How to Start an Ice Cream Truck Business

We all “scream for ice cream,” and you’ll shriek at the profit potential in a mobile ice cream business.

Running an ice cream truck business is among the most sought-after food truck ideas. You have the flexibility to decide whether to operate on a set route or at events. Additionally, you can select the days you wish to operate and determine if you want to run your business seasonally.

For more information about ice cream trucks, and to keep track of industry trends, check out the International Association of Ice Cream Distributors and Vendors. Additionally, stay informed about this development – Nissan introduced a prototype all-electric ice cream truck equipped with rooftop solar panels, and they have been operational on the roads in the UK for a period of time.

Why You Should Start an Ice Cream Truck Business

• You love ice cream
• You have childhood memories of a neighborhood truck and want to continue the tradition
• You love children
• You want to be independent and own your own business

How to Start an Ice Cream Truck Business with These Simple Steps

Entrepreneurs and food trucks are a great match.

Before you launch your ice cream truck business, work your way through these steps:

Research Nearby Ice Cream Truck Businesses

You should research these businesses as competitors. And you should research how they do business. Find out what products they sell and what’s been most popular. You can get those answers by reading through their websites and social media pages.

Find Suppliers

The proximity of suppliers may impact what type of frozen treat you sell. Ice cream trucks are typically large, heavy diesel-fuel trucks. In other words, you want to make trips to resupply as infrequently as possible or find a supplier who will deliver. You’ll want to set up storage freezers in your home or headquarters and resupply them as needed.

Need to know: An ice cream truck is connected to a power source overnight. When fully charged, the truck can keep the ice cream frozen for 10-12 hours at a temperature of 90 degrees. This means you should ensure that your suppliers are not located too far away.

Write an Ice Cream Truck Business Plan

What’s your target market? Are you going to run various set routes, or are you going to focus on attending events? Or a mix of both? As part of your business plan, you’ll need a name. You’ll also need to estimate a budget, which will include a calculation of other expenses, including the cost of restocking, any labor costs, and the cost to purchase and maintain the truck. Without a well-written business plan, it’s unlikely for owners to get business loans.

Establish Menus, Choose Flavors, and Set Prices

There is a wide variety of delicious ice cream products available. These include hard ice cream, soft-serve ice cream, ice cream sandwiches, sundaes, pre-packaged ice cream, low-calorie options, numerous flavors, and other ice cream novelties—there’s even ice cream designed for pets. Before purchasing ice cream for your ice cream truck business, take a look at what other ice cream vendors are offering.

Form a Business Entity and Register Your Business

Your business name is very important. When you check with your Department of State, you may find that your name is already taken. You may also find that someone else has already claimed the web domain. Take your time with this step, and use friends and family to brainstorm a business name. The majority of ice cream truck business owners choose the Limited Liability Company LLC as the business entity.

Open a Business Bank Account

Open a business bank account and obtain a business credit card.

POS System

The majority of food truck vendors have switched to a contactless point of sale system, although you may still need a cash box.

Find an Ice Cream Truck

Don’t scrimp on the truck. If ice cream melts or reaches room temperature, you must discard it. Most ice cream trucks are outfitted with a deep cell battery, which is designed to be frequently drained and recharged. And the trucks will have cold plate freezers, an ice cream dipping cabinet, and soft serve machines. It’s a lot to keep cold.

If you’re purchasing a used ice cream truck, ensure it is thoroughly inspected. Regardless of whether you have a used or new ice cream truck, incorporate regular preventative maintenance into your daily routine.

Purchase Your Ice Cream Truck Equipment

If the truck isn’t already outfitted, you’ll need the cold plate freezers, the ice cream dipping cabinet, and a soft-serve machine. You’ll also need related supplies such as ice cream cones, napkins, and serving containers.

Apply for Permits and Licenses Needed for Ice Cream Trucks

Start at the state level and work your way down through the county clerk’s office and local officials. Ice cream truck drivers may need special licensing and registration for their motor vehicles, depending on the vehicle’s weight.

Although it’s a mobile business, you’ll need a business license.

Get Insured

Small business owners operating an ice cream truck business require general business insurance, which should encompass general liability insurance and commercial auto insurance. While ice cream manufacturers typically hold product liability insurance, you will also need this coverage, as you may be combining the ice cream with toppings and dips to create unique products.

Prepare for a Health Inspection

Each person who handles food needs Food Handling Certification. Make sure you have those records handy for the inspection by the local health department.

The inspector from your local Department of Health will also want to see a schedule for cleaning and maintenance, as well as that proper steps are taken to prevent food contamination.

Get Your Taxes in Order

Since you’re selling a product, you’ll need to collect and report sales tax. For that, you’ll need an Employer Identification Number (EIN).

Plan an Ice Cream Truck Route

If you develop the right routes, your potential customers will become repeat customers. One of the best ways to do this is by using an App. Customers can use the App to see where you are and when you will arrive in their neighborhood.

Consider Employing Staff

Whether to employ staff or not is a major factor in how you run the business. You should choose workers who have strong customer service skills.

You may only need staff for the summer season, or year-round, depending on the climate where you operate. If you have staff, you’ll need to obtain Workers Compensation Insurance.

Market Your Business

Are you going to offer new ice cream flavors? Make an announcement on social media accounts. Reward repeat customers by offering free ice cream after a set number of purchases. If you don’t have marketing knowledge, encourage customers to offer input.

Expand Your Ice Cream Truck Business

If a route isn’t performing well, don’t hesitate to make changes. Participate in events like festivals and seek feedback from your customers.

Some ice cream truck vendors study school bus routes – which are good indicators of where children live.

How Much Does it Cost to Start an Ice Cream Truck Business?

The largest expense when starting an ice cream truck business is the vehicle itself. You should budget a minimum of $10,000 for the truck.

Related ice cream truck costs include fuel, oil, tires, insurance (typically ranging from $800 to $1500 each year), and stocking the ice cream (at least $500). Business insurance will generally cost between $500 and $1200 each year. With a solid business plan, you might be able to secure a business loan.

Is it Profitable to Start an Ice Cream Truck Business?

Yes. During peak seasons, the typical monthly income is $5,000, based on working 20 days. This results in average annual profits of $60,000.

Image: Depositphotos

This article, "How to Start an Ice Cream Truck Business" was first published on Small Business Trends

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