Dive Brief:
- Maple Park Capital Partners has bought a majority stake in Rita’s Italian Ice & Frozen Custard, the companies said Thursday in a press release. The financial terms of the transaction were not disclosed.
- The deal will support Rita’s growth and expansion with its franchise partnerships, Linda Chadwick, Rita’s CEO, said in the release.
- Rita’s has over 575 locations across 30 states and is expanding into new regions in the U.S. including Texas and Michigan. The chain said in October that its unit growth was up 5.9% with continued momentum into the fourth quarter of 2024.
Dive Insight:
Rita’s rapid expansion likely made it an ideal buy for Maple Park, which invests in “service-oriented businesses within the experiential economy,” according to the press release.
The chain is growing in the Midwest, with new units open in Ohio and Indiana last year. It offers a flexible store design with options to add a drive-thru. Stores are typically in smaller locations and feature walk-up windows.
Rita's generated about $182 million in system sales in 2023, according to Restaurant Business’s sister company Technomic. Average unit volumes were about $340,000 for that year.
The company offers a rotating selection of more than 80 flavors in addition to a menu of frozen custard, gelati, concretes, frozen coffee, Rita’s Blenders and milkshakes. Last year, it offered seasonal flavors such as Pumpkin Frozen Coffee, Kool-Aid Tropical Punch Ice and Sour Patch Kids Watermelon Ice.
Private equity firms have ramped up investment in the restaurant sector as economic conditions have improved. For example, Blackstone bought a majority stake in Jersey Mike’s late last year months after it bought Tropical Smoothie Cafe in April for an estimated $2 billion.
