Profit from an Ice Cream Machine in South Africa
An ice cream business is one of the most profitable small businesses in South Africa. Starting an ice cream business is easy due to low startup costs and consistent year-round demand. Ice cream is a sweet, refreshing treat for children, family bonding time, couples, and even tourists enjoying some soft serve by the beach. Good news for an entrepreneur is that you can start as small as one machine and grow, or even start with selling homemade treats and grow larger once you understand your market. With the right determination, strategy, location, and financial management, you can grow your small business to a full-time business that brings you R20,000 to R80,000 in income every month.
Where to Purchase an affordable ice cream machine
The best thing to do is choose the type of ice cream business you can afford when starting. The most affordable option is to start a home ice cream business, as all you need are the ingredients and a household freezer, assuming you already own one. The most profitable route would be getting a soft serve machine that allows you to sell ice cream cones or cups in fast-paced areas with lots of people.
If the budget allows, you can choose the soft serve machine. You can find trustworthy suppliers of ice cream machines like:
- Takealot: entry-level machines worth R3,000 to R8,000.
- Caterweb, Bidvest, and Makror for long-lasting commercial machines ranging between R20,000 and R60,000.
- You can find more affordable ex-cafe machines for half their original prices on Gumtree and Marketplace.
If your budget does not allow for a machine, this shouldn’t stop you. If you have R1,500, you can buy products and start making homemade ice cream tubs and sell them from your freezer. You can sell your small tubs to the locals in your neighborhood and spaza shops while saving for an ice cream machine.
Estimated Costs of Ice Cream Production
You are bound to price your products correctly when you know your production costs.
Soft serve is very affordable to produce. For example:
Step 1
Daily profit calculation.
- Revenue:
- 20 × R10 = R200
- Cost of production:
- 20 × R3.80 = R76
- Daily profit:
- R200 − R76 = R124
Step 2
Monthly profit (assuming 30 days)
- R124 × 30 = R3,720 per month
Step 3
Profit Margin
- Profit per cone: R6.20
- Margin: (6.20 ÷ 10) × 100 = 62%
Ice cream will forever be an entrepreneur’s favorite small business in South Africa because of the low cost of production, high profit, and year-round demand.
Making Homemade Ice Cream Without a Machine
If you are under a tight budget, you can still penetrate the market through a homemade ice cream business. You will need milk, sugar, cream, flavoring, and a whisk or hand mixer to start your homemade ice cream business. Then you freeze your ice cream in small tubs overnight and sell them directly in your neighborhood homes, schools, and spaza shops.
You can also opt for ice lollies, where you buy a set of molds for R200 and produce multiple flavored lollies at once. These are affordable to make and sell for R2 to R5, which can sell faster in schools and any high-traffic location in townships. Although the homemade route has a lower profit margin than a soft serve, it is still easier to start and can grow later if managed right.
Finding Clients for Your Ice Cream Business in South Africa
How fast your ice cream sells will depend on your location. The best selling points are schools, beachfronts, taxi ranks, and malls (fewer sales, high profit). You can also supply your local spaza shops with tubs/lollies with a commission. Ice cream businesses can get you very high profits as long as you match your pricing with the type of market you sell to; you can get R5 profit in schools in townships, while you get R15 profit for a double scoop in Sandton.
You can also sell ice cream right from your home! Just put a sign outside
Realistic Profit Scenario Samples
This is how much you can make on your ice cream business in South Africa:
Homemade ice cream tubs and ice lollies in homesteads and spazas.
- R3,000 to R7,000 profit a month
- The startup cost is extremely low.
A soft-serve machine in a high-traffic
- R15,000 to R20,000 profit a month
- Start-up costs can be a little high.
The start-up costs for multiple ice cream machines and event catering range from R50,000 to R80,000.
- The monthly profit ranges from R50,000 to R80,000.
- Requires planning and financial literacy
The key to building a successful ice cream business depends on reinvesting profits, covering multiple locations, and branding yourself with a professional, trustworthy look.
Conclusion
An ice cream business in South Africa is one of the easiest small businesses to start and is easily scalable. You can start this business with very low capital and still scale into making thousands of rand a month in profit. The ice cream business has a growing high demand all year round; whether you are selling tubs, lollies, or soft serve, you will still get customers in high volumes. Looking at how production costs are usually under R4 for a cone with an R10 to R25 selling price, this is a high-profit business that is easy to scale. If you choose the right location, be consistent, diversify your product line, and reinvest profits into buying more machines, you can even venture into event catering and move your small side hustle to a full-time business worth more than ten thousand a month.
