What Will Become of Rite Aid’s Thrifty Ice Cream Brand Amidst Store Closures?
Thrifty Ice Cream is a popular Rite Aid brand.
For generations of Californians, the name Rite Aid doesn’t just evoke thoughts of prescriptions and convenience goods. It calls to mind a square scoop of creamy nostalgia served under the glow of fluorescent lights: Thrifty Ice Cream.
But with Rite Aid once again in bankruptcy court — and hundreds of stores shuttering across the country — many loyal customers are asking: What will become of the beloved Thrifty Ice Cream brand?
Rite Aid’s Second Bankruptcy and Massive Store Closures
On the heels of a 2023 Chapter 11 filing, Rite Aid entered bankruptcy once again in 2025, announcing plans to close more than 300 locations. This wave of closures comes after a year of steady downsizing, particularly in California, where the company once operated hundreds of locations. In total, all 1,240 stores are now set to close.
The states hit hardest include California (347 stores), Pennsylvania (345), and New York (178). Across the country, Rite Aid stores have begun liquidating inventory and quietly passing pharmacy files to competitors like CVS, Giant Eagle, and Walgreens.
CEO Matt Schroeder noted that while the company continues facing “intensified financial challenges,” it has received “meaningful interest from national and regional acquirers.” However, none of those offers met the company’s criteria to keep stores open long term. As a result, many pharmacies have already closed, and remaining retail operations are being phased out.
The Thrifty Ice Cream Legacy
While most pharmacy chains rely on prescriptions and convenience goods to draw foot traffic, Rite Aid always had an ace up its sleeve in California: Thrifty Ice Cream.
According to SFGATE, the brand’s roots date back to 1929, when brothers Robert and Harry Borun, along with their brother-in-law Norman Levin, opened the original Thrifty Drug Store in Downtown Los Angeles. By 1933, they were selling scoops of locally made ice cream — cheap, delicious, and instantly iconic.
Demand grew rapidly. In 1940, the family opened its first production plant in Hollywood, and in 1976, Thrifty Ice Cream expanded into a state-of-the-art facility in El Monte that’s still in operation today. Under the guidance of plant manager Jerry Sauer, the company scaled up while preserving quality — racking up gold medals from state fairs and industry competitions for decades.
In the 1980s, a single scoop cost just 35 cents. And for many families, it was more than a sweet treat, it was a tradition. That emotional connection endured even after Rite Aid acquired Thrifty in 1996 and rebranded the stores.
Thrifty’s Uncertain Future
Today, that legacy is in jeopardy. As Rite Aid dismantles its retail empire, there has been no official word on whether the El Monte ice cream plant will continue to operate or if Thrifty Ice Cream will find a new distribution model.
SFGATE reached out to Rite Aid to ask about Thrifty’s future, including whether the brand might be spun off, sold, or preserved in any way. The company has not responded.
Will Another Brand Acquire Thrifty Ice Cream?
The most likely path forward for Thrifty may be an acquisition. As Rite Aid sells off stores and assets to competitors — including over 1,000 locations being transferred to CVS, Walgreens, and Kroger — the fate of Thrifty Ice Cream could depend on whether another retailer or private investor sees the value in preserving the brand.
Given its strong nostalgic appeal, especially in West Coast markets, there may be opportunities for grocery chains or independent ice cream companies to take over production or licensing. If Thrifty were to land on grocery store shelves, much like other regional favorites have in recent years, its legacy might survive, even if the familiar scoop counter inside Rite Aid does not.
Rite Aid’s Loss Could Be a Strategic Opportunity
In today’s climate of brand nostalgia and experiential consumerism, Thrifty Ice Cream holds a unique kind of brand equity, one that savvy investors might view as a low-risk, high-reward opportunity. With an established manufacturing facility, decades of goodwill, and name recognition among millions of Americans, the brand is more than just a relic. It’s a cultural touchstone.
While Rite Aid navigates bankruptcy and store closures, it remains to be seen whether the company will find a buyer willing to preserve this piece of California history — or whether Thrifty Ice Cream will melt away with the rest of the empire.
