An ice cream truck business is a business that sells different types and flavors of ice creams, frozen yogurt, and sherbet. Desserts from the truck are designed to service areas where it might be difficult to quickly construct the convention shop; areas such as carnival sites, construction sites, sporting event centers, campgrounds, beaches et al.

Ice cream is a dairy product that is sweetened with either natural sugar or artificial sweeteners. Statistics have it that the global ice cream market is expected to grow at a CAGR of over 5.71 percent between 2022 and 2026.

Ben & Jerry’s was the top-ranked ice cream brand in the United States with about 936 million U.S. dollars’ worth of sales for the 52 weeks that ended September 5, 2022. Total ice cream category sales amounted to about 6.76 billion U.S. dollars.

Steps on How to Start an Ice Cream Truck Business

  1. Conduct Market Research

If you are considering starting an ice cream truck business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your ice cream truck business should be to develop market-based research questions in line with your overall business goal and objective.

In this regard, you should source for information that will help you maximize your business, give you reliable data, and of course a hint of what your potential market will be looking out for from an ice cream truck business.

a. Who is the Target Market for an Ice Cream Truck Business?
  • Event Planners
  • Tourists
  • Workers in construction sites
  • Campground patrons and staff members
  • Everyone who resides in the location where you intend to sell your ice cream.
b. Is Ice Cream Truck Business a Profitable Business?

Yes, the ice cream truck business is quite profitable because ice creams are consumed by almost everybody. As such, anyone who chooses to establish an ice cream business in any part of the world especially in tropical regions or countries on the equator, is sure going to get good returns on his or her investment as long as they are doing the right thing.

c. Are There Existing Niches in the Industry?

No, there are no existing niches when it comes to the ice cream truck business because the ice cream truck business is a niche idea in the ice cream production and sales industry.

d. Who are the Major Competitors?
  • Ben & Jerry’s
  • Little Man Ice Cream
  • LUGIA’S Ice Cream
  • The Hyppo
  • King Kone
  • Scream Truck
  • Scoops2u
  • Chicago Ice Cream Truck
  • Em’s Ice Cream
  • Nuggs Ice Cream
  • Fluff Ice Truck
  • Longboards Vintage Ice Cream
  • Coolhaus
  • Mean Green Ice Cream Machine
  • The Tikiz Shaved Ice and Ice Cream Truck
  • Like No Udder
  • Repicci’s Real Italian Ice & Gelato
  • Tikiz Shaved Ice & Ice Cream
  • Ice Cream Emergency.
e. Are There County or State Regulations or Zoning Laws for Ice Cream Truck Business?

Yes, there are county or state regulations or zoning laws for the ice cream truck business. Towns, cities, and counties also have zoning restrictions. While you may be mobile, you can’t park just anywhere. Most areas limit food trucks, trailers, buses, and carts to specific locations.

A list of where you can and can’t park should be available from the county clerk. You may also have to adhere to two-hour parking restrictions and pay for parking meters. Please note that trucks are required to stop at motor carrier safety and weight inspection stations when signs direct them to do so.

f. Is There a Franchise for Ice Cream Truck Business?

Yes, there are franchise opportunities for the ice cream truck business. Here are some of them;

  • Repicci’s Real Italian Ice & Gelato
  • Mister Softee
  • The Tikiz Shaved Ice and Ice Cream Truck
  • Sweet Pea Homemade Ice Cream
  • Ice Cream Emergency
  • Carvel Ice Cream
  • Kone Ice
  • Kilwins Chocolates Franchise, Inc.
g. What Do You Need to Start an Ice Cream Truck Business?
  • A Feasibility Report
  • Business and Marketing Plans
  • Business Licenses and Permits
  • Ice Cream Trucks
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Insurance
  • EIN (Employer Identification Number)/Federal Tax ID Number.
  • A Corporate Bank Account
  • IRP Plates
  • Employees
  • Commercial Kitchen
  • Ice Cream Ingredients and Packaging Materials
  1. Memorable Ice Cream Truck Business Names

  • Always Movin© Ice Cream Truck, Inc.
  • Danny Beck® Ice Cream Truck, LLC
  • Lowe© Ice Cream Truck, Inc.
  • Desert Solutions® Ice Cream Truck Company, Inc.
  • Ice King™ Ice Cream Truck Company, Inc.
  • Door Step™ Ice Cream Truck Company, LLC.
  • Shawn O’Brien and Co© Ice Cream Truck Company, LLC
  • Creamy Guys® Ice Cream Truck Company, Inc.
  • Ice Serve© Ice Cream Truck Company, Inc.
  • Othniel Milard© Ice Cream Truck Company, Inc.
  • Go Guys® Ice Cream Truck Company, LLC
  • Grace Made® Ice Cream Truck Company, LLC
  • Seven Twenty™ Ice Cream Company, LLC
  • Creamy Taste© Ice Cream Truck Company, Inc.
  • Sun Rise® Ice Cream Truck Company, Inc.
  • Cool Down™ Ice Cream Truck Company, Inc.
  • Andrain Brad™ Ice Cream Truck Company, Inc.
  • Lauren King© Ice Cream Truck Company, Inc.
  • On Call® Ice Cream Truck Company, LLC
  • Winifred Becker™ Ice Cream Truck Company, Inc.
  1. Register Your Business

a. What Type of Business Structure is Best for Ice Cream Truck Business?

Even though there are several options such as sole proprietorship, partnership, limited liability company (LLC), and corporation, when it comes to the business structure for an ice cream truck business, but the one most players in this line of business consider is an LLC.

It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.

b. Steps to Form an LLC
  • Choose a Name for Your LLC.
  • File Articles of Organization.
  • Choose a registered agent.
  • Decide on member vs. manager management.
  • Create an LLC operating agreement.
  • Comply with other tax and regulatory requirements.
  • File annual reports.
c. What Type of License is Needed to Open an Ice Cream Truck Business?
  • General Business License
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Zonal Permits
  • Signage Permit
  • Proof of ownership, proper identification, and vehicle license
  • Proof of district-issued food manager identification card
  • Copy of license for the service support facility and/or a recent inspection report.
d. What Type of Certification is Needed to Start an Ice Cream Truck Business?

You don’t need any certifications to start an ice cream truck business.

e. What Documents are Needed to Open an Ice Cream Truck Business?
  • DBA
  • EIN
  • Business and liability insurance
  • Federal Tax Payer’s ID
  • State Permit and Approval for parking)
  • Certificate of Incorporation
  • Commercial Driver’s License (CDL) (at least a Class B CDL)
  • Food Handlers’ License
  • Business License
  • Business Plan
  • Employment Agreement (offer letters)
  • Operating Agreement for LLCs
  • Insurance Policy
  • Online Terms of Use
  • Online Privacy Policy Document
  • Contract Document
  • Company Bylaws
  • Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?

If you are considering starting an ice cream truck business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run it without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.

  1. Cost Analysis and Budgeting

a. How Much Does It Cost to Start an Ice Cream Truck Business?

The startup cost of an ice cream truck business is not uniform, but basically, an ice cream truck business will cost from $50,000 – $300,000 to start and that can easily go higher depending on your overall business goals and objectives.

For example, the price of a food truck depends largely on its size. Light-duty class 2 and 3 trucks run from $25,000 to $45,000. Medium duty class 4 trucks run from $35,000 to $50,000, while medium-duty class 5 trucks run from $45,000 to $70,000.

b. What are the Costs Involved in Starting an Ice Cream Truck Business?
  • The total fee for registering the Business in the United States of America – $750.
  • Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines, and other software) – $1,300.
  • Marketing promotion expenses for the grand opening for $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of – $3,580.
  • The cost for hiring a business consultant including writing a business plan – $2,500.
  • Insurance coverage at a total premium – $2,400.
  • Other start-up expenses like stationery ($500) and phone and utility deposits ($2,500).
  • Operational cost for the first 3 months (salaries of employees, fueling of the trucks, payments of bills et al) – $60,000
  • The cost for start-up inventory (ice cream making ingredients, and packaging materials et al) – $5,000
  • The cost of storage hardware (bins, rack, shelves, and casing) – $3,720
  • The cost for counter area equipment (freezer, countertop, sink, ice machine, etc.) – $5,500
  • The cost for store equipment (cash register, security, ventilation, signage) – $3,750
  • The cost of well–equipped mobile ice cream trucks – $30,000
  • The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $5,000.
  • The cost of launching a website – $600
  • The cost for opening party – $5,000
  • Miscellaneous – $2,000
c. What Factors Determine the Cost of Opening an Ice Cream Truck Business?
  • The size of ice cream truck business (number of ice cream trucks you intend to start the business with)
  • The locations you intend covering
  • The required licenses and permits
  • The cost for branding, promotion, and marketing the business
  • The cost for furnishing and equipping the ice cream truck business
  • The cost of insurance policy covers
  • The cost for registering the business
  • Cost of recruiting and training your staff
  • The cost for the purchase and customizing of uniforms
  • The cost of opening the ice cream truck business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, you don’t need to build a facility for your ice cream truck business because you can get everything done on the go.

e. What are the Ongoing Expenses of an Ice Cream Truck Business?
  • Ice cream making ingredients, serving and packaging materials
  • Gas
  • Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
  • Salaries of employees
  • Truck maintenance
  • Insurance
  • Marketing costs
f. What is the Average Salary of your Staff?
  • Chief Operating Officer (Owner) – $38,000 Per Year
  • Manager – $30,000 Per Year
  • Ice Cream Makers – $26,100 Per Year
  • Ice Cream Truck Drivers – $26,800 Per Year
  • Sales Boys and Sales Girls -$24,000 Per Year
g. How Do You Get Funding to Start an Ice Cream Truck Business?
  • Raising money from personal savings and sale of personal stocks and properties
  • Raising money from investors and business partners
  • Sell shares to interested investors
  • Applying for a loan from your bank/banks
  • Source for soft loans from your family members and friends.
  1. Write a Business Plan

a. Executive Summary

Lauren King© Ice Cream Truck Company, Inc. is a licensed ice cream truck company that will be based in San Francisco, California but will operate across major cities in California serving different flavors of ice cream and desserts.

Lauren King© Ice Cream Truck Company, Inc. has been able to secure all relevant licenses and permits to operate throughout the United States. We will ensure that we abide by the rules and regulations guiding the ice cream truck industry and we will only hire experienced and qualified drivers with valid commercial driver’s licenses (CDL) to handle our trucks.

b. Products and Service
  • Soft-serve ice cream or hard ice cream
  • Novelties
  • Gelato
  • Frozen Yogurt
  • Sorbet
  • Frozen Custard
  • Mochi
c. Mission Statement

Our mission is to build an ice cream truck business that will meet the needs of our customers in the regions/cities where our trucks will cover, and to sell franchises all across the United States of America and Canada.

Vision Statement

Our vision is to become one of the preferred choices for individuals and organizations when it comes to ice cream trucks in the whole of San Francisco, California.

d. Goals and Objectives

The goals and objectives of an ice cream truck business are to service areas where it might be difficult to quickly construct the convention ice cream shop; areas such as carnival sites, construction sites, sporting event centers, campgrounds, and beach et al.

e. Organizational Structure
  • Chief Operating Officer (Owner)
  • Manager
  • Ice Cream Makers
  • Sales Girls and Sales Boys
  • Ice Cream Truck Drivers

Marketing Plan

a. SWOT Analysis
Strength:
  • Excellent operational history.
  • Superb menu list.
  • Experienced and trained professionals.
  • Well-equipped ice cream truck.
  • Excellent customer testimonials.
  • Reliable and efficient ice cream trucks and service.
Weakness:
  • The owner is new to large scale marketing
  • We will need a loan to purchase the latest ice cream trucks and commercial ice cream making equipment
  • The owner is currently running the business solo
  • Lack of economies of scale.
Opportunities:
  • Growing outdoor activities
  • Build upon existing clientele
  • Low start-up
  • Always in demand
  • Variety of what to offer
  • Online market, new services, new technology, and of course the opening of new markets.
Threat:
  • Weather constraints
  • The first year will be financially tight while we gain customers and pay off loans
  • Competition in the area could increase
  • Management of employees requires time, money, and efforts
  • The regulatory department could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses.
b. How Do Ice cream truck businesses Make Money?

Ice cream truck businesses make money by selling;

  • Soft-serve ice cream or hard ice cream (homemade or pre-packaged, blended with toppings, shakes, or sundaes)
  • Novelties
  • Gelato
  • Frozen Yogurt
  • Sorbet
  • Frozen Custard
  • Mochi
  • Franchise
c. Payment Options
  • Payment with cash
  • Payment via credit cards
  • Payment via mobile money transfer
d. Sales & Advertising Strategies
  • Introduce your ice cream truck brand by sending introductory letters to residents, park managers, and other stakeholders in and around the city you intend to cover.
  • Open your ice cream truck company with a party to capture the attention of residents who are your first targets
  • Engage in roadshows in targeted communities from time to time to sell your ice creams and desserts and promote your ice cream truck company
  • Advertise your ice cream truck in community-based newspapers, local TV and radio stations
  • Leverage on the internet and mobile apps to promote your ice cream truck brands
  • Engage in direct marketing and sales
  • Deliberately brand your ice cream truck
  • Encourage the use of word-of-mouth marketing (referrals)

Financial Projection

a. How Much Should You Charge for your Product/Service?

Most ice cream truck businesses charge based on the quantity of ice cream sold. Ice cream is priced by the scoop, quart or more, and a single-scoop is $3.74; double-scoop is $5.50.

b. How Much Profit Do Ice Cream Truck Business Owners Make a Year?

It depends, but available reports show that on average, a successful ice cream truck business owner can take in $200-300 a day, or up to $1,000 on holidays. Ice cream trucks will make the bulk of their business during the warmer months and when kids are out of school. A lot of vendors only operate this as a seasonal business that generates between $15,000 – $30,000 of gross revenue annually.

c. What Factors Determine the Amount of Profit to Be Made?
  • The capacity of the ice cream truck business (numbers of ice cream trucks owned)
  • The location the ice cream truck business is covering
  • The management style of the ice cream truck business
  • The business approach of the ice cream truck business
  • The advertising and marketing strategies adopted by the ice cream truck business.
  • The number of years the ice cream truck business is in business
d. What is the Profit Margin of an Ice Cream Truck Business?

The profit margin of an ice cream truck business is not fixed. It could range from 15 percent to 25 percent.

e. What is the Sales Forecast?

Below is the sales forecast of an ice cream truck business. It is based on the location of the business and other factors as it relates to such startups in the United States;

  • First Fiscal Year: $120,000
  • Second Fiscal Year:  $280,000
  • Third Fiscal Year: $350,000
  1. Set Up your Shop

a. How Do You Choose a Perfect Location for Ice Cream Truck Business?
  • The demography of the location
  • The demand for ice creams and desserts in the location
  • The purchasing power of businesses and residents of the location
  • Accessibility of the location
  • The number of ice cream truck businesses, and retailers in the location
  • The local laws and regulations in the community/state
  • Traffic, parking and security et al
b. What State and City are Best to Open an Ice Cream Truck Business?
  • Broward County, Florida
  • Nashville, Tennessee
  • New York City, New York
  • Los Angeles, California
  • Dallas, Texas
  • Miami, Florida
  • Las Vegas, Nevada
  • Providence, Rhode Island
  • San Francisco, California
  • Chicago, Illinois.
c. What Equipment is Needed to Operate an Ice Cream Truck Business?
  • Ice cream truck
  • Deep Freezer
  • Bowls and stirrers
  • Serving equipment.
  1. Hire Employees

When it comes to hiring employees for a standard ice cream truck business, you should make plans to hire a competent chief executive officer (you can occupy this position), manager, ice cream maker, sales person, truck drivers, and cleaners.

  1. Launch the Business Proper

No ice cream truck business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.

The bottom line is that with proper launching of the ice cream truck business, you will officially inform people in your city that your ice cream truck is open for business.

a. What Makes an Ice Cream Truck Business Successful?
  • Choose a good location, good menu, and reliable ice cream trucks
  • Hire only competent, hardworking, and trustworthy staff
  • Throw a party before opening the business
  • Be deliberate with your marketing sales approach
  • Encourage the use of word of mouth marketing to promote your ice cream truck business
  • Leverage on all available online and offline platforms to promote your ice cream truck business
b. What Happens During a Typical Day at an Ice Cream Truck Business?
  • The business is open for the day’s work
  • Ice cream trucks are washed, cleaned, and ready for business
  • Ice creams are prepared
  • Customer’s requests are taken and they are attended to
  • Schedule maintenance of trucks are carried out
  • Marketing/website upkeep
  • Supply ordering
  • Administrative duties
  • The business is closed for the day.
c. What Skills and Experience Do You Need to Build an Ice Cream Truck Business?
  • Good culinary skills
  • Good driving skills
  • Customer services skills
  • Interpersonal skill
  • Business management skills
  • Work experience in the food truck and ice cream production industry
  • Experience in managing people
  • Experience in business administration
  • Experience in handling relevant software.