Few words evoke nostalgia quite like “ice cream.” From childhood memories of sticky cones in the summer sun to late-night indulgences from a pint in the freezer, ice cream has long been more than just a dessert—it’s part of American culture. That’s why headlines such as “Bankruptcy forces ice cream chain to close 500 locations” strike such a chord.
The ice cream brand at the heart of this story is Thrifty Ice Cream, a cult-favorite on the West Coast, especially known for its iconic cylinder-shaped scoops sold in Rite Aid pharmacies. With Rite Aid’s latest bankruptcy filing in May 2025, the company announced that around 500 in-store Thrifty scoop counters will close, sparking widespread concern about the brand’s future.
But what exactly does this mean? Will Thrifty Ice Cream disappear altogether? Which popular ice cream chain is closing, and why? And as we look beyond the closures, what is the trend in ice cream in 2025 and beyond? This article dives into the details.
What Ice Cream Chain is Closing 500 Locations?
The short answer: Thrifty Ice Cream, the West Coast classic, is losing its scoop counters.
Thrifty isn’t a standalone chain of dedicated ice cream parlors like Baskin-Robbins or Cold Stone Creamery. Instead, Thrifty Ice Cream scoop shops have operated as part of Rite Aid stores, where customers could walk up to the counter, choose their favorite flavor, and enjoy the distinctively cylindrical scoop that became its hallmark.
As part of Rite Aid’s Chapter 11 restructuring plan, about 500 Rite Aid locations with Thrifty counters are being shut down or sold off. Since the scoop counters were tied directly to Rite Aid’s brick-and-mortar pharmacies, the closures are effectively wiping out Thrifty’s scoop-shop presence across the country.
That’s where the headline “Which popular ice cream chain to close 500 locations in bankruptcy filing as future hangs in balance?” comes in. Thrifty isn’t closing because people stopped loving its ice cream. Instead, the closures are collateral damage from Rite Aid’s ongoing struggles with debt, lawsuits, and declining sales.
Why is Thrifty Closing? The Rite Aid Bankruptcy Context
Rite Aid filed for bankruptcy protection once again in May 2025. The move came after years of declining performance and crushing debt. Once one of the largest pharmacy chains in the U.S., Rite Aid faced stiff competition from CVS, Walgreens, Walmart, and Amazon’s expanding pharmacy services.
The latest bankruptcy aims to shed hundreds of underperforming stores and reduce debt obligations. Unfortunately, this restructuring means Thrifty scoop counters—around 500 nationwide—are going dark.
However, it’s important to clarify:
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Thrifty’s packaged pints will continue to be sold in select grocery and retail outlets.
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The Thrifty brand and its ice cream factory in El Monte, California, are part of Rite Aid’s asset sale. That means a new buyer could potentially keep the brand alive, even expanding it beyond Rite Aid stores.
In other words, the scoop counters are closing, but Thrifty Ice Cream as a brand still has a future—if the right buyer steps up.
The Emotional Impact of the Closures
For decades, Thrifty Ice Cream has been a West Coast institution. Generations of Californians grew up stopping by Rite Aid stores for a scoop after school, a baseball game, or a hot summer day. The quirky cylinder scoopers became part of the brand’s identity, creating a unique visual and textural experience that other chains never replicated.
The closures hit especially hard for communities where Thrifty counters weren’t just about ice cream—they were about tradition. Social media has already been flooded with posts of customers reminiscing about their favorite flavors, from Chocolate Malted Crunch to Butter Pecan.
Which Popular Ice Cream Chain to Close 500 Locations in Bankruptcy Filing as Future Hangs in Balance?
The keyword framing reflects the uncertainty. Yes, Thrifty scoop counters are closing, but the future hangs in balance because:
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The Brand May Be Sold: Rite Aid’s bankruptcy court filings suggest the Thrifty brand, intellectual property, and production facility could be auctioned. A buyer could relaunch Thrifty as an independent chain or expand retail distribution.
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Packaged Ice Cream Survives: Even as scoop counters disappear, Thrifty pints will remain on shelves, keeping the brand alive in grocery freezers.
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Consumer Loyalty is Strong: Unlike other dying brands, Thrifty enjoys an almost cult-like following. This loyalty could be attractive to potential investors or food companies seeking to diversify into nostalgic, premium, or regional brands.
The bottom line: Thrifty Ice Cream is not dead—yet. But its familiar scoop counters inside Rite Aid stores will largely become a thing of the past.
What is the Trend in Ice Cream in 2025?
The story of Thrifty’s closures intersects with broader trends in the ice cream industry in 2025. While legacy retail formats struggle, consumer demand for ice cream is as strong as ever—just shifting in new directions.
1. Premiumization and “Better-for-You” Ice Cream
Consumers want indulgence but also cleaner ingredients. Premium ice creams that emphasize organic dairy, natural flavors, or functional benefits like added protein are driving growth. Brands like Häagen-Dazs, Jeni’s, and Halo Top illustrate the demand for quality and novelty.
2. Plant-Based Expansion
Dairy-free ice cream is no longer a niche. Almond, oat, and coconut-based ice creams are gaining traction, especially among Gen Z and Millennials seeking more sustainable and inclusive options.
3. Global and Seasonal Flavors
In 2025, adventurous palates dominate. Expect to see flavors inspired by international cuisines—think matcha, ube, cardamom, or dulce de leche—alongside seasonal specialties that tap into holiday nostalgia.
4. Retail vs. Scoop Shop Shifts
Supermarket ice cream aisles continue to grow, with take-home tubs leading in market value. But scoop shops are rebounding post-pandemic, with experiential chains like Salt & Straw and Van Leeuwen drawing crowds with unique in-store experiences.
5. Market Outlook
The global ice cream market is projected to hit $92 billion in 2025, with growth expected at around 5.7% CAGR through 2030. That growth is being driven by innovation in flavors, formats, and “better-for-you” options rather than traditional mass-market chains.
Lessons from the Thrifty Case
Thrifty’s situation illustrates a key point: brand love doesn’t always protect against corporate bankruptcy. The closures weren’t triggered by declining demand for ice cream but by Rite Aid’s broader financial collapse.
Still, the nostalgia and loyalty around Thrifty could give it a second act under new ownership. If the brand is spun off successfully, it might reemerge as a standalone scoop-shop chain or expand into national retail distribution, much like regional brands that later became national favorites.
The Future of Nostalgic Food Brands
Thrifty’s story is part of a larger trend in food: nostalgia sells. Consumers are increasingly drawn to brands that evoke childhood memories or regional pride. We’ve seen similar revivals with Hostess, Twinkies, and even smaller craft soda and candy brands.
If Thrifty finds the right buyer, the closure of scoop counters could become a temporary setback rather than an obituary. Its legacy, rooted in affordability and quality, still resonates in a crowded market.
Conclusion
The phrase “bankruptcy forces ice cream chain to close 500 locations” captures headlines but only tells part of the story. Yes, Thrifty Ice Cream scoop counters inside Rite Aid stores are closing—an estimated 500 of them nationwide. But the brand itself is still alive, its pints still line store shelves, and its future depends on whether a new owner seizes the chance to revive and reinvent this beloved name.
Meanwhile, the broader ice cream industry is evolving rapidly in 2025. Consumers are gravitating toward premium indulgence, plant-based alternatives, global flavors, and at-home convenience. These trends show that while one brand faces uncertainty, the ice cream market as a whole remains vibrant and full of opportunity.
For longtime fans of Thrifty, the closures may feel bittersweet. But with nostalgia on its side and strong consumer loyalty, Thrifty may yet have another chapter left to write.
This article is published on Tumblr Magazine.
