Rita's Water Ice Cool for Owners

By Bill Bergstrom | PHILADELPHIA | Wednesday, March 17, 2004

The Rita's Italian ice stores, where customers dance across hot pavement for a cool summer treat, were started by two brothers who naturally appreciated a product made to beat the heat.

Robert Tumolo was facing smoke and flames as a Philadelphia firefighter when he looked for " a little side business" to stretch his pay, and responded to an ad selling used water-ice-making equipment in South Philadelphia. The store he opened in 1984 in Bensalem did so well that his brother, John Tumolo, working on simmering building tops as a roofer, quickly joined the business. Both were soon selling Italian ice full time, opening a second store in 1987, then a third, and selling franchises starting in 1989.

Robert Tumolo, 53, is now the chief executive officer, and John Tumolo, 44, the president. The chain will mark the first day of spring Saturday by giving away Italian ice at 288 stores in nine states. The frosty rite of spring is more than a decade old at the chain, which celebrates its 20th anniversary on May 4 and plans to open its 300ths store, on Long Island, in April or May. Rita's will give away about 500,000 cups of Italian ice Saturday, which would be equal to about 9.5 million pulverized ice cubes except that Italian ice isn't made with crushed ice. Unlike drinks made with syrup poured over granulated ice, Italian ice is made in machines that combine the water, fruits and flavors, then freeze the mixture on the sides of a metal cylinder and scrape it off to form the slushy treat. The Rita's stores sell frozen custard as well as Italian ice, and also offer gelati, consisting of layers of Italian ice and custard, and Misto shakes, an ice and custard blend.

Franchisees must agree to operate at least from March through September, though some open as early as February. Rita's also has eight mall stores in Pennsylvania and New Jersey that are open all year. "Winter, summer, spring, fall, it doesn't matter at all," said Margo Williams of Philadelphia, lined up with others on a gray March day at Rita's in a downtown mall. June Mitchell, buying a chocolate Italian Ice, said when the store near her Lawrenceville, NJ, home closes for winter, she buys several quarts to carry her through. When it reopens March 1, she said, "I was sitting down on the curb waiting." Tumolo said Italian ice was popular, and profitable, from the opening of the first store on a hot Saturday. He had sought the support of his mother, Elizabeth Tumolo, and she had a 50 percent share of the business. The chain was named for a former wife. "The first store was my mother and myself, working out of a cigar box" as a cash drawer, Tumolo said. "I projected $20,000 in sales and I think we did about $70,000." Now the corporate office has 50 employees and there are 10 to 15 employees at each of the franchises in nine states stretching from New York to Florida and as far west as Ohio. Rita's ranks 102nd nationally on Entrepreneur magazine's 2004 Franchise 500 list, fifth in the Frozen Dessert-Ice Cream & Ices category behind Baskin-Robbins, Dairy Queen, Carvel and Dippin' Dots. Over the years, the stands with the trademark red-and-white awnings have weathered rainy summers and even the proliferation of Atkins and other low-carbohydrate dieters watching their sugar and starch consumption. Rita's introduced sugar-free Italian ice about three years ago, but despite carb-control it accounts for only 1 percent to 2 percent of sales, Tumolo said. Though the company can't control the weather, he said, "Even in poor summers we can hold our own." Total sales at the franchises have more than doubled in the last five years, to about $57 million, and the company's annual revenue has reached about $15 million, Tumolo said. The privately held company doesn't divulge its profits. Meanwhile, Tumolo and other Rita's executives will personally check out the response to Saturday's spring giveaway. "We'll be visiting stores, seeing what the lines are like," he said. "After 20 years it's still exciting."

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Rita's
1210 Northbrook Drive Ste 310
Trevose, PA

Phone: 215-876-9300
Toll Free: (800)677-7482
Fax: 866-449-0974

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