Introduction
India is known for its tropical climate and has the longest summers in the nation. Thus, among the specialist food sectors, the ice cream industry seems to be the most lucrative. Recent years have seen some notable innovation in the ice cream sector. In the past, people often used roadside carts, which were mostly used by young adults and children. A fast-growing trend in today’s society are ice cream parlours, where customers may have ice cream whenever they want.
The two clear reasons for this changing tendency are the growing discretionary income of middle-class families and the impact of Western culture on consumer behaviour. These macro and microeconomic factors have made the ice cream industry more viable and profitable in the modern era.
In this post, we will take you step-by-step through the process of launching an ice cream business in India. Unlike other formats, the market for this particular product and format is very specialist. If you accomplish a few things well, though, you might be able to turn your ice cream business into a great success.
How to Open an Ice Cream Parlour in India?
Choosing the Format
Ice cream parlours come in a variety of forms these days, such as cold stone, nitrogen ice cream, ice cream cakes, ice cream rolls, live ice cream counters, and pre-packaged ice cream counters. In order to develop your business plan, you must first decide what sort of ice cream shop you want to open.
Ice Cream Delivery: Food delivery has gained popularity recently and might be a profitable business model for ice cream companies if planned well. Be sure to supply dry ice-filled delivery lad ice boxes. The ice cream would remain solid and frozen for a long period as a result of this protection against deterioration. It is possible to get three layers of dry ice for around Rs 30 each day.
Equipment and Capital Required to Launch an Ice Cream Store
Usually, an ice cream shop requires a small food truck with refrigeration or a 400–500 square foot carpeted room. The typical amount required in both cases varies between Rs 5 lakhs and Rs 10 lakhs, depending on the environment and sitting area you want to create. Opening a high-end ice cream store might require up to 15 lakhs. Additionally, one must look for a market or catchment area with high foot traffic and willing-to-spend customers.
Choosing the Location for the Ice Cream Parlour
Ice cream is more popular and more enjoyable than other foods, but it is not necessary to eat it. Therefore, before choosing a location, a comprehensive market analysis must be conducted. As a movable asset, an ice cream truck may visit a number of places before deciding on one.
When starting an ice cream store, parking space availability is crucial. Since most customers purchase ice cream on impulse, the store should be easily accessible and have ample parking. Choose a location that is close to markets, stores that sell children’s clothing and toys, or family restaurants.
Acquiring Various Store Equipment Types for the Menu
Once you have settled on the format and location, make a list of all the items you want to provide at your business. In order to increase market share and provide free samples, compare it to the competition and first make the pricing low. After deciding which kitchen supplies you want to purchase based on the menu, divide the list into two sections: one for new things and another for used or old items.
List of Items Required to Open an Ice Cream Shop
The inventory of materials required for a Cold Stone ice cream business (along with an initial estimate):
- Cold stone refrigerator (between Rs. 2 and Rs. 2.5 lakhs)
- The capacity of a 500L chest refrigerator is Rs 40,000.
- Kitchenware and storage cabinets (Rs 30,000).
- Raw materials and packaging (Rs 1-1.5 lakhs)
- Other items (Rs 50,000).
Ice cream shops need power backup since the primary source of waste in these businesses is melting ice cream. A good refrigerator will retain the ice cream for at least two hours, but you are at risk if the power goes out for more than that. Therefore, do not forget to invest in a high-quality noiseless generator. Less than Rs 1 lakh is spent on this.
Workers Required for India’s Ice Cream Sector
This technique necessitates a substantially lower staff because it only takes three people, including a cashier, to serve or produce a particular ice cream flavour. This design stands out for doing away with the need for a professional chef or barman, whose pay is excessively high.
Since anyone can learn how to make a particular sort of ice cream with little instruction, expert labour is not necessary. The salary range for this format is between Rs 30 and Rs 40k, contingent on the soft skills of the personnel. To ensure that you finally increase your sales of ice cream, you may use your restaurant’s point-of-sale system to track staff performance and development.
Preserving Coherence in the Ice Cream Shop Sector
One of the most important things to ensure when starting an ice cream business is maintaining consistency in taste. It is imperative that your ice cream department has the same amount, quality, and taste whether you run a single shop or a chain of sites.
The standardisation of ice cream establishments’ recipes is crucial. When you have many sites, make good use of Central Kitchen Management. This will ensure that your belongings are transported from the base kitchen to every location without any problems. Select a specific point-of-sale application that provides this feature and not only helps with basic invoicing duties but also inventory management.
The Permits and Records Needed to Launch an Ice Cream Business
Since ice cream is categorised as food, all of the permissions required—including those for fire, local government, shop establishment, and FSSAI—are very similar to those required for a QSR.
Sales of ice cream are at their peak after 9 PM since it is usually consumed as a dessert. Therefore, get a permit to run your ice cream business until at least one in the morning if you decide to operate late at night.
A thorough guide to the steps involved in acquiring the restaurant licenses needed to launch a food business in India can be found here.
Cost and Profit Margin in the Ice Cream Business
How much did the expenses cost?
The entire expense comes to Rs 50,000. Consulting a consultant is always advised to ensure that all the required approvals are obtained. Because it takes a lot of time, you could concentrate on other facets of your organisation.
How much profit margin should I keep in my ice cream business?
Although this also depends on your target market, the ideal profit margin for ice cream is between 30% and 40%. In this scenario, you are creating and selling ice creams under your own brand. You will need to calculate the profit margin after determining the production costs and other associated expenses in such a situation. There are also several more factors that affect how much your ice creams sell for. The location is crucial if you want to boost the profits of your ice cream business. The location is also very important for raising your revenue. The main ice cream factory will get a certain percentage of your total sales if you have a franchise to sell ice creams of another brand, thus your profit margin can be a bit low.
Do I Need a Business Plan for My Ice Cream Shop?
The industry of ice cream companies is more competitive than you may imagine. The market may not be dominated by all brands or emerging ice cream businesses, but it is easy to find businesses that specialise in ice cream, fast food establishments that provide the dessert, and independent sellers. Every customer at an ice cream store has different demands. Some people favour the classic form more than newer fads like nitrogen or experimental tastes. But for other clientele, a more tailored experience may be desired. The sort of establishment you want to build and the genre you are contemplating, as well as your target demographic, location, and other important considerations, must be clearly defined in a business plan, regardless of current trends.
What are the Local Delivery Options for Ice Cream?
Ice cream delivery is a much bigger issue than any other culinary item. Ice cream packaging has a big impact on delivery, whether it is five or twenty-five minutes away. Take use of effective insulated packaging to defend against heat and other temperature fluctuations. It is common practice to use dry ice to keep ice cream cold, but consider using gel packs for added protection.
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