Initial Investment and Profitability
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.
Rent costs for your ice cream business very much depends 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.
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.
Equipment and Business Aspects
- Storage freezers: Prices start at $1,000 for a small chest freezer, while a large commercial-grade freezer can cost up to $10,000.
- Display cases: Costs start at $3,000 for a basic model, with most professional-grade models costing $10,000.
An appreciation for ice cream isn’t enough to start a shop. There are 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.
Location and Supply Chain
Location matters a lot. Shops in busy areas of cities earn more. Understand supply chain management before you start a homemade ice cream business.
The investment for an ice cream business depends on factors like equipment and location.
Equipment Cost Breakdown
You will need:
- Ice cream machines
- Display cabinets
- Refrigerators
The cost of equipment can range from $2,500 to $20,000 for quality options. Buying used equipment reduces costs but may increase headaches.