Frozen dessert fast-food chains are among the many favourite outlets that buyers get pleasure from visiting, however monetary misery in some circumstances results in bankruptcies and closings that disappoint prospects.
The ice cream store business reported 0.9% progress in 2025, in response to knowledge from IBISWorld, however nonetheless faces financial points.
“Despite the general increase in appetite for ice cream, significant challenges must be navigated,” IBISWorld mentioned within the report.
Rising milk prices minimize into ice cream income
Among the many financial challenges the report cited is the rising value of milk, which cuts into income.
Tariffs on Canadian dairy merchandise have additionally elevated the price of milk and butter which might be important for ice cream manufacturing, which drives up retail costs and reduces revenue margins, the report mentioned.
Clients’ most most well-liked outlets embody Baskin-Robbins, Ben & Jerry’s, Chilly Stone Creamery, Dairy Queen, and Freddy’s Frozen Custard & Steakburgers.
Sure chains bumped into some financial issues in 2025 that pressured them to file for chapter or shut areas.
Ice cream store operators have said a wide range of causes for closing down, together with rising prices of labor and merchandise pushed by inflation or, extra not too long ago, tariffs; excessive lease funds; elevated prices of debt from increased rates of interest; and altering attitudes towards procuring by shoppers.
Dairy Queen franchises pressured to shut areas
About 30 Dairy Queens in Texas misplaced their franchises within the first half of 2025 when the dad or mum firm, American Dairy Queen, pulled the franchises from franchisee Challenge Lonestar after it failed to transform its areas. That meant that these areas couldn’t order provides from the dad or mum company and must shut down.
Ice cream store franchisee Creamy Treats recordsdata for Chapter 11 chapter to reorganize its enterprise and restructure its debt.
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Creamy Treats recordsdata for chapter safety
And now Creamy Treats Inc. has filed for Chapter 11 within the U.S. Chapter Courtroom for the Northern District of California on Feb. 2, itemizing $500,000 to $1 million in property and $100,000 to $500,000 in liabilities, in response to RK Consultants.
The San Francisco-based ice cream store, which focuses on contemporary ice cream sandwiches, didn’t checklist a particular cause for submitting for chapter safety, however amongst its largest unsecured collectors was Halil Budan, who’s owed $98,000 for an employment regulation lawsuit. The debtor additionally listed Sq. Monetary Providers, owed $27,000.
Berkeley, Calif., ice cream chain operator Cream, which was based by Jimmy and Gus Shamieh in 2010 and has 7 areas in Northern California, didn’t file for Chapter 11 chapter.
A earlier model of this story inadvertently said that Cream had filed for chapter.
Cream proprietor Jimmy Shamieh in an e mail to TheStreet mentioned that Creamy Treats and Cream are “two entirely separate and unrelated entities.”
“While Creamy Treats Inc. has filed for bankruptcy protection, CREAM Inc. has not. CREAM Inc. has been operating continuously and successfully for the past 16 years and remains fully operational,” he mentioned.
“Creamy Treats Inc. is an independently owned and operated licensee of the CREAM brand and is not owned, controlled, or managed by CREAM Inc.,” Jimmy Shamieh mentioned.
Extra bankruptcies:
- 73-year-old household diner franchisee recordsdata Chapter 11 chapter
- Extra troubled regional airways file for Chapter 11 chapter
- Main division retailer model liquidates in Chapter 11 chapter
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Freddy’s Frozen Custard & Steakburgers franchisee M&M Custard LLC final yr filed for chapter safety.
The debtor and 31 associates on Nov. 14 filed for Chapter 11 chapter safety to reorganize their companies and restructure money owed, in response to KCTV-5.
Freddy’s Frozen Custard deliberate closings
M&M Custard indicated within the submitting that it deliberate to shut a number of of its franchise areas in Illinois, Indiana, Kansas, Kentucky, Missouri, and Tennessee, KCTV-5 reported.
The Overland Park, Kan.-based debtor filed its petition within the U.S. Chapter Courtroom for the District of Kansas itemizing $5.2 million in property and $27.7 million in liabilities, in response to Bondoro.
Freddy’s Wichita, Kan.-based dad or mum firm and franchisor didn’t file for chapter.
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