Is it better to open a craft workshop or a gelato bar?

One of the first decisions to consider when opening a gelato shop is whether it’s better to start a “simple” artisan workshop or a gelato café with table service. There’s no one-size-fits-all solution—much depends on individual needs and the context in which the new business is being launched. Let’s briefly look at the pros and cons. 

The most important premise—one that shapes many of the other considerations—is that the food cost of gelato is relatively low: the cost of raw ingredients amounts to around 10% of the final selling price. The same cannot be said for drinks, sandwiches, and pastries typically served in a café, where food costs can reach up to 50%.

Operating costs also tend to favor an artisan gelato workshop, which generally requires a smaller space—resulting in lower rent or purchase costs—and fewer staff.

So, does that mean opening a gelato café isn’t worth it?
Not necessarily. It's important to remember that standalone gelato shops often operate only during the warmer months, while gelato cafés can stay open all year round, even if sales may drop during the colder seasons. In relatively quiet areas, this can be a decisive factor.

If, however, an artisan gelato lab is located in a tourist city or in a high-foot-traffic area, it can rely on higher daily sales over a longer season—allowing for a quicker return on investment and operating costs. Let’s not forget that while gelato offers high profit margins due to its low food cost, it’s still a low-price product, so sales volume plays a key role.

In summary:

The main advantages of a gelato café with table service compared to a simple workshop:

  • Higher business value in case of resale

  • No seasonal closures during low-traffic months

  • Potential for higher overall revenue

Reasons to choose a simple artisan gelato workshop instead:

  • Shorter working hours focused on peak foot traffic times

  • Lower investment for purchase or rental of premises

  • Fewer staff required

  • Lower supply and inventory management costs


 

 

Is it better to open a craft workshop or a gelato bar?
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