Handcrafted Chocolates And Ice Cream Drive Kilwins Franchise Expansion Plans
Don and Katy Kilwin founded their namesake Petroskey, Mich., bakery in 1947 with a quality-first approach and never wavered. “The oven in the original bakery was a coal-based coke oven, and they had a gas burner put in it,” CEO Brian Britton says. “Don was a perfectionist, and when their oven kept burning things, he sold their only car for a down payment on a new oven. They went without a vehicle for a year because they were so focused on selling a quality product!”
At first the Kilwins’ bakery catered to summer visitors seeking refuge from hay fever. To counteract the winter business lull, the couple diversified with candies. “Don experimented with new recipes,” Britton says, “investing in specialized equipment like a Hilliard’s chocolate melter, a marble fudge table and a chocolate enrober,” a machine that applies chocolate coatings.
In 1972, the couple sold the bakery side of the operation and dedicated themselves to confections. Six years later, the Kilwins sold the candy business to Wayne and Lorene Rose, who planned to eventually franchise it, with Don and Katy helping owners set up their businesses. The new owners opened stores in Harbor Springs, Mackinac Island and Traverse City, Mich., and began franchising in 1983. The Roses introduced Kilwins Original Recipe Ice Cream in 1985, and it now accounts for more than half of stores’ revenue. In 1995, Don and Robin McCarty bought the Kilwins franchise; they sold it to Levine Leichtman Capital Partners in 2023.
Commitment to Excellence
Through all those ownership changes, Britton says Kilwins has maintained its excellence: an array of top-quality, irresistible products; stellar support (including assistance with location selection and construction, marketing, training, and ongoing operational guidance such as webinars and a weekly newsletter about best practices and tips); and a friendly, pleasant customer experience. Product diversity — tempting gifts, a wide range of ice cream flavors, made-in-store treats and proprietary candies that use its Fair Trade Certified™ chocolate — provides a steady cash flow, Britton says. Kilwins ensures the quality of those proprietary chocolates from precise preparation in Michigan all the way to franchise stores, where specially designed trucks make deliveries.
“In addition to Kilwins products, customers enjoy our ‘theater,’ where our team members make fudge, caramel apples, chocolate-dipped items, caramel corn, waffle cones and more right in front of them,” Britton points out. “Soon some of our stores will offer waffle cones freshly coated with chocolate inside, right before the ice cream is scooped. It took five years of testing to perfect this chocolate on-the-inside machine.”
Don Kilwin began the innovation 77 years ago, and “the Kilwins’ legacy continues through their iconic recipes and techniques, which remain central to the brand’s offerings,” Britton says. Their standards will continue as the brand grows from its current 160-plus locations, all east of the Rocky Mountains. Within four years, the Kilwins franchise hopes to expand westward, becoming a nationwide brand with 400 stores. (Kilwins also will elevate online ordering as part of its growth plan.)
Franchisees should be customer-centric, detail-oriented and inspiring for their teams. Business experience is beneficial but not required. Hands-on involvement is encouraged during start-up, but owners may transition to a semi-absentee role as their businesses stabilize.
About Kilwins
Kilwins CEO Brian Britton (above) says key points for franchisees are:
- Kilwins’ proven business model dates back to 1947.
- Annual unit volume averages $946,105.
- Franchisees have renewed their franchise agreements at a 99% rate during the past 15 years.
- Most Kilwins franchisees are multi-unit owners.
- “Entrepreneur ranked us No. 1 in the magazine’s Franchise 500 listing for our category, a testament to our excellence and the lucrative potential of our business model.”
- The brand’s proprietary Fair Trade Certified™ chocolate products are made in its Petoskey, Mich., kitchen.
- Franchisees share a love for crafting superlative sweets and providing outstanding customer experience. “Our mission is to ‘Make More Happy’ in our communities through our welcoming environment and carefully chosen team members.”
- The $88 billion U.S. confectionery sector is expected to grow annually by 5.30%, according to Statista.
For more information, visit the Kilwins franchise website.
