Your One-Step Guide to Set Up an Ice Cream Parlour in India

India has a tropical climate which makes the summer season prolonged. In summer what appears most appealing to us is ice cream. We are sure many of you might have thought of setting up an ice cream parlour, right? The ice cream industry is considered to be the most lucrative among niche food companies.

But in the winter season, the business can take a reverse turn as not many people like to have ice cream. Hence, sellers should find other ways to generate income, apart from solely involving themselves in the ice cream business.

Over the years, the ice cream industry has experienced some innovations with different kinds of ice cream present in the market. The idea of ice cream parlours, where people can enjoy ice cream at their leisure, is acquiring popularity these days. If you are also thinking to invest in an ice cream shop and need a quick guide for it, then we are here.

Decide the format

There are numerous kinds of ice cream available like 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 currently quite popular in India, can also be a lucrative business strategy for ice cream shops. Be careful to supply dry ice-filled boxes to your delivery boy. This would avoid spoilage by keeping the ice cream chilled and solid for a long period of time.

Investments

An ice cream shop or a tiny food truck with the required refrigeration arrangements can be as small as 400 to 500 square feet. The average investment for both situations ranges from Rs 5 lakh to Rs 10 lakh, depending on the atmosphere and sitting area you want to establish. An expenditure of up to Rs 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 footfall and consumers are willing to spend money.

Make sure that your ice cream parlour should be easily accessible and have ample parking space. Look for locations that are near businesses, such as markets, children’s clothing/toy stores or family restaurants.

Procurement of equipment

List the number of items you want to sell at your store. After that, evaluate the competitors nearby and initially keep the price low to enter the market and give away free samples. Determine the kitchen equipment you need based on the menu.

Since ice cream falls under the food category, a seller should take a licence from the fire and food department. The peak hour to sell ice creams is after 9 pm so a seller needs to obtain the necessary permits to keep the shop open at least till 1 am. As a result, the total cost incurred for the licence can reach as high as Rs 50,000. Ice cream sellers should try to maintain a profit margin of between 30% and 40%, but this depends on your industry and the location of the shop.

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