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Monday, May 4, 2009

Rita's Water Ice opened its first Texas store last week, bringing the total to 556, and plans are to end this year with 600, double the 300 it ran four years ago, when the Tumolo family sold the Bensalem chain to Jim and Bill Rudolph's McKnight Capital Partners of Pittsburgh (they used to own Wendy's franchise). Rita's sales topped $98 million last year, up from $65 million in 2005, says spokeswoman Kate Shields.

My kids like Rita's, but they don't get why water ice should cost more than McDonald's hamburgers or Taco Bell burritos, or why prices at the Rita's takeout on the next street from ours go up each Spring. Rita's says the average "Large"-sized water ice is $2.71 this year, vs. $2.62 last year and $2.53 in 2007. "All pricing is set at the individual franchise partner’s discretion," and it's still cheaper than competing dessert chains like Dairy Queen, Baskin-Robbins, or Cold Stone Creamery, says Shields. 

To support the expansion, McKnight has turned the former "Rita's University" training center into "Cool University", a 5,000-foot Bensalem eat-in "store of the future" that sometimes features experimental products, with satellite Cool U campuses closer to new stores down South.

Posted by Joseph N. DiStefano @ 9:54 PM  Permalink | 4 comments
Comments   
Posted 02:34 PM, 05/04/2009
JingoGuy
Certainly not the best around, but at least you get to pay more for it. If I were a franchisee, I would be miffed about how close together the stores are paced. Absolutely no integrity at the corporate level.
Posted 03:38 PM, 05/04/2009
qwerty83
ritas is the genos of water ice.
Posted 04:59 PM, 05/04/2009
wu wu whaaaat?
RI RI RI RI Ritas!!!!!!!
Posted 10:07 AM, 05/05/2009
villare1
Nope not the best around for sure.My buddy makes a better water ice in my opinion.
4 comments
About Joseph N. DiStefano
Joseph N. DiStefano writes this blog to feed his PhillyDeals column, which is printed in the business pages of The Philadelphia Inquirer every Sunday, Tuesday, Wednesday, Thursday and Friday. Joe has worked at the Inquirer, mostly, since 1988. He has also written for Bloomberg and Gannett, authored the book Comcasted, majored in economics at Penn, and fathered six children. Reach Joe at 215-854-5194 and JoeD@phillynews.com