Money talks. The weather has been heating up lately. I'm sure everyone's getting very busy. How much money does a shave ice business generate? that's an important question for anyone who wants to start a business full time, or possibly want to supplement with a secondary income. Shave ice is actually a very profitable niche business if you do it right. I recently read a article that's very informative, so I want to share it here. There are many types of shave ice business: kiosk, push-cart, food trucks and brick-and-mortar store. The truth is Shave ice business has a very healthy profit margin, which makes it an ideal business to dive into. Read the full article here: http://foodtruckempire.com/shaved-ice/profitability/
I took some charts from the article that have very nice breakdowns of the expenses and expectant revenues.
Shaved Ice Business Monthly Costs – Ballpark Costs
| Expense Type | Estimated Cost | Notes |
| Monthly Rent | $500 – $3000 | Variable cost depending on location. |
| Shaved Ice Machine | $1,000 – $2,000 | One Time Expense. |
| Permits and Licenses | $100 – $500 | Varies a lot depending on where you operate. |
| Phone / Internet | $100 – $200 | |
| Register / POS | $50 – $1,000 | Can also use an iPad and an app for credit transactions. |
| Insurance | $100 – $500 | |
| Cups | $80.00 | Approx. 2,000 per Month at $0.04 per cup. |
| Spoon Straw | $40.00 | Approx. 2,000 per Month at $0.02 per spoon straw |
| Ice | $260 | Approx. 2,000 per Month at $0.13 per sale. |
| Napkins | $20 | Approx. 2,000 per Month at $0.01 per sale. |
| Labor | $3,600 | Assumes $10 per hour for one employee. 12 Hours per day for 30 days per month. |
| Electricity | $100 – $300 | |
| Total Low End Monthly Costs | $6,450 | |
| Total High End Monthly Costs | $13,500 | |
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| Shaved Ice One Time Expenses / Startup Costs | ||
| Item | Monthly Est Cost | Notes |
| Shaved Ice Machine | $1,000 – $6,000 | This will vary greatly depending on the quality of shaver you purchase. New or used. |
| Signage | $2,000 – $25,000 | Variable expense. |
| Employee Uniforms | $500 – $1000 | This will vary a lot. |
| Freezers for Ice | $2,000 – $10,000 | Variable expense. |
| Syrup Display Setup | $5,000 – $25,000 | Variable expense. |
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| Total: | ??? | |
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| Revenue Estimates | ||
| Sales | Daily Revenue | Monthly Revenue |
| 67 sales per day at an average of $3.00 per sale | $201.00 | $6,030 |
| 100 sales per day at an average of $3.00 per sale | $300.00 | $9,000 |
| 150 sales per day at an average of $3.00 per sale | $450.00 | $13,500 |
| 200 sales per day at an average of $3.00 per sale | $600.00 | $18,000 |
Annual Revenue Expectations:
Annual Revenue @ 67 sales per day: $72,360
Annual Revenue @ 100 sales per day: $108,000
Annual Revenue @ 150 sales per day: $162,000
Annual Revenue @ 200 sales per day: $216,000
*All revenue numbers assume $3.00 average per sale.
Hope this is helpful for anyone who's interested in starting a business, or for existing business owners to read for pleasure. Please comment below if you have any interesting things to add! Thank you so much for reading. Until next time, stay cool and eat a shave ice.
2 comments
I loved shaved ice and I’m just about to open a shop up in Mexico.
If anyone could share some info with me that would be awesome. How many cones do you think on average you sell a day?
Thanks
Thanks For Sharing! So Many Suppliers Wouldn’t Take The Time To Share, It’s All About The Sale. Especially When It Benefits Us All. Hey Y’all Have Any Recipes For Shaved Snow Ice Cream Blocks For Our Shavers Like Some KAKIGORI Types Or Maybe I’m Thinking Thailand Shaved Ice?
… Thanks Again!