How to Start Your Own Sweet Shaved Ice Business This Summer

The hot summer sun is beating down, and you're craving an icy, refreshing treat. Why not start your own shaved ice business? Shaved ice, also known as Hawaiian ice or snow cones, is a popular summertime snack that's easy to make and sells like crazy on hot days. If you have an entrepreneurial spirit and want to bring a little more chill to your community this summer, here's how to start your very own shaved ice business.

The Shaved Ice Market

Shaved ice businesses target a wide audience, from kids and families to teens and adults. It appeals to those looking for an affordable treat to beat the heat. Shaved ice is a product for the mass market, as it's inexpensive to make and sell. Most shaved ice businesses operate locally, setting up at events, fairs, parks, and other locations in their community. Some also have a dedicated food truck or storefront.

While shaved ice itself is a low-cost item, some businesses are able to charge a premium by offering high-quality, gourmet flavors and toppings made with natural, organic ingredients. There is an opportunity to turn shaved ice into a "luxury" product for health-conscious consumers. However, the majority of shaved ice businesses keep it casual and affordable, aiming for high volume sales during the peak summer season.

Your Product: Shaved Ice

The star of your shaved ice business will be the shaved ice itself. Shaved ice is made by shaving blocks of ice into fine, snow-like flakes. The ice is then topped with flavored syrups and often extras like fruit, candy, or condensed milk.

To stand out, develop unique, high-quality syrup flavors made from natural ingredients. You can also offer mix-ins like fresh fruit purees, chocolate or caramel sauces, and homemade candies. Presentation is key, so get creative with how you top the shaved ice.

You'll need to determine how you'll sell and serve your shaved ice. Will you operate from a food truck, push cart, or storefront? Or appear at local events and festivals? Consider both walk-up and catering options.

Finally, test and perfect your product. Get feedback from friends and family and conduct taste tests to determine which flavors and toppings are most popular. Make sure you have the process down to quickly shave ice and assemble orders before launching your business. With a little creativity, you can turn a simple shaved ice into a gourmet treat your customers will crave all summer long.

Economics and Finances

A shaved ice business has the potential to be very profitable, especially considering the low cost of goods. The main expenses are the ice, syrups, cups, and other toppings. Ice can be purchased in bulk for around $2-3 per bag. Simple syrups, fruit purees, and toppings cost between $5 to $15 per batch, depending on the ingredients. Cups, spoons, and napkins cost a few cents per item.

With such low costs, pricing strategies aim for high volume sales. A standard shaved ice typically sells for $2 to $5. Premium shaved ice with gourmet toppings can sell for $5 to $8. Catering and events also provide an opportunity to sell in larger volumes, often at a lower price of $1 to $3 per shaved ice.

To determine your prices, calculate your cost of goods for each size and type of shaved ice. Then add a markup of at least 200-500% to cover other costs like equipment, marketing, and labor and to generate a profit. For example, if a regular shaved ice costs $0.50 to make, selling it for $2 to $3 would provide a 400-500% markup. Compare your prices to competitors in the area to make sure they are in line with the local market.

With the right combination of volume and pricing, a shaved ice business can generate $200,000 to $500,000 in revenue over a summer season. Of course, your revenue potential depends on factors like location, weather, competition, and your ability to keep costs low while producing a high-quality product. But in general, shaved ice is a business where the rewards can be sweet.

Marketing Your Shaved Ice Business

To build buzz for your new shaved ice business, employ various marketing strategies:

•Search Engine Optimization (SEO): Optimize your website and social media profiles to rank higher in search results for terms like "shaved ice near me." Focus on local SEO by claiming and optimizing your business listings on sites like Google My Business, Yelp, and Facebook.

•Social Media Marketing: Create profiles for your business on Facebook, Instagram, and Twitter. Post photos of your shaved ice, share updates on where you'll be selling, and engage with followers. Run social media contests and promotions to increase shares and follows.

•Email Marketing: Build an email list by offering a discount or free shaved ice in exchange for signing up. Send regular emails to your list with coupons, schedules, new flavor announcements, and other updates.

•Direct Marketing: Appear at local events like fairs, festivals, and park events. Offer samples and coupons to drive traffic to your booth. Place flyers on community boards and in local businesses. Sponsor youth sports teams or events.

•Grassroots Marketing: Encourage customers to spread the word about your business to friends and family. Provide incentives for referrals and reviews. Word-of-mouth marketing from satisfied customers will be key to your success.

•Advertising: Run ads on social media or in local publications to increase brand awareness. Sponsor posts on social media influencers' accounts. Place ads at bus stops or on billboards leading up to the summer season. Advertising may be expensive, so start small and expand as your business grows.

With a mix of digital and traditional marketing strategies, you'll build buzz, attract new customers, and keep your shaved ice business at the top of everyone's mind when the summer heat hits.

Sales Strategies and Processes

To maximize sales, employ the following strategies:

•Sell where your customers are: Focus on high-traffic areas like parks, beaches, community events, and summer festivals. Scout locations ahead of time and obtain any necessary permits to sell there.

•Offer samples and coupons: Provide free samples of your most popular flavors to entice new customers. Hand out coupons and flyers for discounts on their next purchase.

•Upsell with add-ons: Suggest mix-ins, toppings, and larger portion sizes to increase the average sale. For example, upsell a regular shaved ice to a "supreme" size with extra toppings.

•Accept multiple payment types: Take cash, credit/debit cards, and mobile payments like Apple Pay to accommodate all customers.

•Provide great customer service: Greet customers with a smile, be enthusiastic about your product, and make personal connections. Friendly customer service will keep people coming back and referring others.

•Track sales and make adjustments: Monitor which locations, flavors, sizes, and toppings are most popular and generate the most sales. Make changes to your offerings and marketing based on sales trends.

For your sales process, focus on speed and efficiency:

•Have supplies, ice, and toppings prepped and ready for quick assembly.

•Determine your standard sizes and toppings ahead of time for easy ordering.

•Practice making shaved ice and assembling orders quickly to minimize wait times, especially when you have a long line of customers.

•Accept payment immediately after assembling the order so customers can enjoy their shaved ice right away.

•Keep a cash box with change for easy transactions. Track sales by location to determine your most profitable spots.

With an efficient sales process, strategic upselling, and stellar customer service, your shaved ice business will thrive during the hot summer months. Keep improving and adapting to beat your sales from the previous year.

Operations and Execution

To operate a successful shaved ice business, focus on the following:

•Secure the necessary permits and licenses to sell food products and operate at your desired locations. Requirements vary in each city and state, so check with your local health department.

•Invest in high-quality equipment like an ice shaver, freezer, generator, payment processor, and point-of-sale system. Compare options to find affordable yet durable equipment designed for mobile food businesses.

•Develop efficient processes for making shaved ice, assembling orders quickly, handling payments, and managing inventory. Create cheat sheets or checklists for your employees to follow.

•Recruit friendly staff to help make and sell shaved ice, especially during your busiest times. Look for people with customer service experience who can work quickly and professionally.

•Scout the best locations to sell your product and build a schedule to appear at events, parks, and community gatherings throughout the summer. Visit locations multiple times to determine the most profitable spots.

•Stock up on supplies like ice, syrups, cups, spoons, napkins, and toppings before appearing at events or festivals. Bring extras to avoid running out.

•Keep your equipment, supplies, and work area clean and organized for maximum efficiency. Wash hands frequently and follow safe food handling procedures.

•Continue improving your recipes, processes, and sales strategies over time based on customer feedback and sales trends. Make changes each season to keep improving.

With diligent operations and execution, especially during your first summer season, your shaved ice business will run smoothly and profitably. Put in the necessary work to create systems and efficiencies, and you'll build the foundation for a successful seasonal business.

Legal Considerations

Before starting your shaved ice business, research all legal requirements and regulations in your city and state. You will need to obtain proper permits and licenses to sell food products and operate as a mobile food vendor. Requirements vary significantly between locations, so check with your local health department and government to determine:

•Business licenses or permits required to operate a mobile food business

•Health department permits required to sell food and beverages

•Zoning regulations for mobile food vendors regarding where you can operate

•Product liability insurance in case of customer health issues or injury

•Tax obligations for your business including sales tax collection and income tax filing

Failure to obtain proper licenses and permits can result in legal trouble, including fines and having to cease operations. Do your due diligence to understand the legal requirements for a shaved ice business in your area before getting started.

Beat the Heat with Your Own Shaved Ice Business

With summer just around the corner, now is the perfect time to start your own shaved ice business. Shaved ice is a refreshing, nostalgic treat that appeals to customers of all ages looking to cool off from the hot weather. By keeping costs low and focusing on volume, a shaved ice business has the potential to be very profitable.

Do your research to understand all legal requirements in your area. Invest in high-quality equipment designed for mobile food vendors. Develop unique syrup flavors and toppings to set yourself apart. Build buzz about your new business through social media, email marketing, and appearing at local events. Focus on speedy service, upselling, and providing an amazing customer experience to keep people coming back.

While shaved ice is a seasonal business, with the right strategies and execution you can build something that operates year after year. So don't miss out on this opportunity to bring a little chill to your community. With shaved ice, the possibilities are sweet.