Ice Cream Shop Business Plan Template
If you want to start an Ice Cream Shop business or expand your current Ice Cream Shop business, you need a business plan.
The following Ice Cream Shop business plan template gives you the key elements to include in a winning Ice Cream Parlor business plan.
Ice Cream Shop Business Plan Example
I. Executive Summary
Business Overview
[Company Name] is a new, artisanal ice cream shop located in [company location] that serves homemade, all-natural ice cream freshly made every day. It will serve a variety of delicious flavors, smoothies, and a selection of assorted toppings. The ice cream served at [Company Name] is sure to delight anyone’s sweet tooth.
Products Served
[Company Name] will sell a variety of ice cream flavors, smoothies, and toppings to complement any ice cream. All products will be made using only fresh and all-natural ingredients. Because each ice cream is made fresh every day, it will not include any chemicals or preservatives.
[Company Name] will also offer soda and water beverages.
Customer Focus
[Company Name] will serve the community of [company location]. The community is largely made up of families, and has a large number of schools, churches, and organizations. The demographics of the target customer profile is as follows:
- 52,313 residents
- Average income of $85,000
- 74.9% married
- 16 schools to include elementary, middle, and high schools
- Median age: 39 years
In addition to the family and school population, there are also a large number of youth sports leagues, church organizations, and community non-profit organizations.
Management Team
[Company Name] will be solely owned and operated by [Founder’s Name]. She has been making ice cream at her home for the past twenty years for her husband and children as a hobby. To the urging of her family and friends, [Founder’s Name] began providing ice cream on a larger scale to school events, church gatherings, and social events. She quickly gained a following and increased demand prompted [Founder’s Name] to open a retail ice cream shop.
[Founder’s Name] is a career accountant and is very adept at bookkeeping and taxes for running a business. She will employ a staff of part-time employees to assist her with the daily ice cream preparation, customer service, and cleanliness of the business.
Success Factors
[Company Name] has several advantages over its competition. Those advantages include:
- The company’s competitors use packaged ice cream that was made weeks ago in a large warehouse and sent out for distribution. [Company Name]’s ice cream is made fresh, in-store, using all-natural ingredients.
- The ice cream shop will be located in a highly trafficked, prime retail location in a busy intersection of town.
- [Founder’s Name] has lived in [company location] all of her life and has raised her family in the same community as her target market. She has many connections with the local schools, churches, and organizations.
- [Company Name] will offer premium artisanal ice cream at a price point that is competitive with other establishments and be moderately priced for fresh, all-natural ice cream.
Financial Highlights
[Company Name] is seeking $200,000 in funding to launch its ice cream store. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.
The breakout of the funding may be seen below:
- Store design/build-out: $75,000
- Ice cream making and vending equipment: $95,000
- Marketing and advertising: $10,000
- Staffing costs: $10,000
- Working capital: $10,000
The following graph outlines the pro forma financial projections for [Company Name] over the next five years:
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $738,000 | $1,716,272 | $2,007,297 | $2,331,125 | $2,694,524 |
| Total Expenses | $639,595 | $1,021,515 | $1,110,127 | $1,190,308 | $1,273,715 |
| EBITDA | $98,405 | $694,757 | $897,169 | $1,140,817 | $1,420,809 |
| Depreciation | $16,560 | $16,560 | $16,560 | $16,560 | $16,560 |
| EBIT | $81,845 | $678,197 | $880,609 | $1,124,257 | $1,404,249 |
| Interest | $18,554 | $16,235 | $13,916 | $11,596 | $9,277 |
| Pre Tax Income | $63,291 | $661,962 | $866,694 | $1,112,661 | $1,394,972 |
| Income Tax Expense | $22,152 | $231,687 | $303,343 | $389,431 | $488,240 |
| Net Income | $41,139 | $430,276 | $563,351 | $723,230 | $906,732 |
II. Company Overview
Who is [Company Name]?
[Company Name], is located at [insert location here] is a new, upscale ice cream shop focusing on providing artisanal and specialty crafted ice cream. We will also sell gelato, beverages, and ice cream smoothies.
[Company Name] was founded by [Founder’s Name]. [Founder’s Name] has been making ice cream at home as a hobby for over twenty years. With the encouragement and persistence of family, friends, and other members of her community, [Founder’s Name] has begun providing ice cream out of her home for the past year for social events and gatherings. Word quickly spread and the popularity of her ice cream became so much that, [Founder’s Name] decided to establish a retail location of her own in the heart of the community.
Much of the community is made up of school-age children and families that frequent ice cream shops. There is not much competition and [Company Name] would be the only artisanal ice cream shop in [insert location here].
[Company Name]’s History
[Founder’s Name] has been consulting with an attorney and CPA over the last few months to understand the business and financial obligations that go with owning their own business. Her lawyer has advised [Founder’s Name] that [Company Name] should be incorporated as an S-Corporation on [date of incorporation].
[Company Name] is currently still being operated out of [Founder’s Name] home, but she has identified a prime retail location for the ice cream shop and has begun lease discussions with the landlord and management company.
Since incorporation, the company has achieved the following milestones:
- Found retail location and signed Letter of Intent to lease it
- Decided on the company name, and developed the logo and website
- Developed the ice cream menu
- Determined the equipment and inventory requirements
- Began recruiting key employees that will be integral in the operation of the ice cream shop
[Company Name]’s Products/Services
Below is [Company Name]’s initial menu. All ice cream products will be homemade using all-natural ingredients and toppings.
- Delectable Chocolate
- Very Vanilla
- Cookies and Cream
- Chocolate Mint
- Sensational Strawberry
- Rockin’ Rocky Road
- Butter Pecan
- Rum Raisin
- Mango Sorbet
- Pineapple Sorbet
Store Design
[Company Name] will design a functional ice cream shop in a 1,500 square foot space. The ice cream shop will include the following:
- Ordering counter
- Display area for available ice cream flavors
- 6 small tables to accommodate 12 to 15 customers
- Small sink and washing area
- ADA-compliant restrooms
[Company Name] will have 12 dedicated parking spots in the retail strip area where it will be located.
[Company Name] will be open 7 days a week, from 11:00 am to 8:00 pm.
III. Industry Analysis
Over the next five years, the Ice Cream Shop industry is expected to increase to more than $6 billion. This growth will be driven by per capita disposable income, which is expected to increase at an annualized rate of 2.1%.
Ice cream has long been a dessert staple in the United States and ice cream’s popularity in American culture has prevented a decline in demand for industry products. Therefore, while some consumers are eating less ice cream, the popularity of this item continues to drive demand for store offerings. However, industry operators have increasingly introduced new products and flavors with healthier options to cater to changing preferences.
The price of milk is also estimated to decrease at an annualized rate of 0.2%, lowering purchase costs and boosting profit margins for industry operators. Revenue volatility in the industry is low, and demand for ice cream and gelato products is largely seasonal. During the warmer summer months, industry operators experience increased demand as more consumers indulge in the cool treats.
IV. Customer Analysis
Demographic Profile of Target Market
[Company Name] will serve the community residents of [company location] and its surrounding areas.
The area we serve has dozens of elementary, middle, and high schools, as well as numerous sports organizations, churches, and activities. [company location] is mostly a family-friendly community whose residents regularly consume ice cream and dessert items.
The precise demographics of the town in which our retail location resides is as follows:
| Springdale | Wyndham | |
|---|---|---|
| Total Population | 26,097 | 10,725 |
| Square Miles | 6.89 | 3.96 |
| Population Density | 3,789.20 | 2,710.80 |
| Population Male | 48.04% | 48.84% |
| Population Female | 51.96% | 51.16% |
| Target Population by Age Group | ||
| Age 18-24 | 3.68% | 3.52% |
| Age 25-34 | 5.22% | 4.50% |
| Age 35-44 | 13.80% | 13.91% |
| Age 45-54 | 18.09% | 18.22% |
| Target Population by Income | ||
| Income $50,000 to $74,999 | 11.16% | 6.00% |
| Income $75,000 to $99,999 | 10.91% | 4.41% |
| Income $100,000 to $124,999 | 9.07% | 6.40% |
| Income $125,000 to $149,999 | 9.95% | 8.02% |
| Income $150,000 to $199,999 | 12.20% | 11.11% |
| Income $200,000 and Over | 32.48% | 54.99% |
Customer Segmentation
We will primarily target the following four customer segments:
- Parents of young children: the area has a large population of parents of young children who regularly treat their children to ice cream as a treat.
- Middle and high school-age students: there will be many middle and high school kids who will walk to the ice cream shop for a treat after school or on weekends.
- Local youth sports organizations: the area is also widely known for having many local youth sports teams. We expect the teams to gather at the ice cream shop after games and practices.
- Local working community: [Company Name] expects to draw in a lot of workers in various industries coming to purchase ice cream during work lunch hour or break.
V. Competitive Analysis
Direct & Indirect Competitors
Creole Creamery
Creole Creamery is an old-school, traditional American ice cream parlor that was founded in New Orleans. Now with 15 locations across the U.S., Creole Creamery specializes in artisan ice creams and sorbets made fresh in-house daily. The diverse flavors offered at this uptown ice cream parlor (which change daily) are unique and unusual, but it also offers classic milkshakes, ice cream floats, and banana split sundaes.
Sub Zero
Established in 2004, Sub Zero Ice Cream is a franchise that uses the science of cryogenics to make fresh, custom frozen desserts for each customer. While standard recipes are offered, customers may choose from a variety of cream bases and mix-ins to make a custom flavor, and the concoction is then flash frozen to create a smoother, creamier product than traditional ice cream. The menu features:
- Ice Cream
- Frozen Yogurt
- Frozen Custard
- Reduced Fat ice cream
- Smoothies
Ice Cream Depot
Ice Cream Depot is a US-based provider of ice cream, frozen yogurt and other frozen beverages. The company was founded in 1945 and is headquartered in Canton, MA. Ice Cream Depot is famous for its 31 flavors slogan customer sampling of ice cream flavors. Since 1945, it has introduced more than 1,300 new flavors. The brand operates 2,560 domestic and an additional 5,422 international locations.
In addition to traditional ice cream, its locations also offer cakes, desserts and prepackaged ice cream. These products are produced by the corporate division and then sent to franchise locations to be sold.
Competitive Advantage
[Company Name] has several advantages over its competition. Those advantages include:
- All-Natural and Homemade Ingredients: The company’s competitors use packaged ice cream that was made weeks ago in a large warehouse and sent out for distribution. [Company Name]’s ice cream is made fresh, in-store, using all-natural ingredients.
- Location: [Company Name] will be located in a highly trafficked, prime retail location in a busy intersection of town.
- Relationships: [Founder’s Name] has lived in [company location] all of her life and has raised her family in the same community as her target market. She has many connections with the local schools, churches, and organizations.
- Pricing: [Company Name] will offer premium artisanal ice cream at a price point that is competitive with other establishments and be moderately priced for fresh, all-natural ice cream.
VI. Marketing Plan
The [Company Name] Brand
The [Company Name] brand will focus on the Company’s unique value proposition:
Promotions Strategy
[Company Name] will target all residents of [company location] within a 20-30 mile radius. The Company’s promotions strategy to reach the most clientele include:
Public Relations
[Company Name] will contact the local media to request a media blitz of the new artisanal ice cream shop. They will be featured in local newspapers and publications as well as local television stations.
Social Media
[Company Name] will be active on social media and use targeted social media advertising to attract its most likely customers. The company will post frequently of upcoming specials, events, and seasonal featured flavors.
Website
[Company Name] will have an informative and attractive website that will feature professional photos of the shop, its ice cream, store hours, address, and contact information. It will also use SEO to constantly stay at the top of search engines for anyone searching for dessert/ice cream shops near them.
Billboard
[Company Name] will have a billboard in an area of town at a busy intersection where thousands of cars and pedestrians pass daily. The billboard will have an eye-catching picture of its artisanal ice cream that is sure to grab everyone’s attention.
Partnerships with Local Schools
[Company Name] will partner with the local schools and hand out coupons to all of its students to entice them to ask their parents to take them for ice cream at [Company Name]. They will also partner with the schools on fundraising options to benefit the school as well as the company.
Partnerships with Local Businesses
[Company Name] will partner with neighboring local businesses and request they hand out coupons for the company at their place of business in exchange for discounts for their employees.
Pre-Opening Events
[Company Name] will organize a pre-opening event designed for prospective customers, local merchants, and press contacts. The event will be fun and inviting in order to create awareness for the company. Attendees will be able to sample the different flavors of ice cream.
Advertising
[Company Name] will invest in advertisements in featured local publications, such as community newspapers and newsletters.
Pricing Strategy
[Company Name]’s pricing will be moderate, so customers feel they receive great value when purchasing its products.
VII. Operations Plan
Functional Roles
[Company Name] will need to fulfill the following functional roles in order to execute their business plan and ensure the company’s success:
Administrative Functions
- General & administrative functions including legal, marketing, bookkeeping, tax, etc.
- Sourcing and storing ingredients
- Hiring and training staff
Small Kitchen Functions
- Ice Cream and Smoothie preparation
- Maintain sink, counter, serving utensils, and blender cleanliness at all times
- Ongoing ice cream menu creation and modification
Store/Retail Functions
- Order taking and fulfillment (for take-out and dine-in)
- Customer service
- Janitor personnel to maintain cleanliness at all times
Milestones
[Company Name] will achieve the following milestones in the following [] months:
- Secure prime 1,500 square foot space in retail location
- Develop website, logo, and company website
- Secure small business loan bank financing
- Implement advertising and public relations campaign
- Hire and train staff
- Finalize ice cream and smoothie menu
- Plan and execute effective Pre-Grand Opening Event
- Grand Opening of [Company Name]
VIII. Management Team
Management Team Members
[Company Name] is owned and operated by [Founder’s Name], a local accountant who has spent the last twenty years making fresh ice cream at her home as a hobby. Her children, husband, and family spent many years enjoying her delicious ice cream. Over the past year, through the constant urging of friends and family, [Founder’s Name] began providing her homemade ice cream at community social events and gatherings. Demand grew, and it quickly translated into [Company Name] becoming a reality. While [Founder’s Name] has never operated an ice cream shop, her career as an accountant makes her adept at bookkeeping and accounting of a business.
[Founder’s Name] graduated from the University of ABC with a Bachelor’s Degree in Accounting.
Hiring Plan
[Founder’s Name] will serve as the store manager. She will hire the following personnel in order to maintain an effective and profitable ice cream shop:
- Assistant store manager (will assist [Founder’s Name] with all operations functions and run the store when [Founder’s Name] is unable to be there)
- Ice Cream Enthusiasts (3-4 part-time employees who will handle customer service requests such as taking orders, serving, and cash register).
- Ice Cream Preparers (2 part-time employees will assist [Founder’s Name] with ice cream preparation every morning so that all ice cream offered is made and served fresh daily. They will also manage inventory of ingredients).
- Store Janitors (1-2 will clean the store part-time to ensure the cleanliness of the store at all times).
IX. Financial Plan
Revenue and Cost Drivers
The revenues for [Company Name] will come from the sales of the all-natural artisanal ice cream and smoothies that will be offered to its customers.
The Company will have dine-in and take-out options for its customers. As the company grows and revenues are able to support it, the store will add a drive-thru window as another option of serving its customer base.
The major costs for the company will be sourcing the fresh ingredients and production of the ice cream. Other cost drivers will be the salaries of the staff, company overhead, and advertising costs.
Capital Requirements and Use of Funds
[Company Name] is seeking $200,000 in funding to launch its ice cream store. The capital will be used for funding capital expenditures, staffing, marketing and advertising expenses, and working capital.
The breakout of the funding may be seen below:
- Store design/build-out: $75,000
- Ice cream making and vending equipment: $95,000
- Marketing and advertising: $10,000
- Staffing costs: $10,000
- Working capital: $10,000
Key Assumptions
The following table reflects the key revenue and cost assumptions made in the financial model:
| Number of customers per day | Per location |
|---|---|
| FY 1 | 100 |
| FY 2 | 105 |
| FY 3 | 110 |
| FY 4 | 116 |
| FY 5 | 122 |
| Average order price | $7.00 |
| Annual increase in order price | 5.00% |
| Annual Lease (per location) | $60,000 |
| Yearly Lease Increase % | 2.50% |
5 Year Annual Income Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| Revenues | ||||||
| Product/Service A | $151,200 | $333,396 | $367,569 | $405,245 | $446,783 | |
| Product/Service B | $100,800 | $222,264 | $245,046 | $270,163 | $297,855 | |
| Total Revenues | $252,000 | $555,660 | $612,615 | $675,408 | $744,638 | |
| Expenses & Costs | ||||||
| Cost of goods sold | $57,960 | $122,245 | $122,523 | $128,328 | $134,035 | |
| Lease | $60,000 | $61,500 | $63,038 | $64,613 | $66,229 | |
| Marketing | $20,000 | $25,000 | $25,000 | $25,000 | $25,000 | |
| Salaries | $133,890 | $204,030 | $224,943 | $236,190 | $248,000 | |
| Other Expenses | $3,500 | $4,000 | $4,500 | $5,000 | $5,500 | |
| Total Expenses & Costs | $271,850 | $412,775 | $435,504 | $454,131 | $473,263 | |
| EBITDA | ($19,850) | $142,885 | $177,112 | $221,277 | $271,374 | |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 | |
| EBIT | ($56,810) | $105,925 | $140,152 | $184,317 | $234,414 | |
| Interest | $23,621 | $20,668 | $17,716 | $14,763 | $11,810 | |
| PRE-TAX INCOME | ($80,431) | $85,257 | $122,436 | $169,554 | $222,604 | |
| Net Operating Loss | ($80,431) | ($80,431) | $0 | $0 | $0 | |
| Income Tax Expense | $0 | $1,689 | $42,853 | $59,344 | $77,911 | |
| NET INCOME | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 | |
| Net Profit Margin (%) | - | 15.00% | 13.00% | 16.30% | 19.40% |
5 Year Annual Balance Sheet
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | ||
|---|---|---|---|---|---|---|
| ASSETS | ||||||
| Cash | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 | |
| Accounts receivable | $0 | $0 | $0 | $0 | $0 | |
| Inventory | $21,000 | $23,153 | $25,526 | $28,142 | $31,027 | |
| Total Current Assets | $37,710 | $113,340 | $184,482 | $286,712 | $423,416 | |
| Fixed assets | $246,450 | $246,450 | $246,450 | $246,450 | $246,450 | |
| Depreciation | $36,960 | $73,920 | $110,880 | $147,840 | $184,800 | |
| Net fixed assets | $209,490 | $172,530 | $135,570 | $98,610 | $61,650 | |
| TOTAL ASSETS | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 | |
| LIABILITIES & EQUITY | ||||||
| Debt | $317,971 | $272,546 | $227,122 | $181,698 | $136,273 | |
| Accounts payable | $9,660 | $10,187 | $10,210 | $10,694 | $11,170 | |
| Total Liabilities | $327,631 | $282,733 | $237,332 | $192,391 | $147,443 | |
| Share Capital | $0 | $0 | $0 | $0 | $0 | |
| Retained earnings | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| Total Equity | ($80,431) | $3,137 | $82,720 | $192,930 | $337,623 | |
| TOTAL LIABILITIES & EQUITY | $247,200 | $285,870 | $320,052 | $385,322 | $485,066 |
5 Year Annual Cash Flow Statement
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| CASH FLOW FROM OPERATIONS | |||||
| Net Income (Loss) | ($80,431) | $83,568 | $79,583 | $110,210 | $144,693 |
| Change in working capital | ($11,340) | ($1,625) | ($2,350) | ($2,133) | ($2,409) |
| Depreciation | $36,960 | $36,960 | $36,960 | $36,960 | $36,960 |
| Net Cash Flow from Operations | ($54,811) | $118,902 | $114,193 | $145,037 | $179,244 |
| CASH FLOW FROM INVESTMENTS | |||||
| Investment | ($246,450) | $0 | $0 | $0 | $0 |
| Net Cash Flow from Investments | ($246,450) | $0 | $0 | $0 | $0 |
| CASH FLOW FROM FINANCING | |||||
| Cash from equity | $0 | $0 | $0 | $0 | $0 |
| Cash from debt | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| Net Cash Flow from Financing | $317,971 | ($45,424) | ($45,424) | ($45,424) | ($45,424) |
| SUMMARY | |||||
| Net Cash Flow | $16,710 | $73,478 | $68,769 | $99,613 | $133,819 |
| Cash at Beginning of Period | $0 | $16,710 | $90,188 | $158,957 | $258,570 |
| Cash at End of Period | $16,710 | $90,188 | $158,957 | $258,570 | $392,389 |
