Have you ever dreamed of establishing an ice cream shop? That’s completely understandable since it can be a fun and rewarding endeavor. Having said that, making this dream a reality is no easy task. Aside from the initial investment, you must also consider recurring expenditures.
Top monthly expenses to expect from an ice cream shop include ice cream supplies, salaries, marketing efforts, utility bills, and equipment maintenance.
In this post, I’ll go through the expected monthly expenses of running an ice cream store. I’ll also give you some pointers on how to make these monthly costs a little lighter on your wallet. So keep reading!
Ice Cream Shop Supplies
First and foremost, you can anticipate periodically spending on your supplies every month since you can’t avoid buying these. Why? Basically, no supplies mean no ice cream pints, bars, or anything to serve your customers.
Ice cream shop supplies range from the ingredients you need to the cups, spoons, and containers you use. Think about the butter, syrups, and toppings that you must have. Supplementary stocks are also required if you sell other products such as crepes and coffee.
Quick Tip: To lessen your monthly expenses on ice cream shop supplies, you can try finding suppliers who offer quality products and great deals. A great example of this is Frozen Dessert Supplies. They offer free quotes and cup club rewards.
Salaries of Your Employees
The pay of your employees will also be included in your monthly costs. The services rendered by your staff to ensure the smooth operation of your ice cream shop need to be compensated every month. Failure to do so will only lead to complications such as receiving complaints and legal action that may result in the loss of your working staff.
There is no practical way to reduce your compensation costs. This is because salaries are fixed costs of a business that needs to be paid correctly and regularly. And, just to be clear, running an ice cream store by yourself is impossible.
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Marketing Efforts
Marketing activities are another significant contributor to an ice cream shop’s monthly expenditures. You can choose not to spend money on marketing your business, but you will miss out on a lot. For example, you’ll miss out on the chance to help increase brand awareness and influence customer purchasing decisions.
Great marketing efforts include email marketing, inbound marketing, Google Ads, and television and radio commercials. Having said that, social media marketing is the best and most cost-effective marketing strategy for your ice cream business. To give you an idea, you can check LYFE Marketing. They usually charge $750 a month for 12 posts on Facebook and Instagram.
Utility Bills
I believe the darkest days are when you don’t pay your electric bill. Yes, this also applies to an ice cream business. Selling ice cream requires electricity, water and heat, and also telephone and internet services. You don’t want your ice cream to go bad or fail to do online marketing just because you missed paying your monthly utility bills.
The utility expenditures for an ice cream store might be rather high. For instance, Cold Stone Creameries typically spends $2,594 a month on utilities, which include bills for electricity, gas, water, grease trap, common area maintenance, phone lines, linen services, and internet.
The best method to make your monthly utility cost easier on your wallet is to focus on lowering your power consumption. Here are some ideas to help you cut the monthly electric expense for your ice cream shop:
- Use Energy-Efficient Equipment – Food production accounts for around one-quarter of all greenhouse gas emissions. That is why it is preferable to choose more energy-efficient alternatives. Fwip Ice Cream Machine is a prime example of energy-efficient technology. Its annual energy consumption is only 1,269 kWh, or 95% less than that of a standard soft-serve ice cream maker.
- Take Advantage of Natural Sunlight – If you have a commercial area with plenty of natural light, make use of it! On bright days, for example, you do not need to turn on the lights in certain areas of your shop where windows give enough illumination.
- Avoid Phantom Energy – Phantom energy or standby power is the energy that is wasted when equipment is plugged in and consumes energy but is not in use. You can avoid this by using an electricity usage monitor device for your ice cream shop. It allows you to connect to various devices and see how much energy they consume, even while in standby mode.
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Equipment Maintenance
Many pieces of equipment, such as freezers and ice cream makers, are required to operate an ice cream store. Essentially, these units of machinery are what bring your ice cream to life. So, you have to put aside 2% to 5% of your total replacement asset value (RAV) to get your equipment regularly checked.
Proper equipment maintenance brings long-term benefits to your business. Generally, a well-maintained piece of equipment is less likely to break down, which increases uptime, extends the equipment’s service life, lowers maintenance expenses, and ultimately boosts profitability.
Conclusion
Overall, the following are the top monthly expenditures that you should anticipate for an ice cream store: ice cream shop supplies, staff pay, marketing charges, utility costs, and equipment maintenance. Being aware of all these will help you create an expense budget that you may use to guide your various decisions relating to your ice cream business.
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Frequently Asked Questions
According to Ice Cream University, a typical ice cream store has a profit margin of roughly 25%. To break even, you must sell at least $4 worth of merchandise for every $1 spent.
Typically, the cost of operating an ice cream business ranges from $20,000 to $50,000. However, this sum might change depending on whether you opt to buy or rent a place, as well as if you acquire new or old 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.