How To Start Softy Ice Cream Business- Investment, Profit. Complete Guide

Hello curious business mind, I know you eagerly want to know about how to start softy ice cream business. But before we go deep down into this let’s understand some brief points about the softy ice cream industry. Also here is the table of contents available, by which you can directly go to the part you want to know about.

  • Just to add clarity, softy ice cream is slightly different from regular ice cream. It is less fattening (3 to 6%) than a regular one (10 to 18%) and softy ice cream is stored at 25℉ while regular ice cream is stored at 5℉.
  • Softy ice cream/soft ice cream/soft serve/soft serve ice cream was first invented in the early 1930s. Ice cream is the most popular dessert among all ages group, especially in the peak months of summer and can either be had in frozen foods or be eaten just as a snack.
  • According to market researcher IMARC, the ice cream market in India’s size reached INR 194.1 Billion in 2022. Looking forward, IMARC Group expects the market to reach INR 508.4 Billion by 2028, exhibiting a growth rate (CAGR) of 17.5% during 2023-2028. So, now you know the potential of the softy ice cream business plan.

So if you are thinking of softy ice cream business ideas and want to make your own ice cream brand then lets us know how to start softy ice cream business in this article of Bazaar Neeti. Let’s Go!

How To Start Softy Ice Cream Business

Initial Guide to How to Start Softy Ice Cream Business:-

  Location –

Since ice cream is loved by people of all ages, teenagers, kids and adults as well. In India, youth under 26 years old account for 53% of the population, making them the key demographic for the ice cream and frozen dessert sector. As every business location always matters to showcase your product to the right customers, you can go through these locations for the ice cream business.

  • Street Vendors: You have often seen in your locality there are some local ice cream carts selling their ice cream. Either you can be movable with your ice cream cart or immovable by opening an ice cream parlour to reach a vast number of customers.
  •  Festivals & Carnivals: You remember when we were kids we were always excited to go to carnivals and eating ice cream is one of the top reasons. Because of its accessibility and affordability, you can go to this location.
  • Market Place: Shopping Malls, Movie Theatres, Parks, Railway Stations, and Canteen come under market place. A very good number of customers from different segment visits malls, theatres and parks, and they can be your targeted customers. Also, you can choose the canteen which can easily sell softy ice cream with multiple menus.

  License Fee For Softy Ice Cream Business –

If you are owning an ice cream business you should focus on some mandatory licenses, that can protect your business in future. Never avoid this. You have to be well-informed about the current regulations of the city you are operating in. And have to follow several rules and regulations laid down by the local authorities. Failure to which can attract penalties and challans. Here are some of them :

  • Food license from FSSAI
  • GST Registration
  • Legal Functioning: MSME (Udyam Registration)
  • Police Eating House license
  • Local municipal authority
  • Fire license

  Softy Ice Cream Machine –

  • Soft Serve Ice Cream Machine
  • Blender (For Mixing)

  Labour/Man Power Required For Softy Ice Cream Business –

Well, most business people took the wrong step here by thinking they alone can do it all by themselves. But keep this in mind hire at least 1 skilled and 1 unskilled staff for the softy ice cream business. And at starting phase of the business, you can do the remaining work by yourself like cashier, taking customer feedback, managing the operation, etc.

  Softy Ice Cream Raw Materials –

  • Premix Powder
  • Milk & Sugar
  • Flavours
  • Cones & Cups

Investment In Softy Ice Cream Business:-

Now after choosing the best location for your softy ice cream business. You have to do some investments in multiple assets. We will all take a rough idea, so it might be something different in your numbers but yes calculation is quite similar. You have to do some investments in multiple assets. Let’s understand one by one;

  Softy Ice Cream Business Setup Cost –

  • Land: You can start from 200 sqft but you can adjust it to 400-500 sqft by adding a good ambience, and a well-sitting arrangement.

Rent Cost                        =  ₹20,000/month

  • Softy Ice Cream Machine: 

Soft Serve Machine Cost =  ₹1,20,000 (For 3 Nosle)

Blender Cost                   =  ₹3,000

  • Furniture:

Counter                           =  ₹10,000

Sitting Arrangement       =  ₹20,000

  • License:                     

License fees up to           = ₹10,000


Total                               = ₹1,83,000

Softy Ice Cream Business Profit

Softy Ice Cream Business Profit Calculation:-

So, your softy ice cream business economics calculation is completely dependent on the set-up cost, quality service, hygiene food, varieties of flavours, per unit cost, etc. And you can easily calculate it by yourself, and for that here is the complete chart of income in the softy ice cream business.

  Making Cost –

  • 4 ltr Milk                ₹60 × 4   =  ₹240
  • 1 kg Premix           ₹260 × 1  =  ₹260
  • Cone 100 pcs         ₹1 × 100  =  ₹100

  Cost of 100 pcs Softy Ice cream =  ₹600

  Selling Cost –

If the selling price of 1 cone softy   =  ₹20

& you sell 100 pcs cone (100 x ₹20)= ₹2000

Now if you serve 50g Cream in 1 Softy Cone then in 5kg (5000g) Icecream Material you can serve 100 Cones.  (5000g/50g = 100 servings)

  Soft Serve Ice Cream Business Profit –

Profit = Selling Cost – Making Cost

         = ₹2000 – ₹600    

          = ₹1400/day (By selling 100 cones)

It means that by selling 1 softy ice cream you earn a profit of ₹14. So, by selling 300 cones per day, you can easily make;

= ₹14 × 300 pcs      = ₹4200/day

= ₹4200 × 30 days  = ₹1,26,000/month


  Expenses In Softy Ice Cream Business –

Salary (2 Man Power) = ₹25,000/month

Electricity Bill              = ₹1000/month

Rent                            = ₹10,000/month

Other Expenses          = ₹5000/month


Total Expenses           = ₹41,000/month

So, here is your final soft serve ice cream business profit;

Total Income   = ₹1,26,000

Total Expenses    = ₹41,000


Total Profit        = ₹85,000/month

Marketing Strategy For Softy Ice Cream Business:-

So, there is a very famous quote for marketing;

“Listen to your customers, not your competitors.”

To increase sales of your softy ice cream business you have to keep these points always in your mind.

  • USP (Unique Sellling Proposition)
  • Branding
  • Supreme Hygiene And Cleanliness
  • Ads in Local Newspaper
  • Offers, Discounts & Loyalty Programs
  • Social Media Marketing
  • Introduce online orders then send them special discounts by SMS/Whatsapp

Major Problems in Softy Ice Cream Business:-

  • Lack of Softy Ice Cream Business Plan
  • Laws & Regulations
  • Cash Crisis
  • Low Sell in the off-season
  • Employees Management
  • Natural Factors

Solutions to Problems in the Soft serve Ice Cream Business:-

  • Lack of Softy Ice Cream Business Plan
  1. Softy Ice Cream business plan is the most useful term that many entrepreneurs neglect in starting and this always leads to their business failure. Firstly you should have a clear vision of your business’s present position and its future position, where you want to see your business be reached. 
  2. Start writing about your complete softy ice cream business plan, like, initial set-up cost, target customer, location for your business, pricing for your softy ice cream, quality, etc.
  • Laws & Regulations
  1. Whenever you start any business you should always know about the laws and regulations in your business. As we have touched on some of the required licensing for the softy ice cream business.
  2. You must have to aware of your local authorities and regulations to start any kind of business. All you can do is get in touch with a government official for more details.
  • Cash Crisis
  1. You know as per the study 82% of business failures are due to poor cash flow management. What you should focus on is every single expense in your softy ice cream business and on investment that leads to an outcome.
  2. You should focus on pricing, raising funding, supplier money, and crediting to customers.
  • Low Sell in the off-season
  1. You should never compromise your product quality.
  2. You should keep an eye on the market and accordingly put the price of your softy ice cream.
  3. Your behaviour should be good towards your customer. Because they will be your first promoter.
  4. There might be a chance you will lose some customers in the winter season. So, keep patience and try to offer some discounts to attract new footfall.
  • Employees Management
  1. Don’t rush to hire. Take your time and hire well-skilled employees who should be hard-working as well.
  2. To retain your employees you should focus on their pain points. Make a good relationship with them.
  • Natural Factors
  1. Weather can play a spoilsport for your softy ice cream business. The footfall might not be the same every day. Start home delivery for the customers.
  2. You should be prepared financially for natural disasters.

Conclusion:- 

By considering all these points, a softy ice cream business will be a good business idea. However, running a softy ice cream business needs a lot of groundwork. But if you work with all the hard work and dedication, you definitely will succeed. If you have any doubts regarding your business you can contact us. Good luck!

FAQs:-

Q. Is softy ice cream business profitable?

Ans. It depends on how your sale is and what kind of market you are targeting. And the ideal profit margin to be set in soft serve ice cream is somewhere between 30% to 40%.

Q. What is the price of softy ice cream cones?

Ans. The cone’s price can start from 0.50 paise and you can go up to ₹10 as per your business requirement.

Q. How much does softy making machine cost?

Ans. Soft Serve Machine Cost is ₹1,20,000 (For 3 Nosle). But you can go for the advanced machine as per your capital.

Q. What is the difference between ice cream and softy?

Ans. Ice cream is stored in tubs and needs to be scooped, whereas soft serve comes out without any scooping needed. It is less fattening (3 to 6%) than a regular one (10 to 18%) and softy ice cream is stored at 25℉ while regular ice cream is stored at 5℉.

Q. How is softy ice cream made?

Ans. Soft serve is generally lower in milk fat 3% to 6% than ice cream 10% to 18% and is produced at a temperature of about −4 °C (25 °F) compared to ice cream, which is stored at −15 °C (5 °F). The machine freezes the mixture at a temperature a few degrees warmer than hard-packed ice cream. While being frozen, the soft serve is whipped continuously to incorporate air. The more air, the softer the texture and the lighter the taste.

Q. How to start a small ice cream business?

Ans. To start a softy ice cream business in India, you should take care of Location, License, Investment, Product Quality, Targeted Customers, and Marketing.

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