Ice Cream Truck vending is a promising concept. Its mobility makes it stand out among other ice cream business models. However, compared to the traditional brick-and-mortar ice cream concept, the ice cream truck business is significantly new. It may be trending and attractive, but what will happen once it loses popularity? Will it still be a viable business idea? Let’s find out how profitable ice cream trucks are.
Ice Cream Trucks are profitable because they generate an average of $200-$300 daily revenue, have a 20-50% product margin and 200-300% profit margin for artisan ice cream products, can generate $20 million in revenue, and may earn over $2 billion in annual sales.
$200-$300 Average Daily Revenue
Ice cream truck sales vary depending on seasonality, location, and events. In the summertime, its estimated average sales per day range between $200-$500. Using the same figures, its approximate weekly revenue is around $2,500, given that your business operates 5 days a week. Using the 50% profit margin model, your $2,500 gross weekly sales, when split into half, leads to a $1,250 weekly net profit. Very promising, right?
The ice cream truck business fits with the US Chamber of Commerce’s parameters of a good business with its high potential income. Now, what’s good about the ice cream truck business is that you have the freedom and power to go where your target market is. Being a mobile business gives you the edge to generate more sales, especially during the summer season. You can park near beaches, public parks, playgrounds, malls, and huge events.
Participating in festivals and big public gatherings can help your business yield more sales. Other ice cream truck businesses even earn a minimum of $1,000 average daily revenue during the Memorial Day weekend, the Fourth of July, and National Ice Cream Day celebrations. You, too, can unlock these sales milestones by parking in busy areas saturated with big public celebrations. Use the fine summer weather, your business mobility, and people’s innate cravings to your advantage.
Six Big Costs To Start Up An Ice Cream Shop
- High Product Margin
Ice cream truck business offers a high-profit margin ranging from 10-50% or even more depending on the season, type of ice cream sold, and vending strategies.
The average profit margin for ice cream trucks that focus on street vending in a regular location and accept catering gigs at private parties and corporate events, and join festivals and public events range from 10-20%. Their accumulated annual profit margin usually reaches up to five figures.
You may maximize your profit margin by up to 50% or more if you purchase your stocks in bulk by marking them up to your desired profit. For example, if a box of ice cream sandwiches costs you $1 each, you can sell it at $2 each to earn a profit of 50%.
Artisan ice cream offers a better profit margin of 200-300%, especially if you find a reliable supplier for cheap yet high-quality raw ingredients. This means that a $5 scoop of ice cream is churned out of $1-$1.50 worth of raw materials, including the spoon, cup, or cone.
For ice cream trucks selling bulk ice cream scoopers, one way to maximize your sales and improve your profit margin is to limit the variety of your ice cream flavors to save time and promote efficiency.
Can you Sell Ice Cream from Anywhere?
Generated $20 Million in Revenue
Ice cream truck vending may be a small-time business, but it sure brings millions in revenue. According to a report, an ice cream truck brought in $20 million in revenue. Although it’s not the same for everyone, this only shows that it’s possible to earn that much. Of course, it takes a lot of effort, time, and planning to achieve this revenue milestone. It’s difficult but possible. And if it works for them, it will work for you too.
The ice cream business offers numerous advantages from its constantly high global demand, sustainable market, less complex business model, mobility, low risk, and very low failure rate. Its low overhead costs help you achieve your ROI in a quicker time frame, expand your business, and invest in better equipment, and more ice cream varieties.
- Earned Over $2 Billion in Annual Sales
With its $2 billion growth in annual sales as cited by the US Chamber of Commerce, the ice cream truck business is indeed a great business idea and worth investing in.
Food is a necessity that’s why it never goes out of demand. Eating is part of our human nature, and giving in to our cravings is more of an instinct that even if we decide against it, the temptation is far too hard to resist. This is one of the reasons why the food business is a good business venture.
Due to its low start-up capital, the ice cream truck business is easy to launch and does not require expertise or specialized knowledge. Plus, with its high markup and low overhead costs, most of its revenue goes to your profits.
What’s good about the ice cream truck business is that it goes along with innovation and modernization. Gone are the days when ice cream businesses needed to roam around the local community to serve ice cream. The latest trend is the “food park or food market” concept, wherein food trucks gather in one location to sell their products. People go to food markets to eat and shop for unique food choices. This concept helps ice cream truck businesses because everyone needs a sweet and satisfying dessert after meals. By parking in food markets, ice cream truck owners are sure that they’re close to their target market and that they are exactly where they’re needed.
Conclusion
Ice cream truck is a profitable business as evidenced by its $200-$300 average daily revenue, 20-50% product margin and 200-300% artisan ice cream profit margin, $20 million in revenue, and over $2 billion annual sales.
Given all the facts and figures, it’s undeniable that the ice cream truck business holds a lot of potential and is a booming industry. With proper planning, smart management, excellent customer service, creativity, and effort, your ice cream truck business is one step closer to success.
Time Of Year When The Most Ice Cream Is Sold
Frequently Asked Questions
An ice cream truck business needs a startup capital of $20,000-$40,000. If you’ve limited budget, purchase a used ice cream truck with installed freezers and counters. Cost of these depend on their condition, size, and brand.
Ice cream trucks utilize the lithium-ion technology and solar power installed in the roof of the truck to supply electricity that powers up the ice cream machine, freezers, and other equipment.
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.