Frozen Yogurt, Make Room for Gelato

A supplier of Italian gelato, less fattening than regular ice cream and a new competitor for frozen yogurt, says stand-alone gelato shops are catching on. 

According to Marco Casol, the 37-year-old chief executive, the number of outlets supplied by PreGel has grown 30 to 35 percent annually since 2002 — more than 1,000 gelato shops, groceries, cafes and restaurants that sell gelato. Sales in 2008 are expected to top $15 million. . . Though exact numbers are hard to find, Mr. Casol estimates there are now about 800 stand-alone gelato shops in the United States, a far cry from the 37,000 in Italy. For gelato-loving entrepreneurs, such a wide-open market means opportunity. - NY Times

Franchisors are taking notice too. According to the article, San Gelato Cafe has set plans to sell some 300 new gelato franchises by 2011. With two zeros behind it, that's a big number to put on paper.

Some experts say be careful of stand-alone gelato shop franchises.

Dominic Seminara, who runs the Specialty Restaurant Equipment Corporation in Arlington, Tex., warned that a stand-alone gelato shop was not a sure bet in most locations. “Gelato has a place but only in a setting in which it is part of the operation, not the entire operation,” he said. Adding gelato to a successful pizza parlor or coffee shop is a better way to go, he suggested.