Cost Breakdown of Starting an Ice Cream Business
How much does it cost to start an ice cream business? The investment needed for your ice cream business will depend on the type you choose, among other factors such as equipment. To open an ice cream shop, you will likely need between $40,000 and $100,000, with the average cost being $80,000. A large-scale manufacturing operation will likely need much more than this, while you could probably start a home-based online ice cream shop for as little as $15,000.
Rent costs for your ice cream business very much depend on your location. This cost will vary by both region and specific areas of town: a lease in Manhattan could cost over $80,000/month. Meanwhile, a storefront lease in Florida or Tennessee could cost less than $1,000/month.
Profitability of Ice Cream Shops
Ice cream shops on average enjoy a lucrative profit margin of 25% making it a highly profitable venture. Some successful shops are already making up to 35% net profit on their ice cream sales.
Necessary Equipment for an Ice Cream Shop
- Storage freezers: An ice cream shop needs storage space for pre-prepared items. Prices start at $1,000 for a small chest freezer, while a large commercial-grade freezer can cost up to $10,000.
- Display cases: Your ice cream display case should be both functional and visually appealing. Costs start at $3,000 for a basic model, and most professional-grade models can cost $10,000.
Necessary Considerations before Starting an Ice Cream Business
However, an appreciation for ice cream isn’t enough to start a shop. There’s business aspects you need to understand before you enter the ice cream industry. The best way to learn is by doing, and that goes double for the ice cream business. Until you work at one, you won’t fully understand what it means to welcome a customer or what the perfect consistency of ice cream should be when served.