Modern MBA YouTube Channel has stacked the below video with so many ice Cream economic insights. They explore what Ice Cream now means to conglomerates and venture Capital.
Spoiler: they’re turning away – but that doesn’t make it easier for independents. They also breakdown the finances of 3 NYC Ice Cream shops.
Give it a watch:
No time?
We break the main points down below:
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Economics: $500k annually. Monthly Summer revenue = $65k, Winter = $30k.
Key takeaway: clear understanding and targeting of ideal customers.
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Approach: Clear and unique selling point: fried ice cream. They buy their Ice Cream in bulk from Hershey’s and fry it in-store. They understand their limitations. Despite that, location is key: late night neighbourhood = consistent flow of customers.
Economics: Total annual revenue = $201K. Average summer revenue= $15k, Average Winter=$4k. Annual Shop revenue = $81k, but most interestingly, annual revenue from selling at local markets=$120k.
Key Takeaway: Their store revenue is bolstered by selling at over 100 weekend markets every year.
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Approach: High end artisanal product and process, focusing on quality ingredients. Ignores trends, clear-cut and long-established business model: i.e. supplying high end New York City Restaurants. Refuses to sell to supermarkets.
Economics: Wholesale business = $2.3m annually, retail shop (attached to wholesale lab) adding $480k annually.
Key Takeaway: They’re not affected by seasonal fluctuations because of business to business model (restaurants less affected by weather).
Our takeaway: Find your niche through either: location, customer or business model (or if you’re lucky – all 3)
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