Archive for July, 2011

Ice Cream and Frozen Desserts in the U.S.: Markets and Opportunities in Retail and Foodservice

The U.S. market for ice cream and related frozen desserts neared $25 billion in 2009, with sales growth from previous years slowed somewhat by the recessionary economy. Manufacturers of retail frozen desserts and operators in the frozen dessert foodservice industry (which accounts for better than half of total category sales) adjusted their prices in order (or held the price line and reduced package sizes) to keep consumers screaming for ice cream instead of about how much it cost. Price controls and price-based promotions are likely to stay in effect as the economy slowly rebounds. So, too are cost-saving trends like the consolidation of companies and brands, as in the case of Hood and Brighams, and industry production and administrative facilities, as practiced most notably by Unilever.

Continue Reading 1 comment July 5th, 2011

About Ice Cream Shop Business Plans,Licenses,and More

Answers About Business Plans, Licenses, and More

If you are thinking about opening an ice cream / gelato / frozen yogurt store, you probably have many questions. Some of those questions may include:

  • How much money do I need to open an ice cream shop?
  • What kind of ice cream equipment do I need?
  • How much money can I make the first year?
  • What kind of licenses and permits do I need in order to open an ice cream store?

This article will try to answer those questions, although in reality, there are no set answers. It all depends greatly on your location, budget, business skills, etc.

First things first though, if you are considering opening an ice cream shop, make sure to write a step-by-step business plan to guide you along the way. Your ice cream store business plan should include information about your market and your competitors. Think about things like who you are trying to target (your market) and how your shop will differentiate from your competitors (you must have a strong competitive advantage). Other things your gelato or ice cream shop business plan should include are your marketing / advertising strategy, how you’ll price each product, how many employees you plan to have, etc.

Another advice would be to visit every ice cream shop in the area and study things like their layout/design, menu, etc.  Also, if you don’t have any experience in the field, try getting a part-time job at a local ice cream shop.

Now, the answer to your questions:

  • How much money do I need to open an ice cream shop?

It really depends on the kind of ice cream/gelato store you would like to start and your budget.  You can possibly buy a franchise or an existing small location for around $50,000 or start your own from anywhere between $100K and $500K.

  • What kind of ice cream equipment do I need?

Depending on the type of shop you want, you could start with a simple ice cream dipping cabinet or have other ice cream equipment like a soft-serve machine, batch freezers to make your own ice cream/gelato/sorbet, or the amazing Pacojet to make all kinds of frozen-dessert treats.  Again, it really depends on your budget.

  • How much money can I make?

The best way to find out the answer to this question, is to write a specific business plan with a profitably section. Also, Electro Freeze has a special website called Ice Cream Academy which offers several courses to help your store become more profitable. http://icecreamacademy.com

Also, this great profitability calculator can give you an idea about how much money you can make on items such as soft-serve, shakes, and slushies, per day, weekly, monthly, or per year. http://www.electrofreeze.com/profitability/calculators

  • What kind of licenses and permits do I need in order to open an ice cream store?

Start by visiting your city’s business license division to find out which city licenses you’ll need. Then visit your state’s government website for information about state permits. Lastly, through the IRC’s website (www.irc.org) you can apply for a federal tax ID number.  If you need help, hire a lawyer, and/or accountant to help you during this, sometimes confusing stage.

Lastly, we have put together a group of resources for you:

NICRA: A good place to visit is the National Ice Cream Retailers Association, a non-profit trade association of ice cream retailers, wholesalers, and suppliers to the frozen dessert industry.  You can visit their website at: http://www.nicra.org

Ice Cream Academy: Offers courses designed for entrepreneurs who desire to enter into a high-profit business, those who wish to explore a new career, ice cream shop and restaurant owners who want to increase profits, and business owners who want to have the best equipment to efficiently produce their product. http://icecreamacademy.com/

Score: Free small-business mentoring and training. They offer several services such as writing a business plans, market and competition research, etc. http://www.score.org

Small Business Administration: Information resource for small businesses, small business owners, and prospective business owners. http://www.sba.gov

Add comment July 5th, 2011

Gelato Ice Cream Trends

Trends

When it comes to gelato, the flavors that can be created are truly limitless. Keeping flavors new and fresh to maintain interest is key for longevity and success in the gelateria. Gelato makers around the world continuously research and develop new flavor profiles to entertain those with the most basic to the most refined palate. Every year offers up something different and the food trends that emerge can play a big part in flavor development.  From veggies, herbs and oils to spices and exotic fruits, gelato flavors can truly create a stir.  While traditional flavors represent a large part of sales because they capture a larger target audience, there is always someone out there looking for something exciting and that’s where creating new flavors is imperative.

Creating modern flavor trends usually falls into a few categories that ultimately define the wide-range of intriguing flavors each year.

Culture


  1. Heritage & Tradition Impact Desired Flavors

    While gelato has a long tradition in Italian culture, each country’s culture impacts the development of new and modern gelato flavors. Gelato makers who don’t adapt to their cultural surroundings can face financial hardship because they are not supplying the demand properly. Modern flavors recognized around the world include: • Dulce de Leche or Caramellatte (South America) • Green Tea (Asia) • Rice (Asia) • Red Bean (Japan) • Torrone (Italy) • Spekulatius (Germany/Netherlands) • Tiramisu (Italy) Americanized Gelato as an Example:Ice cream is a billion dollar industry in the U.S., and while chocolate and vanilla remain at the top as most craved for flavors, it’s the newest concoctions stemming from the big ice cream companies that keep American wanting more. The same can be said for gelato. To stay up on the market, American gelato makers have incorporated modern mainstream flavors such as: • Cake Batter • Cookie Dough • Peanut Butter Cup • Rocky Road

Hybrid Flavor Creations


  1. Sometimes Two Taste Better Than One

    Two is twice as nice! In Italy, gelato is generally served with two flavor combinations side-by-side; however gelato makers are taking it one step further by creating hybrid flavors. Research has found that many flavors complement each other well when mixed together and create a new, intense flavor profile. The list of different hybrid creations can go on and on, but some of the favorites include: • Praline Hazelnut • Banana Caramel • Raspberry Chocolate • Strawberry and Cream • Strawberry Banana • Chocolate Peanut • Cinnamon Hazelnut • Chocolate Cappuccino • Banana Walnut • Chocolate Cherry • Peach Mango • Mint Chocolate

Infusing Alcohol


  1. Adding a Little Kick

    Frozen desserts and alcoholic beverages have always played well together. Gelato flavors created with or enhanced with alcohol creates a product that arouses the sophisticated palate. Gelato flavors made with spirits includes: • Merlot • Peach Champagne • Pina Colada • Strawberry Cabernet • Bailey’s Irish Cream • Malaga (Rum & Raisin) • Crème a l’Orange Cointreau

Local Markets


  1. Freshly Grown Local Produce & Gelato

    The agricultural and geographical landscape of an area can play a tremendous part in determining the flavor of foods preferred by consumers. Locally grown fruits and vegetables, seasonal offerings and availability all contribute to the uniqueness of each gelato maker’s flavors. This is even the case for some traditional flavors as well, as they can vary by country and market. What can be considered a virtually unknown flavor here in the U.S., can turn out to be a prominent flavor somewhere else. Some flavors that are exotic to the U.S. or certain U.S. regions, but recognized in other parts of the country and world are: • Tres Leche • Pomegranate • Pear • Pumpkin (seasonal) • Guava • Passion Fruit • Papaya

Meal Replacement & Savory


  1. Yes, Gelato For Dinner

    Many can recall the “three-course chewing gum” that leads to the fall of Charlie and the Chocolate Factory’s Violet Beauregard. If you don’t, the short version of the story is that a new gum was invented that offered up a whole meal just by chewing it, everything from soup to roast beef, and blueberry pie. However the gum was not thoroughly tested and the greediness of young Violet, who grabbed the gum without permission, caught up to her and on the last course of blueberry pie, she turned into a blueberry. The movie and “three-course” gum touched on the popular topic of meal replacement. Because of the nutritious properties of gelato, it has often been considered a meal replacement. With that said, gelato makers have been experimenting to offer gelato flavors that can be served at any meal, or complement an existing recipe. Popular flavors include: • Basil and tomato • Olive oil and parmesan cheese • Balsamic • Chocolate chili

Sky’s the Limit


  1. Never a Shortage of Gelato Flavors

    The final category is really the miscellaneous flavor that doesn’t fit in any of the other categories or just represents standard flavors that are more modern than the traditional ones. As the category header states, for the gelato maker the sky’s the limit. It just takes creativity, passion and a desire to try new things to develop a great modern flavor. Some modern flavors worth trying: • Cheesecake (Quarcream) • Pink Grapefruit • Bubble Gum • Cotton Candy • Coffee • Coconut • Watermelon • Kiwi

What modern flavors have you tried? Inspired to try something new?

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