Frost Gelato Shoppe Europe : An Italian Inspired Ice Cream / Gelato Business
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Frost Gelato Shoppe Europe is an Italian inspired ice cream/gelato business which is located in Tucson, Arizona, USA. It is steered under the leadership of co-founders Jeffrey Kaiserman and Stephen Ochoa, alongside their 22 years experienced gelato master chef, Nazario Melchiondia (Orr, 2009). Over the years the business has flourished resulting in the opening of new shops, including franchises that have been established in Kuwait and US states such as Chicago and Phoenix (Villarreal, P, 2011). More franchises are yet to be approved to commence operations in places such as Dubai, Qatar and Jordan.
On average each store generates an estimated £1.3 million in revenue on a yearly basis, a gross margin of 45% and an operating profit of 20%. It is highly evident that there is stagnant growth possibly due to changes in supply and demand of ice cream products and consumer buying behaviour. These results could however be improved by expanding into emerging markets, increasing brand awareness of Frost Gelato’s ‘take home’ products, the caffe, the events and catering business, including recruiting knowledgeable staff to deliver an excellent customer service to enhance the overall experience. Essentially this will help to augment brand salience amongst its target market.
2. Analysis of the External Environment
US Market Overview
According to Market Line (2014), the take home ice cream market in comparison to artisanal ice creams (9,1%), frozen yoghurts (14%) and impulse ice cream