Why An Ice Cream Shop?
It’s India’s most popular dessert. Everyone loves ice cream here, it’s the perfect treat to escape the hot and humid climate in India. Due to shifting customer preferences, the demand for desserts is on the rise. Maharashtra is one the largest markets for ice cream. It accounts for almost 15% of the total ice cream sales in India. Followed by Uttar Pradesh and Gujarat.
This increase in demand is due to several factors like a growing middle-class population, which means more disposable income. Some other factors can include things like rapid urbanization, more availability of services, expanding distribution channels, and overall more competition among brands and businesses.
A recent report from the EMR states that the ice cream market was worth $3.01 billion in 2022. The market is further expected to grow from 2023 to 2028 to hit $6.96 billion by 2028.
All this and more, if you’re looking into how to open an ice cream shop as a business venture in 2023.
How to Start My Ice Cream Business in India
If you want to start your ice cream business in India, there are a few things to keep in mind.
Types of Ice Cream Businesses in India
Decide on what type of ice cream business you want to open first.
- Small take-away-only kiosks in malls, beaches, and other areas with high footfall
- A Take-away and sit-down ice cream parlour
- Specialised/themed ice cream cafes
Out of these three, a takeaway/sit-down style is the most popular choice among brands. This type of business model is the most versatile and produces the most profit.
Doing Your Market Research
Like any other business, you need to do comprehensive market research. This is important because the ice cream industry has undergone so many changes in the past few years. The market is always changing so it’s better to stay abreast of current trends.
Before developing your ice cream business plan it’s good to understand your local customer demographic. Conduct proper research in your area and find out what customers are currently looking for in an ice cream shop business. This will also help you decide what products you should be selling in your ice cream shop.
Finding a Good Location for Your Store
Ice cream is often an impulse buy. This means people buy ice cream on the spur of the moment. Having your store in an area with high footfall can help you make use of this fact. Your shop should be easy to access and have high visibility to attract customers.
For example, malls are great locations to set up shop.
Getting the Proper Licencing and Having Your Paperwork in Order
This is the rundown of what you’ll need to open an ice cream shop in India.
- FSSAI License
- Firm Registration
- Current Bank Account
- Trade Mark Registration
- GST Registration
- Trade License
- Business Pan Card
- Sales Tax Registration
Growing My Ice Cream Business in India
Decide On Your Business Model
There are two ways you can grow your ice cream business.
- Manufacture and sell ice creams in your company-owned stores
- Or go for a franchise model – where you contract third parties to sell your ice creams
Both of them have their pros and cons. The franchise model is better for rapid expansion.
Franchising My Ice Cream Business
So you want to start franchising your ice cream business. You’ve got your product line set up and your business has been running smoothly with a regular influx of customers.
All that’s left here to do is standardize your operations coupled with marketing your business to potential franchise partners as a promising business venture to invest in.
Introduce SOPs to Your Business Operations
The one thing that will make your franchise business stand out from other businesses is refining your SOPs (Standard Operating Procedures). Your business operations must be streamlined and efficient. You need to ensure that you and your staff are working efficiently while still producing results.
You can do this by outlining detailed guidelines for how you want your business to be run daily in a franchise operations manual. Consider setting up franchise management software as well. This way your franchise partners have easy access to up-to-date information and resources. Along with an open line of communication with you.
Branding and Marketing
The way to market your franchise to franchisees is a little different from how you market your business to customers. First, you need to market yourself to your potential franchise partners. You need to make your franchise business look like it’s a worthwhile investment to entrepreneurs.
You can do this by offering detailed training processes to franchisees, ongoing business support, marketing assistance, etc. Treating your franchisees like franchise business partners will take your ice cream franchise business a long way, compared to most other approaches.
Who Are You Catering To?
Now let’s talk about catering to customers. Who are you planning to sell your products to? Once you’re able to answer that question, you’ll have a target audience in mind. This also makes it easier to advertise your products and services. Focusing your attention on your core audience base will bring in more revenue to your businesses and inspire more customer loyalty.
For example, you could have each of your franchise locations do detailed market research on the areas they are established in. Which will then help them tailor their advertisements and marketing strategies to those areas specifically.
Introducing customized product lines to each of your franchise locations will also make your business look more authentic to customers. This will also increase your brand value, so consider catering your ice cream franchise businesses to local customer preferences.
Conclusion
We’ve covered what you need to do to open and franchise your ice cream business in India for 2023. Note that these are just basic guidelines you should follow, if you’re looking for a more detailed process on how to start and franchise your ice cream business consider seeking professional help.
Contact sparkle★minds today to franchise your business in 2023
