How to Start an Ice Cream Truck Business

Maybe you are looking for extra income, or just like the idea of bringing a smile to people’s faces. Whatever your reason, you are taking the first few steps to see what it takes to start an ice cream truck business. Many aspects of running an ice cream truck can be appealing, like the ability to set your own hours. When starting any business, you want to know the possible risks, and starting an ice cream truck is no different. Here are some things you should consider before you hit the road to market your frozen treats.

1. Research Local Laws for Food Trucks 

Your town or city should have a website. Look for what requirements they have for operating food trucks. Research any licenses and permits you may need to operate your ice cream business. If you plan on traveling with your ice cream truck to other cities or states, you should research license requirements there as well.

2. Create Financial Projections for Ice Cream Sales 

Ice cream trucks have the potential to bring in a lot of cash on sunny days, but in cooler months they likely will not be feasible to run. Here are some questions to ask yourself before jumping into the business. 

• How many months of the year would your ice cream truck be running?
• What routes would you potentially drive with your truck?
• How much would you be spending on an ice cream truck or cart?
• Would you run the business yourself, or would you need to hire staff?
• Where would you store your inventory when it was not in the truck or cart?
• Are there similar businesses in your area already? Are they successful?

3. Where Will Your Funding Come From? 

To kickstart your ice cream truck business, you will need to budget for a few things such as:

• A truck or van
• Freezers
• Power Generator
• Ice cream or novelties
• Insurance for your business
• Labor costs

You have several different options when it comes to funding your business.

• If you don’t require a lot of funding to start your business and you have some savings, self-funding your business may make the most sense for you.
• For businesses that require more capital to get them off the ground, consider obtaining a commercial loan from a bank

4. Decide What Products You Will Be Serving   

You might be asking yourself why this is a step, of course you will be selling ice cream. In the world of ice cream trucks, there are several choices. The first is selling novelties. These are pre-packaged, which typically means the inventory is easier to manage. You can also serve soft serve ice cream or hard ice cream, which may have more of a profit margin than novelties, but have more food safety regulations.

Deciding what kind of products you will serve will steer you to what kind of freezers, equipment, and truck you may need. While  many people opt for either novelties or soft serve and hard serve, you could do both.

5. Get a Truck or Cart to Sell Your Ice Cream 

Your most costly purchase will likely be finding an ice cream truck or cart. While carts will be less expensive, you will also be limited due to portability and having access to less inventory.  

If you are wondering where to look to find an ice cream truck, you can try doing a quick search for websites that specialize in food trucks. You can also browse social media groups around ice cream trucks.

You should know your local regulations before purchasing a food truck. If you are purchasing a used vehicle, consider having it inspected to see what repairs are needed.

6. Purchase Freezers and Other Equipment 

Once you have purchased a truck, if it does not already come with freezers, you will need to obtain some. Measure the space inside your truck, leaving room to walk around to see what size freezer would work. To be sure your freezers will have enough power, you may consider hiring a refrigeration mechanic to test your power supply. The last thing you need is your inventory melting on the first day!

Other items that you will likely need to purchase are:  

• A generator or inverter  
• A register or, at the very least, a cash box and calculator
• Disposable bowls, spoons, and napkins
• Flashing safety lights

 

7. Follow Regulations from Local Health Departments 

Research your city’s health department to see what regulations you need to comply with. If you are serving hard serve or soft serve, you will likely need to meet requirements for food preparation and handling.

8. Get Insurance for Your Ice Cream Truck 

Because your business is on wheels, you should consider a commercial auto policy.

As a food truck business, a simple unintentional mistake could result in an unhappy customer. General liability insurance helps protect your business against financial liabilities that result from certain types of accidents for which you are legally liable.  General liability policies apply to claims for bodily injury or property damage that your business causes to third parties, for example a customer who trips and falls over a sign you have on display.

If you have employees, worker’s compensation may be a requirement depending on where you live.

We work with dozens of different insurance carriers and can help you find insurance options. You can fill out our online form here to request a quote, or call one of our offices to start the process.

9. Plan Your Route & Build an Online Following 

When it comes to routes, consistency can be key. Showing up around the same time to the same locations can encourage your clients to tell others about where you will be.

Research local laws to see if your planned route allows for them.

Finally, as you grow your business, it may be a good idea to start an active social media presence. You can take pictures of your products, announce where your next stop will be, and advertise any promotions you have.

 

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This article is for general informational purposes only and is not to be relied upon or used for any particular purpose. Cross Insurance shall not be held responsible in any way for, and specifically disclaims any liability arising out of or in any way connected to, reliance on or use of any of the information contained in this article. The information contained or referenced in this article is not intended to constitute and should not be considered legal, insurance, accounting or other professional advice, nor shall it serve as a substitute for the recipient obtaining such advice. The views expressed in this article are that of its author and do not necessarily represent the views of Cross Financial Corp. and its subsidiaries and affiliates (“Cross Insurance”) or Cross Insurance’s management or shareholders.