Gelato is hot right now, and Gelazzi Gelato Italiano Cafe is taking advantage.
As the Italian ice cream made from milk and sugar gains favor, the Denver-based gelateria is adding a third store in Highlands Ranch, with more to come.
Gelazzi, founded by Jan Horsfall in 2004, is targeting warm-weather markets for its 100 company-owned stores planned for the next five years, president Jeffrey Hill said. The stores after Highlands Ranch will be in Texas, Florida, Arizona, Southern California and Georgia, he said.
Gelato has previously been such a negligible portion — half a percent — of the $23 billion frozen-desserts industry that it’s listed as part of the “other” category in segment breakdowns, said Marti Pupillo, spokeswoman for the International Dairy Foods Association.
Malcolm Stogo, president of the New York-based Malcolm Stogo Associates ice-cream consulting firm, said gelato has grown slowly compared with ice cream, 10 percent to 15 percent total over the past decade, but that’s changing as gelato gets branded as healthier than ice cream because of its lower fat content.
“Gelato is gaining ground very heavily in the food-services sector, especially in restaurants,” Stogo said. “I would call gelato a trend and not a fad.”
Gelazzi’s plan to shift to warmer climes is to combat slow Colorado winters when lower demand for gelato forces the stores to cut staff, only to rehire them again at the start of summer, Hill said.
The gelateria’s flagship is in Larimer Square, and another store is in Fort Collins. Hill said the Highlands Ranch store, opening Saturday, will provide a suburban model for future markets, where Hill hopes for steadier patronage if stores are closer to homes.
“We’ve pretty much convinced ourselves that we have a national concept now and we’re ready to go, but it took us a good three years to test product, recipe, interior, training and all the things necessary to make sure we have a winning idea before we went out with it,” Hill said.
One challenge in extending gelato’s reach has been cost. Stogo estimates that going into the gelato business is 30 percent more expensive than into ice cream, in large part because of costs of importing ingredients and equipment from Europe.
Factor in the dollar-euro exchange rate, and U.S. gelato makers have quite a bit to pass on in prices.
Roy Weinstein, owner of Denver’s 11-year-old Gelato d’Italia, said his ingredient costs have risen 10 percent to 15 percent in the past year. However, he has seen more gelato sellers pop up in Denver, such as Red Trolley on West 32nd Avenue, and more customers willing to pay, something Hill also noted.
“Yes, it has cost us more, but we think that quality is very important and we must have the best,” Hill said. “Our guests will realize the difference and will give us their loyalty as a result.”
Gelazzi serves 32 flavors of gelato, which has less air than regular ice cream. The denser product sells for $3.50 to $5 and acts as a base for Gelazzi’s smoothies, shakes and coffees.
Its menus boast such unique concoctions as Gelatinis, gelato blended with liqueurs that Hill said are growing in popularity as clients embrace the idea.
Alex McCarthy: 303-954-1381 or amccarthy@denverpost.com
