9 Advantages Of An Ice Cream Business

Do you know why businessmen enjoy ice cream as a business? Well, because with ice cream, anything is POPSICLE!

Since you’re here, I’m assuming you’re still debating whether or not to open an ice cream shop. You’re probably weighing all the pros and disadvantages. I’ve got your back.

In this post, I’ve listed 8 advantages of opening an ice cream business. And, hopefully, by the conclusion of this post, you’ll understand the benefits of starting an ice cream business. So keep reading.

Here are 9 advantages of an ice cream business:

1. Small Investment
2. Large Target Market
3. Not High Risk
4. Easy to Start
5. Flexible 
6. High Margins
7. Local Community 
8. It’s Something You Love 
9. Minimal Experience Required 

Small Investment

The start-up cost is always at the top of the list. And that’s where the ice cream business shines. Although opening an ice cream shop is not as pricey as opening any other food-related shop, you can still expect some expenses.

The cost of starting an ice cream business may vary depending on the type of ice cream store and other additional costs like advertising, inventory, and equipment. 

To give you an idea, here are the average costs for every type of ice cream store:

• Ice Cream Stand – The average cost of an ice cream stand can start at $2,000 to $10,000.
• Ice Cream Truck – The average cost of an ice cream truck ranges from $5,000 to $20,000. 
• Brick and Concrete Ice Cream Shop – This can cost around $50,000 to $1,000,000.

Once you’ve decided on the type of your ice cream business, you’ll have to consider additional expenses. Here are some things you can include in your budget:

• Equipment – Some of the necessary kits for your ice cream business are ice cream makers and freezers. The cost may vary depending on the quality (brand new or secondhand). 
• Supplies – The supplies you need include ice cream scoops, cones, cups, ice cream ingredients, toppings, and packaging materials. The cost of your supplies may depend on the quality and quantity. 
• Advertising – You also have to consider the marketing costs as this will help you kick-start your business. To give you an idea, an email marketing campaign can cost around $300 to $500 per month. 
• Permits and Licences – You will also need to spend money to get licenses in order to run your business. Some of the licenses you need are business permits and health permits. 

Large Target Market

Have you seen someone who doesn’t like ice cream? Or someone who hasn’t tasted at least a scoop? I SHERBET you haven’t. 

From kids, teenagers, and kids at heart, you have a lot of potential customers. I mean, it’s everyone’s favorite we’re talking about. 

According to research, over 90% of Americans eat ice cream. This only means that you don’t have to worry about not having any customers a day. 

Additionally, according to a market analysis report, the worldwide ice cream market was worth USD 79.0 billion in 2021, and it is predicted to increase at a compound annual growth rate (CAGR) of 4.2% between 2022 and 2030.

The report takes note of the increasing desire for creative flavors and varieties, as well as the rising demand for cones, sandwiches, and pops, as factors that affect the said market growth. This further support the notion that ice cream is in demand. 

How To Add Value To Your Ice Cream Business

Not High Risk

Just like I’ve said, you don’t have to worry about not getting any customers a day in the ice cream industry. So, the risk is not high in terms of sales. And that’s an advantage of an ice cream business over other businesses in the food industry. 

Here are some potential risks to an ice cream business:

• Winter – It’s found that consumers are 3.36 less likely to buy ice cream during winter. So, ice cream sales are expected to drop during the colder season. But this doesn’t have to be the reason why your ice cream shop fails. You can counter it by selling seasonal flavors and other products, like coffee, and advertising.
• Bad Management – Poor management is detrimental to any business. So, make sure that your ice cream business is correctly managed. Everything from sales to advertising to personnel needs to be in order.
• Poor Location – A bad location for your store is also a risk. This might have an impact on both consumer traffic and sales.

Easy to Start

An ice cream business is pretty to start. It only needs a fair investment, and you can even start one at home. 

If you’re only planning to open a small ice cream business, you can definitely consider opening one at home. It’s super easy and helps you cut start-up costs. Keep in mind to check with your local permitting authority to see whether it is legal to operate a business in your house.

Since you don’t need a physical store, once you know how to make ice cream, have the needed supplies and ingredients, and establish an online shop, you’re good to go. 

Even having a physical store, it’s pretty easy to start an ice cream business. You just have to thoroughly plan everything, and strictly follow your plan. 

Financial Plan Tips For An Ice Cream Business

Flexible 

The possibilities are endless!

One of the advantages of an ice cream business is its flexibility. You can be as inventive as you want. From the design of your ice cream store to the flavors on your menu, you can make your ice cream shop as you see fit. 

You can use a lot of themes for your ice cream shop. It can be a modern-themed ice cream shop or a more classic, vintage-themed ice cream shop. Anything is totally fine. As long as it fits your business and makes your ice cream shop stand out, it’s fine. 

Your menu can be versatile too. It can include flavors that no other ice cream shop has offered before. You can offer unique toppings that will surely make your customers scream!

You can also offer other products that complement your ice cream products like crepes, waffles, and coffee. You can even add some shop-special souvenirs. 

Also, aside from having a stationary ice cream shop, you can have an ice cream truck and ice cream party services. This is a great way to increase your shop’s visibility. 

High Margins

The average gross margin for ice cream businesses is a whopping 40%. This basically means that you have enough money to allocate to your business costs and other expenses. 

The higher the gross margin your business has, the higher your ice cream business’s chances of growth. 

To give you an idea of what a 40% gross margin means, let’s say your ice cream product costs $200 to make, and you’re selling it for $350, the gross margin is $140 which is the 40$ of the profit. 

10 Things Gelato Shops Sell

Local Community 

One of the best perks of an ice cream business is that you can establish your brand by promoting it to your local community. You can start by hosting ice cream events, attending festivals or music events, and partnering with your local restaurants and grocery stores. 

Another great thing about this is that not only can you promote your brand, but you can also establish a great connection with your community. What could be better than sharing the most beloved dessert with your community?

Here are some ways you can promote your ice cream to your community:

• Special Group Discounts – This is an easy way to gain customers from your local groups. For example, you can offer special promos for your local high school’s football team. This will easily attract customers and give a good impression of your brand.
• Create Dedication Flavors – You can create specific flavors dedicated to something in your community. It can be dedicated to a local event or local group. 
• Sponsor Parties – Bringing your ice cream to parties is an effective way to reach more consumers. You can sponsor some birthday parties or corporate parties within your community. 

It’s Something You Love 

I can’t imagine someone who doesn’t love ice cream opening an ice cream shop. 

This is most likely the biggest perk of running an ice cream shop. You love ice cream. And success has been connected to enjoying what you do.

According to the University of Southern California, people who like their professions are more likely to be positive, and determined, to learn more quickly, to commit fewer mistakes, and to make much better business judgments.

So, having a passion for ice cream can lead to your ice cream shop’s success. It will help you be more positive and determined to solve a business problem.

10 Ways You Can Promote Your Ice Cream Business

Minimal Experience Required 

Another great advantage of an ice cream business is that you don’t need to be an expert in ice cream making to keep it going. You don’t need certifications or extensive training. 

As I’ve said, what you need is a passion for ice cream and everything will follow. So, before opening an ice cream shop, you have to ask yourself “do I have a passion for ice cream?”

However, this does not mean that you can enter the ice cream sector without any prior understanding of the product. This might lead to the failure of your ice cream business. 

Here are some things you can do before opening an ice cream business:

• Research About the Ice Cream Business – You can prepare by researching about opening an ice cream business. This is an efficient way to know the basics. 
• Know Your Target Market – You already know that everyone loves ice cream. But you need to make sure that you really understand your market.
• Know Your Product – You have to know which flavors and toppings you are going to offer. 
• Decide on a Location – You need to pick a location that is good for foot traffic and market competition. 

Conclusion

All in all, these are the 9 advantages of an ice cream business:

1. Small Investment – The start-up cost of starting an ice cream business is not that heavy on your wallet.
2. Large Target Market – You don’t have to worry about to whom will you sell your ice cream products. You have a customer from any age group. 
3. Not High Risk – The risk is not that high for an ice cream business. All you have to worry about is winter, bad management, and poor location. 
4. Easy to Start – Starting an ice cream business is easy, especially if you’re opening a home-based/online ice cream shop. 
5. Flexible – An ice cream business is flexible. You can have ice cream on wheels, offer unique flavors, and design your shop as you see fit.
6. High Margins – The ice cream business has an average of 40% gross margin. The higher your ice cream business’s gross margin, the greater its possibilities for growth.
7. Local Community – An ice cream business can be easily promoted to your local community. You can host local events and partner with local grocery stores. 
8. It’s Something You Love – An ice cream business is something you love. And having a passion for ice cream can lead to the success of your business. 
9. Minimal Experience Required – You don’t have to be an expert to open an ice cream business. You just need to make sure that you love ice cream and thoroughly plan everything about your ice cream business. 

How To Value Your Ice Cream Business

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.