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Margesh Rai
| Updated: 22 Jun, 2020 | Category: FSSAI License

The Essential Guide on Starting an Ice Cream Parlour Business in India

Ice cream parlour business
Reading Time: 7 minutes

The possibilities for ice cream parlour business in India are on the rise. Is there anything more refreshing than having an ice cream on a scorching summer day? No! As it provides cooling relief to people from all age groups and helps them in beating the heat. In India, most of the people prefer to have desserts after eating their dinner. Ice cream is much more than just a delectable dessert. So, what’s better than the ice cream?

The craze for ice cream stays throughout the year, but during the peak of the summer heat, it tends to become something of a craving. In the last decade, people have upgraded their choice from eating low priced ice cream sticks on the roadside to visiting swanky ice cream parlours and try a wide variety of perfect, creamy ice creams.

Note: According to the sources report, the ice cream market in India would behold a CAGR of nearly 18% by 2023.

The foundation of the growth of the ice cream parlour business in India lies in the advancement in lifestyle patterns of Indians, escalating household disposable income, and entry of ice cream brands from international spheres as well. In the upcoming five years, this sector would bring a lot of hope as well as opportunities in the lives of ice cream business enthusiasts.

Initial Steps before Venturing into the Ice Cream Parlour Business in India

Before giving a dream run to your ice cream parlour business in India, you need to start devising the plans from the scratch level. You can build a thriving business by penning down some crucial thoughts on paper and then executing them ahead.

Identification of Niche

If you want to get very far in your ice cream parlour business or any other form of business, you must value the importance of identifying your niche. It’s not a one-time activity, but over and over again, you need to keep tracking the demand of consumers concerning ice cream flavours and taste.

The success of your ice cream parlour business depends upon your niche. Most of the prosperous ice cream parlours have adopted concepts like unique flavour thick shakes, brownies, waffles, family packs, etc. along with a limitless range of ice creams to feast the customers having different likings. Keep your niche on the fingertips.

Decide your Format and Set of Customers

You need to decide the format of your ice cream business that how your customers will be able to experience the taste of your delicious offerings. The format can be a small cafe, a dark kitchen, or an ice cream truck. Although the popularity of ice cream trucks is low, it has got the potential to lure dessert lovers and food enthusiasts.

The choice of format depends on the way you expect your customers to accomplish the pleasure of eating your ice cream delicacies. Many young entrepreneurs have made an investment in the ice cream parlour chains in the last few years, and they are doing unbelievably well for the masses. On the other hand, luxury cafes in high-class societies have earned popularity for their A+ taste despite having premium prices for all the items available.

If you want to decide the group of customers for your ice cream parlour business in India, you must consider two points- the location of your business and a variety of product offerings. Maintaining a wide range of products like classic Indian desserts, sundaes, scoops, thick shakes, D’lites, winter desserts, traditional ice creams, etc. would help the ice cream parlour owners in catering to a maximum number of people. Nevertheless, there is no requirement to cater to one and all as all the offerings have their reserved customers who may or may not try other offerings.

For instance, thick shakes would be a money minting offering only among the specific niche of that item who craves thick shakes. You need to consider these points before initiating the ice cream parlour business. 

Read our article: A Detailed Guide on Penalties under FSSAI Act

Licenses and Permits required for starting an Ice Cream Parlour Business in India

In order to run an ice cream parlour business in India in a legal manner, you should obtain various permits and licenses that would benefit your business in the probable legal issues or any mishappenings in the future.

Licenses for Ice Cream Parlour Business

Company Registration

On the basis of their business ownership, entrepreneurs must get themselves registered either as partnership form of business or private limited. If the entrepreneurs are running a manufacturing unit whose investment is up to 20 crore, then it becomes mandatory for them to acquire the MSME Registration Certificate.

FSSAI License

FSSAI issues one of the most necessary licenses known as FSSAI license to open a food business anywhere in India. The food regulatory authority grants approval to the food entrepreneurs by providing FSSAI License, which is a 14 digit registration number ensuring that all the food items that you are serving match pace with the FSSAI standards and guidelines. This registration number must get marked on every food packaging.

Documents Needed to Obtain FSSAI License

  • Address Proof
  • Identity Proof
  • Phone Number
  • Active Email Id
  • Affidavit
  • Food Category List
  • Employees Medical Certificate
  • Water Testing Report through ISI Certified Facility
  • Declaration of Food Safety Management Plan
  • NOC from the owner or the partner

Shop & Establishment Act License

 Shop and Establishment license is a relevant state-based registration mandatory at the time of setting up a shop, hotel, or any commercial entity. Count from the day you have commenced your ice cream parlour business in India, and you would get Shop and Establishment License within 30 days. This license stays valid for the one-year duration, and the renewal process is also applicable. 

Requisite Documents for Acquiring the Shop & Establishment License

  • Identity Proof such as PAN Card or driving license of the employer or Aadhaar Card or Voter ID Card
  • A single photograph of shop or establishment along with the employer
  • Passport size photo of the employer
  • Utility bills like piped gas, water bill, electricity bill, telephone bill, etc. of the working premises (Provide one among the following utility bills)
  • Rent agreement copy (In rented property case)

Get all these documents submitted to the local chief inspector of the respective area. Once the verification process of documents gets completed from the government end, go for registering yourself under Register of Establishment and obtain a Certificate of Registration.

 Fire Safety License

Another necessary license is Fire Safety License. It is mandatory for you to install fire safety equipment like fire extinguishers and need to make sure that the construction of the floor map is in such a way that at the time of the mishap, easily accessible exits would come into use. There is a procedure to get a NOC after applying online on the website of state government. The Chief Fire Officer will furnish the approval to fire safety measures at the time of inspection, and then it would grant the fire Department NOC.

GST Registration

Millions of businesses and entrepreneurs are going through the registration process of GST. After GDT became applicable from July 1, 2017, which has changed the whole scenario of conducting business by reducing, the complexities as well as compliances for those GST registered businesses.

Essential Documents for GST Registration in India

  • PAN Card of the Partnership Firm/Director or Proprietor
  • Aadhaar Card copy of all the partners or proprietor
  • One passport size photograph of all the partners/proprietor
  • Copy of the Partnership Deed
  • Mail ID along with Mobile No. to get a One-Time Password as well as Verification Links of all the partners
  • List of the items that you will be Trading in(in case you are planning to sell pieces of stuff on the counter as well)
  • List of items that you will be Manufacturing or Trading
  • Latest Bank Statement (It will be displaying Address, Name along with Branch IFSC Code)
  • Authorized Partners Digital Signatures
  • Letter of Authority to deal with partners

Eating House License

If you are serving your customers with the much-needed facility of seating arrangements, you must acquire an Eating House License for running your ice-cream parlour in India in a legitimate way. This license must get obtained while commencing your business. You can get your Eating House License after submitting your photos of the place, floor map as well as legal documents in the hands of the licensing Police Commissioner.

Documents Required for Obtaining Eating House License

  • ID Proof such as Voter ID, Passport, PAN Card, etc
  • Residential Proof such as Government Bank A/C Proof, Voter ID, Passport, etc
  • Photos of the Allocated Space
  • Police Clearance Certificate Copy (One PCC Copy)
  • FSSAI License Copy
  • Certificate of GST Registration updated
  • Fire Safety Certification
  • M.O.A of the Eating House and L.L.P
  • Incorporation Certification of L.L.P and Companies
  • NOC from the Owner of the Premise
  • Proof of Ownership of the Land Area
  • Ownership or Lease Proof of Premise
  • Board Resolution for Conducting Business
  • Trade License
  • Other Documents

Health Trade License

Health License is mandatory as it makes customers believe that your ice cream parlour business in India is conforming to the Health Department guidelines and performing its operations accordingly. Entrepreneurs should obtain Health Trade License by registering themselves under local civil authorities such as the Health Department or the Municipal Corporation of the State[1]. The public health is of utmost importance under the Health/Trade License.

Documents Needed to Acquire Health/Trade License

  • Three Copies of both Layout and Site Plan
  • Sanction as well as Completion (It comprises Rent Agreement, Ownership Proof or No-Objection Certificate from Landlord)
  • The plan concerning the Premises
  • Indemnity bond for Rs. 100
  • Employees Medical Certificates
  • Water Testing Reports
  • Medical Fitness Certificate of all the Workers
  • Power & Water Paid Bill
  • Property Tax Proof

Costs Incurred in Starting an Ice Cream Parlour Business in India

In the process of starting an ice cream parlour business in India, several costs get incurred at all the stages.

Location Meeting your Business Needs

Choosing a suitable location is a hygienic requirement for your ice cream parlour business in India. A perfect spot would be a shopping mall nearby college or school, posh society, the hustle and bustle shopping region, etc. The monthly costs vary on the basis of the locality. It would be somewhere between Rs. 50,000, and Rs. 1, 50,000. Establishing an ice cream parlour requires a carpet area of around 400-500 SqFT. In this case, the sitting capacity will be for five to ten people.

Different Set of Kitchen Equipment

Kitchen Equipment used in ice cream parlour business- Chest Refrigerator, Packaging Material, Storage Cupboards, Cold Stone Refrigerator as your Central Storage System, etc. Power Backup Generator would ensure that ice cream won’t be melting due to 24/7 supply of power. The entire costs for kitchen equipment can range between 5 lakh-7 lakh.

Capital for Day-to-Day trading Operations

Working Capital includes dishes prepared by kitchen staff, utility costs, staff serving the customers, other costs such as suspense, freight, etc. Here, the amount spent will be in the range of 1 lakh-2 lakh. Reduce the size of your team to control the expenses incurred.

Summing all the costs and including marketing costs as well, we must say that investment at the initial level will touch the figure of Rs. 10 lakh to Rs. 15 lakh.

Ice Cream Industry in India

  • Going through sources reports, we observed that the ice cream industry is expected to generate revenue of about 3.4 Billion USD by 2021.
  • Popular ice cream parlours that have established their foot in the market are- Giani’s, Hokey Pokey, Naturals (Founded by Raghunandan Kamath, who has got the title of The Ice Cream Man), Mama-Mia, Brain Freeze, etc.

Bottom Line

In India, the future of ice cream parlour will be a glorious one in the years to come. If you are planning to commence an ice cream parlour business in India, you must abide by the legal requirements and consider all the other factors. For any assistance from us, we at Corpbiz are eager to help you in starting the ice cream parlour business in India.

Read our article: How to Import Food Products in India?

Margesh Rai

Being a poetry lover, and an avid reader, Margesh is fanatical about legal content writing. After completing graduation in B.Com(H), he decided to follow his passion. Writing impeccable in-depth content about legal and finance-related topics is his biggest forte.

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