Start Up Cost For An Ice Cream Shop

There are several important steps to be taken if you want to open your own ice cream shop. The first is to assess your capital and the amount required to start your business. Then you  must consider all potential expenses.

Start up cost for an ice cream shop is between $20,000 and $80,000. The costs associated with starting an ice cream shop include the equipment, rental or purchase price of commercial space, required permits and licenses, and the inventory and supplies needed by the business.

Here are some of the most important costs you’ll have to handle when opening an ice cream shop.

Equipment

A variety of equipment is required to create, store, and distribute ice cream. Your biggest investment will be in the equipment you buy to make and serve your products. Its cost may vary from $2,000 to $25,000.

The following is a list of popular ice cream shop equipment to consider. 

Ice cream machines

Commercial ice cream machines are classified into two types: soft serve and batch freezers. Which unit you add to your shop will depend on the type of dessert you want to make and the quantity you need to produce. 

• Soft serve machines

Soft serve ice cream machines make light and airy, ice cream. These units dispense cones and cups on demand with a lever, which helps with portion control.

Soft serve machines have many variations, but they can be broken down into a number of flavors, capacity (countertop or floor models), feed systems (gravity or pressure), and cooling systems (air-cooled or water-cooled).

•  Batch freezers

Traditional ice cream, gelato, custard, sherbet, and other thick frozen desserts are best stored in a batch freezer. The capacity of a batch freezer determines how many servings of frozen dessert you can make at once, hence the name. This makes it possible to better monitor and control the product’s quality.

Frozen desserts are made in batch freezers, which whip the liquid mix into a creamy, smooth consistency before freezing it. Gelato and ice cream are typically denser than soft serve but still delicious because of the lower amount of overrun added to the mixture (between 30% and 35%).

Ice cream freezers

It’s easy to store and sell ice cream with the help of a freezer. It’s possible that you’ll need more than one freezer to keep up with the demand for your ice cream.

The three main kinds of ice cream freezers are dipping cabinets, self-serve units, and storage units. In ice cream shops where the ice cream is scooped for the customers, dipping cabinets are used. Self-service machines have pints and gallons of ice cream already packed and ready for the customer to buy and take with them. Storage units, which are sometimes called “standalone units,” are used to store ice cream that doesn’t need to be on display or used right away in the back of the store.

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Which Ice Cream Freezer Should You Buy?

The best ice cream freezer for your business will depend on the type of business you have. 

• If your servers will scoop and serve ice cream to your customers, you will need an ice cream dipping cabinet.
• If you want to sell prepackaged ice cream that customers can buy and take home, you’ll need self-serve ice cream freezers.
• Gelato cases are needed if you want to sell this high-end style of ice cream at a high-end price.
• A Topping station is required if you want to serve ice cream with different kinds of toppings. Most of the time, these go with an ice cream dipping cabinet.

Commercial space rental 

Renting and purchasing are the two options available when it comes to securing commercial space for your ice cream shop.

When you sign a commercial rental contract, you will be required to make an immediate commitment to occupy the space for a number of years and pay a refundable deposit, which is typically equal to three to six months’ worth of rent, to secure your location. The rental cost can range between $500 and $1200.

The question now is, how much money should you put aside for a down payment? To answer this, it is necessary to consider the location of your business.

There are a few key factors to consider when choosing a location for an ice cream shop.

• There needs to be enough room for a number of machines, a serving area, and a place for customers to sit and enjoy their treats.

• An area with high foot traffic and the potential for high levels of impulse purchases is an excellent spot for an ice cream shop.

• Ice cream parlors see their greatest financial success during the summer months, so it stands to reason that a spot that sees more foot traffic would be ideal.

Licenses and permits

You’ll need a number of licenses before you can open an ice cream shop. It’s a good idea to double-check the rules in your area to make sure you’re in compliance with any licensing demands, as these can differ from state to state and even city to city. Costs for licenses and permits can amount to $100, depending on your location.

An ice cream parlor’s ability to serve food is regulated by the city’s health department in most areas. They are in charge of this license and will make random inspections of your shop to make sure everything is in order. Additionally, you may be required to obtain a seller’s permit, a health permit for the building, and a business license.

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Initial Inventory and Store Supplies

Aside from using high-quality ingredients and other starting inventory, having the proper serving supplies guarantees that each customer receives their order in great condition and that they can enjoy their ice cream whenever and wherever they like. Depending on what you need for your shop, stocks and supplies can cost between $500 to $2,000.

To begin, there should always be napkins and napkin dispensers available at the counter and at each table. In serving ice cream, cones, cups, and bowls in a variety of colors and materials, with or without dome or flat lids, are the standard. To improve presentation, serving dishes and glasses may be needed. Paper cups can be used for drinks and frozen yogurt. You’ll also need spoons and flatware holders to store ice cream spoons and other cutlery and take take-out containers as well.

Conclusion

The costs associated with starting an ice cream shop can amount between $20,000 to $80,000 and are determined by a number of factors, including the equipment that you will use, the commercial space rental, the required licenses and permits, as well as the starting inventory and supplies that will be needed by your shop. An ice cream business can be a lot of work. They have high upfront costs and need preparation to launch successfully. If you have the funds to commit to such a new venture, it can turn into a profitable business.

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Frequently Asked Questions

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.