Do you know the difference between gelato and ice cream in both business model and product? Most don’t.

How many time have I heard someone say, “I like gelato but not ice cream, because it’s lower in fat and calories”. Both are dairy based, with ice cream using butterfat and gelato using milk fat. Depending on the butterfat content of ice cream, many times the milk fat product can be higher in calories. Ice cream needs to be a minimum butterfat of 10% to qualify and can range upwards to 20%, but personally wouldn’t go above 16% and overrun (air) typically ranges from 30% – 100%. Gelato can range between 3% – 9% in milk fat with over run from 50% – 100%.

But is that the reason people are attracted to gelato?

When asked which one is better from a business model and shop perspective, typically my response is either one can be a winner. Gelato is perceived and marketed as a high end product and so often seen in “high rent” areas compared to a ice cream shop. I believe there are two primary factors that attract people to gelato, presentation in the display case and it’s smooth texture. One 4 oz serving of gelato tends to run slightly higher than ice cream and because the cost of goods is higher than ice cream.

Two separate business models, each unique in selling opportunity, but gelato will involve a bit more cost to get setup. Here are a few points to look at and what is required when looking to open a ice cream vs. gelato shop.

Ice Cream Shop
  • Dipping cabinet(s) for tub scooping
  • Soft serve freezer for soft serve
  • Refrigeration for things like milk, whip cream and select toppings
  • Storage freezer for inventoried ice cream tubs
  • Storage cooler for soft serve mix
  • Scoops to serve product
  • Dipper well to place scoops
  • Typically use paper bowl and cup to make sundaes, banana splits, shakes, floats etc.
  • Toppings and sauces for sundaes etc.
  • Typically offer soda pop or coffee
Gelato Shop
  • Gelato display case(s)
  • Gelato freezer to produce product
  • Dry storage for gelato mix and flavors
  • Storage cooler for milk
  • Gelato pans in a number of sizes for display case
  • A variety of bowl sizes to serve products
  • Spade or paddle to serve product
  • Typically offer espresso or cappuccino
  • Typically use gelato brand bowls and spoons to serve products

At first glance both shops appear to be equal in equipment and process, but once diving into the detail, there are significant differences between the two in startup cost, cost of goods, daily tasks and ongoing maintenance. Ice cream is a 3 step process consisting of flavor and freezing ice cream mix, flash freeze and serve at a warmer freeze temp – 24 hours from make to serve.

Gelato is a 2 step process, flavor and freeze gelato mix and serve – 1-2 hours from make to serve. In a ice cream shop the tubs can be purchased from a number of dairies, used dipping cabinets can be found and tubs of product at the correct dipping temperature can last 7-10 days. Gelato is very closely controlled with a select number of suppliers and distributors who offer gelato cups, base powder mix, flavor paste, stabilizer and equipment. Supplies are readily available, but usually on-line so freight cost will come into play. And depending on the display case model, parts are not readily available and sometime not inventoried in the US.

Watever direction you decide to take, both offer a good business model and can be a successful business. The products may be different, but the results are the same – an excited, smiling customer eating your product.

Darryl can help you to determine if ice cream or gelato is the choice for you, call him and get your business started.

Darryl David
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