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Cold Stone, other Kahala brands could be impacted by Arizona boycotts
May 5, 2010
Kahala Corp.'s brands Cold Stone Creamery, Blimpie Subs, Great Steak and others could see their franchise opportunities impacted as more communities pass ordinances to boycott Arizona. Cities such as Oakland and Boston have already passed boycotts that forbid official travel to the state and/or new franchise agreements with Arizona-based businesses in protest of the state's new immigration law. Other cities, including New York and Los Angeles, are considering similar resolutions.
Arizona's controversial new law allows law enforcement officials to ask individuals "where reasonable suspicion exists that the person is an alien who is unlawfully present in the United States" to present proof of citizenship. Consumers and legislators across the country are protesting the law, saying it is racist or leads to racial profiling. Several groups have started online petitions asking consumers to boycott any Arizona-based business.
Advertising Age reports that Arizona's $12 billion tourism industry has already been impacted by the boycotts, with organizations pulling their convention business.
Cold Stone Creamery has posted a statement on its website to point out that such a boycott impacts individual franchisees and employees rather than state legislators.
We are aware that people are considering boycotting Arizona-based businesses in regard to the Arizona immigration bill. What many Americans might be surprised to know is that Cold Stone Creamery's stores are franchises. This means a boycott of Cold Stone Creamery is mostly burdening small business owners in local communities across the country. It is our hope that customers in turn continue to visit their local Cold Stone Creamery stores which employ staff of various ages and races. A boycott of our franchises only further impacts the people living and working in communities across America.
Kahala Corp. issued a statement in a similar vein for its other brands.
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