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The food sector is immensely profitable, even though it is extremely competitive. The ice cream franchise industry is extremely successful, and expanding across the country with exponential growth.
The India Ice Cream Market was valued above 300 crores in 2023 and is further projected to grow at a CAGR of 13.49% during 2024-30. The market is fueled by factors such as rising average mean temperatures, long summers and heat waves, and Western & modern lifestyles. Ice cream is the most popular dessert in India and is also the most reasonably priced.
Moreover looking at the world Ice cream market, it is one of the biggest food categories and is growing at +3.5% per annum.
Additionally, the nation's top ice cream brands have introduced exotic flavours of ice cream, such as tropical fruits, Belgian chocolate, betel leaf, and more, attracting consumers and increasing ice cream sales.
Before you start to invest in the ice cream franchise business, you need to know the various types of ice cream. Different types of ice cream have different investment structures, target customers, outlet sizes, etc. The different types of ice cream are-
* Fresh ice cream franchise
* Frozen dessert ice cream franchise
* Flavored ice cream franchise
* Popsicle ice cream franchise
* Kulfi Ice Cream franchise
1) Research: It is recommended to conduct a thorough research of the ice cream brands to check their alignment with your investment budget, location availability, plans, and goals. And also check other parameters like the brand’s reputation, training support, manpower, time involved (part-time/full-time)
2) Fund availability: Determine the cost to start the franchise setup, staff hiring, rent, miscellaneous expenses, loan availability, and expenses required in getting the licenses/ permits.
3) Select the location: It is wise to keep in mind that while selecting the location, check that the location is easily accessible and visible with a good number of public footfalls.
4) Legal experts: Once you have selected the franchise, it is advisable to talk to a legal expert to understand the agreement and other terms of contract and understandings involved.
5) Store set-up: Once all the above is done, you need to hire staff as per the requirements of different hierarchies, purchase equipment, and have discussions with various vendors, interiors, furniture, etc
6) Franchise launch: Promote business advertising, social media marketing, and other marketing strategies to attract customers.
Pros 1) Popular dessert for all functions and celebrations. 2) Potential for expansion- good brand ice cream franchises can be expanded and needs minimum area for set up. 3) Collaborate with catering in various corporate and wedding functions as a stall. 4) Good profit returns.
Cons 1) Highly competitive 2) Perishable product- requires very careful inventory management 3) Seasonality- ice cream sales take a peak in summer comparatively to monsoon and winter. 4) The rise of health awareness is making people skip sugar and diary -the key ingredients of ice cream.
First, an area of a minimum of 400-500 sq. ft. is required to open the ice cream franchise. However, if you are looking for a brand with a fancy setup where people can come in good numbers, and sit you need an area of a minimum of 2500-3000 sq. ft.
The franchisor mostly takes responsibility of the supply of ice creams and desserts, but some of the equipment that is required in the store are-
* Deep freezer
* Refrigerator
* Cabinets for storage
* Storage for showcasing the various flavors of ice creams
* Packaging supplies, cutleries, plates, and bowls for serving.
* Furniture
* Billing software
Hiring of the staff members is guided by the franchisor, like manager, accounting, staff for serving, cleaning, etc, on their headcounts and skillsets.
As it falls under the food category, the license Required are-
1) Sales tax Registration
2) FSSAI License
3) GST Registration
4) Firm Registration
5) Business Pan Card
6) Trade Mark & Trade License
An ice cream franchise can operate under the kiosk, QSR, or fine dining business type. Franchise investment varies depending on the type of outlet.
Most of the ice cream franchise brands are semi-automated, and depending on the size of the business the part-time or full-time involvement is determined. For Kiosk and QSR, part-time involvement is ideally good, but for dessert dining setups, full-time is preferred.
Training and support to run the business is provided mostly by the brand, and based on reports, further training and support are provided.
* Food Cost - 40% * Average rent - 10% * Electricity Charges - 3% * Staff Salaries - 4% * Delivery - 15% * Direct marketing - 3% * Royalty - 5% * Other Cost - 1% * Logistics - 2% * Net profit - 17%
Note: if delivery is 40% to 50% of total sales with commission of 28% it means this charge is approx 15% of total sales, it can vary on sales.
How to make your ice cream franchise stand out?
Indulge in offering new flavors.
Participate in fairs, festivals, and community events.
Some customized children's ice cream platters with attractive small toys.
If you want to create a profitable franchise business with a high return on investment and profit margin, and make a rapid profit with an affordable capital investment, the best thing you can do in India is open an ice cream franchise.
Baskins & Robbins, Amul, Thanco's Natural, Vadilal, Havmor, Gelato Italiano, Nirula’s Icecream, Chennai Kulfi, Giani’s, 51Rainbow, dairy don, Icekraft, gianis etc. are just a few ice cream brands that have expanded the franchise opportunity to scale up their business and make an opportunity for entrepreneurs to invest in the growing ice cream franchise in a right way.
The aforementioned companies have established incredible brand names that have won over people's confidence and are present in numerous franchisees across the nation.
The world's ice cream eating culture has been transformed by Gelato. People are replacing and relishing in it in place of industrial ice cream since it is a natural, fresher, and healthier low-fat alternative. In general, Gelato appeals to everyone; it can be enjoyed by a young child as young as a year old or even a 90-year-old adult. Everyone from all walks of life enjoys it! Additionally, it is a healthier alternative to ice cream at a time when almost everyone is concerned about their health.
The second most popular ice cream brand in the world is Gelato, which has become a global craze. In addition to successful gelato franchise chains in Australia, the Far East, and the majority of Western and Eastern Europe, there are several gelato shops throughout the United States. Around the world, the culture of gelato is growing swiftly, and in India, it is a brand-new idea in an untapped, untapped market.
Established year: 2006 in Mumbai
Franchise investment: 8 L
Area: 200 sq. ft
Business model: FOFO
ROI: 15 months
Royalty: 0%
Franchise outlets: 50
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The largest chain of ice cream specialty stores in the world, Baskin Robbins has more than 6000 retail locations worldwide in more than 63 countries. The business employs a committed group of professionals with industry experience in the hospitality sector. Currently one of India's biggest chains for food retail.
With 800+ stores, it is now present in 160 cities and towns. There are no royalties assessed on sales at Baskin-Robbins. Additionally, it does not request a portion of the franchisee's revenue or profits.
Baskin Robbins makes sure that each parlour has a particular amount of exclusivity in its specific location. It makes it clear that no new parlour should go up so near to an existing one that it begins to negatively impact both parlours' sales.
Established year: 1945 in Mumbai
Franchise investment: 16L
Area: 250 sq. ft
ROI: 18-24 months
Agreement year: 5 years
Profit margin: 18%
Franchise outlets: 800
Giani Ice Cream, which was founded in 1956 and is based in Fatehpuri, Delhi, produces and sells a delicious selection of ice cream, faluda kulfi, Italian gelato, sorbet, and snacks. Its delicious selection of ice cream and snacks, which is 100% vegetarian, is enjoyed by children, teenagers, and people of all ages.
The company has effectively earned an advantage over its rivals by being customer-centric under the competent leadership of Mr. Gurbachan Singh. The Giani ice cream franchise's expansion in Delhi and north India has been facilitated by his 40 years of industry experience, in-depth understanding, and open business practices.
Established year: 1956 in New Delhi
Franchise investment: 14 L
ROI: 14-18 months
Royalty: 2%
Franchise outlets: 120
Founded in the 20th century, by Giani Gurcharan Singh, fondly reminisced as Giani’s di Hatti, Fatehpuri, Chandni Chowk. Giani’s has more than 140 stores across 7 states including New Delhi, Haryana, U.P., Punjab, Uttarakhand, West Bengal, Maharashtra, Telangana, and M.P.Giani’s Ice Cream is proudly running into the 63rd year of its operations.
Giani's is North India's favorite ice cream brand. The company’s mission is not just to bring sweetness to your taste buds but also to your life. Their constant initiative is to spread happiness amongst their customers and strengthen their relationship with them.
Established year: 1956 in Delhi
Franchise investment: 12 L
Area: 150 sq. ft
ROI: 12-18 months
Royalty: NIL
Franchise outlets: 140
Since the opening of the first franchise location in 2009, Thanco's Natural Ice Cream, they have expanded to more than 80 franchise locations throughout India. Due to its position as one of the market leaders in the natural ice cream category and its continued expansion into new markets, they are quickly overtaking other top national and international ice cream brands as one of India's most incredible ice cream brands.
For the mass player to compete in this cutthroat market, the varieties are so varied and naturally inspired and provide more than 80 different varieties of natural ice cream flavours, and have created a special line of sugar-free ice creams for the consumers.
Established year: 2006 in Bangalore
Franchise investment: 17 L
Area: 300 sq. ft
ROI: 14-16 months
Franchise outlets: 83
Dairy Don has been a well-known brand since its establishment in 1984 and has come to represent good taste and consistent quality. Despite its modest beginnings, they have established itself as one of the ice cream industry's pioneers by franchising locations throughout Gujarat and Maharashtra.
In order to create the perfect atmosphere for a hip spot to hang out, its Franchise parlours have been elegantly built. The team at Dairy Don is always broadening its horizons by opening new ice cream shops across the country in order to explore the 2,000 crores Indian ice cream market.
Established year: 2018 in Surat
For the delicacies Ice Kraft serves and the quality they bring to the table, the brand is well-liked. They are experts at freshness and delectability. The ice creams are presented in a delicious way, with a focus on the "WOW" factor. These stylish ice creams are produced in front of you to your specifications. The visit is really satisfying due to the cosy sitting and cheerful surroundings. Nearly 35–40% of sales are generated by the cuisine menu, which combines traditional and fusion dishes.
Icekraft is a brand that enjoys experimenting and is open to exploring new things. Due to this mentality, fusion foods include Tandoori Pasta and Mexican Pizzas, Freakshakes, India's First Black Icecream without Artificial Colours.
Established year: 2016 in Mumbai
Franchise investment: 15 L
Business model: FOCO, FOFO
ROI: 18-20 months
Profit margin: Investor-67%, Brand – 33%
Franchise outlets: 25
Amul, established in 1948, is a well-known household brand with a substantial presence in the ice cream industry. Renowned for its diverse and high-quality ice cream offerings, the dairy giant holds a significant market share in India's western and northern regions.
Operated by The Gujarat Co-operative Milk Marketing Federation Ltd, Amul's longstanding legacy and reputation make it a preferred choice for individuals looking to venture into the ice cream parlour business.
Established year: 1948 in Gujarat
Franchise investment: 6 Lakhs
Area: 300-500 sq. ft.
Franchise outlets: 1500
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Vadilal Gandhi developed Vadilal in Ahmedabad in 1907, and for the next 100 years and more, Vadilal has consistently and unwaveringly added spice to every Indian's tongue. Vadilal has a vast network of more than 1,25,000 dealers nationwide and is well-known for its distinctive tastes and flavorful innovations.
Established year: 1907 in Ahmedabad
Area: 300-3000 sq. ft
ROI: 6-12 months
Franchise outlets: 125000
Havmor, which Satish Chandra Chona founded in colonial India in 1944 under the name "Have More," has joined Lotte Confectionery Ltd. Havmor presently purchases approximately 200 flagship stores and an astounding 72,000 retail locations across 18 states and 5 union territories. Every day, Havmor manufactures around litres of ice cream, which translates to about 36 million servings of ice cream for customers.
Established year: 1944
Franchise investment: 20L
Area: 600-800 sq. ft
Franchise outlets: 50 Click here to check similar brand details
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