Frozen dessert fast-food chains are among the most popular stores for consumers to frequent, but in some cases, financial troubles can lead to bankruptcies and closures, disappointing customers.
The ice cream shop industry is expected to grow 0.9% in 2025, but still faces economic problems, according to IBISWorld.
“Despite a general increase in demand for ice cream, significant challenges must be addressed,” IBISWorld said in the report.
One of the economic challenges cited in the report is rising milk costs, which will cut into profits.
Tariffs on Canadian dairy products also increase the cost of milk and butter necessary for ice cream production, driving up retail prices and lowering profit margins, the report said.
Customer favorites include Baskin-Robbins, Ben & Jerry’s, Cold Stone Creamery, Dairy Queen and Freddy’s Frozen Custard & Steakburgers.
Some chains are experiencing some economic problems in 2025, forcing them to file for bankruptcy or close stores.
Ice cream shop operators have cited a variety of reasons for closures, including rising labor and product costs due to inflation or recent tariffs; high rents; rising debt costs due to rising interest rates; and changing consumer attitudes toward shopping.
About 30 Dairy Queens in Texas lost their franchises in the first half of 2025, with parent company American Dairy Queen withdrawing franchises from franchisee Project Lonestar after failing to renovate its stores. This means these locations cannot order supplies from the parent company and must close.
Now, the parent company of the Cream ice cream chain has filed for Chapter 11 bankruptcy to restructure its debt, which includes an employment law lawsuit judgment.
Creamy Treats Inc. filed in the U.S. Bankruptcy Court for the Northern District of California on February 2, listing assets of $500,000 to $1 million and liabilities of $100,000 to $500,000.
The San Francisco-based ice cream chain, which specializes in fresh ice cream sandwiches, did not list specific reasons for the bankruptcy filing, but one of its largest unsecured creditors is Halil Budan, who is owed $98,000 from an employment law lawsuit. The debtor also listed Square Financial Services as owing $27,000.
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