Written By: Bandana Gupta

The Increasing Demand for Ice Cream Franchise Opportunities

India's warm tropical climate and extended summer months create a strong demand for ice cream, making it a highly profitable industry. Over the years, the sector has evolved significantly. Previously, ice cream was sold mainly through roadside carts that catered to children and young adults. Now, modern ice cream parlours are becoming popular, offering customers the convenience of enjoying ice cream whenever they wish.

This change is primarily influenced by two main factors:

1. Rising disposable incomes among middle-class families have increased their ability to spend on leisure and treats like ice cream.
2. Western cultural influences have changed consumer preferences, encouraging experiences such as visiting ice cream parlours rather than buying from roadside vendors.

These trends have made the ice cream business a specialized yet promising field. With innovative ideas, quality products, and strong branding, entrepreneurs can turn their ice cream ventures into thriving successes. The Indian ice cream market, experiencing robust growth, presents a promising landscape for ice cream franchises, driven by rising disposable incomes, urbanization, and a preference for indulgent treats. 

Some unique perspectives of owning an Ice Cream Franchise:

Starting an ice cream franchise in 2025 opens doors to exciting opportunities for business-minded individuals. The growing demand for creative and unique ice cream flavours combined with the security of a proven franchise system makes it an appealing venture. 

Let's delve into why investing in this business could be a gate away to aspiring entrepreneurs.

• Steady Market Growth: The ice cream market is set to reach 751.79 million kilograms by 2030, with a slight volume growth of 0.5% projected for 2026. Since ice cream is enjoyed year-round, it ensures steady sales even during non-summer months.
• Rising Demand for Unique Flavors: Consumers now prefer innovative options like vegan, non-dairy, and organic ice creams. By offering these choices, businesses can attract health-conscious customers while standing out from the competition.
• Cost-Effective Investment: Ice cream franchises typically require fewer operational costs than traditional restaurants. There’s no need for large dining areas or a big team, making it a smart and affordable business choice.
• Comprehensive Support from Franchisors: Franchisors provide valuable resources like training, marketing strategies, and operational guidance. This support helps franchisees run their outlets efficiently and overcome challenges with ease.
• Year-Round Appeal: Ice cream remains a popular treat throughout the year. With its affordability and quick indulgence factor, it attracts a loyal customer base in every season. This demand makes the business resilient, even during economic downturns.
• Room for Innovation: Ice cream franchises encourage creativity, with new flavours, unique presentations (like rolled ice cream), and dietary-friendly options becoming popular. Regularly updating the menu and running innovative marketing campaigns can keep customers coming back for more.

Expanding Presence Through Affordable Franchises:

Ice cream brands are steadily broadening their footprint by establishing franchises in diverse locations, including malls, residential areas, and smaller towns. The low investment required for these franchises has been instrumental in driving this growth, making it easier to tap into new and varied markets.

Turning Flavors Into Fortunes: A Guide to Open an Ice Cream Parlour in India?

• Research the Market: Understand local preferences and trends in the ice cream industry, including popular flavours, pricing, and competition in your target location.
• Choose a Business Model: Decide if you want to operate independently or as part of a franchise. Franchises often come with established brand recognition and support, while independent setups offer more creative freedom.
• Find the Right Location: Select a high-visibility spot with good foot traffic, such as near schools, colleges, or shopping areas. Accessibility and parking options can also attract more customers.
• Obtain Licenses and Permits: Secure necessary licenses, including FSSAI registration, GST registration, a trade license, and a NOC from the local municipal authorities.
• Plan Your Investment: Estimate the initial costs, including rent, equipment, décor, and inventory. Look into financing options if needed and create a detailed business plan to guide your expenditure.
• Equip Your Parlour: Invest in essentials like freezers, mixing machines, display counters, and seating arrangements. Ensure your setup aligns with your business model and customer needs.
• Create a Menu: Design an attractive menu with a variety of options, from traditional favorites to unique and premium flavors. Offering vegan, sugar-free, or organic options could help you cater to health-conscious customers.
• Hire Staff and Train Them: Recruit friendly, efficient staff and provide them with training on customer service, hygiene, and food handling.
• Promote Your Business: Use social media platforms, local advertising, and opening-day offers to create buzz about your parlour. Word-of-mouth from happy customers will also help you grow.
• Maintain Quality and Hygiene: Consistently provide high-quality products and maintain strict hygiene standards to build trust and retain customers.

From Expenses to Earnings: Ice Cream Business Insights:

Initial Investment:

• Setting up an ice cream business generally costs around Rs 50,000.
• Hiring a consultant is advisable to handle necessary approvals, saving you time to focus on your business.

Profit Margin for Own Brand:

• For self-created and branded ice creams, the ideal profit margin ranges from 30% to 40%.
• Profit margins depend on production costs and other related expenses.

Factors Influencing Profit Margins:

• Location: Plays a key role in boosting revenue. A prime location attracts more customers and increases profits.
• Target Market: Pricing and profits may vary based on the preferences and spending capacity of your target audience.

Profit Margin in Franchising:

• If selling ice creams under a franchise, a portion of your total sales goes to the main ice cream manufacturer.
• As a result, the profit margin may be slightly lower compared to owning your own brand.

Additional Considerations:

• Other factors, such as marketing, operational costs, and menu variety, can also affect profit margins and overall business success.

Top Leading Ice Cream Franchises to Start in India:

AMUL:

• Strong Brand Name: Amul is one of India’s most trusted dairy brands. Its excellent reputation and loyal customer base make it easier for franchise owners to attract and retain customers.
• Profitability: With Amul’s reliable supply chain and strong customer demand, franchisees enjoy consistent sales and high profit margins.
• Investment Required: Starting an Amul franchise typically requires an investment of ₹10 lakhs to ₹20 lakhs.
• Full Support Provided: Amul offers comprehensive support, including training, marketing help, and operational guidance, ensuring franchisees maintain top-notch quality across their outlets.

BASKINS ROBBINS :

• Famous for Variety: Baskin Robbins is loved for its "31 Flavors," offering both classic and seasonal ice cream options.
• Global Recognition: Its worldwide reputation gives franchise owners an edge in the competitive ice cream business.
• Investment Range: Starting a Baskin Robbins franchise requires an investment of ₹20 lakhs to ₹40 lakhs.
• Support System: The brand provides thorough training, a strong business model, and marketing assistance to help franchisees succeed.
• High Success Potential: With its large customer base and wide range of flavors, Baskin Robbins is a great option for those looking to enter the ice cream market.

GIANI'S ICE CREAM:

• Rich and Luxurious Flavors: Giani's is known for its creamy textures and indulgent, high-quality ice creams. It’s a go-to brand for those who enjoy premium desserts.
• Investment Range: Starting a Giani's franchise requires an investment of ₹18 lakhs to ₹30 lakhs.
• Comprehensive Support: Franchise owners receive complete training, help with store design, and marketing support to set up and grow their businesses effectively.
• Perfect for Upscale Markets: Giani's targets customers who seek a luxury ice cream experience, making it ideal for high-end locations like malls and posh neighbourhoods.

NATURAL ICE CREAM:

• Fresh and Natural Ingredients: Naturals uses real fruits and natural ingredients without artificial flavouring, offering a healthier ice cream option that appeals to health-conscious customers.
• Investment Range: Starting a Naturals franchise requires an investment between ₹15 lakhs and ₹25 lakhs.
• Unique features: Their authentic, fresh flavours attract customers who value quality over processed alternatives.
• Franchise Support: Naturals offers strong marketing and operational guidance to help franchise owners maintain product quality and benefit from the brand’s popularity.

VADILAL'S ICE CREAM:

• Well-Established in Western India: Vadilal has a strong presence and loyal customer base in Western India, making it easier for franchisees to enter an already thriving market.
• Investment Range: Starting a Vadilal franchise requires an investment of ₹12 lakhs to ₹20 lakhs.
• Comprehensive Support: Vadilal provides operational training, product guidance, and marketing support, helping franchisees build and grow their business successfully.
• Diverse Target Audience: Vadilal appeals to families and individuals across all age groups by offering both classic flavours and creative, innovative options.

CREAM STONE :

• Unique Ice Cream Customization: Cream Stone lets customers create their ice cream by adding mix-ins and toppings, offering a fun and interactive experience that appeals to younger audiences.
• Investment Range: Starting a Cream Stone franchise requires an investment of ₹15 lakhs to ₹25 lakhs.
• Perfect for Families and Youth: Its customizable and playful approach makes Cream Stone a favorite among families and young people seeking an enjoyable dessert outing.
• Comprehensive Franchise Support: Cream Stone provides training, marketing assistance, and operational guidance to help franchisees offer a great customer experience.

Special Criteria to consider for choosing the right franchise:

• Brand Reputation and Recognition: Choose a brand with a strong reputation and customer loyalty. 
• Franchise Support: Look for a franchise model that provides comprehensive training, marketing support, and ongoing assistance. 
• Investment and Return: Evaluate the initial investment required, as well as the potential for profitability and return on investment. 
• Market Research: Conduct thorough market research to assess the demand for ice cream in your target area. 
• Operational Ease: Consider the ease of operations, including sourcing, supply chain, and staffing. 
• Customer Feedback: Look at customer reviews and feedback to get an understanding of the brand's strengths and weaknesses. 

Specialized Categories of Ice Cream Franchises:

Cold Stone Creamery:

An international chain known for premium, made-to-order ice cream, crafted on-site.High-quality ice cream with 12–14% butterfat, customizable for customers.

Frozen Yogurt Franchise: 

It Offers a lighter alternative to ice cream, focused on frozen yogurt and related desserts.Wide variety of frozen yoghurt flavours, toppings, and other treats.

Gelato Franchises:

Specializes in Italian-style gelato with a dense texture and lower air content than traditional ice cream.Assortment of authentic gelato flavors and related items.

Shaved Ice/Gola Franchises:

Focuses on shaved ice desserts, topped with syrups, fruits, and creative ingredients. Various flavors and toppings for a fun, customizable experience.

Conclusion:

The ice cream business is one of the most profitable ventures, offering entrepreneurs excellent opportunities to grow. Companies providing franchises in this sector can be explored by reviewing franchise costs or checking detailed franchise lists specific to India. One reliable platform to discover businesses in this segment is FranchiseBazar, which showcases some of the best opportunities in the ice cream market, making it an ideal choice for aspiring entrepreneurs.

Disclaimer: The brands mentioned in this blog are the recommendations provided by the author. FranchiseBAZAR does not claim to work with these brands / represent them / or are associated with them in any manner. Investors and prospective franchisees are to do their own due diligence before investing in any franchise business at their own risk and discretion. FranchiseBAZAR or its Directors disclaim any liability or risks arising out of any transactions that may take place due to the information provided in this blog.