Are you planning to start your own mobile ice cream business but unsure whether it’s the right business for you? The ice cream truck industry offers promising profitability but you need to study the highs and lows of the business before making a decision. Read on to learn about the pros and cons of an ice cream truck business to know if it suits your goals.
Eight ice cream truck business pros include low startup capital, maximum mobility, low operational expenses, less store cleanup time, work at your schedule, gains community involvement, physical activity, and consistently strong demand. On the other hand, its cons include high overhead expenses, costly maintenance, seasonal and weather-dependent business, limited workspace, pay your own taxes and benefits, saturated competition, high employee turnover, and strict parking rules.
Ice Cream Truck Business Pros
- Low Start-up Capital
Basically, your ice cream business operates from a truck which saves you from hefty overhead costs for buying a property and building a store or renting a commercial space and redesigning it. On top of that, the expenses for interior decorating and exterior designing are minimal since your workspace is small.
The start-up cost for an ice cream truck business revolves around the truck, fuel, equipment, frozen products, and other goodies you want to sell aside from ice cream.
- Maximum Mobility
One of the perks of an ice cream truck business is maximum mobility. Unlike the traditional ice cream store, you can move your ice cream truck store from one location to another without hassle.
Having maximum mobility allows you to generate more sales by going to where the customers are. Instead of waiting for customers to come and check your products, you can go to crowded places where people gather, such as parks, festivals, schools, and sports venues.
The Need For Licenses To Sell Ice Cream From A Cart
- Low Operational Expenses
An on-the-go ice cream business operates at low operational expenses. First, it does not require hiring many employees. You can even personally manage and run your business to avoid payroll expenses. You also avoid paying costly property taxes, cleaning supplies, restroom maintenance, and utility bills.
- Less Store Clean-up Time
Since your ice cream business operates from a truck, you have limited workspace. It also requires less cleanup time. You save time by not cleaning the restroom, mopping the floor, and scrubbing counters. It also allows you to spend more time on important business matters that require your expertise.
- Work at your Own Schedule
Being an ice cream truck entrepreneur allows you to choose your work schedule. Although you need consistent hard work and daily grinds to reach your goals, you get to choose your business hours. You also get to call the shots on your store’s operating schedule. That’s a privilege!
- Gains Community Involvement
Every day, you get to mingle with real people from different communities through various parties and events. This exposure helps you gain community involvement. On top of that, you get to build a network of both new and repeat customers.
How Much an Ice Cream Truck Owner Makes on Average
- Physical Activity
Managing an ice cream truck business requires physical activity from tending to your customers’ orders, preparing the product, accepting payments, running errands, and cleaning up the store after business hours. Most of the time, you need to multitask and do things fast so as not to keep your customers waiting.
It may sound tiring, but it’s actually good for your overall health. You get free exercise while making an income.
- Consistently Strong Demand
According to research studies, the global market for ice cream constantly increases over the years. It only shows that the world population loves ice cream. Thus, it is consistently in demand. The demand for ice cream is also unaffected by the recession. Who wouldn’t want a sweet treat in a depressing situation, such as economic inflation, anyway?
Ice Cream Truck Business Cons
- High Overhead Expenses
Despite its low start-up costs, an ice cream truck business still requires a considerable amount of overhead costs. You will need a truck, machines, vehicle insurance, and enough gas money on top of the cost of the physical product.
Like any other business, you need to strategically plan your start-up budget and make sure that you have enough funds to cover the overhead costs.
Four Steps To Turn A Van Into An Ice Cream Truck
- Costly Maintenance
You may have avoided the hefty maintenance costs of a physical store, but a mobile ice cream business also involves maintenance costs. You will need to ensure that your vehicle maintenance is always up to date because it is the main player in your business. Without a fully functional truck, your business stops.
In line with maintenance costs, you also need to allot funds for regular equipment maintenance to ensure smooth and continuous business operations and maintain long-term profitability.
- Seasonal and Weather Dependent Business
Changing weather is not a problem in tropical and warm countries where the weather is mostly sunny all year round. However, this is a major drawback for countries with cold winter seasons.
Unlike traditional physical ice cream stores that have indoor space to accommodate dine-in customers, your ice cream truck business doesn’t have a suitable space to shelter your customers from the harsh weather.
Changing seasons and weather is the main reason why most mobile ice cream businesses temporarily cease their operation during cold and winter months and resume during summer.
- Limited Work Space
Your truck is not as big as a physical store. The number of food products, equipment, and stocks you can have on board is limited. It also has less room for employees and machines. The lack of workspace limits the variety of food products you can sell alongside your main product.
- Pay your Own Taxes and Benefits
If you’re doing an ice cream truck business as a full-time career, you need to pay taxes as a self-employed individual, and it’s quite expensive. Since you’re paying your taxes per annum, you will get to compare your taxes and determine if your business is worth your time, effort, and investment.
Another downside of being self-employed is that you need to find and pay for your insurance which is expensive and requires time to process the requirements.
How Much An Ice Cream Shop Makes Per Month
- Saturated Competition
Due to the low start-up cost of an ice cream truck business and the consistently high demand for ice cream, other individuals may have invested and opened up their mobile ice cream shops making it a crowded industry with very saturated competition. This is where strategic planning comes in. You need to identify where the demand is and how to boost your business to help it stand out amongst others.
- High Employee Turnover
In a mobile ice cream business, high employee turnover is expected. This is quite a drawback because hiring and training new employees is costly and time-consuming. However, this factor is avoidable by offering a positive work environment, competitive pay and benefits, and motivating your team.
- Strict Parking Rules
With the benefits of mobility and flexibility comes the drawback of strict parking rules in most cities. The parking regulations differ in each city and state. But for the determined ice cream truck business owner that you are, this disadvantage is manageable by consulting your local government and researching current parking regulations in cities where you plan to park your mobile ice cream business.
Conclusion
An ice cream truck business is a rewarding and highly productive business. But you need to be a wise entrepreneur to bring in the bucks. There’s no definite formula for success. However, success in the mobile ice cream industry is feasible with strategic planning, significant research, cautious decision-making, and creative marketing.
10 Things To Sell In Your Ice Cream Shop
Frequently Asked Questions
The estimated gross margin for an ice cream truck business is around 10% which means that every expense you incur is very risky and could affect maintaining your business’ profitability.
The ice cream business is a good business investment because the global population loves ice cream as apparent in its increasing demand. It is also known to be recession-proof. However, the success of your ice cream truck business depends on your sales strategy and business management skills.
To learn more on how to start your own ice cream/gelato business check out my startup documents here
This blog post is provided for informational purposes only. The information contained is not intended to constitute legal advice or to substitute for obtaining legal advice from a qualified attorney.
Hi! I am Shawn and I am a happy individual who happens to be an entrepreneur. I have owned several types of businesses in my life from a coffee shop to an import and export business to an online review business plus a few more and now I create online ice cream/gelato business resources for those interested in starting new ventures. It’s demanding work but I love it. I do it for those passionate about their business and their goals. That’s why when I meet a ice cream/gelato business owner, I see myself. I know how hard the struggle is to retain clients, find good employees and keep the business growing all while trying to stay competitive.
That’s why I created Ice Cream Business Boss: I want to help ice cream and gelato business owners like you build a thriving business that brings you endless joy and supports your ideal lifestyle.