Operations
Chill-N Nitrogen Ice Cream has cool concept ready for franchising
Chill-N Nitrogen Ice Cream has a creative concept that puts customers squarely in the middle of the creation process. The eight-unit company plans to franchise seven more locations, with the first being open by the end of Spring.
February 8, 2022 by Mandy Wolf Detwiler — Editor, Networld Media Group
Chill-N Nitrogen Ice Cream has a cool concept, and the eight-unit company has big plans to open another seven units in 2022. Fourteen units total are in the pipeline.
Daniel Golik started Chill-N in 2012 in the Pinecrest neighborhood in Southern Miami. He had seen nitrogen mixed into ice cream by hand and thought he could build a concept around that.
"We had a really good response from everyone," Golik said in a phone interview. "We opened additional corporate-owned stores, and we liked where we were as a company and decided to move into franchising."
The eight current stores are operating around South Florida, with the first franchise expected to be open by the end of Spring in Ft. Worth, Texas. In 2019, the company brought on David Leonardo as CEO to help drive the franchise strategy.
"I saw that consumers really have an appetite for products that are made fresh, and products that were made right in front of you, whether it's Chipotle (or) steakhouses," Leonardo said in a phone interview.
"It seemed like consumers were gravitating toward the whole farm-to-table approach and I though Chill-N had something unique in that they were doing that to ice cream. Really what they were doing was turning a centuries-old industry up on its head by taking away the factory-made ice cream and distribution portion of it (being) distributed to thousands of stores across the country where it sits in freezers. We're bringing the factory right into the store."
Liquid nitrogen is added to a base mix in the store, and the base is flash frozen into ice cream as the customer watches. Vanilla is the top seller, followed by Nutella. A seasonal red velvet flavor, available during the holidays, is also popular. On the mix-ins side, Oreos, cookie dough and sprinkles remain kings.
"We love to use very high-quality ingredients, so we get to use Madagascar vanilla beans for our vanilla," Golik said. "We have a lot of options. The employees will have different favorites than the customers because they get to try everything."
Scaling the brand and using technology to ensure consistency across the brand became critical as Chill-N grew.
"Putting together the franchise disclosure documents was a big step in order to start selling franchises," Leonardo said. "A lot of what we did in those early years was build that infrastructure so that when candidates came to the table, we not only had the support to provide them so that they could open their store but we also had that technology and infrastructure there that when (Golik) or myself visits anyone at any store across the country, that ice cream is going to taste the same no matter who makes it."
The dessert space is admittedly a crowded field. Golik learned early on that if he was going to deal with the demand that the stores would have, he needed to find a way to automate some of those steps needed to make the ice cream and increase output. Through technology, Chill-N has been able to create hardware and software designed to automate the dispensing of the cream depending on the size and the base of the product and once the flavor is added, just a couple of buttons need to be pushed to automate the dispensing of the nitrogen and the mixing of the bowl.
"That level of automation not only helps you produce more ice cream per hour but it also creates the consistency that's just so paramount in any franchise system," said Leonardo.
Golik said technology allows each individual six-ounce serving of ice cream to be made with customization, such as using almond or oat milk or adding sprinkles or cookie dough to the mix. "That customization is obviously huge for consumers with the growing diversity of appetites, whether (customers) want to go gluten free or dairy free," he said. "If they want to stay away from certain ingredients, it really allows them to do that."
Using automation to dispense the base allows Chill-N employees to produce upwards of 120 cups an hour, a feat that's highly regarded in the quick-service space.
"Being able to produce over a hundred servings an hour is something you see Chipotle or a high-volume Starbucks do," Golik said. "Getting that cup count up per hour using the different technology that we have in the store is a big differentiator. You won't likely see another brand with the level of customization partnered with that level of speed and consistency."
The brand does mostly local store marketing, handing out free coupons for ice cream, and they're active on social media. The nitrogen process showcases well online, which generates great word-of-mouth advertising. A big part of Chill-N's local marketing strategy is fundraisers where the stores do events for the organizations and donate a portion of proceeds.
During grand openings, Chill-N will do free ice cream weekends to help educate the customers how the concept works and get them in the house.
"Our studies show that 90% of our customers live within a two- to three-mile radius of our store," Leonardo said. "The more we can be present in that local community, whether it be sports-related (or) school-related, that's going to help generate a closer bond with that community at large."
In a perfect location, proximity to families is paramount, as is easy parking and visibility, as there is still an impulse nature to the consumer, Leonardo said.
"Complimentary businesses nearby are definitely something that helps," he said, adding the stores that are late night are the highest performing stores. They look for locations with 60,000 to 70,00 people within a five-to-seven-minute drive time. They also consider traffic patterns, especially the after-school rush and proximity to other restaurants.
Outside of the average liquidity needed to be a franchisee, they're looking for franchisees who can be the voice of the brand in the local community. Having a franchisee that can resonate with a younger employee base is also helpful.
"Our employees are primarily made up of high school and college kids," Leonardo said. "Having a franchisee that can connect with that generation and understand how to motivate them and understanding that in many cases, this may be their first job that these individuals have can be indicative of whether or not these (franchisees) get to multiple franchises."
About Mandy Wolf Detwiler
Mandy Wolf Detwiler is the managing editor at Networld Media Group and the site editor for PizzaMarketplace.com and QSRweb.com. She has more than 20 years’ experience covering food, people and places.
An award-winning print journalist, Mandy brings more than 20 years’ experience to Networld Media Group. She has spent nearly two decades covering the pizza industry, from independent pizzerias to multi-unit chains and every size business in between. Mandy has been featured on the Food Network and has won numerous awards for her coverage of the restaurant industry. She has an insatiable appetite for learning, and can tell you where to find the best slices in the country after spending 15 years traveling and eating pizza for a living.
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