RISE - Menu Monitor

Carvel Ice Cream
Headquarters
200 Glenridge Pnt Pkw Suite 200, Atlanta, Georgia 30342 USA
Tel: (404)255-3250 Fax: (404)255-4978
www.carvel.com
Ownership: Private
Segment: Limited Service Frozen Dessert
System Characteristics 2006 2005 2004
U.S. Systemwide Sales ($000) 175,000 135,500 129,400
Company-owned ($000) 5,000 4,500 3,400
Franchised ($000) 170,000 131,000 126,000
U.S. Number of Units 599 536 488
Company-owned 23 22 22
Franchised 576 514 466
International Sales ($000) 500 2,500 1,500
International Units 2 27 15
Average Sales/Unit ($000) 300 310 300
Concept Positioning |
Carvel Ice Cream is a quick-service ice cream chain that positions itself as “An American Icon.” Stores offer soft-serve ice
cream and other frozen treats, including its frozen ice cream cakes. The chain is the first retail ice cream franchise of U.S.
FOCUS Brands, a subsidiary of Roark Capital. FOCUS Brands’ portfolio also includes Cinnabon, Schlotzsky’s Deli and
Seattle’s Best Coffee.
Carvel's exteriors feature a rosy red awning with dark purple and bright yellow accents, while interiors have the same color
scheme and feature bakery-type vertical cake display units. Most stores have counter service only. In addition, franchisees are
being offered mini-stores; kiosks and portable vending cart units for expansion within heavy traffic trade areas. Equally
important is its aggressive franchise development program, which focuses on development of multi-unit agreements and
expansion into new markets. The company has revived its formerly disbanded franchisee committee for store owners to voice
their concerns and has increased its franchisee support staff from six to 50 over the past two years. Carvel is also in the midst
of an overall interior remodeling program. Franchisees are required to bank a percentage of monthly sales into an account that
will be used for updating stores with the new décor.
Carvel also markets its ice cream cakes in bakery sections at nearly 6,500 supermarkets. The products are produced and
delivered by franchisees as well as company-owned and operated production plants. Revenues generated are shared by the
franchisee (50% of sales), the supermarket (40%) and Carvel (10%). Independent vendors provide franchisees with
proprietary mixed ice cream, from which Carvel’s brand is made at each store. Equipment is sold from third party vendors.
In addition, Carvel has a number of concession contracts including Meadowlands Sports Complex in New Jersey,, Shea
Stadium and Yankee Stadium in New York; Tropicana Field in Tampa, Universal Studios in Orlando as well as various airports
and toll roads.
In 1934, Thomas Carvel opened a roadside ice cream stand in Hartsdale, NY. Five years later he constructed and patented
the first machine that produced a frozen confection (later known as frozen custard). In 1941, he began franchising Carvel
units. Investcorp Inc. bought the company from Thomas Carvel in 1989. Roark Capital acquired the company from Investcorp
in 2001 for $50 million.
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