How to Start a Ice Cream Store Business

As the dairy industry has a strong foothold in India and the climate is hot, the ice cream store is a perfect retail food venture in India. The culture of dining outside, having surplus money with the young generation is the major reason for the increasing demand for ice cream stores.

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, the 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. The reasons are 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, a 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 cream, milkshakes, prepackaged Ice Cream, etc. Decide the store space, products, and marketing plan. You can start the ice cream store business in 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 financial planning with ROI calculations.

Ice Cream Store Business Registration & License

In starting an ice cream store in India, you will need to get the following license and registration:

  1. Company Registration: You can initiate the business with the registration of One Person Company. If you have partners, you can register your firm as LLP or Pvt. Ltd. Company.
  2. Trade License: Obtaining a Trade License from the local Municipal Authority is a must.
  3. Shop & Establishment Act License: This license is a must when you are operating a retail store.
  4. Vat Registration: When you are selling products through retail Vat Registration is the must from the Sales Tax department.
  5. Service Tax: In starting an 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 the right location is the most important factor in getting success in the 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 sale software and manpower cost. If you are initiating your own brand fix the pricing carefully.