Starting a snow cone business is an appealing venture because it has the potential to be very profitable. Shaved ice and snow cones have a high markup, which means each sale produces a large profit. Similar to other concession stand businesses, the low startup costs and low overhead make snow cones a great opportunity for a first business or supplemental revenue stream. If you’re interested in selling snow cones, our step-by-step guide will help you get started.
It’s reported that snow cone booths and shaved ice businesses have the potential to earn $100 to $2, 000 in sales a day. This is a wide range because the location of your shaved ice business and the selling season play a large role in profitability. It’s much easier to examine the profit margin of the actual product to get a sense of how much money you can make by selling shaved ice.
Why is shave ice so profitable? The cost of goods sold is very low and the markup is high, so each sale puts more money in your pocket. Here is an example that breaks down the cost of goods sold per 6 oz. snow cone:
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Note: To calculate the actual total revenue per snow cone, you also need to factor in your equipment and startup costs. But when each snow cone is sold for $2.00 to $4.00, the margin is still very high.
Whether you call them snow cones or snow balls, these icy desserts are a popular treat all over the country. Read through our guide to learn the important steps of starting your own sno-cone stand.
If the high profit margin has convinced you that a snow cone business is right for you, it’s time to work on your concept. What type of snow cone business do you want to open? First, decide whether you want to sell snow cones or shaved ice.
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These two frozen desserts have some key differences. Snow cones are made from coarse flaked ice and are usually served in cone-shaped cups. Shaved ice, also called Hawaiian ice, is made from fluffy shaved ice and served in a larger foam cup. Choosing which product you want to sell will help to determine your concept. Snow cones work well at small carnival booths and concession stands, while shaved ice tends to be better for permanent booths or food trucks.
It’s best to come up with a name and logo for your shaved ice business early on. That way you can customize your snow cone supplies for better brand visibility. You’ll also need to list your business on Google My Business so that customers can find you!
One of the great aspects of running a snow cone business is that there are several business models to choose from. Many entrepreneurs start with one snow cone stand and then eventually upgrade to a permanent location. Check out some of the options:
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Snow cones are a warm-weather treat, which means that the best selling season is during the summer unless you operate in a state like Texas or Florida. Year-round sunshine and high temps allow you to operate during all four seasons. These are factors to take into consideration when you're deciding on a mobile vs permanent location. A year-round, permanent storefront will face greater challenges in a state like Pennsylvania or Maryland, where the summer season only lasts from Memorial Day to Labor Day.
Business plans seem intimidating, but they aren’t as complicated as you might think. A good business plan outlines your concept, your goals, and how you’ll make a profit. If you plan to open a storefront, you’ll most likely need to obtain financing, so a business plan is essential. But if you’re starting with a small snow cone stand or a mobile cart, the business plan can simply serve as a tool to help you stay organized.
On average, the total cost to start a snow cone stand is reported to average between $4, 000 to $10, 000. As far as new businesses go, there are few barriers to entry with a snow cone stand. Startup costs are low, and you may be able to fund the whole venture on your own.
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If you plan to open a brick and mortar storefront, you can expect startup costs similar to any new restaurant. Snow cone stands, mobile carts, and even food trucks are more affordable than leasing or buying your own commercial space.
Even if you’re opening a small snow cone stand, you still need the required permits and licenses to operate legally. Snow cones and shaved ice desserts are considered food products, so you need the same permits as any foodservice business.
You don’t need many supplies to get your snow cone business up and running. Other than a snow cone machine or ice shaver, you’ll need a supply of ice, flavoring syrups, and serving supplies. The simplicity of making snow cones keeps the cost of goods sold very low.
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Now that you’ve invested in a shaved ice machine or snow cone cart, you’re ready to start selling summertime treats! Many of your potential customers associate snow cones with nostalgic memories, happy times, and fun warm-weather activities. Park yourself at the right event and snow cones practically sell themselves.
With a mobile snow cone business, there's no limit to where you can go. These are some of the public events where snow cones are a big hit:
Now that you know the basics of starting a shaved ice business or snow cone stand, you're ready to start making a profit. Low startup costs, low overhead, and the opportunity to work outside in the sunshine are some of the factors that make snow cones so appealing.
Snow Cone Syrup Combinations
What Is Bubble Tea? Bubble tea is a cold, flavored tea beverage that contains large chewy tapioca balls, making it an interactive drink and a sweet snack. Easy to recognize, bubble tea is paired with a colorful jumbo straw that’s both visually appealing and functional. With every sip of bubble tea, the tapioca pearls move easily up the wide straw. You’ll hear this Taiwanese drink referred to by several different names, including boba tea, pearl milk tea, boba milk tea, bubble milk tea, or simply boba. Shop All Bubble Tea Supplies What Is in Bubble Tea? Bubble milk tea starts with a base of tea or juice. Milk powders, flavoring syrups, and sweeteners are added to the base, and the whole drink is shaken until it's frothy and full of bubbles. For the finishing to How to Start an Ice Cream Shop Ice cream is a classic summer treat that is enjoyed by children and adults alike. The industry has expanded in recent years, thanks to many new flavors and types of ice cream , the growth of the food truck industry , and the normalization of pop-up and seasonal shops. For many, getting ice cream with friends and family is a summer ritual, meaning there is plenty of demand and interest in local ice cream shops. If you’re looking to open your own ice cream shop, check out our ice cream shop startup guide. Looking for supplies for your ice cream shop? Click below. Shop All Ice Cream Shop Supplies Use these links to learn more about individual aspects of how to open an ice cream shop: Ice Cream Shop Concepts and Branding Ice Cream Shop Business How to Make Your Own Slushie Mix Slushies are loved by customers of all ages, which makes them a great addition to the menu when you want to boost impulse sales. With the right commercial slushie machine , these frozen drinks are easy to make and even easier to sell. But did you know you can make your own slushie syrup mixes? Outdo your competition and mix up gourmet slush syrups that help you stand out from the crowd. We’ll teach you how to use the Brix scale and a simple tool called a refractometer to make sure your slushies turn out perfectly every time. No time to make your own slush syrup? Click below to shop our collection of premade syrups. Shop All Slushie Syrups Keep reading or click below to learn about how the Brix scale can help you make better slushies: What IA Snow Cone business is an ideal candidate for your summer side-hustle. The margins are incredible, you get to be outside soaking up the sun, and you’re giving people a constant stream of sugary ice. What could be better than making money and making people happy at the same time? Before we discuss how to start a snow cone business, let’s take a look at the profit potential.
Are snow cones really THAT popular? Not only are snow cones popular, they never go out of style! Sure, you may decide to brand yourself as the more premium Shaved Ice, (There is a difference, more on that later), but it’s pretty much the same thing; sugar and ice.
Good news if you want to start a snow cone business in Texas, it commands 48% of Google’s TOTAL SEARCH VOLUME for the phrase “Snow Cones Near Me”. Texas
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