Matt Shatto, the new owner of Betty Rae’s Ice Cream, is expanding the beloved Kansas City-based brand beyond the metro area in an effort to “create smiles across the country.” Shatto’s plan involves franchising the handcrafted ice cream shop, which has become a local favorite over nearly a decade, to new cities across the region and eventually nationwide.
Betty Rae’s is targeting a robust expansion with plans to open franchises in seven cities: St. Louis, Missouri; Wichita, Kansas; Bentonville, Arkansas; Nashville, Tennessee; Denver, Colorado; and both Oklahoma City and Tulsa in Oklahoma. The company is seeking franchise partners who are interested in opening between two to five locations in each market.
Shatto, who purchased Betty Rae’s in 2023, quickly added three new locations in the Kansas City metro area. He shared his vision for the brand, stating, “We wanted to get it to more people in Kansas City. But we didn’t want to limit [the brand] to people in Kansas City. We think it is the best ice cream available. Why in the world are we keeping it from people outside?”
Betty Rae’s has earned a reputation for its made-from-scratch offerings and neighborhood appeal. The shop’s menu boasts 26 core ice cream flavors, including classic vanilla bean and chocolate, as well as monthly rotational flavors like Matcha, Bee’s Knees, and Nutty Professor. In addition, Betty Rae’s collaborates with local Kansas City businesses, such as Joe’s Kansas City Bar-B-Que, to create unique flavor experiences.
Other items on the menu include waffle cones, ice cream sandwiches, shakes, sundaes, and ice cream flights. The company recently introduced a vegan and gluten-free cone to complement its dairy-free and vegan ice cream options. Customers can also purchase 4-ounce containers, pints, quarts, and even gallons of ice cream to take home.
For prospective franchisees, Betty Rae’s has clear expectations: potential partners should have retail experience and demonstrate a genuine passion for ice cream. The company is looking for franchisees with a net worth of at least $500,000, including $250,000 in liquid capital. Start-up costs for opening a Betty Rae’s franchise range from $272,000 to $545,000, with a franchise fee of $45,000. Franchisees will also be subject to a 6 percent royalty fee on gross sales and a 3 percent brand fund fee.
Shatto emphasized that Betty Rae’s will provide substantial support for franchisees, including assistance with site selection, design, marketing, advertising, and employee training. Franchise locations typically range from 1,000 to 2,700 square feet and often feature patios for a more inviting experience.
The first Betty Rae’s franchise opened in Omaha, Nebraska, in September, with franchisee Zach Molacek planning to open a second location in the spring. Molacek has expressed satisfaction with the process, noting that despite the cooler fall season, the Omaha shop has seen steady traffic. “Matt’s been great,” Molacek said, praising Shatto for his support and guidance.
While new franchise locations will expand the brand’s reach, Betty Rae’s will continue to operate its corporate-owned stores in the Kansas City area, including locations in Merriam, Olathe, Prairie Village, the River Market, and Waldo. Additionally, the company’s commissary and production facility is located in Merriam, though Shatto indicated the possibility of opening a commissary in one of the regional markets as the brand grows.
With its sights set on expanding beyond Kansas City, Betty Rae’s Ice Cream is poised to bring its distinctive, high-quality ice cream to a wider audience while maintaining the charm and local character that has made it a regional favorite.
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