tesg's guide to big chain road food consumption

CHAIN -- Kaleidoscoops
Owner -- Kaleidoscoops (Co-Op)
Primary Operating Region -- Scattered about
Number of Locations -- 82 (2007)

My local Baskin-Robbins did a fine business.  You could count on local families there every evening, as well as a solid customer base from the neighboring laundromat.  So it was with some surprise that one day the sign came down only to be replaced with the Kaleidoscoops brand.

What the heck happened?  The same people who ran Baskin-Robbins were running this one, but there was a new logo and new paint on the walls.

Upon closer inspection, that was about the extent of the changes.  The layout was otherwise unchanged.  The Kaleidoscoops menu boards were almost identical to Baskin-Robbins.  I could still order a two-scoop sundae with my usual flavors and toppings.  It clearly wasn't the same taste, but it was close.

It turns out Kaleidoscoops is a co-op put together by disenfranchised (literally) Baskin-Robbins outlets.  Baskin-Robbins has been pushing co-branding with sister outlets and significant upgrades.  They've also been strategically planning growth.  In 1999, Baskin-Robbins told several franchisees their stores were in "non-strategic markets" and they would have to close when their renewals came up.  Some of these franchisees got together to find a way to survive.  The solution was a co-op that has not only become an unlikely success, but a thriving success.  Not only have several former Baskin-Robbins outlets changed names, a couple of other chain stores have also defected.  Ground-up startups are also happening.

The Kaleidoscoops owner advantage is the store owner can have a traditional ice cream shop with national support, but without the big chain limitations.  You can localize your store in colors, variety, and menu items.  Think you can sell bad Thai food alongside ice cream?  Go for it.

I imagine the original co-op members can't believe how successful the idea has become.  I imagine Baskin-Robbins can't either, and are sorry they ever caused it to happen.

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