Caution: Delicious "Ice-Cream" is on its way!!
Iced cream, also known as the ice cream is a 100% dairy product which is witnessing an evolution in recent times. The growing urbanisation, rising disposable incomes, increasing desire for treats, and ever-changing customer preferences are the factors contributing to the rise in demand for ice creams and frozen desserts throughout the World.
"Where and what is the role of Krishna Industries" in this delicious Industry of Ice-cream??. What we "Krishna Industries" do is we manufacturer the Equipment and Big Machinery like 'Continuous Ice Cream Freezer Machines', 'Pasteurizing Tank Machines', 'Homogenizer Machines', 'Ageing Tank Machines', 'Fruit Feeder Machines', 'Ripple Machine', 'Ice Cream Cup & Cone Filling Machines', 'Candy Plant Machines', and 'Ice Cream Milk Plant Machines'.
Did you Know?? The global ice cream market is estimated to grow at an Annual Growth Rate of 4.7 per cent (Compounded growth), reaching a staggering $73.2 billion by 2022. India is the world’s largest producer of milk and accounts for more than one-fifth of the total milk production. In contrast, the per capita consumption of ice cream remains low at only 400 ml. However, led by the changing socio-economic dynamics of India, the ice cream sector is expected to register a growth of more than 50% from 2019 to 2022. The growth is driven by the availability of different varieties and flavours of ice creams such as hard ice cream, soft ice cream, low-fat ice cream, and others.
Ice cream manufacturers in India and around the world are stepping up the innovation game for meeting consumer’s demands for new and exotic flavours of ice creams. Along with traditional flavours like vanilla, mango, strawberry, etc., there is a demand for exotic flavours like blueberry, kiwi, pineapple, coconut, Indian pan, watermelon, and more. Moreover, With greater discretionary spending and increasing health awareness, consumers in India are open to trying newer variants that meet with their expectations. Youth under 26 years of age, accounting for more than 53 per cent of the total Indian population, is considered a key demographic for the ice cream and the frozen dessert sector. A significant percentage of the customer base is inclined towards healthy and premium options. In India, the standard fat content in ice creams has been reduced to less than 5 per cent. Diet-friendly ice creams that comprise fat-free, low sugar, pro-biotic, and sugar-free variants are introduced by leading ice cream brands as a part of the premium range. These incremental product innovations drive the growth of the local & global ice cream market.
The Indian market comprises a mix of Indian as well as international brands that are driving consumption in metros, mini-metros, and rural parts of India. Many unorganized players have set up ice cream businesses in rural areas which are potentially a bigger market than metro cities. Talking about Business let's see how this Ice-Cream Parlour Business has Expanded in just a few years; The ice cream parlour business has expanded multi-fold in the past couple of years. As per FICCI, Indian Food Service Industry report, frozen dessert & ice cream market alone is expected to grow to nearly 1 Billion USD by 2023 which proves that love for ice cream is growing year-on-year & more people are willing to purchase in the economy to satiate their dessert cravings. Since the last 10 years, a lot has changed in the ice cream business as we have quickly moved on from ice cream sticks worth Rs.10 being sold roadside to small yet lavish cafes offering several ice cream flavours in high priced waffle cones, ice cream rolls, sundaes, fudge shakes & more. Furthermore, A lot of brands are trying to enter the market as they can identify the market potential & are ready with drool-worthy desserts for the customers.
So, What can be your plan for opening an Ice-Cream parlour in India??
If you are planning to open up an ice-cream parlour, then you must ask yourself three quick questions to narrow down your thoughts to that one big Delicious Concept!
1. What’s your Concept?
The ice cream parlour business is a concept market with a high potential for success. So you need to ensure that you are treating your customers with something that they have been missing out on all their lives. New concepts such as waffles, ice cream rolls, thick shakes have already picked up in the market & have gained huge popularity. They can now be seen in the menu items of all successful ice cream hubs. So if you’re ready with your secret recipe which will change the way people savour ice cream then it’s Game On for you!
2. What is your USP?
An ice cream truck, a dark kitchen or a small cafe. You would need to decide on the format of how your customers will reach out to you. Ice cream trucks are less popular in India but would certainly hold the attention of all foodies. It all depends on how you imagine your customer to enjoy your delicious treats. A lot of ice cream parlour chains have opened up recently which has gained huge popularity with the masses while high-end cafes in posh societies have also become famous for their top-notch taste at a premium price and that has become their USP(Unique Selling Proposition).
3. Who are you offering?
Answer to this one depends a lot on the answer to the first two questions as your product range & the location of your business would primarily decide your target audience. You can serve to almost everyone if you have a full stack of product range which includes traditional ice creams, classic Indian desserts & beverages. However, you don’t need to cater to everyone if you know that your offering would be a hit only with the perfect customer group who is ready to relish your desserts!
So once you have got the answers to these three questions, you can finally begin with the Risk-Assessment of your Business:
What is your Cost of the whole Establishment:
Let’s talk about money. A successful restaurant business is a summation of several good decisions made & you would have to make a lot of them while opening an ice cream parlour. There are multiple costs involved in the process. Here’s a step-by-step guide on all the costs that you will incur.
1. Location Cost:
Area of 500-600 SqFt is sufficient to set up a fully functioning ice cream parlour with a sitting capacity of five to ten. An ideal location for your ice cream parlour venture would be a busy shopping street, posh society, shopping mall or near a school & college campus. Location costs can go very high if you’re purchasing a space but on rent, the monthly costs would be in the range of INR 30,000 to INR 90,000.
2. Production Equipment:
An ice cream parlour will have equipment which is much different from the one that is used in a traditional ice-cream shop. The first thing on your list should be a cold stone refrigerator which shall cost around INR 1.5-2 Lacs, this will be your central storage system. Apart from this, you will require a chest refrigerator, storage cupboards, packaging material & daily use utensils. You must ensure that your parlour has a 24/7 power supply because with ice cream there is always a risk of them melting. So a power backup generator could also be an essential add-on for your Space. Overall costs for kitchen equipment upfront can up to INR 3,00,000 to INR 7,00,000.
3. Inventory and Raw Material:
Raw material required would be decided on the concept that you’re going with when it comes to your ice cream parlour. Tubs of ice cream, waffle cones, nuts, choco chips, whipped cream, hot chocolate & more would be required basis your recipes & final products. You can stock up raw material which doesn’t get perished too soon in higher quantities compared to the quickly perishable raw material & restock basis the actual consumption once the business commences. Inventory costs would be in the range of INR 1,00,000 to INR 2,00,000 at the time of setup.
4. Running Capital:
Kitchen staff, ideally a team of 4-6 employees managing all parts of operations including making dishes & serving the customers would be required. Along with its utility costs & miscellaneous costs such as freight, suspense, etc. also needs to be accounted for. This will be around INR 50,000 to INR 1,00,000 but can be controlled if you begin with a smaller team at first.
5. Marketing Plan:
The most important! This is the only cost that will help you generate revenue & bring you some serious business. Customers today are attracted by big neon light boards, quirky brand names written in a cursive font & a witty tagline making branding essential for your business. A good marketing team would be able to help you with your branding & designs for your packaging, wall art for indoors & a social media launch of your ice cream parlour. Your ideal budget for marketing should be around INR 1,00,000 to INR 2,50,000 in total for the first three months.
To sum up, the Total cost/Investment will be around INR 5,00,000 to INR 10,00,000 including everything little aspect.
Now, What Licenses are required to establish an ice cream parlour:
As you build a parlour, you need to ensure that you have all the licenses required legally to run the ice cream parlour. There are multiple licenses required so you need to note down all of them as you are in the process of starting operations at your facility. The Food Safety & Standard Authority of India issues "FSSAI license" which is the most important license required to open up any restaurant in India. It’s a 14 digit registration number which ensures that food that you’re serving qualifies for the standards set by FSSAI. "Fire Safety License" is also an essential license. You need to install fire safety equipment such as fire extinguishers & ensure that the floor map is built with easily accessible exits that can be used in case of a Fire. You can apply online on the state government website to get a No Objection Certificate. The NOC is granted once the chief fire officer approves fire safety measures during the inspection.
Health license is also required & is a must to ensure the customers that your ice cream parlour is working within the compliance of the health department. An "Eating house license" is also required if you have seating arrangements for the customers. In that case, you would need to submit your floor map along with photographs of the place & other legal documents to the licensing police commissioner to get approval. Getting all the licenses may be an exhausting process if it’s your first time in the restaurant business. Helping hand from someone with experience in the Food & Beverage Industry or a consultancy would help you ease off the load & can your shift focus on making delicious ice cream more effectively.
Things to keep in mind for a profitable ice cream parlour business
A) Innovation:
The Millennials are constantly looking for new reasons to savour their favourite treats which makes innovating a necessity for any ice cream parlours. Ice cream rolls & nitrogen ice cream are the newest addition to the menu which has become an instant hit with foodies. You need to surprise your customers with quirky add-ons to enhance their experience every time they visit or order from you. So mix and match, upside-down or inside-out but never stop innovating with flavours!
B) Third-Party Platforms:
Sign up with delivery aggregators & don’t limit your sales to just day to day footfalls. Get constant orders from third-party platforms & deliver the orders with dry ice to avoid the catastrophe of delivering melted ice cream to a customer. You can expect your business to grow from 20% to 40% with steady orders flowing from third-party platforms.
C) Recall their Loyalty:
Focus on the lifetime value of a customer. Ice cream as a delicacy can be savoured as frequently as twice per month from a loyal customer. Leverage CRM tools such as SMS/Email marketing and loyalty programs to give your customers constant brand recall while incentivizing them with loyalty points and offers tailor-made for them. In an ideal scenario, you should get 60% of their monthly sales from loyal customers.
D) Social Media Reach:
Clicks & impressions turn into orders & revenue pretty quick!! With the correct brand positioning & reach on social media platforms you can easily ensure new customers showing up at your ice cream parlour. Giving freebies to customers for Facebook check-ins & posting on Instagram is the swiftest way to get your social media page going.
With new brands coming up with multi-outlet chains, the ice cream parlour business has grown exponentially in the past few years & competition between big brands are getting stiff day by day. Moreover, customers are willing to pay up to Rs.500/- for ice cream which was unimaginable a decade back. Now that you know all the key steps required to open an ice cream parlour business in India, start your ice cream parlour right away & make the world the sweetest place.