How to Open an Ice Cream Shop

Ice Cream Shop

So You Want to Start an Ice Cream Business

One of the most popular treats of all time, ice cream can also be a very sweet business proposition. With enough capital, hard work, and the right ice cream supplies, you can make your dreams of operating a successful ice cream shop come true. Whether you’ll go the traditional route with scoops of ice cream or choose a newer trend such as frozen yogurt, you should consider many different factors before you open your doors.

You might sell ice cream and yogurt from a vendor, or you could choose to craft your own artisan flavors. Additionally, you might offer a variety of other food items or pair your frozen treats with coffee. Once you've decided on the specifics of your ice cream business, let KaTom help make it a reality by providing you with the equipment you need.

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Popsicle Stand or Variety?

Before you can begin to determine what kind of equipment you’ll need, you should decide what type of ice cream business you hope to open. If you’re envisioning a simple walk-up counter that only offers soft serve or plan to operate out of a truck or cart, you’ll need much less equipment than you would if you were to offer full service with a large selection of flavors and toppings.

Soft serve ice cream machines are a versatile way to incorporate dessert into your existing menu and will serve up ice cream, frozen yogurt, or custard. You can purchase several of these units in order to supply your customers with a variety of flavors, adding ice cream to your operation with minimal effort.

If you’re looking for something that evokes a bit more nostalgia, you might go for an all-out ice cream parlor with black-and-white tiled floors and a jukebox in the corner. In this case, you’ll want to make sure your soda jerk has all the proper wares, such as a milkshake mixer, dispensers for gooey hot fudge and caramel, and dipping cabinets that house gallons of ice cream for scooping. If you’re hoping to offer handmade artisan selections, you may need equipment such as a commercial mixer and a blast chiller.

Once you know which type of ice cream you’ll be offering, you’ll also need to determine how you’ll package the end product. Will you have staff who scoop and top your ice cream, or will you allow your customers to make their own bowls and charge them by product weight? Either way, you’ll need ice cream dishes and utensils such as scoops and spades for service. You’ll also need a scale if you’re going with the weighted method.

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Start-up Cost & Time

An ice cream truck can be started with as little as a couple thousand dollars, while a brick-and-mortar shop can cost hundreds of thousands – if not millions – of dollars in start-up costs. A truck, cart, or kiosk can be started almost immediately, but you'll need time if you go with a full-fledged shop. Depending on whether you're renting existing space or building your own facilities, it could take a year or more to get your business to a position where it is making money. Whether you go it alone or join a franchise, cost and time are factors you must take into consideration.

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Stand Alone or Franchise?

Ice Cream Infographic Click to Enlarge

Stand-alone operations and franchises both have benefits and drawbacks that should be weighed when you decide to open an ice cream shop. With stand-alone shops, you’ll have complete control over every aspect of your business. If you choose a franchise, you’ll have to pay franchise licenses and royalties, but they’ll come with an existing customer base and brand recognition.

You may also be limited in your menu offerings if you go the franchise route. You can almost always bank on instant income with a franchise, but this success will come at the price of higher start-up costs. Creating a stand-alone business will definitely give you more freedom to exercise your creativity.

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Choosing a Locale

Once you’ve settled on the type of ice cream business you want and whether you’ll be going alone or with a franchise, you’ll need to determine the best location to bring your dream to life. You may want to consult the Small Business Administration, as they have resources that can help you determine the demographics of certain areas and ensure that the business you want is sustainable in the market you’re entering.

Once you’re certain the market can support your business, you’ll want to contact a realtor to choose the right building and hammer out the details of any purchase or lease agreements. Of course, you can bypass all this with a mobile business that goes where the people are instead of the other way around. Even then, finding the right location will take some work as every area regulates mobile food vendors differently. Check with a local codes enforcement officer to determine what restrictions you might face.

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Developing Your Concept

When going it alone, you'll want to come up with a marketing concept that will help your business stand out in the crowd. From the name of the business to the décor and menu, every detail must be addressed to ensure that the vision you have in your mind makes its way to the customer.

There are many ways to make your brand unique; an upscale gourmet shop is vastly different than a more basic, family-friendly concept. Families might look for something cheap and simple, while upscale customers might be willing to pay more for a unique experience, adventurous flavors, and a hip concept.

You will probably want your menu to include the standard favorites, such as chocolate, vanilla, and strawberry, but you can also set your ice cream stand apart by using organic, all-natural flavorings and hand-crafted processes. Freshly baked cones and bowls might help make your shop the most popular one on the street. You could also craft a completely original recipe or two, creating flavors customers can only get at your shop.

Once you've established and perfected your go-to recipes, begin exploring new, non-traditional ingredients to target more complex palates.

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Expanding Your Menu

While ice cream is veritably recession proof, it never hurts to diversify your menu and add to your bottom line. Drinks are a relatively simple way to achieve this without much overhead or fuss. If you're serving ice cream from a cart, a simple cooler with a selection of bottled or canned soft drinks, sports drinks, or water will complement your profits. Your customers will also appreciate having a drink to wash down their sweet treat.

If you're in a permanent structure, your menu additions don't have to stop at simple beverages. Given the proper equipment, it would be easy to expand your offerings to include shakes, smoothies, or frappés.

You may even consider adding a line of baked goods. Who doesn't love a scoop of ice cream sandwiched between two freshly baked cookies? Ice cream cakes are also popular items that could be added to the menu. You might even consider balancing the sweet flavors of ice cream with a selection of salty snacks, such as popcorn or pretzels.

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Labor & Training

As with any business, hiring hard-working employees will help ensure that your ice cream shop is a success. Even if you have the greatest ice cream in the world, people likely won't return if your customer service is lacking.

Many franchises offer training both at their headquarters and in your store. If you’re starting an independent business, you’ll have to determine how your employees will be trained before you open your shop. Always keep in mind that your staff is the face of your brand, so you’ll want to take special care to select and train high-quality employees, giving them the tools they need to make your operation successful.

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Licenses & Permits

As with any business, you’ll want to check with local government offices to see what types of licenses and permits you’ll need. These will vary greatly depending on the type of business you’ll be opening.

In any case, you’ll need to register for both federal and state tax identification numbers to ensure you’re paying any and all applicable sales, employment, and income taxes. Most ice cream trucks and kiosks will need an inspection and permit from the local health department. You can also expect to need a food vendor permit and a permit from the utility provider if you'll be using shore energy or will be emptying and cleaning a grease trap.

You will also need to check with state and local agencies to see if there are restrictions to selling homemade ice cream. Some areas will not allow vendors to use raw milk, so make sure you're in compliance with local codes. Codes may be less restrictive and permits easier to obtain if you'll simply be selling pre-packaged ice cream novelties out of a mobile truck, but noise ordinances might not allow the music that draws crowds to ice cream trucks.

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Additional Equipment Considerations

No matter how simple or elaborate your ice cream shop is, you will need a great deal of equipment. Depending on the menu, your list may grow exponentially.

  • Storage: You'll need ways to store both dry and cold food items. At the very least, you should purchase airtight storage bins to keep cones and waffle bowls fresh. Shelves can keep these containers off the floor to keep the area organized and sanitary.
  • Refrigeration: Reach-in coolers are a must for small shops, while walk-in coolers and walk-in freezers will be necessary for larger venues.
  • Cooking Equipment: If you're going to offer baked goods, you'll need an oven. For creating your own cones, look into buying a waffle cone maker.
  • Serveware: You'll need a way to store, organize, and present serving ware such as cups and bowls, utensils, and napkins. A number of dispensers are well suited for this task, and you might also consider a bakery display case, especially if you're offering baked goods.

Infographic Source: Entrepreneur: Ice Cream Franchises

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