Soft ice cream - what is it, how does it work and what are the benefits? (Update 2022)

Today we want to take a closer look at the topic of soft ice cream in our Krämagazin. What are good locations for soft ice cream sales? From when to when is the selling season? What is the margin for soft ice cream? What time and costs do I have to reckon with? And above all - for whom and from what sales volume is it worth selling? These and other questions are the focus of today's article.

What is soft ice cream?

Basically, soft ice cream is a "normal" ice cream - only prepared differently. This means that soft ice cream can theoretically be made in (almost) all flavours. 

The special thing about soft ice cream is the way it is prepared - the ice cream is not stored frozen like normal ice cream, but is dispensed directly from the machine at the moment of sale. It would therefore be correct to call soft ice cream"fresh ice cream". 

The name "soft ice cream" comes from the fact that soft ice cream has a high air content (up to 75% in contrast to a maximum of 45% for normal ice cream) and is consumed much warmer than normal ice cream: at around -7° C, compared to around -15° C. All in all, this ensures that soft ice cream is much softer than ice cream. All in all, this ensures that soft ice cream is significantly softer than ice cream.

It isproduced in special soft ice cream machines that have a refrigerated storage area for the liquid ice cream mix as well as a freezing cylinder in which the ice cream is then frozen and from which it is dispensed.

However, there is still one special feature to note: The characteristic high air impact is achieved by special gear pumps. In order for these to work properly, the mix must be "smooth", i.e. it must not contain any pieces - fruit pits, nut pieces and the like must not be in the soft ice cream mix (unlike "normal" ice cream).

Location factors for soft ice cream

So the first question is: Which location is suitable for soft ice cream?

Basically any location with a high frequency of walking customers: busy pedestrian zones, shopping centres, cycle paths and excursion destinations, outdoor pools and bathing lakes, and basically any location with many children nearby - i.e. kindergartens, schools or school bus stops nearby. Basically, one can also state: The more customers are in leisure and relaxation mode, the more they want soft ice cream. Translated, this means that a location in the shopping centre where the family can stroll around relaxing while shopping at the weekend is better suited than a place in front of the discount grocery store where annoyed family fathers and mothers lug home the week's bulk purchase of water boxes and toilet paper.

This is also the reason why many showmen swear by soft ice cream machines: At large and small festivals (and no, it doesn't always have to be the Oktoberfest...) soft ice cream is particularly popular - also because there is significantly less soft ice cream than normal gelato in everyday life, which is why it is something special for many.  

Selling season and portions

The regular ice-cream season in Germany runs from around mid-March to mid-October - i.e. around 7 months or approx. 30 weeks. With 6 opening days per week, this is a core season of about 180 sales days, with five opening days about 150 days. The advantage of soft ice cream over normal ice cream, however, is that the preparation and post-processing time for selling soft ice cream is much shorter: fill the machine and switch it on - done. Then empty and clean the machine - done. This makes it easy to extend the season by a few nice weeks (ends) in spring or autumn if the weather is good. This is not so easy with ice cream. 

If you manage an average of about 50 portions per sales day, you will achieve between 7,500 portions (five sales days over 7 months) and 10,000 portions (with 200 sales days) per year. If you are in a great location - e.g. a busy pedestrian zone - and manage an average of 150 portions per day, then the number grows to 22,000 - 30,000 portions per year. And in exceptional situations - festivals, big events - a single machine can sell up to 3,000 portions a day. 

Cost of sales and sales prices

So what about the cost of goods and the possible selling prices? Of course, the cost of sales also depends on your portion size (after all, it's up to you whether you make larger or smaller portions, or perhaps offer several sizes) and the air surcharge of your soft ice cream (and this in turn depends on both the mix used and your personal taste). As a rule of thumb, however, you can assume € 0.20 - € 0.25 cost of goods per ice cream portion, plus € 0.05 - € 0.10 per wafer/cup. Thus, a soft ice cream has a pure cost of goods between € 0.25 and € 0.35.

The selling price depends strongly on the region - at the Oktoberfest in Munich you will certainly be able to charge € 3.00 - € 3.50 for the portions. In rural Saxony, you can often still find soft ice cream for under € 2.00. And in "normal" city locations, you should be able to calculate with around € 2.50 (depending on the size). But as you have certainly noticed yourself: Better make larger portions and charge a little more - the cost of goods remains low. 

Now the sales tax factor has to be added - and this is where soft ice cream is interesting, because soft ice cream is usually sold on the street, i.e. with only 7% sales tax. This usually leaves a gross margin (selling price minus tax and cost of sales) of between € 1.60 and € 2.90 per serving.

Costs and profitability

And now comes the crucial question: Is it worth it for me? Clear answer: It depends on your sales figures and your business. 

Using the figures from above - let's assume a gross margin of € 2.25 per portion as an average value - let's do the math again: With 7,500 portions sold per year (150 days á 50 portions), the gross profit is almost € 17,000 - from which energy and cleaning costs (which generally range between € 1,000 and € 1,500 per year) must be deducted, leaving a gross margin of approximately € 15,000. With 25,000 portions (200 days á 125 portions) it is already over € 50,000.

Of course, you still have to deduct any staff and room costs - it is ideal, of course, if you simply add a soft ice cream machine to your existing establishment and can use your existing sales staff as well, because then the additional costs are close to zero.

If you now calculate that you can get a new, high-quality, long-lasting Carpigiani soft ice cream machine for as little as about € 20,000 and that the machine (with proper care) has a service life of at least 15 years, then it should be clear: Yes, it pays off relatively quickly. And even an expensive high-performance machine for € 40,000 (which is then durable, powerful, flexible and hygienically absolutely safe through pasteurization) is paid off in less than two years at 25,000 servings per year. Or you can finance the equipment through an attractive leasing arrangement - in which case you earn a nice sum of money in the first year and benefit from the tax advantages of the leasing model.

Soft ice cream is worth it - not always, but often!

So you see: In good locations, good money can be earned with soft ice cream with manageable risk and effort. However, it is also important that you buy the right machine - not too big and not too small, with the right technology, the right cooling, long shelf life, easy cleaning and guaranteed service and spare parts supply. If you are interested - or would like us to work out an individual calculation for your situation - please feel free to contact our experts. Or, in the meantime, take a look at our soft ice cream machines right here on our homepage. 

Happy licking!

Your Alois Krä GmbH