Ice cream is a favorite food for various groups, from children to the elderly. This food is often used as dessert or as a daily snack. So it is not surprising that there are now many ice cream businesses because the market is growing.
There are various types of businesses that you can try, ranging from a home ice cream business to joining a partnership. Interested in starting an ice cream business? The following is a guide that you can use before starting an ice cream business. Read more here.
Types of ice cream businesses
There are various types of ice cream on offer today, from traditional to contemporary. Each type certainly has its own market. The following is a review of the types of ice cream businesses, see more here.
1. Traditional ice cream
Traditional ice cream refers to a type of ice cream made using classic methods with common basic ingredients. This can include a variety of flavors and manufacturing techniques. Traditional ice cream usually has a soft and creamy texture, of course due to the use of cream and careful manufacturing methods.
2. Gelato
Gelato has a denser and softer texture than traditional ice cream. This is caused by the different basic materials used and manufacturing techniques. Gelato uses more whole milk than regular ice cream. Apart from creating a deeper texture, it also makes the gelato lower in fat. Additionally, gelato is usually served at a slightly higher temperature than ice cream, making it softer and easier to scoop.
3. Healthy ice cream
Healthy ice cream is a variation of traditional ice cream designed to be a better choice for those who are health conscious or have special dietary needs. Therefore, sweeteners are used that are low in calories or natural, such as stevia, erythritol, or xylitol to reduce the sugar content.
4. Ice cream roll
Roll ice cream, also known as "Thai roll ice cream" or "stir-fried ice cream" is a type of ice cream that originates from Thailand and is increasingly popular throughout the world. The process of making ice cream rolls involves unique techniques and often attracts attention because of the attractive way it is served.
5. Ice cream cart
An ice cream cart is an ice cream business that uses carts as a medium for selling and serving ice cream. This is a flexible business model and is often a popular choice for reaching customers in various locations.
6. Ice cream franchise
An ice cream franchise is a business model where someone buys the rights to run an ice cream business under an existing brand and operational system. This allows franchise owners to leverage familiar brands and proven systems.
Advantages of the ice cream business
Almost everyone likes ice cream as a fresh and delicious food. The various flavors presented make ice cream an all-time food that is never short of buyers. Here are some of the advantages of the ice cream business for those of you who want to try it.
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1. High demand
Ice cream is a product that is liked by various age groups, from children to adults. Demand tends to be stable throughout the year, with a particular increase in summer or in hot climates.
2. Innovation and Creativity
Ice cream provides room for innovation in taste, shape and presentation. You can create unique new variations, add toppings, sauces, or combine it with other products, such as waffles or bread, which can attract customers.
3. Variable initial capital
An ice cream business can be started with small capital, for example by selling homemade ice cream or opening a small outlet. On a large scale, of course you can open an ice cream cafe with various additional facilities.
4. High profit margin
Basic ice cream ingredients such as milk, sugar and flavorings tend to be affordable. With an attractive selling price, the profit margin can be high.
5. Franchise potential
Many ice cream businesses develop through a franchise model, which allows for faster expansion and wider market reach.
6. Seasonal and non-seasonal business
Although demand for ice cream increases in the summer, sales do not stop in the winter. With the right strategy, such as creating variants that are suitable for winter (spiced ice cream or hot drinks with ice cream), the business can continue running all year round.
7. Wide target market
Ice cream can be enjoyed by various levels of society, including children, teenagers and adults. This expands your target market who wants to try this business model.
8. Location flexibility
An ice cream business can be run in many places, whether in malls, tourist centers, or using a mobile food truck concept. These many choices can make it easier for you to determine how and where to sell.
Ice cream business challenges
Apart from abundant profits, you also need to pay attention to the challenges that may arise in running this business. Check out the full review here.
1. Competition is tough
The ice cream market can be very competitive, with many brands large and small. Creating clear and unique differentiation is the key to attracting customers.
2. Quality and consistency
Maintaining the quality and consistency of ice cream products is very important. Poor quality or variability in taste can affect reputation and sales.
3. Operational costs
Although raw materials for ice cream are relatively cheap, other operational costs such as equipment, electricity and additional ingredients can be significant, especially on larger production scales.
4. Storage and shipping
Ice cream requires appropriate storage and shipping temperatures to keep it in good condition. This can be a logistical challenge, especially if you sell online or to multiple locations.
5. Health regulations and standards
Ice cream businesses must comply with various regulations and health standards, including hygiene, food safety and proper labeling. This requires attention and may require special certification.
6. Innovation and trends
To stay relevant, you must continue to innovate and keep up with market trends. Providing new flavors and products that appeal to consumers is key to remaining competitive.
7. Initial investment
While it's possible to start with small capital, larger scales require investment in production equipment, storage space, and marketing, which can be a challenge for new entrepreneurs.
8. Human resource management
Managing staff for production, sales, and customer service requires good managerial skills. Employee rotation and consistent training are also challenges.
12 Tips for starting an ice cream business
Currently, ice cream has become an attractive and profitable business opportunity. If you are interested in doing business, here is a review of how to start an ice cream business below.
1. Market research
This market research is used to determine who will be your main target market. Can be based on age (children, teenagers, adults), income, or lifestyle. Apart from that, there are also competitors who sell around the location you are targeting.
2. Choose the type of ice cream
Choosing the right type of ice cream for your ice cream business is very important for attracting customers and differentiating your business from competitors. For example, what is currently popular is rolled ice cream which is made by rolling it on a frozen surface and served with various toppings. There is also nitrogen ice cream that is made instantly using liquid nitrogen, providing a creamy texture and an appealing visual experience for consumers.
3. Determine capital
The capital required really depends on the type of ice cream business you want to run. Here are several options and their capital ranges:
- Ice cream kiosk or cart (small business): Lower initial capital, usually between IDR 5 million - IDR 20 million, depending on location and equipment.
- Cafe or ice cream shop (medium business): Larger capital because you have to rent a place and buy complete equipment, around IDR 50 million - IDR 100 million.
- Ice cream franchise: Capital will be greater because you also pay franchise fees. Usually the initial capital range starts from IDR 50 million - IDR 200 million, depending on the franchise brand chosen.
4. Use high quality raw materials
It is important to use quality raw materials in an ice cream business to produce products that are delicious, healthy and can attract customers. For example, by using cow's milk, fruit, yogurt, and high-quality sweeteners.
5. Vary the flavors
Offering a variety of unique and interesting ice cream flavors can be one of the keys to the success of an ice cream business. Innovating with different flavors also helps you appeal to different market segments.
6. Open up partnership opportunities
Opening partnership sales (franchise) for an ice cream business is a strategic step to quickly expand your business network. You can try collaborating with a home business, or on a larger scale such as cafes and restaurants.
7. Pay attention to the selling price
Determining the right selling price for an ice cream business is very important for the business to remain competitive, generate profits, and attract customers. You need to know, high prices do not determine good quality and vice versa. So be wise in determining the sales price.
8. Pay attention to hygiene
Maintaining hygiene in an ice cream business is very important because ice cream is a product that is susceptible to bacterial contamination. Good hygiene will ensure product safety, maintain quality, and build customer trust.
9. Choose a strategic business location
Choosing a location for your ice cream business is a strategic decision that can affect the success of your business. The right location will attract customers, increase sales and reduce risks.
10. Upgrade more adequate equipment
Upgrading equipment for an ice cream business is critical to increasing production efficiency, ensuring consistent product quality, and meeting increasing customer demand.
11. Use social media as a sales tool
Using social media as a sales tool for an ice cream business is an effective strategy for reaching a wider audience, building a brand, and increasing sales. Some that you can use include Instagram, Facebook, and TikTok.
12. Pay attention to and maintain taste
Maintaining a consistent, high-quality ice cream taste is the key to building customer loyalty and success in the ice cream business. Therefore, maintain the use of quality raw materials and always carry out testing before selling.
Estimated capital for a home ice cream business
To start a home ice cream business and calculate potential profits, here are details of the initial capital required and profit calculations that you can use as a guide:
Calculation of initial capital
1. Production equipment
- Ice cream machine or mixer and freezer: IDR 5,000,000 - IDR 10,000,000
- Pan, spatula, stirrer: Rp. 500,000 - Rp. 1,000,000
2. Raw materials
- Milk, cream, sugar, additional ingredients (flavoring, toppings): IDR 500,000 - IDR 1,000,000 per month
3. Packaging
- Ice cream container, spoon, label: Rp. 300,000 - Rp. 800,000
4. Operational costs (if not producing at home)
- Rent a small production place: IDR 1,500,000 - IDR 3,000,000 per month
5. Operational costs (electricity, water)
- Electricity, water: IDR 300,000 - IDR 700,000 per month
6. Marketing and promotion
- Business cards, brochures, websites, online marketing costs: IDR 300,000 - IDR 1,000,000
7. Licensing and legality
- Business permit and health certification fees: IDR 500,000 - IDR 1,000,000
8. Other costs
- Unexpected, training: IDR 500,000 - IDR 1,000,000
Total initial capital: IDR 8,000,000 - IDR 20,000,000
Profit calculation
Assumptions:
- Selling price per portion: IDR 15,000
- Ingredient costs per portion: IDR 4,000
- Operational costs per portion (including electricity, water, rent): IDR 2,000
- Sales volume: 50 portions per day
Calculation:
1. Daily income: 50 portions x IDR 15,000 = IDR 750,000
2. Daily production costs:
- Ingredient costs: 50 portions x IDR 4,000 = IDR 200,000
- Operational costs: 50 portions x IDR 2,000 = IDR 100,000
Total daily production costs: IDR 200,000 + IDR 100,000 = IDR 300,000
3. Daily gross profit:
Daily Income - Daily Production Costs
= IDR 750,000 - IDR 300,000
= IDR 450,000
4. Monthly gross profit: IDR 450,000 x 30 days = IDR 13,500,000
5. Monthly expenses (rent, marketing, etc.):
- Rent: IDR 1,500,000 - IDR 3,000,000
- Marketing: IDR 300,000 - IDR 1,000,000
- Total Monthly Expenses: IDR 1,800,000 - IDR 4,000,000
6. Monthly net profit:
Monthly Gross Profit - Monthly Expenses
IDR 13,500,000 - IDR 1,800,000 = IDR 11,700,000
IDR 13,500,000 - IDR 4,000,000 = IDR 9,500,000
That's a review of tips and capital estimates for an ice cream business. The guide above can be the first step for those of you who really want to get involved in this type of business. Make sure to prepare well so that the business you run also has maximum results. So, interested in trying it?
If you are interested in running an ice cream business and need additional capital, you can apply for business capital financing through BFI Finance. With a vehicle BPKB guarantee and house certificate, you have the opportunity to get high disbursement of funds and competitive interest rates. BFI Finance is licensed and supervised by the Financial Services Authority (OJK). Apply for financing now! #SelaluAdaJalan with BFI Finance.
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