Coldstone Creamery closes area store
Martin and Melinda Gravenstein have operated the Cold Stone Creamery in downtown Grass Valley for five years, but today will be the store’s last day.
Though the business is profitable, it isn’t profitable enough for the franchise’s new corporate owners, the Gravensteins said.
Cold Stone Creamery was taken over in May 2007 by Kahala Corp., a franchise company that for 20 years has grown by buying up small but successful fast-food businesses. The resulting Kahala-Cold Stone corporation is based in Scottsdale, Ariz.
“Kahala Corp. has set higher gross annual sales goals for its franchised units, and although the local Cold Stone Creamery store has always excelled during product quality and service evaluations, it is not projected to achieve the necessary future annual sales requirements to remain profitable,” Melinda Gravenstein said.
Growth in western Nevada County is not expected to be great enough to provide the numbers they would need, she added.
The couple’s goal, when they opened their franchise store at 113 Neal St. near Safeway, “was to provide the consistent quality of a system-based operation … through local ownership,” Gravenstein said.
So they plan to reopen their own business in the same spot, they said.
“A new business activity is planned to assume the location and to replace the operation with a product and service which is exclusively tailored for Nevada County ice cream customers,” Gravenstein said.
At the time of the merger, Kahala-Cold Stone reported having $1.1 billion in systemwide sales through 13 brands, involving more than 3,000 franchisees and more than 4,600 retail locations in 15 countries.
To contact City Editor Trina Kleist, e-mail firstname.lastname@example.org or call 477-4230.
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