Most of us love a sweet treat. For children, sugar-coated confections are always a big hit, and even for adults with more sophisticated palates, the temptation of a delicious dessert can often be hard to resist. In Australia statistics reveal that spoonfuls of fabulous flavour can be big business too.

The ice cream and dessert market through takeaway outlets, cafes and restaurants, is worth $1.5 billion for 2010 to 2011, according to analyst group IbisWorld. A large portion of the sweets business is the ice cream trade, a seemingly elastic market that, according to the franchisors in the arena, continues to expand to fit the ever-increasing number of entrants.

Jonny Hammond, brand manager at Ben & Jerry’s, sees the Australian arena as quite a competitive market but says “We’re the third largest ice cream market in the world. We love our ice cream and we love choice. We feel there’s enough room in the market.”

The distinguishing factor of the Ben & Jerry’s brand is ingredients. “What brings people in is the chunks and swirls. We use quality ingredients and no emulsifiers. And the product is made in a sustainable way. We’re hoping to be fully Fairtrade certified for our ingredients by 2013.”

Ben & Jerry’s is famous for its ice cream’s chunks and swirls, a taste explosion that’s the result of co-founder Ben Cohen’s taste deficiency.

Nick Prohasky, general manager Australia at Ben & Jerry’s, insists that it’s important for franchisees that every customer who comes into the store, should have a truly fantastic and memorable experience. The starting point of this is a clean, presentable, and fun environment, not just painted walls and decors.

Setting the scene

“Sampling is a huge part of the experience, as a customer not being sure what you want, the scooper helps you, tries to engage the customer. At the heart of the business, pints don’t talk to customers but scoopers do,” he says, reflecting on the question of whether the strong wholesale distribution arm of the American brand that sees the name on shelves in video rental stores and supermarkets competes for the same dollar. The team insists the two elements are complementary.

Creating a great experience is important too at Movenpick, a Swiss brand that refers to its stores as ice cream boutiques. Fit outs are top end, with a colour palette of black, white and a little red. “Like the Chanel of ice cream,” says Renato Maiale, national business development manager. He agrees it’s a competitive marketplace with more brands entering it every year. “But what differentiates us is the premium end market. When people indulge they want the best and this is the best. We’re 100 percent natural, imported from Switzerland. Our research shows [consumers look for] budget or top end. We believe at the premium end we don’t have a real competitor, except for the independent gelato business where gelato is made on-site. We believe we have a gap in the market. The product speaks for itself.”

The latest store in Doncaster’s Westfield is a 40 square metre dessert parlour. In Brisbane the Southbank outlet has become a mid-week evening destination, he says. “People aren’t spending $120 on meals in this climate. They’d rather cook at home then meet and catch up with friends for an ice cream.”

It’s a commonly held view among the dessert franchisors. Afternoons are important, and there’s a 7pm to 9pm rush at Ben & Jerry’s. Says Prohasky, “At a high level, we’re competing with frozen yogurt and after dinner desserts, chocolaterias, in some way.”

Wow Cow founder Carl Harwin says “We compete with anyone with dessert discretional spend. Wow Cow is a fusion between frozen dessert and the chocolate concept. For us, we’re known for outstanding product, and the price point is right. Once the product ticks all the boxes, it’s about the experience.

“We’ve created a dessert lounge. The lights come down, candles are out, the music’s turned up, it’s fun and vibrant. You can see people enjoying themselves. It’s a meet and greet venue. We’re very selective about the location, very conservative on the site. A lot of business is done in the evening. People associate us with a dessert offer, we pull people from other restaurants, and passing traffic. Customers are looking to relax in a cool lounge, a place they can go and hang out and spend as little as $3 and have that experience.”

Gaining customers is all about word of mouth and lots of repeat business. “Lots of competitors have tried to expand quickly. We’re getting momentum going, and are looking for steady growth,” says Harwin.

A very new name to Australian shores is another American brand, Tasti D-Lite, brought over by Georgina and John Crawford. He says “We know our product is well differentiated. It’s not ice cream and it’s not yoghurt. It has far lower fat and sugar levels than ice cream. If you go into an ice cream shop and get a small serving it will be about 250 calories, our equivalent is about 70 calories.”

The obvious appeal is to the health and fitness aspect of the market, particularly female customers aged 15 to 45, the major demographic for the brand in the US where in New York’s east side many customers eat one every day. “It’s a fun, happy experience, a small indulgence,” says Crawford.

A healthier bite

Craig Shulman, senior analyst at IbisWorld, says this health consciousness of the consumer is a big trend affecting the market. “There’s been a drop in the less healthy options as brands cater for this with single serves, low fat, and yogurts. There are organic, gluten-free and soy labels attached now too.

“Even though people are increasingly health conscious they still enjoy a treat and consider ice cream to be a snack. Increasingly, people are time poor and time poor behaviour leads to increased snacking.”

The first Tasti D-Lite outlet, a company store, has just opened in South Yarra’s Chapel Street, a seven days a week destination location chosen for the vibrancy, the food options and its fashion mood. Says Crawford, “It’s a browsing crowd, people who can become attached [to our product] because of the quality. This is a small discretionary purchase by someone not normally tempted, and it won’t weigh heavily.”

Imported from a dairy in Missouri and blast frozen, the dessert can be sourced from an Australian dairy once the franchise network reaches a critical mass.

There is a great opportunity to tweak, according to Crawford, who insists Aussie flavours will be brought into the system. “One of the favourites, Nutella, was the suggestion of a customer to a franchisee in Mexico City. We’ll be experimenting.”

In addition to the iced dessert, the franchise manufactures ice cream cakes and pies, sundaes, smoothies, sells energy bars, coffee and hot chocolate. “It’s a full service offer,” says Crawford.

Victorian-based Trampoline is focused on creating healthy options free from artificial ingredients, and with genuine flavour, explains Amanda Walton. “Our focus is on creating flavour that tastes like its name, it actually tastes like what it’s meant to. We want to be constrained, and hope that brings in repeat business.”

Whether a customer set on devouring a frozen yoghurt might not be tempted by a gelato, Walton believes there is competition for the dollar spend. There is no doubt in her mind the chilled desserts offer has become an increasingly competitive market, and the nature has changed with multinationals bringing in overseas brands. So getting the message across to the consumer is essential.

It’s a treat

“Our point of difference, what we focus a bit more on, is Australian made, locally sourced milk, the concept of supporting Australian business. We’d like to think the Australian consumer relates more to an Australian brand and the Aussie sense of humour; we keep our references local.

“We’re an irreverent brand, we try to have fun. For instance, our t-shirt slogans, the copy, flavour names and quirky personality,” says Walton.

One t-shirt wittily emphasised the home-grown product and ingredients with a typically Australian catchphrase — Aussie cows, no bull. Ben & Jerry’s has also generated a distinct sense of humour, translated into product names and marketing material. The flavours are given memorable names, a practice that immediately highlights the company’s fun approach to business. But the flipside of the playful attitude to marketing messages is the serious nature of community involvement, a philosophy that infuses all levels of the Ben & Jerry’s business, right down to franchisees regular and continual commitment to charitable causes. For instance the Australian business has partnered with Mission Australia and raised $43,000 for OzHarvest through giveaways.

Community action coupled with sustainability are equally part of the Ben & Jerry’s package, and as much of a reason for customers (most of whom are young and very social media savvy) to choose the brand over its competitors. Visiting a scoop shop is to see the fun philosophy in action — it’s an experience.

“It’s important to understand the role scoop shops play in Ben & Jerry’s to understand the limited rollout. People don’t go to scoop shops every day, they want to enjoy [ice cream] in places where people are,” says Prohasky. Hammond sums up the Ben & Jerry’s package: “It’s a combination of experience, great quality product, and purchasing, so you feel good all round. It’s the best possible ice cream in the best possible way.”

Walton echoes the importance of the feel-good factor. “Treat each customer with the respect they deserve. Customers have not come in to buy a loaf of bread, but treat themselves, and they want to feel good. The greatest thing franchisees can do is to get customers to leave feeling the way they want to feel.”

Gelatissimo CEO, Dominic Lopresti, agrees with the sentiment though he phrases it differently “We’re in the business of selling smiles and happiness.”

In the current financial environment, a sweet treat equates to an affordable treat. Despite the economic turbulence of the past four years the business has posted store growth, the CEO adds, something he views as testament to the success of the brand. And perhaps there is no more striking validation of the concept than taking gelato to the Italians with the opening of Gelatissimo in an iconic Italian site, Florences renowned Ponte Vecchio.

“In Ponte Vecchio, we’re well received, our product stands up to the local produce, customers seek out the mango and macadamia from Australia,” explains Lopresti.

While the brand plays on its Aussie heritage it has to be said that some of the key ingredients on the menu, such as hazelnuts and pistachios, have been consistently sourced from specific regions in Italy to ensure top quality produce.

“We set ourselves apart, make the gelato fresh in store. It’s a point of difference, artisan, hand-made, produced in the store, it gives us a really competitive advantage.”

When it comes to growth, IbisWorld’s Shulman believes the industry has demonstrated “resilience in adapting to changing consumer behaviour.

“People still have healthy disposable income and groups without kids are increasing their spend per purchase which is directed to the premium market. In general the retail market is quite saturated but there is scope for new players if they have a new idea.”