This article was written to provide a few basics on opening an ice cream parlor. There’s a lot more to it that is listed here, but reading this might give you a little bit of an idea of what is required. If you own an ice cream store, and would like to comment, please do. We encourage you to challenge our assumptions and contribute to our knowledge base. The most important decision you will make on the road to success is most likely to be the location you choose. You’ve probably already heard of the 3 most important factors involved in a successful retail operation: location, location, location. I cannot stress enough the importance of this, especially when it comes to ice cream. Ice cream is an “impulse” product. In other words, people who buy ice cream usually do it on impulse when they see it and are tempted. It is less likely these days that people will make a conscious thought to go to an ice cream parlor. Sure, some still do, but more sales are made to customers who happen to be brought to the area for another reason. I have listed the key factors to look for when considering your location below. If your location meets most of these, you are off to a good start:

Traffic

• Car traffic is nice, but more importantly, how many people are walking by?
• If you are counting on high car traffic, make sure that your location is easily visible from the street and easy to access (parking, etc.)
• Are they typically there to browse or to buy?
• Being in a Wal-mart type plaza doesn’t guarantee success. It depends on how close to the Wal-Mart door you are.
• Talk to existing businesses and ask them what the traffic is like.
• If you are counting on car traffic as your main traffic, a drive thru window is almost mandatory.
• Enclosed malls are better for year round traffic and people prefer them to stroll through and buy ice cream! In general, it’s better to pay more rent and be in an enclosed mall than to pay less and be in a strip mall.
• 3-4 good anchor stores would help.
• Visit the site on different days at different times to see how consistent the traffic is.
• Competition: How many parlors within a 1 mile radius? If inside a mall, who else is serving ice cream? Competition is not necessarily a bad thing. If someone else is on one side of the mall and doing well, chances are that you will do well on the extreme other side of the mall.
• Population is key. If the area is somewhat congested, that’s a good sign.
• Visibility. Will everyone who walks close by know that there is ice cream there?
• Would you buy ice cream there?
• Hours of operation: Make sure that the peak traffic flow is during hours that you’re willing and able to be open.
• Make sure you have adequate space. 800-1000 sq ft is a pretty good middle ground.
• Is the area growing?

  Good locations/Bad locations: Good:

• Indoor Malls, airports, zoo’s, university campus, amusement parks, strip malls (high traffic), next to a movie theatre, superstore (inside a Wal-mart), professional building, train station, beach area, sporting arena.

Bad:

• Strip Mall unless in thriving area with obvious high traffic (low traffic, no real anchor’s), busy street (but being on the wrong side), gas station, defunct fast food/snack operation.

LEASES:

• After you find out what they want for monthly rent, don’t be afraid to ask for a stepped up lease with a low initial amount. For example, free rent for the first month, half the rent for the next three months, then full rent beginning in month four.  Or a couple of hundred off per month for the first year. This is just a negotiating guideline. They may not go for it, but it doesn’t hurt to ask. In fact, they may be expecting you to. If you don’t, they may feel they can take advantage of you in some way. So it’s always best to shoot for the sky and then see what they will give in to. It is in their best interest to help you get off on the right foot and be successful. Many will be willing to help if they believe in you.
• From my experience, you probably don’t want to pay more than $3000 per month. It’s very hard to make a go of it at a higher monthly rent unless you are talking about an airport or ridiculously high traffic mall. An average rent for a parlor is in the $1800 range. Of course, these are just general benchmarks. An average parlor should sell around $18,000 per month. A rough industry standard says that rent should fall within 8-12% (10% x $18,000 = $1800 per month)

    INCORPORATING/FORMING YOUR BUSINESS: I am not qualified to give legal or tax advice, so I really cannot guide you here. I can tell you that incorporate.com is a great website that can explain in pretty basic terms what would be best for you as an individual or group of people and do it pretty cheap and painlessly. COST PER SCOOP ANALYSIS: In general, parlor ice cream is packed in 3-gallon tubs.  Edy’s, Breyer’s, Blue Bell and most premium brands come in 3 gallon, round cans. A ballpark figure as far as cost is concerned is about $26/tub for premium ice cream. Some companies charge less for Vanilla, Chocolate and Strawberry and a little more for everything else. The $26 is a good average figure for premium ice cream. You are supposed to get 55 four-ounce scoops out of a 3-gallon tub. This works out to .47 cents per scoop. I like to add 8 cents to the cost to cover waste, giveaways, etc. So were looking at .55 cents per scoop. Many companies will try to manipulate these figures in their best interests, but I can tell you from experience that the $.55 per 4 oz scoop is pretty reliable. Add another 5 cents for cup and spoon or the cone for a total of .60 cents per scoop. Very doubtful that in real life it works out to be any less, even if you are paying a few bucks less for the tub. Cheaper tubs usually have more air whipped in and you yield less, therefore having the same or higher cost when it comes down to it. My recommended retail is $2.00. $2.25-$250 isn’t out of the question, but might be too much depending on the area. You are in this to make money, so do some competitive research in your area and make sure that you start off as high as the market will seem to bear. Raising prices later because you realize you aren’t charging enough is never good, so make sure you pay particular attention to your pricing strategy right off the bat. The majority of new business owners make the mistake of not pricing their products high enough. Don’t let this be you. A $2.00 retail makes the COGS (cost of goods sold) 30%. (.60/$2.00 = 30%)   BASIC SAMPLE OPERATING PROFIT/LOSS STATEMENT: ( this statement is intended to be a very basic example and is not a guarantee of anything. Actual p/l varies according to hours open, full time employees, etc.) One Month: Sales:                                          $18,000 Cost of Goods: (30%)                   $(5,420) Gross Profit                                 $12,580 Less: Overhead Rent                                            $(1,800) Utilities                                       $(600) Labor                                          $(4,000) Equipment/Biz start Loan             $(1,200) Advertising                                  $(500) Administrative                             $(200) Misc                                           $(200) Total Overhead                            $(8500) Total Monthly Profit:                    $4080 OTHER ITEMS TO SELL: It is not a bad idea to try and diversify your operation as much as possible. Popcorn, cotton candy, and other fun foods are a good incremental sale. Cookies and pastries are also good if you know a good place to get them fresh. A suggestion may be Otis Spunkmeyer, a vendor of cookies, brownies, pies, muffins, etc.). 888-ASK-OTIS. SOFT SERVE? It would be great to be able to have both soft serve and hard pack in your parlor. Depending on your financial situation, this may not be a reality. Soft Serve machines are relatively expensive. They are a good investment if you are adding them to an existing snack shop and want to get into the ice cream business, but I don’t necessarily recommend them to start off with if you are on a limited investment budget and trying to get a parlor off and running. You can purchase 2 sixteen-flavor dip freezers for less than what a 2 flavor soft serve machine will cost you. Hard pack yogurt can be excellent! On the other hand, if you have the financial backing, there are many soft serve fans out there, and this can be an incremental sale. CHOOSING YOUR BRAND There are great premium brands out there such as Edy’s, Breyer’s, Blue Bell, Blue Bunny, as well as many strong regional brands. A key issue when choosing a brand is not only the quality of the product, but also the distribution services in your area. Not all brands are available in all states. You need to find out who distributes the brand (company owned routes vs. independent distributors) in your area and make sure that the organization seems capable and competent to handle your needs. Do they stock as many flavors as you want to carry? Can they give you a flavor list to order with? Who else do they service in your area (you can check with them to see if they give good service and are dependable). What brands to they distribute? MAKING YOUR OWN ICE CREAM If you feel you have the passion and ability that it takes to make your own ice cream I would not argue against it. If this is something you are thinking about, make sure you read the sample business plan closely. The bottom line is: you need to be extremely devoted (full time) to your parlor for this to work. If you are devoted, and passionate about the product you are making, you have a great chance of succeeding. The investment for a parlor that makes their own requires a substantially higher investment.   Ballpark Initial Investment: (depending on what your situation is, the minimum investment would be 15-20k if you go with a portion of the equipment used)   It can be done for less, and certainly for more, but an average independently owned basic parlor would cost you in the vicinity of 50K to put together. Depending on the theme you choose,  (“old fashioned parlor with steel stools, etc.) how much work needs to be done to the location, etc., you could be looking at 6 figures.The figures below are intended to give you an idea of how the initial start up costs might breakdown. Depending on your specific theme or situation these figures could be adjusted up or down. Working capital (basically what you should have in your checking account to maintain positive cash flow, etc.) can be as low as $3500. I’ve seen some franchise numbers that suggest a 10k working capital figure. Obviously, the higher the better and the main objective here is to guard against a slow start, unexpected costs, a need for increased advertising and promotions, etc.

Rent ($1500)      x 3 (first/last/security)                       $4500

Utilities (Deposit)                                                        $1000 Contractor (Cabinetry, etc)                                         $10,000 Ice Cream, Drinks, Cones, Candies, etc.                     $2,500 Advertising                                                                 $500 Paper goods, cleaning supplies, office sup, misc         $750 Plumbing (sink, dipper wells, etc.)                              $1500 Insurance Premium                                                    $400 Signage                                                                      $2000 Deposits/Liscences                                                    $1500 Cosmetic work to space                                              $1000 Working capital                                                          $7500 Architectural & Legal                                                 $2500 Equipment: Dipping & Storage Freezers                                     $8000 Flavorail                                                                         $2800 Under counter Fridge                                                    $1600 Waffle Cone Baker                                                        $600 Hot Fudge Warmer                                                        $400 Glasses/Metal Shake Tins                                              $350 Shake Mixer                                                                  $600 Register                                                                         $300 Total                                           $50,300

How to Set Your Ice Cream Freezer Thermostat to Hit the Optimal Scooping Temperature

   

The CLT no refrigeration cart is a tough-as-nails cart. It’s primarily used by people who want to get into vending Italian ice but are on a limited budget. If you’re planning to scoop Italian water ice, this cart might just be the cart for you because it can hold dipping temperature for quite a while. I say quite a while because it’s hard to say exactly how long it will hold temperature. Holding temperature depends on the type of ice you’re selling, how hot it is, how busy you are, and a few other factors. But in general, about 5 hours is an average time. The CLT-4 can also be used to vend prepackaged ice cream novelties or fruit bars. If you’re going to go with the prepackaged route, you’re definitely going to need dry ice. The cart has a really strong aluminum base frame that allows it to take the beating you know its going to take when being moved around from event to event. Also standard is the umbrella bracket, which makes it really easy to mount an umbrella. It sits on the base and you just tighten the screws and your umbrella is secure. A quality cart starts with a quality wheel. Nelson wheels have a high content of natural rubber. They have the softness and the bounce of an air tire, yet they’re made of rubber. What’s important about this is that rubber is naturally resistant to Ultraviolet rays; vinyl is not. Vinyl wheels after being in the sun for a year can begin to crack. So for longevity and other reasons, a rubber wheel is simply the best choice. They’re smooth, bouncy, and resilient just like an air tire, except they never go flat. The CLT-4 has an 18-gauge stainless steel top, as well as a stainless steel lid. All exposed corners are welded and polished to make them smooth. The CLT-4 holds 8 total 4 gallon tubs: 4 flavors for scoopers and 4 flavors below for storage. It has a 24-gauge stainless steel bottom, which is extremely important to an Italian ice vendor because at some point acids from the Italian ice will end up on the bottom of the cart. An inferior cart with a painted steel bottom will eventually get a hole in it; a Nelson cart will not. Also standard with the CLT-4 is a lid-locking bar, which simply slides in through the U rings to protect your inventory. Nelson carts are also NSF approved for outdoor use and come with a 5-year warranty against insulation failure. In summary, the CLT-4 is an excellent start for anybody wanting to get into the Italian ice business. There’s also a CLT-6 which holds 6 tubs on top and 6 tubs on the bottom in storage. So if you have any questions about the CLT model carts, please shoot us an email, give us a call, or visit TurnKeyParlor.com. We’re here to help and hope we can answer any questions you might have. Thanks again for taking the time to watch this video on our CLT series Italian ice carts.

Thanks for taking the time to watch this video on our SP Model Ice Cream and Gelato Dipping Cabinets manufactured by AHT out of Austria and distributed in the USA by TurnKeyParlor.com. We have several versions of the SP models, but for this video, I’m going to concentrate on the SP 12H, which holds twelve (12) 3 gallon tubs on top, and another ten (10) 3 gallon tubs on the bottom in storage, for a total of 22.  If you’re featuring gelato, the unit will hold twelve (12) 5 liter gelato tube on top, and 10 in storage. The fact that it’s 110 power and plugs into a standard outlet makes it environmentally friendly since the energy consumption is extremely low.  It’s got a simple to reach thermostat control which has a range of a -7 to +9 degrees Fahrenheit.  It measures just under six feet long and has a beautiful glass sneeze guard.  This unit is perfect if you’re planning on opening an ice cream parlor or planning on replacing older equipment in an ice cream parlor.  It’s also a great way for a pizza parlor, a deli, a coffee shop, or any other restaurant to add incremental revenue to their business. It has three pre-drilled holes, which makes it really easy to attach a dipper well, which is a mini sink where you keep your scoopers.  Casters, which are small wheels, are standard on all SP models, which is really convenient if you want to move it from one spot to another or simply clean underneath it.  The casters are simple to lock or unlock by simple pressing up or down on with foot.  All SP models are relatively maintenance free and come with a 5-year warranty on the compressor.  In the event that you do need service, there is a toll-free service line on all freezers. 3 gallon can holders are standard on all SP models.  Essentially, these holders keep the tubs from spinning when you are scooping.  They also come with night covers.  If you prefer to scoop gelato, not a problem.  We’ve got the 5 liter gelato pan racking system.  Just make sure that prior to placing your order you let us know you’re planning on dipping gelato and we’ll make sure you get the right pan racking system.  The versatility to dip both ice cream out of 3 liter containers and gelato out of 5 liter pans is a huge benefit.  The easy sliding, two-part flat-glass lids provide more protection for your product and also seal in the cold much better.  Although practically maintenance-free, you’re going to want to clean the frosties about every 6 months.  That little orange drain cap pops right off and makes this really easy to do. The curved glass sneeze guard give all the SP models a really modern and sleek look.  Although the sneeze guard is curved, it still has enough flat surface on top where you can merchandise a cone holder or other items.  These freezers ship about 2 to 3 days after you make payment and can get to you as soon as a week after that.  Thanks for taking the time to watch this video and considering TurnKeyParlor.com.  Give us a call, shoot us an email and if you have any other questions, we’ll be happy to help.

In this video we’re going to talk about options for toppings that will save you some money. If you can’t afford one of the high end topping rails, you might want to consider one of these countertop dispensers from Server. They’re really well insulated and the small footprint is really great because you can put them on almost any counter. You can have covers with ladles, ones with pumps, or you can mix and match. Using these topping dispensers is really simple. It comes with (4) one ninth jars which you can remove and replace easily. And again you can either use ladles, pumps, or a combination of both. You keep the toppings cold with two eutectic ice packs which you keep in the freezer at night and put in the unit during the day. In summary these Server counter top dispensers are great for toppings if you’re trying to save space, save a little money, and you’re not running a super high volume operation. Thanks for watching the video, and as always, feel free to give us a call or shoot us an email if you have any questions about the ice cream business.

Hurricanes and Melted Ice Cream

 

 

Ice Cream Dipping Cabinet from Neil Williams on Vimeo. Thank you for taking the time to watch this video on our TKPEDC-4 Ice Cream Dipping Cabinet. This freezer is perfect for a restaurant, pizza parlor, deli, coffee shop, or any other business that has limited space and wants to add ice cream to their offering. It features a real glass sneeze guard, which showcases the ice cream really nicely, and you know that the glass won’t scratch like some of those other cabinets out there that have Plexiglas sneeze guards that start looking old in no time. The freezer holds four (4) 3-gallon tubs on top and two in storage below for a total of six (6) 3-gallon ice cream tubs. It’s about as easy as it gets to get into the ice cream business. Essentially, it plugs right into a standard outlet so it’s pretty much plug-and-scoop. There’s a 5-year warranty on the compressor and it ships about 2 after you make payment. Depending on where you’re at, it could arrive as soon as 5 days after your payment is received. The cabinet also includes the 3-gallon can holder system, which keeps the tubs from spinning when you scoop the ice cream. It has two heat-reflective sliding glass lids which give the product extra protection and make it really easy to scoop out of. It also comes with 3 pre-drilled holes in case you’d like to add one of the optional dipper wells. Other features include an adjustable thermostat so you can set it at the temperature that is best for your specific product. The freezer is on casters, which make it really easy to move and clean under. The casters are lockable, so the freezer won’t move once the casters are locked in place. They lock simply by pressing down on them with your foot. If you’re going to have the freezer behind a counter, outside of the customer’s view, you can save some money by going without the sneeze guard. You still have the sliding glass doors, and this would save you at least $200. In summary, if your goal is to add ice cream to your business in a quick, effective and economical way, this is the perfect ice cream dipping cabinet for you.

Ice Cream- Gelato Dipping-Scooping Cart from Neil Williams on Vimeo. Thanks for taking the time to watch this video on our mobile dipping carts. The dipping cart you see here is the model BD6-CE-03 and was built custom for Molli Coolz! It’s got a sink, and it’s got cold-plates built in. Optional overhead canopies are available for all push carts. All canopies feature spring assisted support poles. This means that even the largest and complex carts can easily be broken down to fit through a doorway without tools. Very little effort is required to raise and lower the canopy making set-up and tear-down a real breeze. What used to require two people is now easily done by one operator. The canopies all feature a pull-out shade, a light fixture, and a storage shelf. It fits about six (6) 3-gallon tubs or about six (6) 5-liter gelato pans. In this case, Molli Coolz! was using gelato style tubs which called for a custom racking system. It’s got a sneeze guard with a Plexiglas door that’s really strong and also has a bumper on the bottom so that it can take the beating you know it will take on a daily basis. Another special feature on this high-end sneeze guard is a light inside and the fact that you can can stock light-weight type products like cups and cones up top. This cart has a beautiful sink system with stainless-steel tanks, California approved, 6-gallon fresh water and 8-gallon waste water. It also has a quick disconnect for when you go to fill up your fresh water tank. The quick disconnect is a California health department requirement. Right here is an overflow hose in case you go too far with filling the fresh water tank. Over on this side, you have a stainless-steel, 8-gallon waste water tank where your sink drains into. In the back you have an on-demand hot water heater and pressure pump, and when everything’s turned on you pull about 15 amps. So you turn on the faucet, it goes through the tank, though the hot water heater and out comes hot water into the sink. So then when your fresh water runs out, your pump has an automatic shut-off, and then you have to go back in and refill the fresh water tank. Emptying the waste water tank is easy; you just pull out the little hose, you just hook up a regular garden house and run it out to wherever it makes sense to get rid of all the waste water. As you can see up here, this cart has a single-bowl sink and it is NSF and UL approved. It’s also got a little grommet hole over here where from the bottom you can pull up an electrical cord from the bottom and plug in something up here on the top. The cart also has a cord grab so that the cord doesn’t get in the way when you’re moving the cart around. (more…)

Gelato Dipping Case from Neil Williams on Vimeo. Thanks for taking the time to watch this video on our SP Model Ice Cream and Gelato Dipping Cabinets manufactured by AHT out of Austria and distributed in the USA by TurnKeyParlor.com. We have several versions of the SP models, but for this video, I’m going to concentrate on the SP 12H, which holds twelve (12) 3 gallon tubs on top, and another ten (10) 3 gallon tubs on the bottom in storage, for a total of 22.  If you’re featuring gelato, the unit will hold twelve (12) 5 liter gelato tube on top, and 10 in storage. The fact that it’s 110 power and plugs into a standard outlet makes it environmentally friendly since the energy consumption is extremely low.  It’s got a simple to reach thermostat control which has a range of a -7 to +9 degrees Fahrenheit.  It measures just under six feet long and has a beautiful glass sneeze guard.  This unit is perfect if you’re planning on opening an ice cream parlor or planning on replacing older equipment in an ice cream parlor.  It’s also a great way for a pizza parlor, a deli, a coffee shop, or any other restaurant to add incremental revenue to their business. It has three pre-drilled holes, which makes it really easy to attach a dipper well, which is a mini sink where you keep your scoopers.  Casters, which are small wheels, are standard on all SP models, which is really convenient if you want to move it from one spot to another or simply clean underneath it.  The casters are simple to lock or unlock by simple pressing up or down on with foot.  All SP models are relatively maintenance free and come with a 5-year warranty on the compressor.  In the event that you do need service, there is a toll-free service line on all freezers. 3 gallon can holders are standard on all SP models.  Essentially, these holders keep the tubs from spinning when you are scooping.  They also come with night covers.  If you prefer to scoop gelato, not a problem.  We’ve got the 5 liter gelato pan racking system.  Just make sure that prior to placing your order you let us know you’re planning on dipping gelato and we’ll make sure you get the right pan racking system.  The versatility to dip both ice cream out of 3 liter containers and gelato out of 5 liter pans is a huge benefit.  The easy sliding, two-part flat-glass lids provide more protection for your product and also seal in the cold much better.  Although practically maintenance-free, you’re going to want to clean the frosties about every 6 months.  That little orange drain cap pops right off and makes this really easy to do. The curved glass sneeze guard give all the SP models a really modern and sleek look.  Although the sneeze guard is curved, it still has enough flat surface on top where you can merchandise a cone holder or other items.  These freezers ship about 2 to 3 days after you make payment and can get to you as soon as a week after that.  Thanks for taking the time to watch this video and considering TurnKeyParlor.com.  Give us a call, shoot us an email and if you have any other questions, we’ll be happy to help.

Ice Cream Cart from Neil Williams on Vimeo.