As the summer heat drives up demand for frozen treats, not all is sweet in the world of ice cream and Italian ice. Several well-known dessert chains are facing major financial challenges, with some even closing shop. The latest blow came from a Rita’s Italian Ice franchise in Florida, which has filed for Chapter 11 bankruptcy, according to The Street.
The franchisee, Greene Family Enterprises of St. Johns, FL, reported debts nearing $1 million. The filing revealed significant liabilities, including unpaid taxes and outstanding loans—highlighting the pressures faced by even established names in the frozen dessert industry. With nearly 600 locations nationwide, Rita’s has long been a staple for Italian ice and custard lovers, but this filing underscores that no brand is immune to the current economic squeeze.
Rita’s isn’t alone in its struggle. Dairy Queen, one of the most iconic names in American soft-serve, closed around 30 locations in Texas earlier this year. The closures were the result of a franchise dispute between American Dairy Queen and Project Lonestar, the franchisee that failed to meet remodeling requirements. As a consequence, supply chains were cut off, and operations ground to a halt.
The impact of retail downturns has also hit Thrifty Ice Cream, the nostalgic brand once known for five-cent scoops in drugstores. As its parent company Rite Aid undergoes bankruptcy and store closures, roughly 500 in-store Thrifty counters are disappearing across the country.
While global ice cream franchise giants like Ben & Jerry’s and Häagen-Dazs continue to thrive, regional brands and independent franchisees are feeling the pinch. Factors such as rising ingredient costs, changing consumer habits, and stringent franchise compliance demands are reshaping the frozen dessert landscape.
These developments raise important considerations for those exploring ice cream franchise opportunities or researching ice cream franchise costs. The allure of cold treats in hot months remains strong—but behind the scenes, many businesses are navigating tough terrain to keep serving up smiles.
Related topics
- Toy Boat by Jane Reopens With Local Ice Cream Favorites
- Penn State Altoona Hosts Sunday Arts Ice Cream Social
- Katie’s Ice Cream Celebrates 30 Sweet Years in Roanoke
