The ice cream street business is one of the most pronounced seasonal types of entrepreneurial activity. Trade goes on briskly in the hot season, when people crawl out of stuffy apartments onto the streets of the city.
In this article, we will try to reveal all the nuances of the ice cream business in as much detail as possible and give practical advice for beginners in this niche.
Business pros and cons
Before getting into the details, let’s look at all the strengths and weaknesses of the ice cream business in general terms .
- Minimum initial investment;
- High profitability (up to 200%)
- Increasing the range of additional sales of water, drinks, sweets;
- Equipment can be rented;
- Ability to scale.
- High competition;
- Perishable goods;
- Pronounced seasonality, in winter the equipment is idle;
- It is difficult to find permanent responsible employees;
- Increased attention from inspectors.
Production technology and features of the ice cream trade
Before starting a business based on the ice cream trade, you need to study the nuances and features of manufacturing that affect the profitability of the business.
Consider the main types of freezers for ice cream :
For the manufacture of gelato hard ice cream, a batch freezer is used . The apparatus is a refrigeration system with a spiral-shaped evaporator enveloping a steel cylinder. In it, the mixture is subjected to freezing and cleaning with a screw from the walls.
The device is designed to work indoors . A pasteurizer will serve to quickly heat the mixture, and a shock freezer or refrigerator will serve to store goodies.
The ingredients will be :fresh cream, milk, all kinds of additives. Powdered milk mixture can be used to optimize the technological process.
Ready-made ice cream balls are served in waffle cones, paper or plastic cups.
The soft ice cream machine is the same blocks, the only difference is that it has two or more cylinders.
Typically, entrepreneurs buy a machine with two cylinders to produce two single flavors and one mixed flavor. Devices with three cylinders, give out five tastes. All modifications are similar to each other by the principle of operation.
Fried Thai ice cream fryer has the form of a table in which there is a tube with a cooling agent that freezes food. On the surface, a roll is rolled on the basis of a dry mix with the addition of fruits, berries, syrups, chocolate and various toppings. Ice cream rolls are served on paper or plastic plates. The process of making such ice cream looks very spectacular and always attracts customers.
Freezers have different performance, power and additional options. Do not be too lazy to study information about suppliers of raw materials and equipment.
Choosing the right supplier is half the battle. The quality of the supplied equipment and raw materials depends on it, which in turn affects the taste of the finished delicacy.
Ice cream shop business plan
Even a business that seems so simple at first glance should not be left without detailed calculations. It should be “on the shore” to figure out how to organize trade, where to organize it, and whether the game is worth the candle at all.
For these purposes, a business plan is drawn up. Below are the points that must be in it and which should be worked out in detail.
Be sure to familiarize yourself with the products of the nearest competitors , their chips. Perhaps you will get your customer flow through other types of ice cream, a diverse assortment, original presentation or the use of higher quality raw materials.
Finding a place to trade
There are a lot of options. It could be:
- Piglet in the mall;
- Location on the beach;
- A stall in a park or on a central city street.
The main thing is that the place should be lively, and, if possible, with little competition.
Choice of outlet format and assortment
The most common type of seasonal business is trading “under an umbrella” or otherwise “from a cart”, which requires a minimum of costs .
You can open a point with an amount of 100 thousand rubles. It is necessary to buy a trading counter and decide on the assortment of ice cream.
Setting up a network of ice cream vending machines without a salesperson is riskier in terms of substantial investment.
Vending machines for this business format have a high cost of 200 thousand rubles, so this trade is not very popular, although it has its advantages: the device takes up little space, does not require the presence of a seller, and is serviced once a week.
Selling soft ice cream will be a more profitable option compared to regular ice cream due to a higher markup
From the equipment you need a freezer and special mixtures for manufacturing. There should also be access to water and electricity.
Trade in such a fairly new and useful product as ice cream yogurt can bring a good profit, although it requires considerable costs.
But due to the growing demand for low-calorie products, it will pay for itself in a short time
The business option “on wheels” has the advantage of mobility, which will allow you to change location and find new customers.
This requires a van or mobile shop, which is equipped with the necessary equipment and brightly decorated to attract attention. The downside will be a large investment.
The process of collecting documents and registering with the tax office will not take much time and effort.
If you decide to organize a business indoors, you need to conclude an agreement with the landlord, for street trading, get permission from the city authorities.
In case of independent production of ice cream, it is necessary to provide the following to the sanitary and epidemiological station:
- waste management contract
- medical books of sellers;
- certificates of conformity of raw materials.
An exception is the sale of ice cream from the freezer in the manufacturer’s packaging. In this case, permission from the SES is not required.
Purchase of commercial equipment
The modern market offers a large selection of equipment of Russian and foreign brands of different price categories, when buying which they take into account: energy consumption, warranty period, dimensions and performance, compatibility with raw materials .
Popular manufacturers of ice cream machines are Arctic, Smach, Miken, Icetro and Sumtong . The cost of freezers does not exceed 50-60 thousand rubles.
Raw material suppliers
If we talk about raw materials, American-made dry mixes are distinguished by excellent taste and ease of preparation: Frosty Freeze and YoSoGood . Their cost ranges from 500-700 rubles . Wholesale prices for plastic cups and spoons will be 1 ruble, waffle cones 1.5 rubles.
How much can you earn selling ice cream on the street
One package of the finished mixture gives 60 servings of ice cream weighing one hundred grams. Up to 400 servings can be sold per day with an average cost of 50 rubles.
Given the unfavorable days for sale, you can save 200 thousand rubles. per month. Subtracting the cost of raw materials, wages, rent and taxes, we get 60 thousand rubles. net profit.
As you can see, the profitability is not bad. In one or two months, you can recoup the amount originally spent. But it should be noted that such profitability can only be in a good passable place!
Hiring and training staff
Usually, two people are hired for one point to work on a shift schedule. The salary is the salary and a certain percentage of the sale. The seller must have a sanitary book with permission to trade in food products.
Organizational issues related to the maintenance of up to three trading places can be decided by the owner himself, with a wider network of outlets, an administrator is needed.
Financial and tax reporting is entrusted to an accountant.
After developing the concept and menu, purchasing equipment, you can start launching the outlet. Originally served delicious ice cream in a company with excellent service will provide you with a constant flow of customers and, accordingly, a good profit.
Advertising and marketing
With proper marketing, you can get a high profitability point.
Attract customers with a bright signboard, high-quality service, original point design, and music.
Try to expand the line of ice cream with new flavors . In addition, offer water and sweets.
If possible, increase the number of outlets.
Like any other business, ice cream trading does not exclude the possibility of certain risks:
- The growth of competition, which can be avoided with the help of the original trading format, the introduction of a new product
- The influence of seasonality of demand, in addition to the ice cream trade, is present in various business areas, this must be taken into account
- An unsuccessfully chosen location will negatively affect revenue, so carefully analyze all potential points
- Ice cream shelf life
Summing up, we can say with confidence that the ice cream street trade business is an excellent solution for making money. The costs quickly pay off due to the constant demand for this cold delicacy, especially during the hot summer season. If you decide to stop at this option of building a business, feel free to get down to business . By choosing the right outlet format and its good location, you will ensure high profitability with little investment!