Columbia Closings   What's not in Columbia anymore

I believe I stopped at this Coldstone twice, having ice cream once, and a milkshake once. Both times, it seemed to me that they were doing a good business. I noticed the other day, however, when I was taking pictures of the nearby former Za's location that they are now closed. I've put down 2007 for the closing date since they aren't listed in the 2008 Bellsouth phonebook, but it could have been 2006 I suppose.

When both Bruster's and Coldstone closed in Forest Acres, my thinking was that Bruster's had a bad location and business model, but I was puzzled by Coldstone, which seemingly had a good spot by Starbucks in a high foot-traffic area of Trenholm Plaza. Seeing the Clemson Road Coldstone closed got me thinking there might be something up with the chain itself, and lo-and-behold, I ran across an interesting Wall Street Journal article to exactly that effect last night. It seems that Coldstone franchisees must pay back to corporate on gross sales, and that they have to use suppliers with very high markups:

Even as they rave about the quality of the ice cream, numerous franchisees say the numbers in Cold Stone's business model didn't add up. The cost of running one of the shops was so steep that making a profit was daunting, especially in an economy where a $4 scoop was a pricey indulgence, they argue. They also contend the company cut their margins even further by offering two-for-one coupons and making them buy costly ingredients from a single supplier. Some argue that the company's rapid expansion crowded stores too close together -- and brought in too many inexperienced franchisees.

To quote from an even more interesting followup comment by a disgruntled Coldstone franchisee:

Another issue is Cold Stone’s agreements to receive kickbacks from the companies that it requires franchisees to use. This is over and above the 9% that they charge franchisees based on gross sales. These agreements drive up food costs for franchisees and forces them out of business. As an example, I recently purchased 24-24oz. Pepsi bottles from Sam’s Club for $14.21. Yet as a franchisee, I was required to buy 20oz. bottles directly from the distributor. I believe I was paying $21.65 for 20-20oz bottles of the very same product. Therefore I was paying more than $7 more for product from the distributor and receiving 96 less ounces. Shouldn’t a franchisor negotiating on behalf of nearly 1,400 franchisees be able to negotiate a better price than I can get walking into my local wholesaler?

There are some very sad stories at the second link. I do get snarky on this blog, but every failed store was someone's dream.

UPDATE 21 April 2010: Added full street address to post title.

UPDATE 28 April 2010 -- It's now a Subway:

When I first saw Coldstone closed last week, I wasn't going to make a post on it because it seemed clearly temporary, but I was puzzled when the down-time stretched into this week. What kind of high-tech equipment does an ice-cream store have that can't be fixed by a commercial refrigeration repairman in a few hours?

I hope it is temporary, but this is similar to the way the Bruster's closing started. Coldstone is pretty good too, though they make it very embarassing for both the customer and the staff to tip there.

Update 10 June 08:

Well, it's pretty much as I feared. The "equipment problem" signs were disingenuous as closing signs often are. Based on what I see inside the store now, it's gone.

This is the second upscale creamery that Forest Acres has lost recently. Luckily there's still old reliable Baskin Robbins up the street and Zesto's chocolate dipped soft cones (umm!) across from Richland Mall..

UPDATE 21 April 2010: Added full street address to post title.

This one is not a "real" closing, but I thought it was kind of odd, so I'm going to note it.

I had noticed Bruster's Real Ice Cream in a few locations before ever stopping by, and it seemed to me that there was always a crowd standing around outside for some reason. When I finally did stop by, I found that the reason is that there is no "inside", at least for customers. All the business is done through walk-up windows, even though the buildings are plenty big enough to have counters inside. The ice cream is pretty good, but certainly not noticably better than Baskin Robbins, Ben & Jerry's, Coldstone or Marble Slab, all of which operations have counters and seats inside. I can't really think of why the chain would adopt such a concept, except to "be different". It's a concept I can see working well in resort areas, but it seems ill-suited to year-round markets. If you get a hankering for ice-cream in November, are you going to go somewhere warm, or stand outside Bruster's?

I noticed a month or two ago that the store on Beltline at Forest had been dark a while, and I stopped by to see what was going on. There were signs in the windows saying that they were closed for "renovations & training" and would be open again early in 2008. Well, it is now early in 2008, and they are still closed. Since it is a brand-new building, and I have seen no work trucks at the site, the renovations angle is puzzling, and I have to wonder what kind of training the staff at this store needed that isn't needed at their other locations, especially since it was a going operation. If I were to speculate, I would say that their business model just doesn't work in the winter at non foot traffic sites. But I would never do that.

UPDATE 27 March 08: Looks like the place is for sale, but for sale as a Bruster's franchise, not as just a building:

I wish him(?) luck, but those "loyal customers" the "for sale" sign references have had half a year to find other creameries..

UPDATE 31 March 09:

Well, they backed a truck up to the place and loaded all the equipment and took down the signs. That was in January I think and so far nothing has gone in there.

UPDATE 8 June 2010 -- Well, it's going to be a Hibachi Express "soon", though it seems like the "soon" sign has been up a month or so, and there doesn't look to have been any interior work done..

UPDATE 23 Dec 20-- Hibachi Express is open:

UPDATE 30 August 2021: Updating tags, adding map icon.