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Ones to Watch | By Sabrina Davis

Melt Café and Gelato Bar

Melt, named to emphasize the concept’s blend of American and Italian, offers 32 flavors of gelato and sorbetto made with all-natural ingredients from authentic old-world Italian recipes. “When we started there was very little gelato available in the U.S.,” Barwin says. “It’s becoming more popular now, but many companies are selling an inferior product made with freeze-dried powder that can be mixed with milk or water. We believe quality will rule eventually; Americans are going to be able to recognize what is good, authentic gelato.”

The top-selling flavor is Mascarpone Caramel Pistachio, a cheese base with a caramel swirl and pistachio nuts. Other popular flavors are Tiramisu and White Chocolate Raspberry.

With most of its business coming during afternoon snacking hours, Melt recently added 12 varieties of both sweet and savory crepes to boost its breakfast and lunch business. The stores also sell smoothies and Italian specialty coffees.

Most of Melt’s locations, which range from 150-square-foot kiosks to 1,250-square-foot stores, are in malls and inline shopping centers and operate during typical shopping hours. Each store averages 800 to 1,000 customers a day with an average check of $4.20. A single serving of gelato is $2.95.

Barwin opened his first stores in 2004 in four demographically different markets to test the viability of the concept. He has since grown the chain to 24 stores through franchising and is ready for aggressive national and international growth.

Melt Café and Gelato Bar
CEO: Clive Barwin
HQ: Temecula, California
Year Started: 2003
Annual Sales: $4­–5 million
Total Units: 24
Franchise Units: 20

“We’ve proven that our gelaterias work just about anywhere,” Barwin says. “Neither income, age, nor ethnic backgrounds are a barrier. Everyone enjoys a sweet indulgence, and most can afford a $3 treat.”

WHY IT BEARS WATCHING: Clive Barwin says he was looking for the next “sleeping giant” for the U.S. market when he discovered the popularity and longevity of Italian gelato. “It was a product rich in Italian history, but at that time rarely found in North America,” he says.
Critical elements to the business, according to Barwin, are making the gelato fresh, but off site, and smartly merchandising it in an upbeat, friendly atmosphere. “Our main competition, beyond the high-end ice cream stores, are mom-and-pop operations, and many of them are making the gelato inside their stores,” Barwin says. “That takes extra training and staff, and you’re paying for retail rental space rather than factory space.”
Melt began 2006 with five locations, and Barwin expects to have 28 stores operating by year’s end. He plans to open 100 stores in roughly 18 states in 2007 and begin planning international franchises toward the end of the year. “I see this easily growing to 1,500 stores in North America in the next five years,” he says.
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