Cold Stone Creamery

Cold Stone Creamery, Inc.
Company type	Subsidiary
Industry	Ice cream parlor franchise
Founded	1988; 38 years ago
Founder	Donald Sutherland, Susan Sutherland
Headquarters	Scottsdale, Arizona, United States
Area served	United States and more than 20 countries internationally
Key people	Éric Lefebvre (CEO)
Products	Premium ice cream, ice cream cakes, pies, cookie sandwiches, smoothies, shakes, iced and blended coffee beverages
Owner	Kahala Brands (through MTY Food Group)
Website	www.coldstonecreamery.com

Cold Stone Creamery, Inc. is an American-based global ice cream parlor franchise headquartered in Scottsdale, Arizona. Owned by Kahala Brands through the MTY Food Group, the company operates over 900 outlets across the United States and around 300 locations internationally in more than 20 countries. Established in 1988 by entrepreneurs Donald and Susan Sutherland, Cold Stone focuses on premium ice cream containing 12–14% butterfat, which is freshly prepared on-site and tailored to each customer's preferences.

Beyond its core ice cream offerings, the brand's menu includes ice cream cakes, pies, cookie sandwiches, smoothies, shakes, as well as iced and blended coffee beverages. Under the leadership of CEO Éric Lefebvre, Cold Stone emphasizes growth through franchising and global market penetration, capitalizing on its well-recognized brand and diverse product range to strengthen its position within the competitive frozen dessert sector.

History

Cold Stone Creamery was established in 1988 by Donald and Susan Sutherland with the goal of creating a unique ice cream experience distinct from traditional hard-packed or soft-serve varieties. The inaugural store debuted in Tempe, Arizona, where the original location remains near McClintock and Southern avenues. The company's hallmark concept—drawing inspiration from Steve Herrell of Steve's Ice Cream—allows customers to choose their preferred ice cream flavors and mix-ins such as candies, nuts, brownies, and syrups, all blended together on a frozen granite surface known as the "cold stone."

The brand initiated its franchising efforts in 1995 with its first franchise opening in Tempe, followed by rapid expansion to Camarillo, California. Since then, Cold Stone has grown to become the sixth highest-selling ice cream brand in the United States. Its international footprint began with a European franchise launch in Copenhagen in 2008 and extended to markets including Canada (2009), Singapore (2012), Nigeria (2012), Turkey (2015), El Salvador (2015), and the United Kingdom (2023). However, the Singapore outlets ceased operations in January 2020.

A pivotal development took place in May 2007 when Cold Stone merged with Kahala Corp to create Kahala-Cold Stone, a franchising conglomerate overseeing eight different brands. Doug Ducey—who had served as Cold Stone’s president and CEO since 1995 before becoming Arizona’s governor—initially headed the merged company but stepped down in September 2007. He was succeeded by Kevin Blackwell, former CEO of Kahala, who took on the roles of CEO and chairman. In 2013, ownership shifted when Toronto-based Serruya family acquired a majority interest and renamed the business Kahala Brands to better represent its multi-brand franchising strategy.

Co-Branding

In late 2007, several Cold Stone franchise operators in New York City collaborated with Soup Kitchen International to offer soups within their establishments. The following year, Cold Stone entered into a master licensing agreement with Rocky Mountain Chocolate Factory to launch co-branded stores featuring their products.

Tim Hortons

In February 2009, Kahala Brands—the parent company of Cold Stone Creamery—announced a strategic partnership with Canadian coffee chain Tim Hortons. This alliance aimed to establish 100 co-branded locations across the United States following successful pilot stores in Rhode Island. The collaboration sought to broaden Tim Hortons' footprint in the US market while facilitating Cold Stone’s entrance into Canada. The initial co-branded stores opened in August 2009, including Tim Hortons’ prominent Times Square location in New York City.

By mid-2009, Cold Stone tested its presence within Canada through seven co-branded outlets alongside Tim Hortons across cities such as Toronto, Oakville, Mississauga, Hamilton, Pickering, Sudbury, and Halifax—covering nearly all provinces except Newfoundland and Labrador.

This co-branding initiative built upon earlier collaborations from 2007 and 2008 but concluded in 2014 when Tim Hortons removed Cold Stone Creamery ice cream from its Canadian locations.

Products

Cold Stone Creamery provides customers with four different portion sizes and an assortment of items, including milkshakes and smoothies like the Cold Stone PB&C. This particular large shake gained notoriety by being named the unhealthiest beverage in the United States for two years running by Men's Health Magazine, containing 2,010 calories, 131 grams of fat (with 68 grams saturated), and 153 grams of sugar.

In 2009, Cold Stone broadened its brand reach by launching Cold Stone Creamery: Scoop It Up, a simulation game for the Wii platform developed by CyberPlanet Interactive and published by Zoo Games.

Licensing

Cold Stone has utilized strategic collaborations to expand its product lineup and strengthen brand visibility. In 2009, a partnership with Kraft Foods resulted in ice cream flavors inspired by Jell-O pudding varieties—Chocolate, Butterscotch, Banana, and Vanilla. These unique flavors feature pudding additives that prevent melting.

Furthermore, a licensing deal established in 2008 with Jelly Belly introduced jelly beans modeled after popular Cold Stone ice cream flavors, extending the brand’s presence into the candy market.

Legal issues

Certain independent Cold Stone franchisees have accused the parent company of unfair business tactics, including opening nearby locations, enforcing expensive remodeling mandates, and exaggerating revenue forecasts, which they claim have negatively impacted their profitability. On the other hand, some franchise owners report sustained growth despite economic pressures such as increased fuel and energy expenses.

A 2008 report from the Wall Street Journal revealed that roughly 16–20% of Cold Stone franchises had either closed or were listed for sale, with some proprietors incurring substantial financial setbacks. Franchisees alleged misleading revenue figures and corporate actions that diminished profit margins. The company countered that the proportion of stores on sale was consistent with industry norms given the challenging economic climate.

CNBC documentary and lawsuit

In December 2010, legal representatives for Cold Stone Creamery threatened litigation in response to a CNBC documentary titled Behind the Counter: The Untold Story of Franchising, which examined both successes and failures within franchising. After modifications, the documentary aired on March 21, 2011, featuring brands such as Dunkin' Donuts and Five Guys, alongside interviews with Cold Stone executives and former franchisees discussing threats of legal action. Another investigative piece was ultimately withheld due to legal concerns.

Misleading ingredients class action lawsuit

In June 2024, a class action lawsuit initiated by a Long Island consumer advanced against Cold Stone Creamery for advertising ice cream flavors lacking authentic ingredients corresponding to those flavors. The plaintiff challenged a pistachio flavor sold in Levittown, NY, which contained only "pistachio flavoring" composed of water, ethanol, propylene glycol, artificial flavors, and dyes rather than real pistachios. Comparable allegations were made regarding mango, coconut, orange, mint, and butter pecan varieties. U.S. District Judge Gary R. Brown ruled these practices deceptive under New York state law. Kahala Brands sought dismissal of the case by arguing that ingredient lists were accessible online and that no explicit claims guaranteed genuine ingredients.

Food Safety

In 2015, the FDA connected Cold Stone’s "cake batter" ice cream to a multi-state salmonella outbreak, which resulted in an immediate nationwide recall of the product. A decade earlier, in 2005, the CDC reported 25 salmonella infections across nine states linked to the consumption of Cold Stone's cake batter flavor.

Cold Stone has also been criticized for allegedly using eggs from battery-caged hens, a practice prohibited by the European Union since 2012 due to concerns over animal welfare and health risks.

Workplace Safety

In 2023, an employee in Oregon suffered the loss of three fingers after her hand was caught in the rotating blades of an ice cream machine, prompting several coworkers to resign shortly thereafter. A comparable event occurred in 2007 when another worker lost a finger after a rag became entangled in the machinery.

Corporate Headquarters

The company initially established its base in Tempe before moving its headquarters to Scottsdale, Arizona in 1997. Since July 2005, Cold Stone has operated out of a two-story building that includes classroom facilities, a product development kitchen lab, and a training store to support ongoing business expansion and innovation.

External links

Interview with Ray Karam, Senior Tastemaster, Cold Stone Creamery, Pursue The Passion, 18 April 2010.