Italian Ice Franchise Heats Up
Pennsylvania-based Rita's Water Ice is embarking on an aggressive expansion plan that includes more shopping center locations.

Rita's Water Ice prefers freestanding locations, like this one in Bensalem, Pennsylvania.

Rita's was founded in 1984 by former Philadelphia firefighter Bob Tumolo as a side business. Philadelphians fell in love with the ice and by 1987, Tumolo and his brother, John, had opened three company-owned stores in and around Philadelphia. Soon, customers were inquiring about owning a Rita's Water Ice, and franchising took off in 1989.

In May of this year, McKnight Capital Partners of Pittsburgh, led by president and CEO James Rudolph, purchased the chain from Rita's Water Ice Franchise Corporation (Rita's) of Bensalem, Pennsylvania. The Rudolph family has more than 50 years of experience building businesses, including several food franchises. McKnight Capital Partners built Wendy's of Greater Pittsburgh and several retail affiliates into a 47-store organization with nearly $70 million in annual revenues before selling it to Wendy's International in 1995. The company, which is run by Rudolph and his brother, William, has also owned and operated several other franchises such as Chuck E. Cheese and Baskin-Robbins.

Rita's can also be found in malls, like this in-line location.

“For a regional chain, we get a lot of inquiries on an annual basis,” says Rudolph.

In fact, the company receives more than 3,000 inquiries a year for new franchises, though Rita's has never aggressively recruited or advertised for franchisee prospects.

Most Rita's customers are regulars, visiting the stores an average of three to four times per month.

“We're now taking the in-line stores,” he says. “We think they're almost as good as end-caps in some cases.”

With an average of 800 square feet, Rita's stores are mainly walk-up locations, with the exception of mall sites and one location that is currently under construction, which will provide in-store service.

“We prefer the walk-ups,” says Rudolph, “but we will do inside service if the zoning prohibits walk-up.”

Walk-up stores are popular with Rita's customers, who enjoy ices; cones; shakes; old-fashioned frozen custard; gelati; Misto shakes; and Cream Ices.

“This is an amazing concept that has a huge following,” he says. “People call the store to find out what flavors we're offering. One storeowner calls or faxes the flavors to people every day, and another franchisee advertises daily flavors on his Website. Our average customer comes to us three or four times a month.”

Rita's Water Ice features ices; cones; shakes; old-fashioned frozen custard; gelati, a unique blend of Italian ice and frozen custard; Misto shakes, a combination of Italian ice and creamy custard; and Cream Ices, which are smoother and richer than Italian ice, but not as heavy as ice cream. Ices are made fresh daily and are available in more than 30 different flavors.

— Susan H. Fishman