Table of content
- License Required for Ice Cream Making Business
- Raw Materials required
- Equipment Required
- The Manpower
- Target Customers
- How to start an ice cream business in India? – All You Need To Know
- How much profit margin is ideal for keeping in your ice cream business?
- Do you need to create a business plan for your ice cream parlor business?
- How to deliver ice creams locally?
India experiences the longest summers out of any country with a tropical environment. As a result, the ice cream industry appears to be the most lucrative among specialty food enterprises. The ice cream industry has experienced some quick innovation during the past few years. In the past, people frequently used roadside carts, which were largely used by kids and young adults. The idea of ice cream parlors, where individuals may enjoy ice cream at their leisure, is quickly gaining appeal nowadays.
The growing discretionary income of middle-class families is one obvious factor, and the influence of western culture on consumer behavior is another. These macroeconomic and microeconomic elements currently increase the viability and profitability of the ice cream industry.
Delhi Deli Cafe will walk you through the process of starting an ice cream business in India step by step in this post. In contrast to other formats, this one has a very specialized market. You can make your ice cream shop a smashing success, though, if you take care and get a few things right.
Read More: Ice cream Is The Secret To happiness for everyone
License Required for Ice Cream Making Business
- FSSAI License
- Firm Registration
- Current Bank Account
- GST Registration
- Trade License
- Business Pan Card
- Sales tax Registration
Raw Materials required
The fundamental components that serve as the foundation for your finished product and ultimately determine the quality of your ice cream are known as raw materials. According to Delhi Deli Cafe the following are the several categories of raw materials needed for India’s ice cream manufacturing industry.
- Milk Powder
- Granulated sugar
- Ice Cream Flavors
- Approved Additives
- Fruit Purees
Small quantities of money may be needed for raw materials, but you will also need a variety of equipment to create your ice cream. Equipment would be important for ice creams with a variety of flavors and colors. The majority of your money would go toward this equipment. The equipment covers a variety of beginning to finish procedures.
- Mixing Bowls
- Mesh Strainers
- Weighing scale
- Wax Paper
- Mini Ice Cream Makers
- Commercial Ice Cream making machines
- Packaging materials
- Miscellaneous Equipment
When making ice cream, the taste, flavor, and color should all be extremely well matched. Therefore, in order to guarantee the quality of the product, you would need skilled staff with sufficient expertise. The same is true for packaging, as ice cream can simply melt away. The necessary manpower is listed below in its entirety.
- The recommended manpower range for starting a small-scale ice cream manufacturing firm that offers the best flavor and a variety of flavors is between 2 and 4 skilled people.
- And if we’re talking about a medium-scale firm, the required manpower would be at most 5 to 7 employees, while a large-scale ice cream manufacturing business would need between 8 and 10 employees.
For the purpose of keeping dairy goods, the majority of local businesses always have a small freezer or a chilling device in their establishments. Consequently, these stores could be your main objective.
Supermarkets and shopping centers:
The main goal of stores inside these establishments is to display consumable products. They also have a number of areas where they sell and exhibit Ice Cream, though. They would be willing to sell your stuff if your marketing strategy is effective enough.
Ice cream shops:
It goes without saying that ice cream shops should be your primary target for promoting and selling your goods. You could certainly try your luck, but it would probably take a lot of persuasion as the majority of the businesses are franchises of just one brand.
Ice cream from a wide variety of brands is on display in dairy establishments. The fact that there are numerous dairies in each community means you may approach them with confidence and advertise your goods there.
How to start an ice cream business in India? - All You Need To Know
Here is a step-by-step instruction manual for starting an ice cream shop in India by Delhi Deli Cafe.
1. Choosing the Format
There are numerous ice cream shop formats available right now, including cold stone, ice cream rolls, ice cream cakes, nitrogen ice cream, live ice cream counters, and pre-packed ice cream counters. Decide what kind of ice cream shop you want to open as the first stage in creating your ice cream business plan.
Ice Cream Delivery: If done properly, food delivery, which is now extremely popular, can also be a lucrative business model for ice cream shops. Make sure to supply dry ice-filled ice boxes to your delivery lad. This would prevent spoilage by keeping the ice cream frozen and solid for a respectable period of time. For a pitiful Rs 30 per day, you can purchase three layers of dry ice.
2. The amount of money and space needed to open an ice cream shop
An ice cream shop or a small food truck with the required refrigeration facilities might be as tiny as 400–500 square feet. The typical cost needed in both situations ranges from Rs 5 lakhs to Rs 10 lakhs, depending on the atmosphere and seating area you wish to create. An investment of up to 15 lakh can be needed to open a high-end ice cream shop. In addition, one needs to find a market or catchment region where there is a lot of foot traffic and consumers who are willing to spend money.
3. Choosing The Ice Cream Parlor’s Location
Contrary to other types of food, eating ice cream is not a need, but it is more enjoyable and fashionable when out and about. Therefore, thorough market research should be carried out before selecting the site. Since it is transportable, an ice cream truck can test out several locations before settling on one.
The parking space must be available before an ice cream parlor may open. Customers typically buy ice cream on the spur of the moment, therefore the shop should be conveniently located with plenty of parking. Locate yourself close to commercial establishments like markets, toy and apparel stores for kids, or family-friendly restaurants.
4. Acquisition Of Store Equipment For The Menu
List the amount of things you want to offer at your store after the format and location have been decided. After that, evaluate the competitors nearby and initially maintain the price low to enter the market and give away free samples. Determine the kitchen equipment you need based on the menu, then divide the list into two sections: one for new goods you must purchase, and the other for items you can purchase used or older.
5. Equipment List Needed To Open An Ice Cream Shop
The equipment list for a Cold Stone ice cream shop includes: (With a rough estimation )
- Refrigerator made of cold stone (Rs 2-2.5 lakhs)
- 500-liter chest freezer refrigerator (Rs 40,000)
- Tools and cabinets for storing things (Rs 30,000)
- Ingredients, including packaging (Rs 1-1.5 lakhs)
- Miscellaneous (Rs 50,000) (Rs 50,000)
Power backup is essential for an ice cream parlor since the ice cream melts, which is the main source of waste in an ice cream parlor. Ice cream can be kept fresh for two hours in a good refrigerator, but if there is an extended power outage, you could run into difficulty. So keep in mind to choose a top-notch quiet generator. This is available for under Rs 1 lakh.
6. Indian Ice Cream Business Needs Employees
Three persons, including the cashier, are all that are needed in this particular arrangement to serve or prepare a particular kind of ice cream. Because you don’t need a proper chef or bartender, whose salaries are simply too exorbitant, this concept is unique.
No skilled labor is necessary because anyone can learn how to produce a certain style of ice cream with some training. Depending on the employees’ soft abilities, the remuneration in this style may range from Rs 30 to 40k. To ensure that you eventually improve your ice cream sales, you might utilize your restaurant POS to track the development of your personnel and keep an eye on their performance.
7. Keeping the Ice Cream Parlor Business Consistent
Maintaining consistency in taste is one thing you need to make sure of when you start an ice cream business. The ice cream portion you sell must have the same flavor, quality, and quantity whether you operate a single shop or a network of locations.
In ice cream parlors, recipes must be standardized. To ensure that your products are easily sent from the base kitchen to other outlets, if you have several outlets, you must utilize Central Kitchen Management effectively. Use a certain Point of Sales programme that has this function and assists you in managing your inventory apart from billing procedures.
8. Paperwork & Licensing Required To Open An Ice Cream Parlor
Since ice cream falls within the food category, all of the necessary permissions — shop establishment licenses, FSSAI licenses, local municipal authority licenses, and fire licenses — are relatively similar to those needed for a quick-service restaurant.
A cost of Rs 50,000 is incurred in the process. A consultancy should always be consulted in order to obtain the necessary permissions. Since the process takes a lot of time, you can focus on other business-related tasks.
Since ice cream is typically eaten as a dessert, the peak hour for ice cream sales is from 9 PM until midnight. Therefore, obtain the necessary permits to operate your ice cream shop till at least 1 AM.
Last but not least, the success of your ice cream business plan entirely hinges on the distinctive flavors you offer, the appropriate price, and the high-traffic market. Therefore, if you have the correct ice cream business plan and consistently apply the aforementioned ideas, you can be sure to have a cash register that is always full. If you need any kind of assistance and guidance, feel free to reach out to Delhi Deli Cafe.
How much profit margin is ideal for keeping in your ice cream business?
Ice cream should have a profit margin of between 30% and 40%, but this depends on your market as well. Assume you produce and market ice cream under your own brand, which you have developed. In that instance, you must calculate making costs and other related expenses before determining the profit margin. Additionally, a number of additional factors affect how much your ice creams will cost to sell. The location of your ice cream shop is crucial for increasing sales.
Additionally, the location is quite important for increasing your revenues. Since a portion of each sale must be donated to the main ice cream factory, the profit margin for franchise owners, or those who have obtained a license to sell ice cream under a different brand, may be somewhat low.
Do you need to create a business plan for your ice cream parlor business?
You cannot imagine how fiercely competitive the ice cream industry is. It is relatively simple to find ice cream-focused brands, fast food chains that provide the dessert, and independent vendors. Not every brand or up-and-coming ice cream business will likely dominate the market share. In an ice cream shop, various clients have varied needs. Some people like the traditional recipe without additional flavors or trends like nitrogen. Although some clients might prefer a more tailored experience. Regardless of current trends, a business plan for your ice cream shop is essential to help you define the type of facility you want to open and the genre you are considering, keeping your target demographic, location, and other factors in mind.
How to deliver ice creams locally?
Delivering ice cream is much harder than delivering any other type of food. Whether delivering ice cream five minutes away or 25 minutes away, the packaging is of utmost importance. To protect your package from heat or other temperature changes, use sturdy insulated packaging. It is normal practice to use dry ice to keep the ice cream frozen; alternatively, think about utilizing gel packs for additional security.
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