🍦Ice Cream Screams: Moneeeeeyyyy.
🍦Ice Cream Screams: Moneeeeeyyyy.
Crazy how profitable this business idea is
Hi Oddies,
I went out for ice cream on Friday night to try this new spot in Brooklyn that’s getting a lot of hype. I went to the counter to order a “tiny” scoop (that’s what they call their small size) and pulled out $5 in cash to pay for it.
The cashier said: That’ll be $8.75.
$8.75 for a scoop of ice cream smaller than my elbow?
Yes.
Of course I paid. Of course I shared my tiny scoop with the husband and the baby. Of course I had hmmmm maybe just a little lick of it.
Which got me thinking — this place and business is a gold mine.
The ice cream was not good. The hype around them comes from their interesting flavors. That’s really it.
So it got me thinking — how cool would it be to start an ice cream business? Mostly, how profitable would it be?
Ice cream businesses can yield solid returns, with typical profit margins ranging from 5% to 25%. Annual revenues for a standard ice cream shop often fall between $100,000 and $600,000.
Let’s explore that below.
Love,
💻 But First: My Tech Stack
I’ve been eyeballing a lot of X threads of people’s tech stacks — the tools they swear by for their business and life. So I decided to keep a running list of my own right here. I’ll update this each week with the best tools I use as a solopreneur:
Social Media & Marketing:
Tailwind: Makes it super easy to schedule 100+ pins a month on Pinterest.
Flodesk: Marketing emails that are easy to design and send.
Event Share: Lets all guests upload photos to one spot at/after an event
Any Email Finder: Gives you anyone’s email. I use this for outreach.
48-Hour Logo: A speedy fast way to get logo designs for your bizz.
ReplyGuy: A service that mentions your bizz on Reddit and Twitter.
Website:
InstaWP: A fast and easy way to build a Wordpress website.
Weebly: Free website builder that requires zero coding or skills
Opt-in Monster: Helps you capture leads on your website in a handful of ways
Swift Brief: Scans your website and suggests + writes SEO blog posts for it.
Content Creation:
Fiverr: Outsource work and get quick results. I use it for editing, social media, and design.
Typefully: Writes you catchy, personalized, and engaging Linkedin posts
Hemingway: Edits your writing in real-time to make it perfect and professional
Random but Good:
Toggl: A time-tracking tool that organizes how you spend your minutes.
Cratejoy: My go-to last minute gift for a birthday or holiday.
Classpass: Not tech but it’s part of my life stack. I take workout classes using this app.
Make Money Stack:
Poshmark: I sell clothes and other items around the house
Etsy: Dreaming up what to sell on this platform.
Survey Junkie: Get paid to take surveys
Howl: How I get affiliate/brand deals as a creator
How to Make Money Selling Ice Cream:
Are you looking for a cool business opportunity that can bring both joy and profit? Consider diving into the delicious world of ice cream! With Americans spending an average of $3.50 to $5.35 per scoop in popular vacation spots, starting an ice cream shop or scoop truck can be a surprisingly profitable venture. Let's explore how you can turn this sweet treat into a successful business.
Choose Your Business Model
The first step is deciding how you want to serve your frozen delights. Options include:
a) Brick-and-mortar shop: Ideal for high-foot-traffic areas, offering a stable location and seating for customers. b) Food truck: Perfect for mobility, allowing you to follow the crowds and attend events. c) Ice cream cart: A low-cost option great for beaches, parks, and festivals. d) Kiosk: A middle ground between a cart and a shop, suitable for malls or busy street corners.
Location, Location, Location
Research shows that ice cream prices vary significantly by location. In vacation spots, prices range from $3.50 in Sandusky, Ohio, to $5.35 in Philadelphia, Pennsylvania. Consider setting up shop in tourist areas where people are more likely to indulge in treats and willing to pay premium prices.
Startup Costs
Initial investments can vary widely depending on your chosen model:
Food truck: $50,000 - $120,000
Small shop: $20,000 - $50,000
Ice cream cart: $2,000 - $10,000
Factor in costs for equipment, ingredients, licenses, and permits.
Or you could go a different route and franchise an existing ice cream brand, like Cold Stone. But this route will cost you — big time: $322,675 - $627,775.
Develop Your Menu
Offer a mix of classic and unique flavors to cater to diverse tastes. Research local favorites – for example, Buckeye in Ohio, Marionberry in Oregon, or Coffee in Seattle. Don't forget vegan and dairy-free options to expand your customer base.
Add some weird flavors in so you get buzz - like these places.
Pricing Strategy
Based on the study, a profitable pricing strategy could be:
Standard scoop: $3.50 - $5.35
Premium or specialty flavors: $5.50 - $7.00
Toppings: $0.50 - $1.00 each
Remember to account for your costs and local market rates when setting prices.
Marketing and Branding
Create a unique brand identity that resonates with your target audience. Use social media to showcase your flavors and engage with customers. Consider regional ice cream lingo in your marketing – like "frappe" in the Northeast or "concrete" in the Midwest – to connect with locals.
Here’s some more information on how to set yourself apart in the ice cream world.
Seasonal Considerations
Ice cream sales typically peak in summer. Plan for slower winter months by offering complementary products like hot chocolate or coffee, or consider operating seasonally in tourist areas.
Profit Projections
A well-run ice cream business can be quite profitable. Let's break it down:
Average price per scoop: $4.50
Cost of ingredients per scoop: $1.00
Gross profit per scoop: $3.50
If you sell 200 scoops per day during peak season:
Daily revenue: $900
Daily gross profit: $700
Monthly gross profit (30 days): $21,000
Remember to account for overhead costs like rent, utilities, and staff wages.
Resources and Support
Join industry associations like the National Ice Cream Retailers Association for networking and learning opportunities. Consider taking courses in food safety and business management to enhance your skills.
Read the do’s and don’ts of this business.
Expansion Opportunities
As your business grows, explore options like catering, wholesale distribution to local restaurants, or even franchising your concept.
Finally, dive into this Reddit board for real comments from ice cream shop owners.
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