As the weather gets warmer, people’s thoughts turn to one thing: ice cream! An ice cream shop can be a great venture providing a refreshing treat on a hot day. There are a few things you’ll need to get started like needing the perfect location. There is also a need to make sure that there’s enough space for your equipment and supplies.

Of course, these are just barely scratching the surface. There is more to running this business than meets the eye. This article provides valuable insights to ponder when deciding to get into the business. The goal is for you to ultimately decide if putting up an ice cream business is what you want to do. Let’s get started with the advantages and disadvantages to keep things in perspective.

Ice cream parlour business 

Advantages 

There are many advantages to owning an ice cream parlour. One of the most obvious is that you get to let people enjoy delicious ice cream every day! But in addition to that, here are other great reasons to consider this type of business:

1. Low start-up costs – Ice cream parlours can be relatively inexpensive to set up, especially compared to other types of businesses.

2. High potential for profits – With the right location and marketing, it can be an extremely profitable business.

3. Fun and enjoyable work environment – Let’s face it, who doesn’t love ice cream? Working in an ice cream parlour can be a lot of fun!

4. Flexible hours – Ice cream parlours typically have very flexible hours. This is something great for those with families or other commitments. Depending on the foot traffic and your manpower, you can have it open first thing in the morning until late at night.

5. Opportunities to be creative – There are endless possibilities when it comes to creating new ice cream flavours and toppings.

If you’re looking for a fun and profitable business to start, an ice cream parlour could be the perfect option for you!

Disadvantages 

Even though there are many advantages to owning an ice cream parlour, there are also some disadvantages. In this article, we look at both sides, of course. One of the disadvantages is the amount of work required to keep it running smoothly. There is a lot of preparation and cleanup work involved in serving this dessert.

Therefore, it is important to be prepared if you decide to start an ice cream business. Additionally, this business usually requires a higher level of customer service. Needless to say, you need to provide this if you want your business to succeed.

This is possible by consistent and constant employee training. You may design the entire employee training program if the business is not under a franchise. It is also a good idea to hire a third-party training provider for this. Of course, all these incur more expenses so be sure to have a budget for such a purpose.

Despite these disadvantages, ice cream parlours can be a great business to own. If you have the financial resources and the commitment, it can be a profitable venture. Just be sure to do your research before starting the business so you know what you are getting into.

Ice cream business statistics in Australia 

There are a number of ways to measure the size and success of the ice cream industry in Australia. Here are some key statistics:

-In 2014-15, Australians spent $1.1 billion on ice cream, an average of $5 per person (IBISWorld)

-There are approximately 1,200 ice cream businesses in Australia (IBISWorld)

-The majority of ice cream businesses in Australia are small businesses, with an annual turnover of less than $2 million (IBISWorld)

-The ice cream industry employs around 6,000 people across Australia (IBISWorld)

-In 2013-14, the wholesale value of Australian ice cream production was $365 million (ABARES)

-In 2013-14, the retail value of Australian ice cream sales was $1.1 billion (ABARES)

-The most popular flavours of ice cream in Australia are vanilla, chocolate, and strawberry (Nielsen)

-In 2015, Australians consumed an average of 16 litres of ice cream per person (Euromonitor International)

-Australia is the ninth largest ice cream market in the world (Euromonitor International)

-The ice cream industry is forecast to grow at an annual rate of 2.5% over the next five years (IBISWorld)

Should you enter this kind of business? The honest truth 

Begin with what your business goals are like. Also, survey the demand for ice cream in your area. Most importantly, thoroughly review and understand your financial situation. But, if you’re passionate and committed, then it’s worth considering! Here are a few things to keep in mind as you decide whether or not to enter the ice cream business:

1. Know your competition. Ice cream is a popular treat, so there’s a good chance there are already shops in your area. Before you start your business, do some research on other local shops to see what they’re doing well and where they could improve. This will help you develop a unique selling proposition (USP) for your own shop.

2. Consider the costs. Starting an ice cream is costly, so make sure you have the financial resources to cover the initial investment and ongoing expenses. Make a list of all the needed supplies as well as any build-out costs for your space.

3. Develop a marketing plan. Even the best ice cream won’t sell itself – you’ll need to promote your business to attract customers. Brainstorm some creative marketing ideas that will help you stand out from the competition.

4. Be prepared for seasonality. Ice cream is typically a summertime treat, which means experiencing a lull in sales during the colder months. Plan ahead and make sure you have enough cash flow to cover your expenses during the slower times of the year.

5. Have a solid business plan. Before you launch your business, it’s important to have a detailed business plan in place. This document should outline your goals, strategies, and financial projections for the shop.

If you’re serious about starting an ice cream venture, then it’s important to do your research and prepare accordingly. By following these tips, you’ll be on your way to sweet success!

In conclusion 

After discussing the pros and cons of starting an ice cream shop, the conclusion is clear: it can be a very lucrative business. But, there are some important things to keep in mind as it will not be a walk in the park. If you do your research, plan carefully, and execute flawlessly, you can be successful. However, if you don’t pay attention to the details, your business could quickly become a mess.

If you need to have some inspiration, Aurora Foods is one to look up to. Therefore, we have mastered the art of running an ice cream business. More so, we never stop innovating and improving for our esteemed clients. We can also be your partner so get in touch with us now to discuss how.

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