How To Start Ice Cream Store Business
As the dairy industry has a strong foothold in India and the climate is hot, ice cream store is a perfect retail food venture in India. The culture of dining outside, having surplus money with young generation are the major reason of increasing demand of ice cream store. India’s current ice-cream market is worth Rs 3,000 Cr, including the unorganized sector. Increasing urbanization, rising incomes, consumer awareness, improved cold supply chain, growing deep freezer penetration, and growth of modern format retail facilities are giving a fillip to the country’s frozen desserts business, which is highly capital intensive.
Ice-cream is typically regarded as a seasonal product, with demand peaking during the summer months. However, in recent years, consumption of ice-cream and other frozen novelties in winters has been on the rise. A mix of factors is responsible for lessening the seasonal impact and contributing to the overall growth of the country’s ice-cream industry such as changing consumer perception, capturing regional variations, diverse consumer segments, favorable retail location, product range and innovation, festivities, and marketing and promotions.
Ice Cream Store Business Plan
In initiating an ice cream store, proper business plan or project plan is required. Ice cream comes in many different qualities like low-fat ice creams, frozen yogurts, cake ice creams, imported Ice Creams, milkshakes, prepackaged Ice Cream etc. Decide the store space, products, and marketing plan. You can start ice cream store business by two ways. One is through buying a franchise of an established brand or by having your own store. If you are starting the business with no experience, then buying a franchise would be a most prudent decision. Calculate your monthly fixed overhead cost and make a financial planning with ROI calculations.
Ice Cream Store Business Registration & License
In starting an ice cream store in India, you will need to get following license and registration:
- Company Registration: You can initiate the business with a registration of One Person Company. If you have partners, you can register your firm as LLP or Pvt. Ltd. Company.
- Trade License: Obtaining Trade License from local Municipal Authority is the must.
- Shop & Establishment Act License: This license is must when you are operating a retail store.
- Vat Registration: When you are selling products through retail Vat Registration is the must from Sales Tax department.
- Service Tax: In starting ice cream store business, service tax registration is a must. You can initially start the business without having it up to you get a turnover of Rupees 9 lakh.
Location & Infrastructure For Ice Cream Store
Ice cream is an “impulse” product. People who buy ice cream usually do it on impulse when they see it and are tempted. Selecting a right location is the most important factor in getting success in ice cream store business. If you are counting on car traffic, then a drive through window is almost mandatory.
Enclosed malls are a better proposition for year-round traffic and people prefer them to stroll through and buy ice cream. Other than rent, your major investment is a freezer, the point of sell software and manpower cost. If you are initiating your own brand fix the pricing carefully.
Related Article: Check Your Product Before Selecting A Retail Space