Before we dive into details, check out this ice cream shop startup cost checklist. It will help you plan your startup budget and know how much financing you need to get started.
Equipment and Renovation Costs
Aside from getting comfortable furniture such as stools, couches, sofas, tables, and shelves, you will need to purchase ice cream machines (gelato or soft-serve), display freezers or dipping cabinets, refrigerators, and freezers for storage. The average cost of building a new ice cream shop is around $300,000 to $500,000. Renovation costs vary widely, but expect to spend an average of $100 to $200 per square foot.
Location Impact and Profit Potential
Your ice cream shop’s location and size play a crucial role in the cost and potential profits. A shop located in a high-traffic area with accessibility is likely to attract more customers and generate higher profits. The average profit margin for ice cream shops is 25%.
Investment and Earnings
To open an ice cream shop, you will likely need between $40,000 and $100,000, with the average cost being $80,000. Annual profits tend to be in the $20,000 to $49,000 range, depending on various factors like location and market conditions. You can tweak your operations to increase your earnings.
Considerations for Starting
The key elements that generate the most costs for your ice cream business are location, shop size, and type of equipment. Consider these factors carefully when planning your ice cream shop venture.