When founder Jeremy Litwack opened his first Jeremiah’s Italian Ice in Winter Park, Fl. in 1996, he could not have envisioned that it would start franchising in 2019 and grow to a chain of over 120 units.
One secret to its steady growth has been Litwack’s partnership with Pivotal Growth Partners, a franchise specialist, which has been instrumental in speeding up franchising and helping to add 38 new locations in 2022. Of its stable of dessert shops, 20 are company-owned and 100 franchised.
It is now located in 11 states, with a major emphasis in Florida, but also has franchises in Arizona, George, North Carolina and South Carolina, to name a few.
But founder Litwack, despite his prowess in shaping and propelling the Italian ice, gelati and soft ice cream specialist, realized in 2023 he needed a more seasoned pro to take the chain to new heights. Though Litwack still owns close to full ownership, though he noted that Pivotal Growth Partners could end up with some equity based on performance, Litwack relinquished the reins and named Michael Keller as new CEO and president on June 27, 2023.
Hence Litwak, who will now serve as board chair, and CEO Keller, will work as a team to move Jeremiah’s Italian Ice, based in Orlando, Fl., into selling more franchises and expanding revenue.
Founder Jeremiah Litwack has relinquished being CEO of Jeremiah’s Italian Ice and hired a new CEO Michael Keller, who has extensive restaurant expertise, and is primed to grow revenue and franchisees.
Why Keller? He was CEO of Pearson Candy Company for seven years, which was owned by private equity company Brynwood Partners, CMO at Dairy Queen for nearly a decade, and has executive experience at Baskin Robbins and Jamba Juice, so he’s been through the ice cream and smoothie wars.
Keller, who is 58-years-old, noted that Jeremiah’s has some signature products that no other ice-cream store offers. Its gelatis contain five layers of Italian ice and ice cream, and its Flavorites, add a layer of Oreo cookie crumbles and Biscoff cookie crumbles to the gelati, and it also offers soft ice cream. Moreover, it can offer up to 24 flavors a day of Italian ices, and all desserts are made fresh, in-store, daily.
Keller explained that the keys to Jeremiah’s Italian Ice’s growth are multi-pronged: 1) Since it only started franchising in 2020, it’ s focused on “looking for franchisees seeking the next cool, hot concept with growth potential,” 2) Continuing its partnership with Pivotal Growth Partners, 3) Improving its supply chain in pursuit of more efficiencies and reducing costs.
He described its ideal franchisee as someone “with previous multi-unit, retail food-serve experience, and has the financial resources to build one to three or five stores, and knows how to operate it.” Many franchisees operate multiple units.
He also said that its targeted menu helps attract franchisees. “When you have a tight, narrow-focused menu, it leads to operational simplicity, or ease of operations. Many franchisees look for how easy it is to execute this operation,” he said.
But Keller emphasized it’s also exploring adding new, innovative menu items to boost revenue. “Because Jeremiah’s is so well-known for its flavorful treats, we’re trying to figure out, what can extend that? We are not in beverages; everything is consumed with a spoon or tongue,” he noted. Hence, beverages might work as a new menu item.
How will Keller work with the founder, and avoid having the originator of the franchise looking over his shoulder or micromanaging? Keller quipped that they were both reared in New Jersey so speak the same language, and seriously, that Litwack decided to pursue a CEO to drive revenue further and recognized Keller’s CEO and restaurant marketing and branding expertise so they should be on the same wavelength.
Of its 120 locations, 75 to 80 have dining rooms, and the rest don’t, and most locations range from 1,000 to 1,200 square feet. Hence, sales deriving from off-premises, drive-thru and delivery through frozen items play a major role. About 50 of the 120 have drive-thrus, and of those with them, about 60 to 65% of its revenue derives from these sales.
Though it’s in 11 states, Keller underscores, “We’re in the ice-cream businesses so it has to be warm. We don’t have a lot of dining rooms, so you need year-round weather,” he said.
The target audience for Jeremiah’s is predominantly young families. Keller noted that “Kids love the Italian ices and some of the gelatis and parents enjoy the more sophisticated gelatis.” But teenagers and young adults are attracted to its lively atmosphere, animated music, and its enthusiastic crew, which it calls Frog Squads.
Does Keller envision private equity investment in Jeremiah’s future? He doesn’t see any current need, based on its successful franchising model, “but it is possible when we get bigger that it would need to leverage private equity to accelerate growth,” he said.
Asked the keys to its sustained success, Keller responded, 1) Working closely with our franchisees to help them be successful, 2) Pursuing great talent and savvy people to drive the brand, 3) Delivering superior guest experience.
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