How to start an ice cream truck business? Definitive Guide

The familiar jingle of an approaching ice cream truck is sure to occupy a prominent space in your childhood memories. After growing up, if an ice cream business is still reigning large on your mind, then this blog has been curated for you.

The very thought of an ice cream truck fills one’s mind with joy. And the good news is, the business is emotionally rewarding and financially profitable too. This business is enjoyable as you get to see the smiles of customers belonging to various age groups. It also provides an opportunity to earn profits. Nevertheless, if you are wondering how to start an ice cream truck business, the trick is simple. One needs to follow certain things before starting an ice cream truck business to ensure that things go on successfully.

Before starting an ice cream truck business, you must choose the type that you wish to operate. A few ice cream trucks serve only prepackaged ice cream novelties. You could choose this type if you prefer a less labor-intensive and less expensive business model. However, if you choose to offer soft-serve or hard-packed ice cream cones and sundaes, it is a different ball game altogether.

Considering you work only for 20 hours a week; you can expect to generate an average of $5,000. This also depends on the number of warm months in the place you operate. So, after meeting all your expenses, you are likely to enjoy an average net profit of approximately $30,000 annually.

Starting and running an ice cream truck business is profitable because it has a huge consumer base and follows a mobile business model. Just like any other business, this enterprise requires preparation and capital too. So, let us  look at the costs involved before entering the industry.

1. Price Of The Truck – If you plan to buy a new ice cream truck it is sure to cost you anything between $50,000 to $100,000 depending on the model and brand chosen. A used ice cream truck is more economical and costs between $20,000 and $40,000.

2. Inventory & Equipment – For this business, you will require goods like ice cream, cones, cups and spoons. This could cost you between $2,000 and $5,000. Other equipment like ice cream machines, cash registers and other such machines are required. This will cost anything between $5,000 to $10,000.

3. Permits & Licenses – The cost of permits and licenses will vary depending on the state and will cost anywhere between $500 and $5,000. You will be required to  get insurance for the ice cream truck business which will cost anything from $1,000 to $2,000.

With deeper investigation of the local competitors and market demand, one can make more informed decisions. Startup costs can be reduced significantly by choosing a used or reconditioned truck, second-hand equipment and inventory.

Therefore, the initial cost for launching an ice cream truck will range from $20,000 to $100,000. As an entrepreneur, you must consider all costs meticulously and ensure that you have ample financial reserves. All one needs is proper planning to make informed decisions that will generate revenue and maximize the profitability of the business.

1. You Are Completely In-Charge – You are the boss, and you own everything when you operate an ice cream truck. You decide your working hours, the way you operate and what you would offer to the customers.

2. Great Freedom – You get to experience true freedom when you own and operate an ice cream truck. You can put your creativity to practice, design the look of the truck and the locations you will be serving your ice cream from.

3. Earn A Good Amount Everyday – When you operate an ice cream truck, you can easily generate $200 or more as profit. This is a decent amount for a low-maintenance business. This amount could even double or triple during weekends and holidays, especially if the location attracts considerable crowds. During summer months, when the demand for ice cream is naturally high and you operate every day, you can earn an average of $20,000 that is worth 3 months of work.

4. Easy To Start – The barrier for entry into an ice cream truck business is very low. Even if you are a complete novice, you will find it very easy to start this straightforward, uncomplicated business. It is also an affordable option as you can start this business with less than $10,000 in hand.

5. Opportunity For Growth – After operating the business for one or two summers, the entrepreneur can understand the nuances of the trade and make plans to expand it. And very soon, you will have an entire fleet of trucks operating under your brand name.

6. People Love Ice Cream – One need not make any special effort to attract customers on a hot day. Customers will come swarming to an ice cream truck as everyone practically loves cold dessert and is also accustomed to the way an ice cream truck works.

1. The Product Is Seasonal – Ice cream is a seasonal product. Selling it is an advantage and disadvantage. Ice cream trucks predominantly operate during hot, summer days. You can work for 4 or 5 months more, depending on the location's climate. However, the peak and profitable season is between late May to late August or early September.

2. Zoning Regulations – The restrictive zoning regulations of a few municipalities make it quite difficult for people to operate their ice cream truck in a few locations of their choice. You might get fined for trying to sell from certain locations. A few municipalities restrict ice cream trucks from being in the same spot every day.

3. Annoying Music – This is a disadvantage that must be considered. Even soothing music can be annoying after a while. Do not overlook this disadvantage. As your ice cream truck keeps travelling and stationed at different spots, people will hear your fun jingle just for a few minutes. But, as an owner, you will hear it for several hours a day. You may have to suffer until you learn to tune your mind out of the jingle.

4. Maintenance Costs – An ice cream truck business involves low overheads. But the need for spending on maintaining it will be consistent. Ice cream trucks need to be repaired periodically. Spending on maintenance is inevitable, especially if you are buying a used vehicle. In case of a vehicle breakdown, you will not be able to operate the business for the day, thereby affecting your profits.

5. Compact Space – Your workspace will be very small. If you are claustrophobic, then this is not the right kind of business for you. This is because you will be confined in a small space for several hours in a day. You can of course get out of the truck and walk for a while. But it is practically not possible to stay far away from the truck as you might miss out on customers visiting the spot.

6. Children As Customers – Most of the customers visiting an ice cream truck will be children who are immature. You will require a lot of patience while handling them, especially if you are looking for loyal customers. Also stay mentally prepared in helping them sort out their money too.

7. High Competition – Competition in the ice cream truck industry is high. To stay unique and stand out from the crowd, one needs to be responsive to the market and stay better than the competitors (other trucks, ice cream parlors or stores) in every way possible.

1. Research The Market – Engage in a SWOT analysis to determine if there is a demand for an ice cream truck in the area and whether you will be able to sustain your business.

2. Draft A Business Plan – With the help of a business plan, you can outline the goals, target market and financial projections. It will additionally be helpful while seeking funding or investors.

3. Select Truck Type – Choose the truck type that will be ideal for your business idea. Depending on the amount you are ready to spend, you can purchase either a new or used truck or even lease one.

4. Stock The Truck – Source the ice cream products you wish to sell from a distributor. Purchase supplies like napkins, cups and spoons.

5. Obtain Necessary Permits & Licenses – You must contact the local health department to obtain necessary permits and licenses before you start operating the ice cream truck.

6. Advertise the Business – It is necessary to promote the business through social media platforms, flyers and word-of-mouth to attract more customers.