How Much Can I Make?
Low labor and product costs yield strong margins
Rita’s revenue model is simple: Franchise owners make money by selling frozen treats to guests. Our ticket price generally runs from $7 to $8, with add-on toppings available that can boost the final cost. Of course, it’s a rare family that comes into a shop and orders just one item.
The items we sell have strong product margins thanks to simple and inexpensive ingredients: water, sugar or sugar-free sweetener, eggs, milk, flavoring, whipped cream. There is very little risk of spoilage (a bane for many food concepts — and one which we almost entirely avoid). Transforming these ingredients into Rita’s menu items is also simple. It requires some churning and scooping, but no cooking.
Rita’s franchisees benefit from low labor costs. Because items are easy to prepare, and because we’ve had 35+ years to simplify and improve operations systems, it’s relatively easy to train new employees. The typical employee is a friendly high schooler or college-aged kid looking to make a little bit of money and build their professional skills. They generally make close to minimum wage, but the work environment is a huge step up from most food service jobs. Employees get to go home smelling like strawberries and mango instead of fry grease and car exhaust. With Rita’s being a much happier place to be, franchisees often have a line of people eager to work for them.
Simple to manage
Shops typically need only a minimal number of people on hand at any given time. That includes the shift manager which is often the owner-operator in the early days of the business.
With simple operations and lower cost of goods compared to other foodservice brands, Rita’s franchise owners appreciate the chance to grow their revenues and their business through multi-unit ownership.
“Rita’s is a high-margin business,” says South Carolina multi-unit franchisee Brett Hrovat. “If you have multiple stores, it’s much easier to handle inventory, and it allows me to use my employees for my cart business, which makes staffing a lot easier.”
Financial performance details
To get a better idea of the financial performance of Rita’s franchisees, fill out the form below to download our Business Model eBook. It includes details about Rita’s revenues as reported by franchisees and compiled into a chart for the Item 19 of our Franchise Disclosure Document.