is closing in Los Gatos, but not until Labor Day.
That's good news for locals who love ice cream and have become regulars at the store in the summer to cool off from the hot temperatures.
Owner Charles Hamm, of San Jose, said he decided to close the business due to declining sales in the winter which have made it impossible for him to continue to pay the rent at Lyndon Plaza.
Hamm has been leasing the space month to month. He said he has tried to sell the business for about a year without success.
When , 20 So. Santa Cruz Ave., Suite 200, found out about Hamm's decision to close the store, its owners decided to expand into his space at suite 201, Hamm said.
Hamm owns another Cold Stone Creamery in Rivermark Plaza, in Santa Clara.
"We're hanging in there ... We'll continue operation there, but it's a tough time, it's been tough since 2008," Hamm lamented.
Hamm said the store has been in Los Gatos since 2006. He said he bought it in March of 2007 from a previous owner who had been losing money. At the time, there were two Cold Stone Creamery stores in Los Gatos. "They had mediocre sales and I thought if one closed, those customers would come over. In the summertime it's not too bad, but I just can't afford the winters.
"I'm very sad to leave and I love all the patrons who have come to Cold Stone Creamery all these years. I wish I could stay open for them, but the business environment has made it impossible to continue operation."
I think overwhelmingly, most Cold Stone franchise owners are not profitable due to the actions of Kahala and Cold Stone Creamery. It may even be that no stores are profitable because it was discovered that Cold Stone accepts kickbacks from the distributors that it forces the franchise owners to use. This was reported on CNBC but also in the Wall Street Journal. That causes Cold Stone franchises to become unprofitable. In many cases, this results in the loss of $500,000 or more in savings and other assets and leads to bankruptcy and ultimately the loss of the owner’s home. It’s corporate greed at it worse. As Cold Stone continues to engage in kickbacks and until the federal government steps in says “no more kickbacks”, this will continue to happen.
I am so sorry for your loss of you store.