How much does it cost to open an ice cream shop?

An ice cream shop typically costs $50,000 to $300,000 to open. A small scoop shop with used equipment can start at the lower end, while a shop making ice cream on-site with premium equipment and a full build-out will cost $150,000 or more. The batch freezer alone, which is the core piece of equipment, runs $10,000 to $40,000 new.

Is an ice cream shop profitable?

Ice cream shops can be very profitable, with gross margins of 60-70% on scooped ice cream. However, seasonality is a real challenge in northern climates where winter sales can drop 50-70%. Successful shops diversify with hot drinks, baked goods, or catering to maintain year-round revenue.

Should I make my own ice cream or buy wholesale?

Making your own ice cream gives you higher margins and a unique selling point, but requires a batch freezer ($10,000-$40,000) and more labor. Buying premium wholesale ice cream costs less upfront and simplifies operations. Many shops start with wholesale and add house-made flavors as they grow.

Ice Cream Shop Startup Cost Comparison

Peoria, IL vs Houston, TX

Peoria, IL

$44,000 - $233,000

COL Index: 85

Houston, TX

$51,000 - $267,000

COL Index: 96.5

Detailed Cost Comparison

Expense	Peoria, IL	Houston, TX	Difference
Business Registration & Licenses	$700 - $3,300	$1,900 - $6,200	-51%
Commercial Lease (First + Last + Security)	$2,800 - $15,300	$6,800 - $37,000	-59%
Ice Cream Equipment & Fixtures	$20,000 - $100,000	$20,000 - $100,000	Same
Initial Ingredients & Supplies	$2,000 - $8,000	$2,000 - $8,000	Same
Interior Build-Out & Design	$8,500 - $68,000	$9,200 - $73,600	-8%
Business Insurance (Annual)	$1,500 - $5,000	$1,500 - $5,000	Same
Marketing & Grand Opening	$2,000 - $8,000	$2,000 - $8,000	Same
Working Capital (3 Months)	$6,800 - $25,500	$7,700 - $29,000	-12%
Total Estimated Cost	$44,000 - $233,000	$51,000 - $267,000	-13%

Local Market Factors

Factor	Peoria	Houston
Cost of Living Index	85	96.5
Commercial Rent ($/sqft/yr)	$8 - $18	$18 - $45
Labor Rate Index	0.85	0.92
Sales Tax	9.5%	8.25%
Minimum Wage	$14.00/hr	$7.25/hr
LLC Filing Fee	$150	$300

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