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Used to describe anything bona fide or legit like as a seal of approval. Originated from Andy Griffith (speaking on a Ritz Cracker TV commercial): "Mmm-mmmmh. Anything sits good on a Ritz." Supposed to mean that Ritzes are so excellent -- ritzy, even. IT SITZ ON THE RITZ refers to being good enough for a Ritz (figuratively). Not limited to just food>
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