Starting Off Right
Most customers break into a wide grin when they enter a frozen dairy dessert shop or restaurant for a scoop or two of their favourite ice cream or yogurt.
Their enthusiasm is good news for you as an owner of a restaurant or dipping store. Yours is a popular and growing industry. Frozen desserts are fun to serve and the business can be extremely rewarding if efficiency is a byword.
That means paying attention to costs and portion control, stocking and maintaining a high-quality product, using clever marketing to promote growth, and hiring and training dependable employees. Every detail must be in order if your business is to be a success.
The Bottom Line
Profits Are Your Goal- No matter how much personal satisfaction and enjoyment you receive from owning a frozen dairy dessert dipping business, obtaining healthy profits is your ultimate objective. Therefore, rule number one is to control costs. The first step is to establish a fair and profitable retail price for each item you sell. To do this, determine how much it costs to prepare each frozen dairy dessert item, then calculate the mark-up percentage you'll need to cover selling costs and profits.
Per-Item Cost - An easy way to figure item cost is to determine the cost per ounce of each ingredient and multiply that figure by the number of ounces used to make the item. For example, to figure the per ounce cost of ice cream, find out how many ounces-by-weight there are in a three-gallon bulk container, then divide the total cost of the container by that number. Once you know how much each ounce of ice cream costs, multiply that by the number of ounces in each serving. Use this formula to determine the per-ounce cost of all ingredients used, including toppings such as fruits and nuts. The formula also will help you determine the per-item cost of cones, cups, napkins, straws and other food and non-edible items. Once you figure the cost of these "extras," add this number to the serving cost of the ice cream to get the total item cost.
Final Retail Price - Food costs should equal about 40 to 50 percent of the total retail price. Payroll, including benefits, should range from 20 to 25 percent; the remainder is attributed to overhead costs and profit. Overhead includes items such as rent, utilities and employee benefits. It has a large effect, along with competition, on what your mark-up percentage should be. If your prices are not competitive it will be difficult to build a strong customer base.
To set the final retail price, use this formula:
Item Price= Total Item Cost (100 - Mark-up percent / 100)
To figure gross profit, subtract item cost from retail cost. Finally, determine percent of profit by dividing gross profit by the selling price.
The Art Of Scooping
Since the ice cream part of your business will be based on an ounce per-ounce system, one of the secrets of reining in costs is to follow recipes exactly by using the right ingredient portions.
A related talent is to learn the proper technique for scooping frozen dairy desserts. This is the main way to control portions, maintain product quality and make your ice cream or yogurt more attractive to customers.
Show And Sell
Without question, effective merchandising boosts sales. In designing promotions, keep the needs and interests of your clientele in mind and cater to their tastes. If your customers value healthy lifestyles it makes sense to stock frozen yogurt or premium light ice cream. If consumer tastes change, adapt accordingly. That is one of the best ways to encourage repeat business.
Make it easy for customers to choose flavours by clearly identifying bulk containers and grouping similar varieties together. You might arrange sherbets next to each other or group all the low-calorie options. Be sure to pay attention to colors and textures by mixing them in pleasing patterns in your display case. You can turn displays into one of your best marketing tools. Whether frozen dairy desserts are part of a more extensive menu or are being sold alone, describe them in enticing terms and use illustrations. Also consider using table tents featuring colorful pictures. This will remind customers of the delicious taste of frozen yogurt and ice cream and tempt them to order.
Remember that an effective promotion takes advance planning and should never last more than about three weeks to get the biggest punch.
Using ice cream as an example, you may follow these steps:
- Remove the dipper from the dipper well and tap it lightly on the dipper pad to remove excess water. This will keep ice crystals from forming on ice cream .
- Place the dipper close to the can wall and about an inch deep into the ice cream. Scoop in a circular pattern from the outside in, rotating the can by hand when necessary. Once the dipper is full, turn it half over so the bowl is facing up. Then trim the portion by drawing lightly across the surface of the ice cream. This is an important step in maintaining portion control. Never trim a filled dipper against the side of the can. That not only wastes some of the product, but also damages ice cream texture.
- the next scoopful should begin where the previous one ended. Be sure to continue scooping in the same circular pattern so one layer of ice cream is removed at a time, causing the level to go down evenly and reducing the amount of surface that is exposed.
- Scoops usually are based on weight, so have an ice cream scale nearby. Although it is illegal in some states to sell ice cream by weight, in areas where it is allowed, encourage employees to scoop by weight as an efficiency measure. Estimation is risky business. Over scooping means you are giving away your ice cream and profits; under scooping will leave you with unhappy customers. Customers prefer consistency, or they will go elsewhere.
There are many marketing methods. Your imagination is the only restriction. In fact, it's best to use several to appeal to a broad range of customers. Consider these:
- Pick an ice cream flavour and promote a "flavour of the month" or "sundae of the season" with vivid point-of-purchase materials.
- Experiment with window displays, mobiles and counter cards or tents. However, keep your displays fresh by changing them frequently.
- Pick a special theme, maybe based on the season, and design your displays around it. For instance, "Ice cream means good times." Create a sundae or milkshake for the theme and use a special, one-time flavour.
- Host a special event such as an ice cream tailgate party in your parking lot to celebrate the first day of school. If this is successful, consider doing it annually.
- Always include special treats for children during your special promotions. This gives parents an added incentive to visit your business.
Ice Cream Needs TLC, Too
Your product is the foundation of your business. The most clever decor and displays will not compensate for poor-quality frozen dairy desserts. This means you must pay attention to judging and preserving taste and texture. This translates into showing "tender loving care" for your product.
Start by researching ice cream and frozen yogurt. Choose quality brands and flavours that will work best in your market, and be sure you have enough on hand at all times. Be careful not to overstock your inventory, however.
Customers like a variety of flavours and they like to try new tastes, so indulge them. Again, consistent quality is the key that will keep them coming back over and over again. When you place an order, evaluate your stock to identify what sells well and what doesn't. That'll help you see whether you need to introduce a new flavour. If you are holding a special promotion, be sure to order more of the feature dessert.
Success Will Be Yours
The ice cream dipping business can be one of the most rewarding and fun, because it is a "happy" industry. People love frozen dairy dessert and the ritual of eating it. A well-run parlour or restaurant will enjoy the same customers over and over again.
Remember to start with a quality product, control your costs by watching ingredients and dipping procedures, invent clever marketing strategies, train employees effectively, take care of your product in the freezer and display case by maintaining correct temperatures, and keep equipment clean and in working order.
Above all, have fun. Your store's success depends not only on the factors above but on your business and personal attitude. If you care enough to learn effective management techniques, and if you are successful in communicating your enthusiasm to employees and customers, success will be yours.
As in any other industry, people are the real difference.
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