11/16/2007 | Don’t let cold weather freeze ice cream sales

As a Boston native, Stan Zafran has survived his share of nor’easters, so he doesn’t mind arguably milder winters in Columbus , Ohio . But the bite the chill air puts on profits at Denise’s Homemade Ice Cream, that’s genuine suffering.

But unlike some of his peers, who let their ice creameries hibernate through the winter, Zafran won’t close up shop.

“The idea is to minimize the losses you take in the winter by staying open all year,” said Zafran, who makes super-premium ice cream flavors such as cranberry lavender. “Closing for the winter is a dangerous thing, because once you do, people think you’re closed for good. Staying open gives the business a sense of continuity.”

Zafran said reduced walk-in traffic accounts for most of the steep slide in business, though takeaway sales of pints and quarts keep business steady throughout the holidays. People view Denise’s products as special treats, he said, and they like taking them as presents to parties.

Could Zafran broaden his menu with a few bone-warming products like coffee and sandwiches to nudge sales higher in winter? Nothing doing, he said. If it’s not ice cream, then it’s a distraction from the core product.

“I think you risk starting to lose your individuality if you do that,” he said. “Years ago I went to a Ben and Jerry’s that had hot dogs, and I knew they wouldn’t be there long; it didn’t fit.”

Michael Crispen, however, sees broader menus as essential to year-round balanced income. His Holland , Ohio , shop, Diaggio’s Gelato & Pizzeria, enjoys gelato sales spikes in the summer when pizza tickets dwindle, and stronger pizza sales when the weather cools.

“We’re one of only two places in Toledo that has gelato,” Crispen began. “But if I had just ice cream, I bet sales would drop because you can get ice cream anywhere. The uniqueness, the flavor and the health benefits of gelato make it more appealing, and the pizza and gelato pairing also is appealing.”

At any given time, Crispen has 24 gelato flavors in his display case, but he can make up to 220 different flavors. Such variety provides customers more reasons to return—despite the harsh Toledo winters—because of the novelty, he said. And like Zafran, he enjoys strong carryout sales during the holidays.

“We do lots of pints, quarts and half gallons during that time of year,” said Crispen, who fetches $5.95 per pint of gelato. “We also do a lot of special orders for flavors people request.”

A lot of Mike Marcis’s customers cut their losses and close up shop in the winter when sales slip. As a market representative for The Kappus Co. , a reseller of soft-serve ice cream machines, Marcis said very few of his customers can make sufficient money all year to be profitable.

“A typical soft-serve operator has virtually no activity after October, at least up here in the northern states,” said Marcis. Menu diversity, he adds, is crucial to 12-months of good revenue. “The people who’ve had success, who go through the Christmas season doing well are those like Dairy Queen. Not only do they do that with other foods, they make a good chunk of money selling ice cream cakes and pies.”

Go get the customers

Ernie Schott, owner of Taggarts Ice Cream Parlor in Canton, Ohio, keeps customer interest high by offering new products, while insulating the seasonably cold cash drawer with catering dollars.

“Right now is the season for pumpkin ice cream, which we serve with gingersnap cookies,” Schott said. Pints and quarts are selling well, too, as are the shop’s legendary ice cream sandwiches made from two large scoops of ice cream book-ended by homemade cookies. “We do a lot of boxed lunches for offices downtown, and we’re always working to support community events. We really reach out to schools and churches and get involved in their fundraisers. That keeps you busy all year.”

Crispen reaches out directly to customers in his store and pushes gelato, a food he called “mostly Greek to people in Toledo .” To generate trial, he strolls the dining room looking for children to talk to.

“I go to the table and say to a kid, ‘If you do a really good job eating your dinner tonight, I’ll buy you some gelato,’” he said. “So we give the kid a cup of gelato, they love it, and that’s where they want to eat next time. And parents think it’s great because they don’t have to go to McDonald’s and get one of their hot fudges.”

That kind of face time, Crispen added, allows him to build rapport with his customers and provides opportunities to sell add-on products.

“It’s still about educating people when it comes to gelato here, so the more I can talk to them, the more they understand it and the more we sell,” he said. “You’ve got to push it and promote it all the time, which is what you have to do with any business.”

Keeping sales warm when the weather cools

* Use trendy products to generate buzz and attract customers. Zafran said things like his fig and honey ice cream remind people he’s open in the winter, but in the end, it helps him sell more traditional flavors like vanilla and butter pecan. “I call it ‘core and fringe.’ Fringe flavors get the attention, and they help sell core flavors.”
* Create a specialty that’s all yours. In the 80-plus years Taggarts has served Canton , it has sold the Bittner, a concoction of vanilla ice cream, chocolate sauce and pecans. Schott said he delivers as many as 100 of the treats at a time to businesses.
* Co-brand your ice cream and sell it offsite. This past summer, Graeter’s Ice Cream in Louisville began selling pints at Tony Boombozz Pizza outlets there. Seven flavors of ice cream are now available for delivery year round. If you close your retail outlet, consider producing ice cream throughout the winter for such a joint effort.
* Despite cream prices, don’t skimp on the quality. Though both ice cream operators interviewed increased prices this year to offset soaring cream prices, neither said customers complained. Schott’s customers said, “We don’t mind paying more as long as you don’t change what you serve.”