Business Overview

An ice cream truck is a commercial vehicle that sells prepackaged frozen treats like ice cream bars, popsicles, and ice cream sandwiches. Operators drive their colorful, music-playing trucks through neighborhoods looking for customers. This type of business model is well-suited for warm weather seasons when demand for cold treats is high.

Ice cream trucks offer convenient, tasty products to customers. Unlike brick-and-mortar ice cream parlors, trucks can travel to a variety of locations and offer more of a grab-and-go service. While quickly serving customers is a priority, trucks can also offer custom-made products, like sundaes and milkshakes. Some trucks offer pre-packaged ice cream bars and treats, while others essentially act as full-service ice cream parlors on wheels.

Because they are mobile, ice cream trucks may market to customers in many different locations. Beaches and festivals are popular options, but some trucks also do private events like employee appreciation days and parties. Many trucks park and remain in one place, but others may take a more mobile approach, traveling regular routes through neighborhoods.

With food trucks growing in popularity, competition within the ice cream truck industry is increasing, too. When designing your business model, look for a way that you can make your truck stand out. Consider offering specialty products or a special experience, like hand-dipped and custom-topped ice cream bars, to appeal to customers. Stocking products that other trucks don’t have, like dairy-free ice creams, can encourage repeat business when your truck follows a reliable route or can frequently be found in particular locations.

Related: Checklist To Start A Business

How Do Ice Cream Trucks Make Money?

Ice cream trucks generate income by selling frozen desserts and other treats directly to customers. The business model focuses on mobility and convenience, which attracts spontaneous purchases.

Common ways ice cream trucks make money include:

• Single-Serving Sales: Selling individual ice creams, popsicles, and other frozen treats.
• Specialty Products: Offering unique items like sundaes, milkshakes, or premium ice cream bars.
• Event Bookings: Providing services at private or public events, such as weddings, school functions, or community festivals.
• Custom Menus for Catering: Creating tailored menus for specific events.
• Merchandise Sales: Selling branded items such as T-shirts, hats, or reusable ice cream containers to promote the business.
• Beverages and Snacks: Offering complementary products such as bottled water, soda, or small snacks.
• Partnerships with Local Businesses: Partnering with venues or parks to sell products on-site, often for a rental fee or revenue-sharing agreement.

Industry Statistics

Mobile food vendors distributing ice cream and frozen novelties operate under NAICS code 722330: Mobile Food Services. This classification includes food trucks and mobile vendors who prepare or serve food from motorized vehicles.

Here are some statistics that show what’s happening in the ice cream truck industry:

Ice Cream Truck Industry Size & Growth: The ice cream truck industry generated $1.48 billion in revenue last year. The industry has seen steady expansion with signs pointing to continued growth, projecting to reach $3 billion by year-end 2030. This represents a projected annual growth of 9.3% through 2030. The rise stems from increasing demand at festivals, concerts, and large-scale events, plus growing consumer interest in artisanal and specialty frozen desserts. (Grand View Research)

Ice Cream Truck Profit Margins: Ice cream truck businesses see gross profit margins between 67% and 75% on product sales. After accounting for operating expenses like fuel, vehicle maintenance, labor, and overhead costs, net profit margins generally fall between 20% and 30%. (MX POS)

Costs To Start an Ice Cream Truck Business

Starting an ice cream truck business could range from $30,000 to $75,000, depending on your choice of vehicle, equipment, and initial inventory. This includes both new and used vehicle options.

Here are some of the main costs to consider when starting an ice cream truck business:

Vehicle: A used ice cream truck ranges from $10,000 to $25,000, while a new custom-built truck costs between $40,000 and $60,000. This includes basic interior modifications and freezer installation.

Equipment and Supplies: Commercial-grade freezers, cold plate systems, and serving equipment cost between $5,000 and $12,000. This also includes display cases, storage containers, and basic service supplies.

Initial Inventory: First-time inventory purchases, including ice cream, frozen novelties, and supplies, range from $3,000 to $5,000. This provides enough variety to test different products and meet initial customer demand.

Licenses and Permits: Food service permits, vehicle licenses, and health department certifications cost between $500 and $2,000. Requirements and fees vary by location.

Insurance: Commercial vehicle insurance and liability coverage for a food service business ranges from $2,000 to $4,000 annually, with many insurers requiring upfront payment for the first year.

These estimates represent general ranges, and actual costs will vary.