Get the scoop on why this century-old company turned to franchising

Most entrepreneurs launching a new business can only dream about their enterprise still going strong after a century. But then again, having launched when Serafino Crolla opened an ice-cream shop in Glasgow in 1895, Crolla’s Gelateria isn’t like other businesses. From starting a gelato factory in the interwar period to repurposing ambulances as ice-cream vans after the second world war, the entrepreneurial flair of Crolla’s children and grandchildren has fuelled the enterprise’s evolution throughout the 20th century. And now the founder’s great-grandson Peter Crolla is taking the next step with the franchise.

Like many other success stories, this latest evolution was born out of the business leader having a keen sense of which way the wind was blowing. “We noticed that more gelaterias and parlours were opening,” says Crolla. The sector had been in flux since the 1990s when more people started purchasing their icy treats at supermarket rather than at ice-cream vans, pushing the mobile vendors out of business. Responding to shifting demand, the family company sold its fleet of vans and repurposed its factory to supply places like restaurants and hotels, as well as other ice-cream van owners with frosty delights. But with the rise of ice-cream parlours, Crolla saw an opportunity to ensure the company’s success into the 21st century by opening a chain of gelaterias. “I knew that it would become a stepping stone to get even more business,” says Crolla. “And I quickly realised that franchising was the best model to open more stores.”

But while he always intended to franchise the business, Crolla first wanted to ensure that he had a successful recipe for franchisees to replicate. So he opened a pilot in March 2013. “The first shop allows you to learn from your mistakes,” says Crolla. Fortunately, this inaugural gelateria on Byres Road in Glasgow quickly proved a success, going on to break its own record every year since its launch. Additionally, it helped the franchisor understand that providing great service isn’t the only factor that matters to consumers. Just like in real estate, the franchise’s success was dependent on location, location, location. “In a restaurant, people may spend £30 to £40 per head,” says Crolla. “For us that number is more like £5. That means that more people have to spend money and we have to be really careful about our site selection.”

Nevertheless, finding a prime location for the inaugural gelateria wasn’t enough to ensure it got the footfall required to turn a profit. “It’s not like in the good old days when you just had to open the doors to get people inside,” says Crolla. Realising that fact, he embarked on a marketing campaign that saw the company serve up scoops of ice cream at events and hand out flyers. Using social-media sites like Instagram, Facebook and Twitter was also instrumental in attracting customers. “You’ve got to keep moving with the times, so obviously social media became very important,” says Crolla. These efforts certainly proved effective: the Scottish Italian Awards named Crolla’s Gelateria Scotland’s Best Ice Cream Parlour in 2014.

Having established the concept, Crolla felt ready to take the next step and franchise Crolla’s Gelateria. “But I needed expertise to help me through the journey to make the franchise easy to run for franchisees,” he says. This help was provided by David Moffat, operations manager of Iguana Eyes, the business consultancy, who was hired as Crolla’s Gelateria’s business-development manager. Together they ensured each procedure was streamlined and systemised, enabling future franchisees to replicate the success of the pilot. And after eight months the model was finalised.