KaleidoScoops
From Wikipedia, the free encyclopedia
KaleidoScoops is an American chain of ice cream shops. As of 2003, there were 80 Kaleidoscoops locations operating in 19 states.[1]
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[edit] Company history
KaleidoScoops was formed in 1999 by several former Baskin-Robbins franchisees after the latter company terminated approximately 200 domestic franchisee agreements in Southern markets they deemed "nonstrategic."[2]The terminated shop owners were all notified of the agreement cancellation via a conference call.[2] Over forty of the former franchisees united to form the new company, KaleidoScoops, which operates as a cooperative and is based in Aurora, Illinois.[2] Other former Baskin-Robbins franchisees converted their stores to franchises of McConnell's of Santa Barbara and The Ice Cream Club.[2]
Many KaleidoScoops owners were among the plaintiffs in a $40 million breach of contract lawsuit filed against Baskin-Robbins by former franchisees in December of 1999.[2] The lawsuit sought to bar the company from operating in their region in the future.[2]
According to KaleidoScoops president Tom Fletcher, a former chief operating officer for Big Apple Bagels and executive with Dean Foods and Baskin-Robbins, the costs of converting a former Baskin-Robbins location into a KaleidoScoops store could vary from $5,000 to $150,000.[2] The first stores to be converted experienced a drop in initial sales of about 20 percent on average, but sales have since improved.[1] Between 2000 and 2003, KaleidoScoops doubled in size, with many of its members entering the cooperative with no prior experience owning ice cream shops.[1]
[edit] Operations
As of 2003, membership in the KaleidoScoops co-op cost a $2,500 entry fee and $600 annual dues.[1] The co-op takes no percentage of sales revenue, although it does levy a $2 surcharge per each tub of ice cream, which made up the bulk of its earnings in 2001.[3] Even with the surcharge, ice cream costs about 30% less for store owners buying from KaleidoScoops than from Baskin-Robbins, according to Fletcher.[2] The co-op offers help with site selection, construction, and advertising, but use of all of those services is voluntary.[1] A portion of any profits generated by the co-op is split among members in the form of patronage dividends.[1]
KaleidoScoops members are given significantly more freedom in running their store than Baskin-Robbins permits its franchisees. Co-op members are allowed to choose their own operating hours, decor, and menu, apart from ice cream.[1][2] Ice cream flavors are decided upon by a committee.[1]
[edit] References
- ^ a b c d e f g h Walkup, Carolyn. "Frozen-out franchisees regroup with KaleidoScoops." Nation's Restaurant News, 2003-07-07, p. 8.
- ^ a b c d e f g h i Spector, Amy. "Ex-Baskin-Robbins franchisees sue chain, open scoop shops." Nation's Restaurant News, 2001-06-18, p. 4.
- ^ Gallun, Alby. "Upstart ice cream co-op seeks scoop of Baskin-Robbins' biz." Crain's Chicago Business, 2001-07-16.
