Iconic ice cream seller to open on State

By Andrew Schroedter, June 24, 2009

(Crain’s) — Original Rainbow Cone Inc., a Beverly neighborhood institution known for its namesake ice cream treat, is coming to State Street.

The 83-year-old ice cream stand is taking about 1,000 square feet in the landmark Page Brothers Building, 177 N. State St., sharing the ground-level storefront with local sandwich shop Halsted Street Deli, says Original Rainbow owner Lynn Sapp.

The two restaurants, expected to open in August, will be north of the Chicago Theater.

North Siders with a yen for Original Rainbow previously have had to wait for the company’s annual appearance at the Taste of Chicago or visit a little-known summertime location in the Park Grill’s carryout cafe at Millennium Park.

Since closing a store at Union Station in 2001, Original Rainbow has been looking to open another year-round downtown location. But with sales slow in the winter months, the company couldn’t afford the pricey rents charged for the prime addresses.

“We needed to partner with someone who could carry us for 12 months,” says Ms. Sapp, whose grandfather Joseph Sapp started Original Rainbow at 9223 S. Western Ave., where the shop is still located.

Joseph Sapp is credited with inventing the popular rainbow cone, which combines layers of chocolate, strawberry, pistachio and Palmer House ice cream - vanilla with cherries and walnuts - with orange sherbet.

But no matter how flavorful the concoction, it’s still hard to make money selling ice cream in the Loop, says Peter Poulos, owner of Margie’s Candies, an old-fashioned candy and ice cream shop with two North Side locations.

“If you’re going to sell ice cream alone, you’re going to starve to death,” says Mr. Poulos, who at one time considered opening a Margie’s on State Street.

Halsted Street, which features freshly made sandwiches and soups, is leasing about 4,000 square feet in the Page Brothers Building, says Jason Berngard, an associate at Chicago-based Baum Realty Group LLC, which represented the small deli chain that has three downtown locations and 10 suburban restaurants.

Original Rainbow will occupy about 1,000 square feet of that space under a partnership agreement with the deli, Ms. Sapp says.

About 500 square feet is being set aside for a vestibule for automated teller machines, leaving the deli with about 2,500 square feet.

Halsted Street Deli owner William Gomez opened his first restaurant in 1998 at Halsted and Randolph streets. While that location has since closed, the company has opened locations at Illinois Center in the East Loop, 222 N. LaSalle St. in the North Loop and 400 S. LaSalle St. in the South Loop.

Some of the suburban delis operate as franchises under agreement with Mr. Gomez, who did not return calls seeking comment.

The national restaurant chains “aren’t expanding, so we’re finding good opportunities,” says Baum’s Mr. Berngard.

An executive with Marc Realty LLC, which owns the Page Brothers Building, did not return a call requesting comment.