Do you want to start an ice cream truck business and want to know the cost? If YES, here is a cost breakdown to open an ice cream truck and the profit margin/ROI. The Ice Cream Production industry has come a long way and it is still evolving with loads of ice cream makers bringing in creativity in terms of flavors, packaging and mode of selling. Players in this industry do not just make ice cream, but also frozen yogurt, sherbet and other frozen desserts, with the exception of frozen bakery foods.
So also, it is the norm for ice cream makers to leverage on the food truck model of doing business to sell their ice cream. If you are contemplating starting your own Ice Cream truck business in the united states, you should ensure that you carry out a thorough market survey and feasibility studies.
States in the southern region in the United States such as Texas and Illinoi et al can be ideal for an ice cream truck business because of the climatic condition/weather there. If you get some key factors wrong before starting your own ice cream truck business, then you are likely going to struggle to stay afloat.
The Estimated Cost Breakdown to Open an Ice Cream Truck Business
When it comes to starting a standard ice cream truck business, one is expected to spend the bulk of the startup capital on the purchase of a standard ice cream truck. Please note that an average ice cream truck will cost a minimum of $10,000, but fancier models can run to twice that cost. The truck must be insured, which can cost between $800 to $1500 every year.
These are the key areas where you are expected to spend your startup capital;
- The total fee for registering the business in the United States of America – $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $1,300.
- Marketing promotion expenses for the grand launching of the ice cream truck in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
- The cost for hiring Business Consultant (it includes writing of business plans) – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Other start-up expenses including stationery ($500) and phone and utility deposits ($2,500) – $3,000
- Operational cost for the first 3 months (salaries of employees, fueling and maintenance of the truck, and payments of bills et al) – $15,000
- The cost for start-up inventory (flavors, milk and other ingredients and packaging materials et al) – $3,000
- The cost for storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $4,500
- The cost for ice cream making equipment – $2,000
- The cost for store equipment (cash register, security, ventilation, signage) – $750
- The cost of purchase of mobile ice cream truck – $15,000
- The cost of Launching a Website – $600
- Miscellaneous – $1,000
From the rough estimate as listed above, you would need a minimum of sixty thousand six hundred USD ($60,600) to establish a medium – scale but standard ice cream truck business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
These are some of the products that you will find in an ideal ice truck;
- Bulk ice cream
- Novelty ice cream
- Regular retail ice cream
- Frozen fruit pops
- Low-fat and nonfat ice cream
- Frozen yogurt
- Flavored ice
- Other frozen desserts (except bakery)
Please note that this is a rough estimate and we usually advise our readers who are interested in starting an ice cream truck business to go to the market or directly contact wholesalers and suppliers of the type of ice cream truck and ice cream making machines they want in order to get the real time prices of these items. The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.