Rocky Mountain Chocolate Factory Marks Grand Opening of New Prototype Store in Charleston
Grand Opening Announcement: Rocky Mountain Chocolate Factory is set to open a new prototype store on King Street from November 13-15, featuring an immersive chocolate experience that engages all five senses.
Store Design and Experience: The new store boasts a modern layout with warm wood accents, an expanded ice cream counter, and handcrafted chocolates, while maintaining the brand's heritage of quality and craftsmanship.
Promotional Activities: The grand opening will include a ribbon-cutting ceremony, free caramel apples or truffles with purchases over $25, a Golden Ticket Giveaway, and various exclusive giveaways and samples throughout the weekend.
Company Background: Founded in 1981 and headquartered in Durango, Colorado, Rocky Mountain Chocolate Factory operates over 250 stores in the U.S. and is recognized among top franchise rankings, emphasizing its commitment to premium chocolates and customer experience.
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- Market Reaction: European stocks plummeted on Tuesday as Trump threatened a 200% tariff on alcohol from EU countries, with the pan-European Stoxx 600 index falling 1.4% by 9:50 a.m. London time, indicating negative sentiment across all sectors and major regional exchanges.
- Tariff Details: Trump announced that starting February 1, eight European allies, including Denmark, Norway, Sweden, France, Germany, the U.K., the Netherlands, and Finland, would face escalating tariffs beginning at 10% and rising to 25% by June 1 if no agreement is reached.
- French Response: French leaders have strongly opposed Trump's tariff threats and called for more dialogue with the U.S., as shares of luxury giant LVMH and drinks company Remy Cointreau fell by 2.1% and 1.5%, respectively, reflecting market concerns over potential tariffs.
- Economic Data: Meanwhile, data from the U.K. Office for National Statistics showed that the unemployment rate remained unchanged at 5.1% for the three months ending in November, while wage growth eased to 4.5%, highlighting economic pressures and uncertainties.

- Franchise Ranking: Rocky Mountain Chocolate Factory achieved a ranking of 415th in the 2026 Entrepreneur's Franchise 500, showcasing its outstanding performance in unit growth, financial stability, and brand strength, thereby reinforcing its position as a premium franchise opportunity.
- Industry Recognition: This ranking has been a gold standard in the franchise industry for 47 years, indicating that Rocky Mountain Chocolate Factory not only survives but thrives in changing markets, enhancing its appeal to potential franchisees.
- Evaluation Criteria: Entrepreneur's assessment is based on over 150 data points, including costs, growth, franchisee support, and brand strength, ensuring the fairness and authority of the ranking, which in turn boosts Rocky Mountain Chocolate Factory's competitive edge in the market.
- Market Coverage: Since its establishment in 1981, Rocky Mountain Chocolate Factory has operated over 250 stores across the U.S. and expanded internationally, demonstrating its strong brand influence and market penetration capabilities.

- Margin Improvement: Rocky Mountain Chocolate Factory achieved a gross margin of 21.4% in Q3, significantly up from 10% year-over-year, demonstrating effective execution of its margin-first strategy despite short-term revenue pressures.
- Revenue and Net Loss: Total revenue for the quarter was $7.5 million, down from $7.9 million last year, reflecting the company's strategic exit from low-margin revenue streams, while net loss narrowed to $200,000, indicating initial success in cost control.
- Franchise Development: The company has 34 stores under development and is constructing 2 new locations, with the franchise team’s efforts expected to lay the groundwork for future revenue growth and accelerate franchise expansion.
- Digital Strategy Advancement: All stores now have unique websites and have launched DoorDash storefronts, enhancing customer touchpoints, and combined with improvements in POS systems and ERP, are expected to boost overall operational efficiency and customer experience.

- Financial Highlights: Rocky Mountain Chocolate Factory reported a Q3 GAAP EPS of -$0.02, indicating ongoing efforts to restore profitability despite still being in the negative.
- Revenue Growth: The company achieved revenue of $7.5 million in Q3, reflecting a recovery in sales driven by improved market demand compared to the previous year.
- EBITDA Improvement: Q3 EBITDA reached $0.4 million, a significant turnaround from -$0.4 million in the same quarter last year, showcasing positive progress in gross profit enhancement and cost management.
- Cost Control: Total costs and expenses improved to $7.5 million, down from $8.6 million year-over-year, with savings realized across nearly all operational areas, indicating enhanced operational efficiency.

- Financial Overview: Rocky Mountain Chocolate Factory reported a Q3 loss of $0.16 million, or $0.02 per share, which is an improvement from a loss of $0.85 million or $0.11 per share last year, indicating efforts to control losses.
- Revenue Decline: The company's revenue for the third quarter was $7.54 million, down 4.4% from $7.89 million last year, reflecting weak market demand and increased competition negatively impacting sales.
- Profitability Challenges: Despite the reduction in losses, the company continues to face profitability challenges and must implement effective strategies to restore profitability and increase market share, particularly in the current economic climate.
- Future Outlook: The company needs to monitor market trends and optimize its product mix to address the pressures from declining revenue while exploring new growth opportunities for long-term sustainable development.







