Jeremiah’s Italian Ice Wins Franchise Times Zor Award as Top Brand to Buy

Winner: Jeremiah’s Italian Ice

Finalists: Andy’s Frozen Custard and Handel’s Ice Cream

Water, sugar and fruit puree. The three simple main ingredients used to create the 40-plus flavors at Jeremiah’s Italian Ice are also key ingredients of its franchise appeal. “We’re talking about water ice,” said franchisee Jake Lopez. “Water ice has a really good profit margin.”

Return on investment and profitability for the franchisee, which are heavily weighted in the Zor Awards evaluation process, put Jeremiah’s on top in a strong Sweet Treats category that also includes growth brands Andy’s Frozen Custard and Handel’s Ice Cream. Jeremiah’s, which had the lowest investment range among the finalists at $324,567 to $659,500 and average sales of $671,201 in 2021, has a detailed Item 19 showing cost of goods and labor to help prospective franchisees assess the business.

Lopez, who with his wife, Lauren, and stepdad, Steve Mountcastle, has two stores open and a third in the works, said the product’s appeal is undeniable and the concept’s vibrant, welcoming atmosphere contribute to the popularity.

“We broke sales records the company has never seen before,” said Lopez of the group’s first store, which opened in June 2021 in Bradenton, Florida. Their second location in nearby Lakewood Ranch is off to a fast start since opening in November and they also purchased the rights to develop the territory.

Lopez’s affinity for Orlando-based Jeremiah’s stretches back to his middle school days. “That was the place to be. It was like the In-N-Out Burger of frozen dessert,” he said. Later looking for a business opportunity with his stepdad, who was transitioning out of the car wash industry, he recalled the community connection of the local store, learned founder Jeremy Litwack started franchising with Pivotal Growth Partners in 2019 and eventually was “blown away” at discovery day.

“Culture was the biggest priority for my wife and I,” said the former music school teacher who added he’s found fulfillment in continuing to work with young people as employees and in introducing Jeremiah’s to the community via sampling and product donations. “Your generosity is also the advertisement.”

“Expensive lessons” early on included dealing with county regulations and managing a spike in buildout costs, followed by unexpected changes in supply prices as the company switched distribution companies. “I’d want to make sure they have a better range or more accurate numbers to give to people when they come into the business,” said Lopez of investment information provided by Jeremiah’s.

Training and operating systems from corporate, meanwhile, are on point but Lopez said it’s up to franchisees to execute. He was putting in 100-hour weeks before hiring shift leaders, another crucial learning.

“It’s not a set it and forget it concept. You have to work it,” said Lopez.

Like Lopez, Vann Spears touted the benefits of detailed processes, from agreement signing to opening and beyond—and emphasized not deviating from the system.

“It doesn’t mean it’s not hard work and everyone should just go buy a franchise,” he said. “You’ve got to follow their steps. If you follow their steps, it’s really hard to mess this up.”

Spears, who came to Jeremiah’s with construction experience as founder and president of Champion Fence Builders, opened his store in November. The location in Locust, North Carolina, is the first ground-up build in the system, and with a drive-thru and heated outdoor patio it will serve as one of the prototypes as the brand expands.

“We really dressed it up. We spared no expense,” said Spears as he added sales have “surpassed all our expectations.”

Those sales don’t come simply by opening the doors, and marketing efforts, which begin long before a location debuts, are continuous. Spears runs the business with his wife and two daughters, one of whom is the manager, and all “live the brand.”

“We wear our shirts and jackets and pass out coupons in the community, giving out free desserts,” he said. “You can’t just wait on people to come to your store. You really have to take the product to the community.”

Product innovation and a steady stream of new flavors and combinations keep marketing fresh, and Spears said in-store rollouts are smooth thanks to digital menu boards and a cloud-based point-of-sale platform from Revel Systems. His team came up with a new flavor, brownie batter with brownie brittle crumble, for the grand opening and have since submitted the recipe to corporate for eventual inclusion on the menu.

It’s an example of collaboration with a franchisor he said is responsive and wants input from franchisees—even if the result isn’t what an operator hoped for. “We haven’t always gotten the answer back that we’ve liked, but they’ve always been very helpful,” said Spears.

The fast pace of Jeremiah’s growth—it hit 100 units in January in four years of franchising with more than 260 sold—means new franchisees are consistently entering the system. Existing owners, meanwhile, say they want the company to continue its rigorous vetting process to bring in top performers and not, as Lopez said, “just let anyone in.”

Read the full article here: https://www.franchisetimes.com/franchise_times_cover_stories/jeremiah-s-italian-ice-wins-franchise-times-zor-award-as-top-brand-to-buy/article_bef8927a-af06-11ed-85f7-3b370dc34bbf.html