How does the coldest product on the market become one of the
hottest businesses in franchising today? By providing exactly what
American consumers are craving and tapping into some emerging
trends.
One of the strongest trends today is Americans' desire for
comfort. Whether it's manifesting in the boom in home
redecorating or the growing interest in home cooking, it's
clear consumers are looking for things that feel safe, familiar,
happy. Ice cream fits nicely with this desire for comfort.
"Everybody loves ice cream," points out Lynda Utterback,
publisher of The National Dipper, a retail ice cream trade
publication based in Rolling Meadows, Illinois. "People have
good memories related to it, like walking to the local store as a
kid on a hot summer day to get ice cream."
Also boosting the trend are families, typically a captive
audience for ice cream retailers. "It's a very affordable
treat--people can take their families to an ice cream store and
spend just $10 or $12. They can't do that at a baseball game or
a movie theater," says Utterback. "Then they sit down at
a table and visit with each other, so it's a family-oriented
outing."
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Carvel Corp.
knows about the connection between ice cream and families--the
company was founded in the '30s and has seen its classic ice
cream cakes like Fudgie the Whale become birthday party staples for
families on the East Coast. A recent acquisition by Atlanta-based
private equity-firm Roark Capital Group has this franchise primed
for nationwide growth, using that family experience to its
advantage.
"This experience--spending time with family and friends and
eating comfort food--has become a very important part of our
society again," says Chris Prasifka, vice president of
operations for Carvel. "We're seeing a lot of family
outings, going to the ice cream shops--these types of activities
[are resurging]."
Not content to rely on its past success with families, Carvel is
taking the next step to reach out to this market with a new menu,
featuring items like smoothies and coffee drinks to appeal to a
broad audience, and a new store design with kid-friendly extras.
"We're trying to add to the experience, so we have
interactive games on our counters for kids, and we're looking
into a new sprinkle bar where the kids can add their own
sprinkles," says Gary Bales, Carvel's vice president of
marketing. "We're really interested in making the whole
Carvel experience something special."
Other chains are joining the trend of serving up equal parts ice
cream and entertainment.
MaggieMoo's Ice Cream & Treatery, which specializes in
fresh-made ice cream with mix-ins like fruit and candy,
differentiates itself with the help of "spokescow"
MaggieMoo. Each store in the chain is decorated with drawings of
Maggie and her friends, known as the Girlz in the Herd, and stores
sell merchandise and treats emblazoned with Maggie's image.
"People go out to eat ice cream when they're looking
for an indulgence and an experience, and we provide an environment
that caters to that need for them," says Richard J. Sharoff,
who purchased MaggieMoo's from its original owners in 1996 and
until recently served as president and CEO.
Part of that environment includes one of the biggest trends to
hit the ice cream business in years: personalized ice cream.
Cold Stone Creamery popularized the mix-in craze that's
currently sweeping the nation. "People who want certain types
of ice cream that are not commercially made can go into a store and
order a specific candy or cookie or whatever they want to mix in
the ice cream," Utterback says.
How powerful is that niche? To witness the trend firsthand, you
only have to watch customers line up along Cold Stone's
counters as servers blend together fresh-made ice cream and
ingredients ranging from fruit to brownies. Not only are customers
ooh-ing and aah-ing over the creative process--they're also
charmed by the singing servers. "Today, it's not just
about good service--it's about entertainment. It's about
customers feeling special, like they're being taken care
of," says David Andow, executive vice president for Cold
Stone. "We understand that, and when someone walks into a
store, we're doing everything we can to provide this 10-minute
vacation, this ultimate ice cream experience. That makes a big
difference."
It's not just the mix-ins that consumers are interested in.
Freshly made ice cream is also a major draw. "[Ice cream is
being made] in store, and [storeowners] are very particular about
the ingredients they put in," Utterback says. "The ice
cream in the store can be two or three days old, whereas the ice
cream in the grocery store can be a couple of months old. Consumers
are getting a high quality product."
The popularity of ice cream is so strong, even the anti-fat
movement and national obsession with counting calories isn't
enough to deflate it. "When [consumers] want dessert,
they're going to save up the calories and have the kind of ice
cream treat they want," Utterback says. "The premium and
super-premium brands are selling better than the low-fat ice creams
are. When people want dessert, they go for the good
stuff."
The good stuff has long been the focus of Ben &
Jerry's, perhaps the grandfather of ice cream
"entertainment." Long before the live mix-in became
widespread, the franchise was renowned for its unique combinations,
including Chunky Monkey (banana ice cream with fudge chunks and
walnuts) and Everything But The... (chocolate and vanilla ice cream
with Heath Bar chunks, white chocolate chunks, peanut butter cups
and chocolate-covered almonds). "It's a very different
experience when you taste Ben & Jerry's. It's what I
call the 'Oh my gosh' factor. Somebody takes a bite of our
ice cream, and there are a lot of things going on," says
Richard Wenz, brand manager for retail of the South Burlington,
Vermont-based Ben & Jerry's. "It's just very
experiential."
And customers do take notice. "People have grown up with
Ben & Jerry's in the landscape of Americana," Wenz
says. "The fact that we have a lot of different choices of
flavors on the shelf and in the Scoop Shops [benefits the
brand]."
Regardless of whether they're going for a family excursion
or a personal treat, whether they're ordering fresh-made with
mix-ins or themed cakes, people love ice cream. "Ice cream is
an amazing product. About 90 percent of the total population eats
ice cream," Wenz says. "I can't think of any product
but water you make that claim about."