There are a few ways gelato can be prepared both hot process and cold process now.

Gelato is a style of ice cream that dates back several centuries to Italy. Since the primary ingredient in good gelato is milk, not cream, it has a softer dairy profile that should allow flavors to come through more strongly than a traditional ice cream. Today, gelato around the world is of varying qualities. Such qualities are highly dependent upon whether the dessert is made from scratch or by mixing milk with pre-made powders, mixes, or gels; the skill of the person creating the gelato; and the quality of the milk and other ingredients used.

There is a distinct market trend showing customers want to pay more for premium ice cream treats like gelato. So that you want to start with gelato shop, sure you need a potential mentor for this project. To complete gelato shop, you will pass these 9 steps here.

Step 1. Plan gelato shop

A clear plan is essential for success as an entrepreneur. It will help you map out the specifics of your business and discover some unknowns. A few important topics to consider are:

• What are the startup and ongoing costs?
• Who is your target market?
• How much can you charge customers?
• What will you name your business?
• What are the costs involved in opening a gelato shop?

Besides rent and employee salaries, owners will need to register their business and obtain all permits from both the state and local government. A health inspector will need to visit before approving the business, too. The total for these fees vary widely based on where you are and how much profit you expect to make, so the range can be anywhere from a several hundred dollars to up to $25,000 or more. Typically, you can expect to pay less if you're in a less desirable area.

Owners will need commercial insurance for things like workers' compensation and liability protection. Average annual commercial insurance costs for food-service small businesses are around $3,000, but each business is judged individually. Initial supplies are the gelato-making equipment (freezers, mixers, etc.), disposable plasticware, cash register and a display case. An attractive display case will cost between $5,000 to $7,000, and a 6-quart mixer will run you about $5,000. A basic cash register will only cost a few hundred, but you may want to invest in better technology which will put you closer to $1,000. Owners will need a computer to keep track of finances and schedules as well as tables and chairs. A nice table/chair set may be around $250.

Total you can expect to spend between $15,000 to $25,000 in start up costs.

What are the ongoing expenses for a gelato shop?

Typically, an owner will have the following ongoing expenses:

• Equipment maintenance
• Employee salaries
• Ordering expenses
• Permit renewals
• Who is the target market?

Owners need to attract a crowd who is willing to pay for a premium experience when they want a fast but delicious dessert. The ideal customer would be someone who lives near the store who will consistently look to your business as their go-to for quality treats. You may also want to attract those who primarily want a coffee shop, but with a bit of a twist.

How does a gelato shop make money?

A gelato bar serves Italian-style ice cream to paying clients in a variety of forms (e.g., in shakes, cones, cups, etc.) Gelato bars may also offer other products, such as specialty coffee.

As owner, you will need to account for location costs (rent, inflation, etc.), employee salaries, and the cost of ingredients. They will then have to determine a price for each individual menu item that will cover these costs and allow for a profit. It is not recommended that a gelato bar try for a budget angle due to the cost and effort to make the products.

How much can you charge customers?

One general rule of thumb (which differs for each owner depending on where they operate) is to charge 5 to 7 times the cost of the raw ingredients. So if one scoop of gelato costs $.75, then the appropriate cost for a customer to pay might be around $4. The same can be said for specialty coffee drinks as well. A well-maintained shop with fancy amenities can allow you to charge even more.

How much profit can a gelato shop make?

It's difficult to estimate as it really does depend on location and price points. In general, you can expect about a third of the budget to go towards raw ingredients and a third to go to employees. The rest will typically go toward equipment and rent costs.

How can you make your shop more profitable?

One easy way is to upsell your customers to larger portion sizes, specialty flavors, extra espresso shots, etc. However, you can also expand into offering better coffee or more coffee options, as well as cakes, pastries, and other treats. Get more people hooked by opening up local stands at major events.

What will you name your shop?

Choosing the right name is very important. It’s very better if it is easy to remember, and impressive, not used before. If the shop name you choose is available as a web domain and securing it early so no one else can take it.

Step 2. Form a legal entity

Establishing a legal business entity such as an limited prevents you from being personally liable if your gelato business is sued.

You should also consider using a registered agent service to help protect your privacy and stay compliant.

Step 3. Register for taxes

You will need to register for a variety of state and federal taxes before you can open for business.

In order to register for taxes you will need to apply for Department of Planning and investment. It's really easy and free!

Step 4. Open a shop bank account & credit card

Using dedicated shop banking and credit accounts is essential for personal asset protection.

When your personal and shop accounts are mixed, your personal assets (your home, car, and other valuables) are at risk in the event your business is sued.

Step 5. Set up shop accounting

Recording your various expenses and sources of income is critical to understanding the financial performance of your shop. Keeping accurate and detailed accounts also greatly simplifies your annual tax filing.

Step 6. Obtain necessary permits and licenses

Failure to acquire necessary permits and licenses can result in hefty fines, or even cause your shop to be shut down.

A gelato bar will need licensing from a local health department, which will vary from town to town. This is because ice cream parlors sell food; all establishments serving food are required to pass a health inspection.

Furthermore, any business which sells food prepared on site may be randomly inspected by the local health department on a regular basis. These inspections will check for compliance with local health laws, typically related to prevention of food contamination.

Step 7. Get shop Insurance

Just as with licenses and permits, your shop needs insurance in order to operate safely and lawfully. Shop Insurance protects your company’s financial wellbeing in the event of a covered loss.

There are several types of insurance policies created for different types of businesses with different risks. If you’re unsure of the types of risks that your business may face, begin with General Liability Insurance. This is the most common coverage that small businesses need, so it’s a great place to start for your business.

Step 8. Define your brand

Your brand is what your company stands for, as well as how your business is perceived by the public. A strong brand will help your business stand out from competitors.

How to promote & market a gelato shop

The best way to promote your shop is through word of mouth. To get people to the first batch of people coming in though, you'll likely have to do a Grand Opening, complete with free scoops and lots of advanced party planning. The more attention you can attract at the beginning, the more likely it is that excitement will continue long after you've cut the ribbon. You'll want to monitor the Yelp page carefully. The gelato bar website should be easy to navigate and have excellent content. Advertise to customers about company values too. For example, those willing to pay a few bucks more for a single scoop expect their ingredients to be sourced locally, sustainably, and responsibly.

How to keep customers coming back

The best way to retain customers is to deliver the best possible product and service at all times. The more attention put into every touchpoint between the business and the customer (including in-person, over the phone, and online), the more likely it is that customers will continue to spread the word about the gelato bar. Collect feedback about every aspect of the business from measures like surveys, reviews or conversations, and then adjust the business as need be.

Step 9. Establish your Web Presence

A business website allows customers to learn more about your company and the products or services you offer. You can also use social media to attract new clients or customers.

There is a distinct market trend showing customers want to pay more for premium ice cream treats like gelato.