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Is a Shaved Ice Cream Franchise a Smart Business Idea?

by Alice

Shaved ice cream is a cold dessert that has become very popular in recent years. It is also known as snow ice, snow cream, or snowflake ice. It is different from regular ice cream. Instead of scooping it, shaved ice cream is made by shaving thin layers from a block of frozen flavored milk or cream. These layers look like ribbons and melt in your mouth quickly.

The texture is soft, light, and fluffy. It feels like a mix between cotton candy and soft-serve ice cream. People love it because it is not too heavy. It often comes with fresh toppings like fruits, boba, condensed milk, cookies, and syrups. Shaved ice cream is colorful, photogenic, and fun to eat, which makes it perfect for sharing on social media.

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The dessert first became popular in Asian countries like Taiwan, Japan, and Korea. Now it is trending in the United States, Canada, Australia, and many other places. The demand for unique and Instagram-worthy desserts has helped shaved ice cream shops grow. That is why many entrepreneurs are now thinking about opening a shaved ice cream franchise. Is a shaved ice cream franchise a smart business idea?

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Why choose a shaved ice cream franchise?

Starting a new business can be risky. If you create a brand from scratch, you have to figure out the recipes, design the store, handle marketing, and build a customer base. This can take a lot of time and money.

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A franchise helps reduce that risk. When you buy into a shaved ice cream franchise, you get a full business model. You also receive training, a proven menu, and support with branding and marketing. People already recognize the name, so it’s easier to attract customers.

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Shaved ice cream is also a great choice because it has a unique look and taste. This dessert stands out in the market. It offers something fresh and different from traditional ice cream or frozen yogurt. Many franchises also allow you to customize toppings and flavors, which increases customer satisfaction.

The startup costs are often lower than full-scale restaurants. Equipment, rent, and labor costs can be more manageable. It’s also a seasonal business in some areas, which gives owners flexibility.

How much does a shaved ice cream franchise cost?

The cost to start a shaved ice cream franchise depends on many factors. These include the location, the franchise brand, the size of the store, and what kind of build-out is needed. In general, here are the main expenses to think about:

1. Franchise fee:

This is the fee you pay to use the brand name. It usually ranges from $20,000 to $50,000. Some well-known brands may charge even more. This fee often includes training and support to get your business started.

2. Equipment and supplies:

You will need a shaved ice machine, refrigerators, freezers, blenders, display cases, and more. Equipment costs can be between $30,000 and $80,000, depending on the brand and store size.

3. Store build-out:

Renovating or building the store can be a large part of your budget. This includes painting, plumbing, electrical work, lighting, and decor. Build-out costs can range from $50,000 to $200,000, especially in big cities or high-traffic areas.

4. Inventory and ingredients:

You’ll need to stock up on flavor bases, milk, toppings, and disposable containers. The initial inventory can cost around $5,000 to $10,000.

5. Licensing and permits:

You must get health permits, business licenses, and insurance. These vary by location and can cost a few thousand dollars.

6. Marketing and promotion:

Grand opening promotions, online ads, flyers, and signs help attract early customers. Budget around $5,000 to $10,000 for your opening campaign.

7. Ongoing royalties and fees:

Most franchises charge monthly royalties based on your sales. This is usually around 5% to 8%. You may also need to pay into a national marketing fund.

Altogether, the total investment for a shaved ice cream franchise often falls between $150,000 and $350,000. However, smaller kiosk-style locations may cost less, and full-service stores may cost more.

What are some popular shaved ice cream franchises?

There are a few brands that have made a name for themselves in the shaved ice cream business. Here are some of the most well-known:

1. Snowy Village:

This brand started in Korea and has expanded globally. It is famous for its soft snow ice and Korean-inspired flavors like mango, red bean, and green tea. Many stores also sell Taiyaki (fish-shaped waffles). Snowy Village is known for its modern design and high-quality ingredients.

2. Sul & Beans:

This Korean dessert café focuses on Bingsu, which is a type of Korean shaved ice. Their stores offer a more luxurious feel. They include premium toppings like mochi, injeolmi (rice cake), and matcha. Franchising opportunities may vary by region.

3. Ice Monster:

This is a Taiwanese shaved ice brand that is known for using real fruit in its snow ice. Its desserts are big and colorful, perfect for sharing. They are more popular in Asia but are starting to branch out into international markets.

4. Snowdays:

Based in the U.S., Snowdays is known for mixing American dessert flavors with Asian-style snow cream. Their fun branding and vibrant menu have helped them gain fans in places like New York and Los Angeles.

5. Frostbite Shavery:

This brand blends shaved ice cream with unique toppings and sauces. It focuses on fun flavor combinations and modern shop designs. They are growing in popularity in the western U.S.

What are the benefits of owning this kind of franchise?

Owning a shaved ice cream franchise can be a fun and rewarding business. Here are some of the biggest benefits:

Low labor costs:

Since shaved ice is simple to prepare, you don’t need a full kitchen or a team of chefs. A few trained employees can run the shop.

High-profit margins:

The ingredients like milk, syrup, and toppings are affordable. The dessert sells for a premium because of its trendy image. This means more profit per serving.

Strong customer interest:

Shaved ice cream is eye-catching and very shareable on social media. People often visit just to take photos of the dessert. This brings free advertising.

Flexible store models:

You can open a small kiosk in a mall, a food truck, or a full café. This flexibility helps you fit your business into different locations and budgets.

Ongoing support:

A good franchise will help you with training, menu updates, marketing, and operations. This can save you from making costly mistakes.

What challenges might you face?

Like any business, owning a shaved ice cream shop comes with challenges:

Seasonal demand:

In colder places, the winter months may bring fewer customers. You need to plan your budget to survive during slow seasons.

Trendy competition:

Dessert trends change quickly. You’ll need to stay updated on what customers want and offer new flavors or toppings regularly.

High-quality control:

Shaved ice cream needs to be served fresh and with care. If the texture or presentation is off, customers may not come back.

Franchise restrictions:

Some franchises have strict rules about what you can serve or how you can decorate your store. This limits creativity but helps maintain brand consistency.

Upfront costs:

While cheaper than opening a restaurant, starting a franchise still needs a good amount of money. Getting a loan or finding investors may be necessary.

Who is this franchise best suited for?

A shaved ice cream franchise is a good fit for people who:

Love dessert and customer service

Want a business that is creative and visually fun

Have some savings or access to funding

Enjoy working with young crowds and food trends

Can handle day-to-day operations or hire good managers

You don’t need to be a chef to run this business. Many franchises will train you. But you should enjoy food, social media, and creating a fun experience for your customers.

Conclusion

Shaved ice cream franchises are growing in popularity because they offer something different. They are colorful, customizable, and fun to eat. With the rise of social media and food trends, more people are looking for desserts that taste good and look exciting.

If you choose the right brand, location, and team, owning a shaved ice cream franchise can be a smart and profitable move. It allows you to join a trend without having to build everything from the ground up. Just make sure to do your research, plan your budget carefully, and follow the franchise’s system.

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