In the modern market, ice cream franchises are starting to decline due to a variety of reasons. Many chains, including Dairy Queen, are now closing locations across the country due to operational challenges, inflation, and a change in consumer preferences. These closures hit especially hard in small towns where ice cream shops have significant community footprints.

It’s not just Dairy Queen; many beloved franchises are now downscaling in an effort to maximize profitability, which means that in certain regions, consumers may become displaced as their favorite shops close up for good.

Dairy Queen

Dairy Queen was founded in 1940 and has since risen to become an ice cream giant. But in 2025, the company is facing challenges, and has had to close multiple stores in Texas, including locations in Hemphhil, Jasper, Kountze, and Longview. The closure of these stores is linked to the need for renovations and contract issues.

Despite having nearly 8,000 stores worldwide, the recent shuttering of locations could indicate asset instability in the franchise. Local economies have been affected as employees are retrenched and consumers look for alternatives to fill the void that the closures have left. It’s difficult to hold a foothold in the ice cream market with such fierce competition.

Friendly’s

Friendlies is known for its ice cream and diner fare, but the franchise is now slowly disappearing from regions across America. The New England-based chain has had to shut locations down gradually, and more are expected to follow this year.

The struggles of this franchise showcase that there are broader issues in the casual dining and ice cream sectors. Consumer trends have changed, and it can be hard to stay relevant in an ever-evolving market. Friendly’s needs to try to solve the problem of less foot traffic amid rising costs in the industry.

Cold Stone Creamery

Cold Stone Creamery has been a giant known for its customizable ice cream creations for decades. This ice cream chain is at risk of having to downscale amid the current restaurant downturn. The costs for supplies are going up, and there’s less foot traffic as people look towards healthier eateries in the modern age.

If Cold Stone Creamery can’t shake up its business model and adapt, it could face closures similar to what other chains are experiencing in the food industry.

Baskin-Robbins

While Baskin-Robbins hasn’t released any details, they have to be affected by the broader industry trends that are making profit margins lower for all ice cream restaurants. The company is a major American ice cream chain and is now under pressure from a consumer market whose taste is changing faster than it can adapt.

Consumers are starting to prefer fresh, artisanal, and health-conscious options at the places they dine at, including ice cream stores. The chain will need to find new ways to innovate amid a changing market to avoid having to downscale its business, as many other brands are struggling with market trends and economic pressures.

Carvel

Carvel has long been a famous franchise for its amazing soft-serve ice cream and delicious cakes. Despite their standing as a part of many communities, the businesses are now facing a decline in consumers as trends move them away from ice cream. The brand relies on its nostalgic appeal, but in recent years, other franchises have cropped up with newer dessert options and undercut its business.

Carvel may now face economic headwinds if it does not come up with a plan. Industry experts believe that businesses such as Carvel need to modernize to appeal to a new generation, or they may struggle to stay relevant in the next few years.

Marble Slab Creamery

Marble Slab Creamery has long been an option for consumers that prefer premium desserts instead of just simple ice cream, but this has also spelled trouble for the company as inflation and supply chain issues have led to lower profit margins.

The consumers who liked expensive and more extravagant ice cream have shied away from it in recent years, due to economic downturns and a change in overall palate. Marble Slab Creamery has been left with more operational costs and fewer customers, which has ultimately led to them having to close several stores. The chain needs to innovate and cut costs in order to come back stronger than ever.

MaggieMoo’s Ice Cream and Treats

MaggieMoo’s showcases how difficult it is for smaller businesses to survive when even giants in the industry are struggling. MaggieMoo is a smaller ice cream franchise that is still beloved by many consumers. In recent years, MaggieMoo’s has faced several challenges, including more competition and fewer customers walking through its doors.

2025 is a harsh economic environment for mid-sized chains that do not have the scale to absorb costs and weather out these economic storms. This puts the ice cream chain in jeopardy and could cause it to vanish from locations in the next few years.

Handel’s Homemade Ice Cream

Handel’s Homemade Ice Cream is a regional favorite among local consumers who are loyal to the brand. Handel’s is also facing challenges in a changing market. The costs for ingredients have risen substantially, and in recent years, foot traffic has decreased as trends point people to new things.

In the modern day, consumers prefer healthy options, and ice cream is a far cry from what most are looking for. To further complicate things, other businesses are competing with Handel’s, threatening their locations and meaning that they may have to face closures in the coming years if something doesn’t change.

Andy’s Frozen Custard

Andy’s Frozen Custard is a beloved franchise known for its rich frozen custard. Unfortunately, this franchise isn’t immune to the pressures of ice cream chains.

Inflation, labor shortages, and competition are all squeezing the company, challenging its growth and sustainability. The chain will need to innovate and adapt in the coming years or weather out economic headwinds as the market continues to evolve to convenience-based locations that also offer healthy options to consumers.

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