Vanilla is the world’s favorite ice cream flavour, which is good to know if you want to own an ice cream franchise. But there’s more to this business than just great taste. You’ve got to have the drive and determination to succeed as an ice cream seller in a competitive market. And consider different franchise opportunities before you invest. Here’s the scoop on the target audience, costs, and big players on the scene, like Dairy Queen.

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Overview of the Industry

People can’t resist ice cream. According to the statistics, the money people spend on ice cream in the US will grow by $4 billion from 2024 to 2029, reaching a new high of $18.27 billion by 2029. The ice cream market has been expanding yearly for the past ten years. Also, the gourmet ice cream sector is on the rise as more people crave high-quality treats.

Additionally, market research shows the sugar-free ice cream market will hit $7.36 billion by 2030, growing at a 9.6% annual rate. More people choose sugar-free ice cream and frozen desserts because of the fewer calories. I.e., they see them as healthier than regular ice cream.

Ice cream franchise opportunities are not limited to traditional cones and cups. You can tap into the lucrative frozen dessert market. For example, you could treat customers to custard, sorbets, or frozen yogurt. Again, this appeals more to rising numbers of health-conscious customers.

The US ice cream market has different types of packaging like cups, sticks, cones, tubs, and others. It’s worth noting that cups and cones are the most popular because they’re easy to carry and customize with delicious toppings. Equally important, cups are great for eating without making a mess. On the other hand, cones offer a fun, classic experience.

Target Market

Millions of people have a sweet tooth, making an ice cream business so appealing if you’re an ambitious entrepreneur. Here’s a snapshot of the target market:

• Kids love ice cream, and families often buy it as a dessert option.
• More adults are interested in trying non-traditional flavors. Anyone for a scoop of peanut butter fudge ice cream?
• Health-conscious customers seek out low-sugar or dairy-free ice creams.
• Food lovers who enjoy new and exotic flavors are tempted by gourmet ice cream – and are willing to pay more for high-quality servings.
• Event organizers are a key market segment. For instance, ice cream is a hit at parties, weddings, and community festivals.

If you want to explore a broader target market, look at automotive franchises. These lucrative sectors include openings for a car rental franchise, an auto repair franchise and more.

Advantages and Disadvantages

So, is an ice cream franchise a good investment? Look at the pros and cons to get a taste of this kind of business:

Advantages

• High demand: Cater to people’s cravings for a sweet treat with a range of delicious ice cream. And it is a steady year-round demand, not just in the summer months.
• High-profit margins: Making ice cream costs a lot less than what you can sell it for, so you can boost profits.
• Cross-selling opportunities: Expand your service offerings to include coffee, cakes, shakes, and desserts.
• Fun factor: Experimenting with different flavors and wowing taste buds can be a fun and rewarding experience.
• Revenue boost: You can run a successful ice cream business all year round, but also enjoy a seasonal revenue boost during the summer and hot weather.

Disadvantages

• Expensive: A Dairy Queen franchise cost can hit $2.5 million.
• Competitive market: There are thousands of ice cream sellers out there, so you must work hard to stand out and attract customers.
• New trends: People are seeking healthier frozen treats, which can impact your sales of traditional ice cream.
• Shelf life: Fresh ice cream doesn’t last forever. So, if sales dip, you could be left with waste.
• Aggressive pricing: Research shows people in the US prefer buying ice cream from supermarkets and hypermarkets. These stores often reduce the price of frozen treats to boost impulse purchases.
• Not one of the work from home franchises.

While considering the pros and cons, expand your research to see which industries are most likely to franchise. There are exciting markets, from car wash opportunities and commercial cleaning to retail and home services.

Ice Cream Franchise Opportunities and Cost

Here’s a sample of some of the leading brands in the industry, including investment costs. Also, many of them offer international franchise opportunities.

• Dairy Queen is one of the biggest names in the industry. It is also one of the most expensive franchises in this sector. However, you are opening a Grill & Chill quick-service restaurant supported by a well-known brand. As well as ice cream, you’ll also sell chicken strips and burgers. The initial investment is $1.5 million to $2.5 million. This includes the Dairy Queen franchise fee of $45,000. Note that it is not one of the absentee owner franchises.
• Baskin-Robbins serves up ice cream, frozen yogurt and frozen beverages. You can open a traditional restaurant or a non-traditional space at airports, stadiums, and universities. The initial investment is $294,000 to $642,000.
• Ben & Jerry’s is another leading name on the ice cream scene. In 2023, it was the top ice cream brand in the United States, with sales of $951 million. The menu includes ice cream, sundaes, shakes, sorbets and smoothies. The initial investment is $156,000 to $549,000, depending on whether you open a kiosk or full-size shop.
• Carvel has been serving ice cream to the masses since 1934, so you’ve got 90 years of experience to draw on as a franchisee. The initial investment is $379,000 to $600,000.
• Handel’s Homemade Ice Cream has made irresistible ice cream since 1945. You’ll sell a range of 45 flavors at a walk-up, or walk-in store. Also, you can target the lucrative pet market with Frosty Paws ices for dogs. Initial investment is $311,000 to $936,000.
• Jeremiah’s Italian Ice is worth checking out if you are researching gelato franchise opportunities. Italian ices with 40+ flavors and the brand’s signature gelatis go down a treat with the cool crowd. The initial cost is $326,000 to $696,000.
• Kona Ice specializes in shaved ice, a refreshing change from ice cream if you want a niche business. And it is mobile! Forget about the overhead costs of running a restaurant because you sell Kona Ices from your truck. The initial investment is $167,000 to $212,000.

If these franchises push you over your budget, take a look at low cost franchise opportunities. Also, if you’re eligible, check out franchise opportunities for veterans for discounts on franchise fees.

Expand Your Service Offerings

• Add more to your menu. Popular frozen desserts include frozen yogurt, sorbets, and snow cones.
• Think sweet and savory: If you can cover the Dairy Queen franchise cost, you can sell burgers, fries, hotdogs and drinks, with a classic ice cream cone on the side!
• Have fun with the flavors and introduce new toppings to create interest around your product.
• Come up with non-dairy alternatives to appeal to lactose-intolerant and vegan customers.
• More people seek sustainable options, so add plant-based ice creams to your freezer. Eco-friendly businesses are big businesses these days. For example, look at green cleaning in some of the home franchise opportunities.

Conclusion

To sum up, an ice cream franchise is part of a growing market because people can’t resist a sweet treat. However, the recipe for success is to keep a close watch on trends. For example, there’s a shift towards healthier options like sugar-free ice cream. Growing rates of diabetes and obesity are making people more mindful of their food choices.

Also, customers increasingly want plant-based recipes behind the vegan and dairy-free trend. Including planet-friendly ice cream on your menu could help boost sales. Compare investment costs, too. You could spend $150,000 or nearer 3 million, depending on who you partner with. For example, opening a mobile ice cream business or kiosk is more affordable than a quick-service restaurant or a shop.

Finally, if ice cream doesn’t take your fancy, there are endless business opportunities in growing industries to consider. For instance, DetailXPerts offers a scalable cleaning business with lower initial investment costs than many ice cream brands or gelato franchise opportunities.

For insights into the franchise world, download our FREE EBOOK on 4 Franchise Owners Who Found Success with DetailXPerts.