As summer approaches and consumers seek cool treats, the frozen dessert industry is facing notable challenges. From local shops to national chains like Baskin-Robbins, Ben & Jerry’s, Dairy Queen, and Rita’s Italian Ice, the competition is fierce, and recent developments reveal growing financial pressures within the sector.
One significant development involves Greene Family Enterprises LLC, the franchisee behind several Rita’s Italian Ice locations in St. Johns, Florida. The company filed for Chapter 11 bankruptcy protection on June 9, 2025, in the U.S. Bankruptcy Court for the Middle District of Florida. The filing lists assets between $100,000 and $500,000 and liabilities ranging from $500,000 to $1 million, including over $360,000 owed to Cadence Bank and substantial unpaid state taxes. This move signals an effort to restructure debts while continuing operations.
Rita’s Italian Ice, established in 1984 in Bensalem, Pennsylvania, specializes in Italian ice, frozen custard, Gelati, milkshakes, and other take-home desserts. The chain, which claims to be the world’s largest Italian Ice franchise, operates 592 locations across 29 states and the District of Columbia. After changing ownership from Argosy Private Equity in late 2024, the franchise is now majority-owned by Maple Park Capital Partners.
This recent bankruptcy filing adds to ongoing turbulence in the ice cream and frozen yogurt franchise landscape. Earlier in 2025, a Dairy Queen franchisee in Texas closed approximately 30 locations due to disputes with the parent company, American Dairy Queen. The franchisee, Project Lonestar, was removed after failing to remodel locations, which halted their supply orders and forced closures.
Iconic ice cream brands are also feeling the pinch. Thrifty Ice Cream, a staple in Rite Aid stores since 1996, is set to vanish from about 500 locations as Rite Aid continues through its bankruptcy proceedings. The brand, which originated in Los Angeles in 1929 and became a beloved budget-friendly treat in the 1970s, will soon be a nostalgic memory for many.
These closures highlight the challenging economics of the frozen dessert industry, where ice cream franchise costs, yogurt franchise costs, and operational pressures are driving consolidation and restructuring. Despite a growing consumer demand for ice cream, yogurt, and Italian ice, the financial hurdles remain significant for franchisees and independent shops alike.
Industry analysts note that while consumers continue to seek out refreshing treats during warmer months, franchisees must navigate rising costs and stringent franchise requirements to stay afloat. The future of several ice cream and yogurt franchises may depend on innovative strategies and financial restructuring in the months ahead.
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