Steps to Open an Ice Cream Shop

Steps to Open an Ice Cream Shop

Steps to Open an Ice Cream Shop

Are you thinking about opening an ice cream shop?

Why not turn your love for ice cream into a positive business venture? After all, when it comes to ice cream, the sky’s the limit!

And with roughly 80,000 ice-cream and gelato shops in the US, according to National Dairy Association, the demand is robust.

Ice-cream businesses seem to capture people’s imagination from every background, age, and culture, making it an exciting business prospect. Moreover, it’s a type of business that allows you to unleash your creativity – from your buildout to the ice cream flavors you will serve.

Finding the right ice cream shop concept for you – and the perfect location to reach your customers – is a fun challenge that could reap tons of benefits if you do it wisely.

First, let’s talk about the why. Why would you want to start an ice cream shop anyway?

Steps to Open a Coffee Shop

Why Start an Ice Cream Shop?

There are a variety of great benefits to creating an ice cream shop business. Reasons to start an ice cream shop business include:

Ice cream profits!

The first reason you may want to start an ice cream shop is that they are highly profitable. Ice cream shop retail sales estimates point to 60% to 100% markups on most gourmet ice cream. So, ice cream shops are seemingly an attractive business to invest in.

Wide customer base

Ice cream is something that appeals to people of all ages. Some people don’t drink coffee, others don’t eat seafood, but everyone likes ice cream. In addition, it’s a type of product consumed by vegans, people who don’t consume dairy or gluten. This makes your potential customer base almost limitless.

Adaptability

An ice-cream shop can fit into any neighborhood. If you have the right concept and settle on the right target market, an ice cream shop could be the right thing for a particular area, especially if there is low competition, heavy tourists, or lots of foot traffic.

Simplicity

Opening an ice cream shop offers a simple core business. While any number of concepts can make your ice cream business shine, the core business is simple. Sell delicious ice cream to as many people as you can.

It’s family-friendly

Let’s face it, having someplace to enjoy time with your family is harder to come by these days. While coffee shops, bars, and restaurants can fill some of that entertaining space in our lives, nothing is quite like the family-friendly environment of an ice-cream shop. People of all ages and backgrounds can enjoy the pleasure of ice cream!

In our previous post, we take a deeper look at other benefits of starting an ice cream shop.

Steps to Open an Ice-Cream Shop

Step 1 to Open an Ice-Cream Shop

Choose an Ice Cream Business Concept

There are zillion different concepts that you can choose for your ice cream shop. Make it fun and appealing for you and your customers. But make it laser-focused on your target customer.

Try and brainstorm on what types of ice-cream shops would work in the area you are planning on opening up. For example, would your ice cream shop appeal to students, families, tourists, or those out for an afternoon stroll?

When you settle on your concept, you also want to choose a business name. So what will your ice cream business name be called? Naming your business breathes life into it and makes your ice cream shop concept real.

Your ice cream business name will be a large part of your business branding, so give yourself enough time to see how it all fits together.

Step 2 to Open an Ice-Cream Shop

Write an Ice Cream Shop Business Plan

Once you get your business concept down, it’s time to start doing the leg work. The most helpful tool to planning your ice cream business will be your ice cream shop business plan.

Your ice cream shop business plan will help you iron out all the business-related stuff you should always consider before starting your ice cream business.

An ice cream business plan will help you settle your thoughts.

They include elements such as:

Concept
Branding
Location
Budget
Team members
Marketing
Your schedule
Permitting issues
Operations

For a more in-depth article, please read How to Start Writing Your Ice Cream Shop Business Plan.

Step 3 to Open an Ice-Cream Shop

Decide on your Ice Cream

Flavors! Flavors! There are a gazillion ice cream flavors. Which ones will be your favorite to serve? You can’t possibly serve all of them or risk inventory loss, so pick those that may generate the most sales.

The ten most popular ice cream flavors sold are:

Vanilla
Chocolate
Cookies & Cream
Mint Chocolate Chip
Butter Pecan
Strawberry
Cookie Dough
Rocky road
Pistachio
Coffee

The list above could be your baseline flavors. You may want to add a rotating inventory of ice cream to keep you and your customers on your toes.

Start looking at wholesale ice cream businesses in the area to provide the flavors you are looking for.

Ice cream shops get additional revenue from providing toppings for their ice cream. As a result, you will want to figure out where you will get your topping inventory from.

If you live in a city or area with several local ice cream manufacturers, consider visiting them and doing taste testing. Additionally, you may want to know what their delivery options are and what wholesale pricing is.

Step 4 to Open an Ice-Cream Shop

Open an LLC for Your Ice Cream Shop

You will want to set up your new ice cream business as a legal entity in your state or country you live in (or which you are planning to do business in). You have a few different options to set up your business. For example, in the United States, you can choose to be a sole proprietor, incorporate as an official corporation, or set up a limited liability company known as an LLC.

Aside from helping you protect your assets, setting up your LLC offers a few good options. These include the ability to open a bank account, establish relationships with vendors, and hire staff.

Step 5 to Open an Ice Cream Shop

Secure Your Ice Cream Shop Funding

Once you develop your ice cream shop concept, you will need to figure out where the money will come from. You want to secure the necessary funds to start your ice cream business through your savings, loans, or bringing on investors. This has to be reflected in your ice cream business plan.

Once you access the money to start your ice cream business, you can deposit the funds in your business account – made possible by setting up an LLC (or similar structure).

Step 6 to Open an Ice Cream Shop

Pick a Fantastic Ice Cream Shop Location

When it comes to an ice cream shop, choosing your location will be an essential part of your success. Before selection, your ice cream shop location will need to be appropriately zoned for your ice cream business and be accessible to people with disabilities.

Choosing the right location can be challenging as a lot of factors need to fall nicely into place. Not only will it have to be the perfect spot to reach customers, but it will have to be competitively priced and affordable for your business to succeed. Picking the right spot could help you attract more customers to your ice cream shop too.

For more information, read How to Choose the Right Location for Your Ice Cream Shop.

Step 7 to Open an Ice Cream Shop

Get Your Ice Cream Shop Equipment

Keeping your ice cream frozen is the name of the game with ice cream shops. So, you’re going to need freezers, refrigerators, ice cream dipping cabinets, or ice cream counter displays.

You will also need other equipment like a three-compartment sink, blenders, and waffle makers (for those serving waffle cones). Finally, don’t forget about utensils like ice cream scoops, dipper wells, waffle cone holders, and scoops.

Take a look at your concept and your menu items. These will often dictate what type of equipment you’ll purchase.

Step 8 to Open an Ice Cream Shop

Health Regulations for Ice Cream Vendors

The local health codes vary from location to location and from industry to industry. For example, regulations for opening an ice cream shop may be slightly different than opening a coffee shop.

Ultimately health regulation goals remain the same as anywhere else: they aim to keep you and your customers safe from food-borne illnesses.

Nevertheless, take a look at your local health code regulations. It will be essential to familiarize yourself with what health codes exist before you spend any real money. Additionally, you might want to add any relevant information to your ice cream business plan.

Step 9 to Open an Ice Cream Shop

Bring on Some Good People

You are going to need help setting up your ice cream business. For example, you might need to hire a broker to help find you the perfect location to rent. Or you might need to hire a few crucial contractors. Chief among them are carpenters, plumbers, and electricians. Finally, you will have to hire some full-time or part-time staff members.

As your business owner, you’ll need to know what type of help you will need. Don’t stress. Even the most experienced business owners don’t know how to do everything.

My recommendation is that you start your search early for the people you need on your team. If you need some suggestions, ask the local owners of other businesses, such as coffee shops or restaurants, for tips on finding contractors they have worked with within the past.

When it comes to hiring permanent staff, make sure they are reliable, honest, and fun. Remember, your staff will represent you and your business. Therefore, they will influence the culture and concept that you are trying to set up.

Step 10 to Open an Ice Cream Shop

Develop a Marketing & Promotional Strategy

Building out your ice cream shop is only half the fun (and work). The other piece is marketing and promoting your business throughout your community.

Develop a simple marketing plan with promotional strategies to get the word out about your new ice cream shop. Start early with developing a plan – everything from creating your business website, social media account, indoor and outdoor signage.

Make your grand opening fun and invite all your neighbors, including the local media, local bloggers, church groups, and teachers.

Marketing doesn’t stop after opening your ice cream shop business. It’s ongoing work that has to be done every day.

Step 11 to Open an Ice Cream Shop

Have Fun Serving Ice Cream!

Ice cream is fun! So should your business be!

You could have started an insurance business. But you didn’t! Instead, you are going to open an ice cream shop! So have fun with it!

Having fun is nearly embedded with the idea of having an ice cream shop. Of course, you will need to do all the planning, paperwork, and everyday stuff owners do, but you can still have fun doing it.

Having fun will translate to your staff and customers enjoying themselves too – and that means increased sales and profits!

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