Contact Us
 
Basket (0)   View
Member ID / Email Password
   
 
 
 
News & Blog Find a Caterer For Sale Contact Us
 
 
 
The Nationwide Caterers Association
 
Become our newest member!
 

How to Start an

Ice Cream Business

The Mobile Ice Cream Van, Cart or Stall offers an excellent way to set up and run a successful business

Ice Cream Business


About the business

About the business

In the 1950’s there were about 20,000 ice cream van operators in Britain – now there is less than a quarter of that number.

The problem isn't just the reliance on seasonal and sunny trade, but also the swamping of the market by supermarket chains and the introduction of legislation limiting where people can trade.

Having said that, there is still a very good market for ice cream and a potential to make a lot of money.


The Main Advantages of an Ice Cream Business:

Frew and co artisian ice cream

1) Excellent Profit Margins

On a hot sunny day few things can beat an ice cream. When the weather is fine and the pitch is right, ice cream vans can clean up. Ice cream offers probably the best profit margins in catering. A quick check on one wholesaler’s website shows 12 litres of Mr Whippy for £15 which will make 923 x 50/60g servings of soft ice at 1.6p each, which is around 1% of your average £1.50 sales price. Obviously you have to also pay for the cone, petrol, running of the van, tax and wages out of that, but compared to most catering businesses - most businesses in fact - this is a very tidy margin.


2) Minimal Waste

Waste is not a major issue, the most you are likely to throw away is a litre of soft ice at £1.25 a pop. Imagine what it costs a burger trader to throw away 70 burgers, plus buns etc. Your major cost in terms of waste is likely to be petrol and wages if the heavens open. Due to the long shelf life of most of an ice cream vendor's stock, you are unlikely to lose much money on waste, avoiding one of the major headaches of any catering business.

3) Little Skill Required

Assuming that you are not making the ice cream yourself from scratch, there is very little skill required to run an ice cream van. Unlike some hot food units where certain dishes require some cheffing skills, ice cream vendors just need a good grasp of food hygiene, a driving licence and sometimes a CRB check to allow you to work with children.


4) Seasonal Popularity

When the sun does come out, everyone wants an ice cream. It is a traditional summertime treat, which is obviously very popular with children, although, most people will eat an ice cream in good weather, while they may not eat so much hot food.


5) Find Business

You can travel around looking for customers, you don't have to wait for them to come to you. If one road is a bit quiet, you can always move onto the next, as long as you have permission to be there. You can even play chimes to attract customers.




The Main Disadvantages of an Ice Cream Business:

Dylan's dairy ice cream

 

1) Bans and Licences

Over the last decade or so, ice cream vending has been targeted by health campaigners and Local Authorities, who have banned vans from many of the places that were most profitable e.g. near schools, parks and town centres.

Each Local Authority will have its own interpretation of the legislation and how to apply the rules, so it is essential that you talk them about where you can and can’t trade, whether you will require a licence and if, when and how you can use the chimes.

You are also likely to need to get a street trading licence from the local council and you may find that you are prohibited from working in certain areas or on certain pitches. Despite all this, there are still illegal ice cream operations, flaunting the licensing rules and many others, which has had a negative impact on those trying to do it properly.


2) Supermarket Competition

Like many other small businesses, the ice cream trade has been affected by the dominance of supermarkets who can offer multi-packs of choc-ices and lollies at considerably less cost than ice cream vendors.


This has certainly affected the roadside trade, as their customers have a ready supply of branded ice cream in their own freezers that they have bought at a lower price. Although there are no official figures to support it, it is widely believed that the number of ice cream traders working on rounds has significantly reduced over the past 20 years.


3) Weather Dependent  

To state the obvious, the weather in the UK has never been ideal for ice cream traders. In particularly wet years it can be a real struggle to make money. As the season is so short, one wet month can have a major impact on your cash flow and profitability.


4) Finding a Pitch

If you are going to ‘work the streets’ and have found yourself a pitch, be sure of one thing, someone has, or is most likely working that pitch already at the moment. Mobile trading can be very competitive and competition for the best rounds is very strong. It may be difficult to break in where there are several vendors already operating, and it has been known to create threatening behavior. If you decide to go the franchise route you may find that there is a support mechanism in place to help with pitch finding, but in general this is the hardest part of setting up in the ice cream business.




Getting Started

Getting started


Initial Considerations

  • Are you going to take over an existing business or start from scratch
  • Are you going to buy into a franchise e.g. Walls
  • Going to trade on the streets, at events or both
  • What training, documents and licences are required in order to trade legally
  • what type of ice cream do you want to sell? Hard or soft? Gelato? Organic?
  • Going to trade from a van, trailer or cart/trike

It is important that you answer these questions, as the costs and profits will vary widely depending on the decisions you make. For instance, a new ice cream van can cost upwards of £60,000, a five year old one averages about £12,000, a new trailer might cost around £10,000 and a trike or cart might be as low as £3,000.


Creating a business plan will really help at this stage. It may sound very complicated, but it is in fact quite simple and should help you in the decision making process.




Other factors to consider

  • Who are you competing against? Are there going to be any problems?
  • Are you employing staff or working by yourself?
  • Full time or part time?
  • Is the market expanding or contracting?
  • Is there room for another player?
  • How much will you charge? Could a child afford it?

These are issues that you should address before parting with any of your hard earned cash.


Cash Flow

The great majority of your customers will pay you in cash. Occasionally you may get a corporate client that will want to pay by cheque or even by credit or debit card, so you need to make your terms clear at the outset.


You will need to estimate how much income you will receive over the next 12 months, including VAT. To do this you will have to estimate how much ice cream and other products you are likely to sell, and at what price. You will also need to know at what price you can buy them and don’t forget the seasonal trends.


Product Range

There are other things you can sell as well as ice creams - snacks, lollies, choc-ices, sweets and so on. You may decide to offer hot food such as hot-dogs and burgers to boost your income during the winter months. This will require additional training, cleaning and equipment. Don’t forget that there is a limit to the amount of equipment that you can fit into an ice cream van, so it's important that you only stock popular items. The secret is don’t be afraid to try something different, but TEST, TEST,TEST to see which items sell best.


Other products you could consider:

  • Cold drinks and semi-frozen 'slush' drinks
  • Sweets & confectionery
  • Snacks e.g. crisps, sandwiches

If you are interested in getting started in the ice cream business then we strongly suggest that you buy our Profitable Mobile Catering guide. It's information is invaluable.





Join from just
£20.25

per month


Join Online >

.

Find out more >


Want to chat about membership? Call us on 0121 603 2524





Providing Caterers with the 

Information, Systems & Support

to be 

Safe, Legal & Profitable             link              > Find out more

What To Think About


 

  • Is it for you?

Working and running a Mobile Catering business can be great, but it can also be very difficult. Don't go into it blind. Find out more about it by reading our articles looking at both sides of the coin:
           - 10 Reasons why Starting a Mobile Catering Business is a Great Idea > Click here
           - 10 Reasons why Starting a Mobile Catering Business might not be for you > Click here



  • ​What Unit you will operate from

What type of unit are you going to operate from? There are 4 main categories of units and each of them have their advantages and disadvantages. Find out more below:


 Motorised Food Van  Towed Catering Trailer Stall or Gazebo
Food Cart 

Your Equipment

If it hasn’t got the CE label, don’t buy it - no matter what anyone might say. You will not get a Gas Safety certificate for it, and therefore will be operating illegally. 


Event Organisers will want to see your Gas Safety certificate and you won't be able to trade without it. Even if you find work at small private functions, you could have some real problems with insurance companies if you ever need to make a claim, let alone with the law if you are prosecuted.


Getting started

Where To Trade

Where you trade is obviously critical to the success of your business. There are a variety of different options that you can choose from, you might even operate from a variety of different locations. Below are some ideas as to where, and you can find more information in our Get Profitable section.



Shows & Events

From village Fetes to week long music Festivals
> Read More



Markets

Street Food, Farmers Markets, Car Boot Sales
> Read More



Roadside

Lay-by's, Car Parks & Industrial Estates
> Read More



Checklist




Pricing

What price are you going to charge for your food or drink? Obviously this will depend on what it is that you're selling and where it is that you are operating. Food and drink often costs a lot more at shows and events than it does on a roadside, but then you will probably have to pay more in fees at a show.  




How to Operate Legally

Many people start in catering because they like to cook and maybe have hosted some larger house parties. The thought of becoming a professional caterer is very appealing, however bear in mind that when you provide food for others there are rules to follow.

As soon as you say yes, even if you're not getting paid, you are a professional caterer and you are responsible and can even go to prison if things go badly wrong. Therefore, you need to ensure that you comply with a variety of laws and standards to ensure that you are operating legally. Our Get Legal section has a lot of information to help you on this. 


Have a look at our Start Up Legal Checklist to ensure that you have everything covered > Click here



Insurance


Don't even think of operating without Liability Insurance. Not only is it a legal requirement, it's not expensive and will cover you against accidents and food poisoning. Have a look at our Insurance section to get more information as to what type of Insurance you need > Click here 




Find out what Members think of NCASS


> Go to Testimonials link


How to Succeed

how to succeed

In order to succeed we think you need to do / have the following things:

  • Do lots and lots of research

Research, research, research. You need to find out as much information as you can before you start, to know what to expect. What to sell, where to sell, how to sell it! This site should help you with lots of your research, but you might also want to consider buying The Complete Guide to Profitable Catering - it takes a lot of the information on this site and goes into more detail. You might also want to speak to some experts face to face. For more information > Click here  


  • Have a Support System in place

Where are you going to get answers to the many questions that you have? Where are you going to get the reassurance that you are doing the right thing or the confidence to change if things aren't going to plan? You might know someone else who has done it and therefore you can tap them up for information.

By being a member of NCASS you can call us with any questions or queries that you might have.

 

  • Have lots of Determination

There's no doubting that in order to succeed in this industry you need to have a lot of determination to keep on going when the going gets tough. It's not an easy trade, especially in the depths of winter when you have to go out and trade in the cold weather but you'd rather be at home or in an office in the warm. That's the main difference between those who last 1 season and those that last 20.




Want to know more?

Read the book

Profitable Catering


> Click here

Join Us

Become a member


> Find out why



Mobile Catering Menu


Starting up as a Mobile Caterer Getting legal as a Mobile Caterer Mobile Catering Insurance Training Get profitable Find Suppliers For sales / Classifieds area Information Area Membership information & pricing Catering Testimonials

Mobile Catering Home Starting a mobile catering business Get Legal as a Mobile Caterer Mobile Catering Insurance Online hygiene and safety training for caterers Make your catering business work Find Suppliers Buying and Selling Area Mobile Caterer Testimonials Mobile Catering Membership

Follow us 
Follw us on Facebook Follow us on Twitter Follow us on Instagram Follow us on Youtube

Find the right handwash unit for your business

How to start and run a mobile catering business

Find out what Members Say About NCASS

Go to Testimonials > Click here link