Freddo’s continued Expansion plans

 

This month in Franchising Magazine USA we had the privilege of interviewing Freddo USA’s Gelato Shop. Made from passion from two Italian Families who banded together to give the USA one of the best Classic Italian Gelato’s on the market.

 

 

So, let’s see how Freddo’s started and where they are now.

Describe your organization – how long has it been in operation? When did you start franchising? How many franchisees do you currently have?

Freddo began operations in Buenos Aires, Argentina, in 1969, when two families of Italian immigrants joined to manufacture and sell classic Italian gelato.

Since then, they have aimed to produce the world’s best gelato, using nothing but the highest-quality and most natural ingredients.
Today, more than 50 years later we pay homage to our Italian heritage through every step of our cooking process, providing the artisan quality that characterizes every product we make, offering an unrivaled experience with every bite.

To ensure exceptional quality, Freddo gelato is crafted with extreme care. Each flavor is churned for over four hours to obtain the most unique texture. The result is incredible creaminess in our unique recipes prepared with no additives or preservatives.

Our ingredients come from all over the world, like our dulce de leche from La Pampa (Argentina), renowned for its high quality and silky texture, as well as carefully selected fresh fruit and nuts. Our portfolio includes more than 50 flavors to ensure a wide range of options are available for our consumers to enjoy at any of our stores, partnered retailers or homedelivery apps.

We started with company-operated gelaterias in 1969 and in 1980 we began offering franchises. Currently, we have about 160 franchised and 7 owned stores in 7 countries: 114 in Argentina, 21 in Uruguay, 15 in Brazil, 5 in Chile, 2 in Mexico, 2 in Panama and 8 in USA.

What is your main product and Service?

Our main product is artisanal gelato. This is served in cups and cones for in store consumption or take away packages of 1 kilo and a half kilo for home consumption. In our USA stores we offer 24 varieties of unique flavors, mixing classic Italian flavors with other unique and innovative flavors. We also offer pastries, coffee, milkshakes, and sundaes.

What type of person would ‘fit’ your franchisee profile?

To become a Franchisee with one of our Freddo stores is easy, which means it can be operated by franchisees with no experience in gelato and/or F&B operations. It is an easily scalable business thanks to our products shelf life, storage and handling, which makes it attractive for multi-unit operators who wish to add a new business unit to their existing structure without having to expand it.

Where are your current locations/territories? Where are locations/territories available?

Freddo has 167 stores, 8 are in the United States, 7 are in South Florida and 1 in South Carolina. Additionally, we are in the process of building 3 new stores in the east coast, and we have already signed a Master Franchise for the state of California, where the first store will be opened in the next months, and we plan to have 3 stores opened in that state by June 2023. We are looking for partners in every state of the country, as a Master Franchise or a multi-unit operator.

So why does Freddo stand out as a successful Franchise?

In an age where the internet is prominent consumers have become more sophisticated and quality conscious. Milk based gelato is healthier than ice cream and unlike most of the industry, Freddo does not use base flavoring, nor use colorants or preservatives.

Our artisanal production process gives a refined texture with less added air to the final product.
Finally, our top quality ingredients such as Argentine dulce de leche help us produce unique flavors that cannot be found anywhere else such as Pacific Coconut with Dulce de Leche, Mascarpone with Red Fruits from Patagonia and many more.

Deciding to choose Freddo’s as your next franchise is a no brainer. Here is why…

Freddo’s have over 40 years of experience in franchising our gelaterias, we have partnered with operators of different levels of experience and have jointly developed a turn-key solution that ensures the delight of our customers and their success as franchisees. Prior to a launch, we offer property location, design and construction support alongside operational training and a
marketing launch campaign. Whilst active, we offer ongoing marketing and operational support as well as supervision and a one stop shop for all supplies.

What are your Plans for new systems/concepts in 2023

We are entering 2023 with great momentum following a 30% of year on year growth in 2022 and will focus on three areas.

Firstly, continuing our US expansion with driven partners in all states.
Secondly, strengthening our retail channels to increase our market share and brand recognition which will enhance the performance of our stores.
Thirdly, to develop the delivery service where the market still has a lot of room to mature in the gelato sphere.

Where do Freddo’s see themselves in 5 years…

BIGGER…
At current growth rates, we should be active in at least 15 new states in the US and grow even more rapidly after that by becoming most the most relevant gelaterias of the US within the next 10 years.
We believe we have a unique value proposition and product, which delights American customers. In parallel, in 5 years we expect to have already reached our first thirty stores in Mexico and count with presence in Europe, our next destination.

What is your advice for those exploring franchise opportunities?

“I would advise them to consider all options and choose one they are passionate about. Running your own franchise can be very rewarding but having a hands-on approach really helps the odds of that happening. Being committed to the project makes a huge difference and to help franchises be more invested, I would recommend them considering the franchise growth potential and their personal ability to scale the project. Operating a franchise that is on a upwards trend that provides tools for growth will be a very different experience from one that does not.”

And lastly motivation is key in any business starting out…

“We have a close relationship with all our franchisees which is built on open and transparent dialogue that helps us build and grow our services together. Freddo’s scalable solutions has always
been a key differential and we see that proposition only getting better as we create new products to cater for local audiences.

Currently, our international expansion is an attractive opportunity for existing and new partners to reach untapped territory that can offer high returns.”