators to lose Hundreds of Thousands of $$ because of their deceptive tactics and misrepresentations.
I hope the Franchisor gets what they deserve!
Jeez, I want to see the UFOC on this “marriage”. Talk about dubious!
Can’t say I am familiar with the UFOC from Kahala, but Soupman’s UFOC states an inaccurate Initial Investment….lowballed by a few hundred thousand $$, doesn’t identify all the locations that have closed due to Significant $$$ losses, doesn’t identify all the territories purchased but never opened because Franchisees won’t take the risk of losing big $$. All in all, it is a Swindle scheme…was from the start and the guys running the show have a similar story with another Chicken Franchise who was run to the ground and guess who bought it? Kahala!! Think there may be a connection?
Got Swindled: Thanks for your comments. However, the more factual specifics, the less effectively these contentions can be disputed or spun… and better the situation can be understood.
What are the expense items that are understated in the UFOC that makes up the hundreds of thousands. Buildout? Working capital?
Also, if you (or anyone else) can provide a list of the locations that closed (preferably with the internal “store numbers”), we’ll post them to our “franchise graveyard” list. Approximate dates closed would be helpful, as would the store locations never opened. UFOCs often have an incomplete, dated, and/or a somehow obscured list of closures. Also, any details of resales sold at a loss. New openings, like the one in this post, are widely publicized; closures are rarely posted anywhere. The significant Cereality failures were only reported here and the Northwestern college newspaper. The failure of the much-hyped Cuts Fitness franchise program has only been posted here.
What was the chicken chain you referenced? Ranch *1? Wasn’t that bankrupt before Kahala bought it?
Kahala seems to buy up much-hyped but shaky concepts, perhaps with the idea of cobranding two or more to create a single viable unit. Interesting, if true. Is that the case? Is the departure of Doug Ducey a positive sign?
Insider’s insights appreciated.
The # of territories purchased and never opened is huge. As an example, one Franchisee who closed down in Myrtle Beach purchased 17 territories in NC, SC and GA in total. Many others bought multiple territories and after failing big with the 1st, never opened the rest. Here is a list…perhaps there maybe more unopened, but these are for sure: Newark Airport, Holmdel, BWI Airport, Annapolis, Bethesda, Baltimore Harbor, Georgetown, Battery Park, Rockaway Town Center, Bridgewater Commons Mall, LaGuardia Airport, Willow Brook Mall, Garden State Plaza, 16 Locations in SC, NC and GA; Jersey City, NJ; Newport Center Mall, NJ; Boca Raton, Fl; Ft. Lauderdale, Fl; Stamford, Ct; Mayfair Mall, WI; Bay Shore Mall, WI; Fox River Mall, WI; 4 in Boston, MA; Union Station Wash DC; National Harbor, MD; University Town Center, MD; Pentagon City Mall (?); Englewood, NJ (?); Huntington, NY; 2 in Michigan; Downtown Pittsburgh; Westfield, NJ; 2 locations in Downtown Philadelphia; All of Canada. By the way, the Franchisor never reimbursed the Franchisees for the undeveloped territories even though per the Franchise Agreement, they are required to minus $5K. As for closings, can give locations but am unsure of the dates…keep in mind the stores were not open for more than 15 mos at the longest: Myrtle Beach; Camp Hill,Pa; Scranton, Pa;Lenox Ave, NY; Ottawa, Canada; 78th and Third Ave, NY; 45th and Third Ave, NY; 112th St, NY; Stratton, VT; 989 Third Ave, NY;44/45 St, NY; Flat Iron Mall, CO; Colorado Springs, CO. Another one is closing its doors this week. Can’t identify the location now as it would be unfair to Operator. There may be more closings, but the one’s listed are certain. All stores that were lucky enough to find a buyer, were sold at huge losses..as in 10 -20 cents to the $1. And, every store that has already closed was for sale but the concept is such a dog, no one with any brains would buy them. Ultimately the Operators could not carry them any longer and they had to close. Also, one of the largest investors of Soupman who also sits on the Bd of Directors, opened a store Downtown, NY in 1/2007 and immediately put it up for sale…still on the Market at a huge loss. That should tell you something. One of the Florida locations is a friend of the President of Soupman and they are selling also due to poor sales. There are several for Sale right now — more than 6. The UFOC disclosed the wrong initial investment costs (franchise fee plus build out including F,F & E) by Hundreds of Thousands $$, Franchisor Under reported COGS at 35% when they are approx. 49%. Never updated the document so that any prospective buyer would get a true picture of the network. Below is a paragraph that has appeared on a # of Blogs. Was certainly written by someone who has inside information at the Franchisor as they seem to know alot of internal information:
1. The issues with the franchisor are much deeper than it appears.
1. The company is undercapitalized. An investment bank retained to raise capital for the franchisor had discontinued its efforts after having received commitments for approximately 25% of the targeted capital. This was a result of the poor operating results of the company and its underlying franchisees.
2. The company has been seeking an acquiror of its operations. Throughout this effort the issues and challenges brought to the attention of the company by its franchisees have been quietly addressed but none of the problems have been resolved.
3. The misrepresentations made by the franchisor to induce franchisees to acquire territories and open up an Original Soupman outlet are many: (a) understatement of food costs; (b) co-branding with Cremalita ice cream to balance overall sales in warm months was abandoned soon after first 12 stores opened for business; (c) mandated use of cups and bowls that are 25% larger than purported serving portions, resulting in giving away 25% more product than consumer was paying for and at the same time causing an increase in purchases of product from the company to replenish inventory.
Got Swindled: Now that’s some detail… thanks!
This forwarded from Pigasys.com:
Janet, I read your comments and the Tallahassee Democrat article. (Thank you very much for bringing this to our attention. Prior to reading this, we were considering buying a Cold Stone franchise.)
If you have a Cold Stone franchisee claiming to have 2 of 3 stores that are earning more than $100,000 over the average unit volume for Cold Stone, yet he cannot turn a profit, that is extremely concerning. On its website, Cold Stone says that their average unit volume is $381,985. If that’s true, this guy was doing close to $500,000 in annual sales. That’s a lot of sales for an ice cream shop. Yet he was unable to make a profit. Are you kidding me? What does that say for all of the Cold Stones that are doing average sales?
Then there are the claims of the guy in Panama City. He says that his store has been profitable only 5 months in the 24 that he has been open. He cites progress in losing only $6,000 last month as opposed to $9,500 during the prior month. If my math is correct that’s $15,500 in two…count ‘em—two months. Obviously he has been open for two full summers—not to mention that both franchisees are operating stores in the warm weather climate of Florida, yet neither is able to eek out a profit. I feel badly for these franchisees because there is little doubt that the failure of these Cold Stone franchises is having a significant negative impact on their personal lives and their finances in particular.
This explains why there are so many Cold Stones on the market and many are selling at a deep discount (as low as $50,000 on bizbuysell.com) compared to the capital requirements that it takes to build a new store (about $400,000). It also explains why there are so many Cold Stones closing down across the country.
Cold Stone has serious problems because apparently this is going on with their franchisees across the country. In reading the Tallahassee Democrat article, it appears that Cold Stone is content to simply recycle these bad—unprofitable stores to the next unsuspecting investor. Not me!
I WAS IN SHOCK TO READ ABOV,SEARCHED AND SAW SO MANY …..THIS IS 1.
Yahoo! 360° News | Beta Feedback
My Blog
Home|My Page|My Blog|My Friends|Mailbox|Invite|Search|Settings
• Compose Blog Entry
• Edit Blogroll
• Edit Blog Settings
Your blog can be seen by Public and can be commented by Public. (Change this)
SOUP MAN , AL Yeganeh
Top Page | Blog | Friends
• Real Soup Man Al Yeganeh, 49
• France
This is your page.
• Offline IM
• Send Message
• Add to Messenger
• Ignore this person (What’s this?)
• Report for abuse
•
•
Last updated Thu Apr 30, 2009 Member since October 2008
Total Page Views
513
MY BLOGROLL
• AL YEGANEH
1 – 5 of 5 First | | Last
SOUP MAN,AL Yeganeh’s Blog Full Post View | List View
…………………………………………………………………………………………………………
TO:PUBLIC & MEDIA who have been living under a rock!
WARNING: …DECEPTION TAC TICS ON TWITTER!!!
FROM: AL YEGANEH, the REAL SOUP MAN! .. Yeganeh1@aol.com
I did not know what the Twitter was, till watched “TWITTER WAR “on OPRA & CNN (Larry King, Ashton Kutcher, and Ted Turner) coupe weeks ago.
……………..So…I have no idea about BELOW page (3 LINES in red) on TWITTER SAYING: Bio I’m Al Yeganeh ..AND MORE..
Name: Al YEGANEH
Location: New York City
Bio: I’m AL YEGANEH.
I never used twitter; I do not even live in unite stated for more than 4 years( since March 11, 2005) .
Tags: | Edit Tags
Thursday April 30, 2009 – 11:20am (PDT) Edit | Delete | Permanent Link | 0 Comments
The Original soup store on 55th st.,near 8 avenue,manhattan,new york city for LEASE or RENT.
This soup store (soup kitchen int,l) is the same store,jerry seifeld took advantage of……..located on west 55th street, near 8 avenue(259-a W, 55th ST.) Manhattan, New York city.
Store has been closed right after I sold the North America right to this company who picked the name “ORIGINAL SOUP MAN” to operate under…………. It is available for LEASE or RENT now.
10 years+8 months more lease left, till December 2019.
Veryyyyy Low rent.
Located on Ground floor, Size: 9 x 21 SF ……
Basement floor: 9×40 SF….Fixtures, including, vent, 4 walking coolers & freezer .sink, restroom,
For detail, email: yeganeh1@aol.com .. AL YEGANEH, the real SOUP MAN
Tags: | Edit Tags
Wednesday April 29, 2009 – 02:47pm (PDT) Edit | Delete | Permanent Link | 0 Comments
FROM real SOUP MAN,AL YEGANEH
WARNING: Do Not be MISLED by what you see or hear or read about me.
This is AL YEGANEH, THE REAL SOUP MAN, “NOT ORIGINAL SOUP MAN” Since original soup man is just the name, this company picked to operate under 5 years ago.
There (3) things I have never done in my life:
1…. I have never made or authorized anyone/operation any soup, containing any kind of NOODLE or pasta product to carry or sold under my name.
2…. I have never named or approved or authorized anyone/operation to operate any kind of CHARITY FOUNDATION under my name” AL YEGANEH” .
3….I Have never approved, authorized anyone/operation any kind of MERCHANDISING (T-shirt, mug, etc,,,,,) to carry or sell or give away.
SO……IF YOU SEE:
1….Any soup containing any NOODLE or pasta products with my name or photo on, it is NOT mine.
2….Any CHARITY FOUNDATION operating under my name “AL YEGANEH”, it is NOT mine.
3…..Any kind of MERCHANDISING with my name and photo on, is COUNTERFEIT.
AL YEGANEH, THE REAL SOUP MAN. WHO USE TO OPERATE THE SOUP SHOP ON 55TH STREET & 8 AVE. MANHATTAN, NEW YORK CITY.
Tags: | Edit Tags
Friday April 17, 2009 – 03:15pm (PDT) Edit | Delete | Permanent Link | 0 Comments
THE ONLY PRODUCTS I EVER MADE AND AUTHORIZED TO BE SOLD.
THESE 48 SOUPS ARE THE ONLY PRODUCTS, I EVER MADE AND AUTHORIZED , THE COMPANY WHO PICKED THE NAME “ORIGINAL SOUP MAN” TO OPERATE UNDER.
. . ……………………………………………… THE REAL SOUP MAN, AL YEGANEH
AS YOU SEE BELOW:
I NEVER, EVER MADE ANY SOUP THAT CONTAINS ANY NOODLE OR PASTA PRODUCTS.
IF YOU SEE ANY OF MY SOUPS CONTAINS ANY KIND OF NOODL OR PASTA, IT IS NOT MINE.
*Chicken vegetable, garden vegetable, tomato & zucchini, tomato & basil
Tomato & mussel, tomato & wild rice, broccoli & cheese, jambalaya,
Italian wedding, mulligatawny, so many bean, Eggplant parmesan
Minestrone, cream of asparagus, butternut squash (hot).Split pea w/ham
Lentil, white bean w/ham & bacon.
* Chili: CHICKEN, beef, turkey, 5 bean.
* Goulash: beef, veal.
* Bisque: lobster, crab, shrimp, seafood.
* Chowder: corn, chicken & corn, Manhattan clam, New England clam, seafood.
* Gumbo: chicken, shrimp, turkey, sausage, seafood.
* Barley: chicken, beef, mushroom.
*chilled soups: tomato & corn, vichyssoise, borscht, butternut squash, fruit cornucopia. Gazpacho, cucumber
Tags: | Edit Tags
Friday January 30, 2009 – 10:01am (PST) Edit | Delete | Permanent Link | 0 Comments
Entry for November 04, 2008
AL YEGANEH , SOUP MAN , NEW YORK,USA yeganeh1@aol.com
NOTICE: TO MEDIA Who have misinformed public for last 4 years while I have been away from United States.
In case you did not take a minute to call 212 757-7730,my closed store on 55th st. & 8 ave. Manhattan New York or have not checked my website ( http://www.therealsoupman.com ), I have created this blog for you to give the public, accurate, fair and balanced information to prevent any disasters.
SINCE I don’t have AND never had any PR , spoke person and manager, I AM THE ONLY ONE WHO SPEAK FOR ME.
If you visited my website or called my store’s voice mail, it says: I do not live in United States any longer (since March, 2005) and have not resided there for the last 4 years.
And: I only sold the North America right to this company who PICKED the name “original soup man” to operate under.
And: any inquiry regarding North America right including franchises, contact (email) THEM at: http://www.originalsoupman.com
And: For rest of the world franchise right,
Contact ME: yeganeh1@aol.com . AL YEGANEH, SOUP MAN
Tags: | Edit Tags
Tuesday November 4, 2008 – 04:20pm (PST) Edit | Delete | Permanent Link | 0 Comments
Add SOUP MAN,AL Yeganeh’s Blog to your personalized My Yahoo! page:
About My Yahoo! & RSS
1 – 5 of 5 First | | Last