Ice cream chain closing 500 stores has become the most searched phrase this week as Thrifty Ice Cream, a beloved in-store brand inside Rite Aid pharmacies, prepares to shutter approximately 500 of its counters. Customers and investors alike are watching closely to see what the future holds for this iconic California-born scoop shop.
Why the Ice Cream Chain Is Closing 500 Stores
Rite Aid’s Chapter 11 bankruptcy filing has forced an aggressive restructuring of its retail footprint. As part of its plan to shed underperforming assets and raise liquidity, the ice cream chain closing 500 stores—all of which operate as in-store Thrifty Ice Cream counters—will cease operations by late summer 2025. Beyond simply cutting locations, Rite Aid hopes to streamline supply chains and reduce overhead costs tied to in-store foodservice. Pharmacy executives have indicated that, while the counters were popular in certain markets, they no longer align with the company’s focus on core healthcare services and prescription fulfillment.
The Direct Impact on Thrifty Ice Cream
- Locations Affected: Approximately 500 Rite Aid pharmacies nationwide.
- Reason for Closure: Counter leases cannot be sold separately; they must close with the host pharmacy.
- Timing: Closures will roll out between June and August 2025.
- Employee Considerations: Staff who managed these counters will be offered transfers to other in-store roles where possible.
The Legacy of Thrifty Ice Cream
Founded in Los Angeles in 1940, Thrifty Ice Cream carved out a unique niche with its cube-shaped scoops and memorable flavors such as Chocolate Malted Krunch. After Rite Aid acquired the brand in 1996, Thrifty counters became a fixture in hundreds of pharmacy locations, delighting customers with affordable, handcrafted ice cream. Over the decades, Thrifty’s simple menu and consistent quality cultivated a devoted following—many families recall Saturday afternoon ice cream runs as a rite of passage.
Industry analysts note that the brand’s nostalgic appeal transcended demographics, making it a rare foodservice success story embedded within a national retail chain. However, evolving consumer habits and the rise of premium artisanal competitors have gradually eroded the counters’ profitability in certain markets.
How Customers Can Still Find Their Favorite Scoops
Despite the ice cream chain closing 500 stores, Thrifty Ice Cream will continue to exist in standalone parlors and grocery-store freezers. Here’s where to look:
- Standalone Shops: Independently owned Thrifty franchise locations remain open in key markets such as Southern California and Arizona.
- Retail Packaged Products: Pre-packaged Thrifty Ice Cream pints will still appear in supermarket freezers in California, Arizona, Nevada, and parts of the Southwest.
- Online Ordering: Some regions may offer delivery via third-party grocery services or direct-to-door platforms.
Rite Aid has stressed that these distribution channels are not affected by the closures, and the company will continue to supply grocers and third-party vendors under existing contracts.
What’s Next for the Ice Cream Brand?
Rite Aid has announced that it intends to auction Thrifty Ice Cream as part of its bankruptcy sale, including the El Monte production facility. Potential buyers have until the end of June 2025 to submit offers. Should a new owner emerge, fans may see expanded distribution or a revival of the in-store counter experience under different retail partnerships.
Key Dates to Watch
- June 30, 2025: Deadline for bids on Thrifty Ice Cream assets.
- July–August 2025: Scheduled closure period for 500 counters.
- September 2025: Expected announcement of new brand ownership.
- Q4 2025: Potential reintroduction of counters in new store environments, if acquired.
Broader Implications for the Retail and Foodservice Industries
The ice cream chain closing 500 stores is emblematic of larger trends in retail consolidation and the vulnerability of niche concepts embedded within larger chains. Analysts note that:
- Embedded Brands at Risk: In-store eateries often depend entirely on the financial health of their host retailers.
- Restructuring Fallout: Bankruptcy sales can disrupt long-standing community traditions, impacting local foot traffic.
- Opportunity for Competitors: Other ice cream chains and local creameries may seize market share in affected regions, potentially leading to a shift in regional dessert preferences.
Some market observers predict that the sale of Thrifty Ice Cream could attract interest from private equity firms or larger foodservice operators looking to leverage the brand’s strong regional recognition. A successful acquisition might revive the in-store experience under more stable retail partnerships or franchise models.
Final Thoughts
Ice cream chain closing 500 stores marks a bittersweet turning point for Thrifty Ice Cream enthusiasts. While the iconic in-store counter experience will soon be a memory in hundreds of Rite Aid locations, the brand’s persistence in standalone shops and grocery aisles offers a measure of continuity. As fans await news of a potential acquisition, one thing is clear: the legacy of Thrifty’s distinctive cube-shaped scoops and classic flavors will endure.
Call to Action: For more updates on this story and in-depth analyses of retail transformations, explore our latest retail industry trends and foodservice innovation guides.