Ones to Watch | By Sabrina Davis
Ritter’s Frozen Custard
Ritter’s is now focusing its growth in small towns. “The ice cream segment has become so clustered,” Ritter says. “There were maybe 40 ice cream locations in Indianapolis five years ago, and now there are 130. Cold Stone has grown to 1,200 locations. We’re looking at the locations where a Cold Stone that’s looking for high traffic would not go. We think we have a better chance at success as a hometown ice cream shop.”
With all that’s changed at Ritter’s, what’s most important has remained the same. The frozen custard is still made from scratch in small batches throughout the day. “That really is what sets us apart,” Ritter says. “The flavor you get from having it made fresh.”
Ritter’s Frozen
Custard
CEO: Bob
Ritter
HQ: Indianapolis
Year Started: 1990
Annual Sales: $17 million
Total Units: 51
Franchise Units: 49
Why
it bears watching: Ritter took a good model and, through a little
trial and error, made it better. The hometown walk-up ice cream
shop with patio seating still brings families out to relax
together over a sweet treat as John Ritter intended. Yet those
who are moving too quickly to get out of the car or who crave
ice cream even in bad weather can indulge, too.
Business is solid with most locations
seeing about 425 customers a day with a $6 average check.
Adding Italian ice to the menu this year has strengthened
hot-weather sales.
With improved business and franchising
systems, Bob Ritter believes his company is well prepared for
strategic, steady growth. He plans to add eight to 10
franchises per year over the next few years. While
Ritter’s locations are sprinkled across eight states now
from Indiana to Florida to Nevada, he plans to focus on
efficient growth within Indiana, Ohio, Illinois, and Kentucky
in the near future before expanding from there.
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