Opening a Gelato Chain: A Path to Success

In the 2018 report released by the SIGEP Observatory, a study conducted in collaboration with Sistema Gelato, the leading strategic consultancy for the gelato industry, it was highlighted that the phenomenon of opening gelato chains has seen a general increase of 4%, particularly abroad. The highest growth rates were recorded in Central and South America (+11%) and the Middle East (+8.1%).

Franchising is one of the most effective ways to rapidly and efficiently expand gelato shops, particularly in foreign markets. This business model provides significant advantages for both the gelato maker-entrepreneur who wishes to replicate their gelato model and the affiliate who opens a new shop, benefiting from an established brand name often already recognized in the market.

Furthermore, every new gelato shop, whether opened directly or through affiliation, comes with a complete supply chain of equipment, installations, furniture, and ingredients that are strictly "Made in Italy." This generates a substantial business turnover. "Sistema Gelato" estimates that each gelato shop opened abroad contributes an export value of at least €100,000 per year in equipment, furnishings, and machinery, and €25,000 in products and ingredients.

Opening a Gelato Chain: A Business Model for Expansion

Opening a gelato chain abroad can be highly profitable, but it requires careful planning and organization. The best approach is to partner with a group that offers “turnkey” solutions, enabling high replicability of the business model. A "turnkey" package typically includes:

  • Design guidelines for the shop: directions for furniture and equipment.
  • Semi-finished or ready-to-use raw materials.
  • Know-how: the knowledge and practices the franchisor shares with the affiliate.
  • Support before and after the store opens.

Key Elements of a Successful Gelato Chain

The two key concepts for opening a successful gelato chain are clarity and replicability. These principles must guide not only the bureaucratic and administrative procedures but also the selection and handling of products. The franchisor’s guidelines, such as those concerning ingredient selection and production processes, must be strictly followed. Every step of production, packaging, and communication should be clearly outlined and understood by all staff members involved in the supply chain to maintain consistent quality.

Marketing and Communication Strategies for a Gelato Chain

Before opening a store, it is crucial to develop a solid marketing and communication strategy to ensure the success of the gelateria. This strategy should take into account both short-term and long-term goals. When opening a chain of gelaterias, it’s important to remember that the management is governed by the franchisor’s rules, meaning the franchisee will not have full control over the business.

Costs and Business Planning for Gelato Chains

Opening a gelato chain offers organizational advantages, often translating into reduced costs both during the launch and operational phases. The business plan is a crucial document that helps guide the activity, particularly in evaluating the costs involved. Some of the main expenses to consider are:

  • Raw materials: These can be provided by the franchisor or managed directly by the gelato shop owner.
  • Labor costs: This depends on the number of employees hired for the business.
  • Rent and utilities: Fixed costs that must be accounted for, regardless of the shop's performance.

Partnerships and Market Entry

Establishing partnerships with local operators is key to ensuring success, whether opening a gelato shop in the home country or abroad. The ideal strategy is to first develop a concept in one market and, once the model is refined and successful, export it to other countries.

When planning to open abroad, it’s essential to research and understand local regulations, standards, and norms. Interacting with local authorities and health entities (similar to Italy’s ASLs) is crucial to ensure compliance with safety and hygiene regulations.

The Advantages and Challenges of the Franchise System

Franchising offers a replicable model with good potential for success, but it also comes with challenges. It requires professional figures who are aligned with the objectives and rules, capable of interpreting and applying the franchisor’s know-how effectively. Staff in the various gelato shops and the franchisor’s headquarters must work together, with mutual understanding and motivation, to achieve long-term goals.

Examples like the Italian gelato chains Rivareno and Casa Marchetti show that a well-executed franchising model can result in high-quality products and a growing business.

Challenges in Replication

While a "ready-to-use" solution can help, success is never guaranteed. Every individual shop has unique characteristics, and its success depends on multiple factors. Effective organizational skills and forward planning from all parties involved in the franchise agreement are necessary. Continuous commitment is needed to maintain success and customer satisfaction, building loyalty by meeting customer needs and expectations.

The risk is that, if not executed correctly, a chain could be seen as a low-quality standard, leading to negative perceptions compared to independently operated artisanal gelaterias.

Cultural Adaptation for Success Abroad

Finally, one of the most important factors for success when opening a gelato chain abroad is adapting to the local culture. Adriano Di Petrillo, founder of Dri Dri Gelato, emphasizes cultural alignment as the most critical aspect when choosing a franchisee. Adapting to the local culture and integrating it with the brand’s identity and Italian traditions is crucial for success. Simply relying on the attractiveness of the "Made in Italy" label is not enough. Effective communication and storytelling that resonate with local customers are essential to promote the brand, ingredients, and the production process.

In summary, opening a gelato chain is an exciting and potentially lucrative opportunity, but it requires careful planning, solid partnerships, and a well-thought-out business strategy. By maintaining clarity, focusing on quality, and adapting to local markets, your gelato chain can achieve long-term success both at home and abroad.

Opening a Gelato Chain: A Path to Success
Share
Articles

To request information, contact us