How Much Does a Small Ice Cream Shop Cost?

If you are thinking about starting a small ice cream shop, one of the first items to contend with is the total cost of getting it up and running.

Thinking about the costs can be scary.

My advice: The more open you are about your budget, the better off you will be.

Your ice cream shop startup costs will depend on your specific concept. But, of course, the larger your concept, the higher your costs will be.

For example, a mobile ice cream business will cost less than a small ice cream shop. Likewise, a small pushcart will cost less than a mobile ice cream truck. Once you know your concept and location, you will be able to craft a budget that will determine your total costs slowly.

Today, we will focus on the key elements that generate the most costs for your ice cream business. Naturally, you will want to include some version of these elements within your budget.

So let’s get started!

Cost Range for Ice Cream Businesses

There’s a variety of ice cream shop concepts. They may vary in size, target audience, menu offerings, and mode of operation. Please note that the sample budget numbers listed below are not the costs you pay upfront. Instead, it’s the total price for opening an ice cream shop, including your startup and operational costs (which we will discuss shortly).

Ice Cream Shop (Brick and Mortar): $150,000

Ice Cream Kiosk: $25,000 – 60,000

Ice Cream Truck: $20,000 – 40,000

Ice Cream Bike/Trike: $10,000 – $15,000

Depending on each type of ice cream shop you plan to open, you will have significantly different costs. These numbers are just estimates. However, they give you a basic idea of how much it costs to start an ice cream shop.

Your Ice Cream Shop Startup Costs

What will your ice cream shop costs be based on?

Your overall ice cream shop costs will include your startup costs and operational costs. Operational costs can be broken down into fixed and variable costs. It makes sense to break down your expenses into minor items so that nothing stays unnoticed.

The more detailed your budget is, the more power and control you have over your expenses.

Ice Cream Startups Costs

The money it takes to serve your first scoop of ice cream is typically considered your startup costs.

Startups costs can include:

Legal & administrative costs
Costs for research
Logo development
Real estate broker fees
Security deposits
Design and permit fees
Build out costs
Equipment costs
Furniture & fixtures
Training

Operational Costs

Monthly rent
Monthly labor costs
Inventory expenses
Utility bills
Insurance premiums
On-going marketing
On-going training
Other incidental fees

My recommendation is that you add up these costs separately and then total them up. This will help you differentiate the two different categories of expenses.

It is common to add up the operational cost per month, per quarter, and year. But, for now, consider the charges per month.

Have a second look at those lists.

Those elements will create the basis for your entire ice cream shop budget. You need to fully develop this budget, which will be a part of your ice cream shop business plan.

Once you know your costs, you will be able to develop a budget that fits your funding.

Ice Cream Shop Cost Breakdown

To grasp the elements a little better, let’s attach some numbers and break down the ice cream shop startup costs.

Let’s say you are opening an ice cream shop in Seal Beach, California. Your target market will focus on local students and tourists in the area, so you want to best position your location in a spot near the beach, where there is plenty of foot traffic and neighborhood schools.

Southern California is expensive so, you will have to ensure that the prices you charge for ice cream create the margins you need to be sustainable.

Remember, a budget will help you determine your break-even point, support your pricing strategy, and keep you on track to profitability.

For now, let’s create a rough sample ice cream shop sample breakdown:

Legal & administrative costs: $300

Costs for research: $300

Logo development: $250

Real estate broker fees: $3,000

Security deposits: $1200

Design and permit fees: $2000

Build out costs: $10,000

Equipment costs: $10,000

Furniture & fixtures: $400

Training: $500

Total: $29,000

Operational Costs

Monthly rent: $2000

Monthly labor costs: $3000

Inventory expenses: $3500

Utility bills: $600

Insurance premiums: $350

On-going marketing: $250

On-going training: $200

Other incidental fees: $200

Total: $10,100

You might want to have some money allocated in your budget for the first three months of ongoing costs. This will be your safety pillow to keep you afloat while your marketing is just getting the momentum

In this scenario, you will need approximately $39,100, which is a reasonable estimate for a small brick-and-mortar ice cream shop. (At least up until the first month) Of course, you won’t have to pay all this money at once – but this is the amount you should be able to cover through your various funding streams in the process of opening your ice cream shop. Since the chances are that you will not turn a profit after your first month, you will need cash to get you through until you are sustainable.

Staying With Your Budget

It’s easy to go over budget. Things cost more, you run into construction delays, your ice cream equipment costs rise, and any other things can happen to boost costs. That’s why again, it makes sense to have a financial pillow that won’t let you get deeper into debts.

Also, having a detailed business plan and staying within its limits is a good idea to avoid unexpected expenses. The lack of planning might be disastrous to your potential success. If you purchase the wrong equipment, sign a lease in a lousy location, waste inventory, or hire the wrong people – your ice cream coffee shop will quickly go bankrupt.

Your concept and business plan should also be realistic and coherent. For example, if you have limited access to money but your ice cream shop is too grandiose that you can barely fund it, you should downsize your concept. Don’t worry – you will expand your idea as your business grows. However, it’s recommended to start with what you can realistically afford.

The Costs of a Small Ice Cream Shop

Related Questions:

What are the most significant costs factors to starting an ice cream shop?

When starting your ice cream shop, you’ll have several oversized items to pay for – but the most expensive items may not be the most important. Research and planning your ice cream shop may not be that expensive, but it may be essential before paying for the oversized items.

When it comes to the higher cost, you will have your location costs, build-out costs, and equipment cost. Your equipment might be the most increased upfront cost. When you are up and running, your highest costs might be your labor and salaries, inventory, and rent.

How can I reduce my costs?

The most effective way to reduce cost is to plan your ice cream business right from the start. First, write a thorough business plan and rework your ice cream concept until you are happy with it. Then look for a suitable location to open your ice cream shop. Finally, chose the equipment that best suits your concept and stays within your budget limits. For example, you might not need a big showcase if you only have a small ice cream cart with a maximum of 10 flavors.

After you start working, reducing your operational costs is to reduce waste and make intelligent scheduling decisions.

Start Your Ice Cream Shop Planning With Us

We’d love to help you plan out your ice cream business. Check out our blog for other in-depth articles on how you can start your ice cream shop business planning.