If you are looking to start a new business in the food and beverage industry but are unsure where to start, then you have come to the right place. According to recent statistics, the food and beverage industry has seen a massive growth of 5.1% over the last year, making it a highly lucrative market.

But starting a new venture, particularly in the food industry, can be a daunting task, especially when you factor in start-up and operational costs. The shaved ice beverage industry, in particular, has gained popularity in recent years, leaving many people wondering:

  • How much does it cost to open a shaved ice beverage business?
  • What are the startup expenses involved?
  • And how can you ensure that your business is a success?

Don't worry, we have got you covered. In this article, we will explore the costs involved in starting a shaved ice beverage business and what you need to know to make your venture a success. Keep reading to find out more.



Startup Costs

Starting a shaved ice business requires a significant investment of capital. The total cost is determined by various factors such as the location of the business, the size of the operation, and the type of equipment being used.

Startup Costs Ranges
Shaved ice cart purchase $2,000 - $8,000
Shaved ice machine purchase $1,000 - $3,000
Inventory of flavored syrups $500 - $1,000
Transportation of cart to events $500 - $1,000
Licenses and permits $100 - $500
Insurance $1,500 - $3,000
Marketing and advertising expenses $1,000 - $5,000
Total $6,600 - $22,500

The largest expense when starting a shaved ice business is typically the cost of purchasing a cart and a shaved ice machine. These items can cost anywhere from $3,000 to $11,000. Another essential expense is the inventory of flavored syrups, which can range from $500 to $1,000. Other expenses to consider when launching this type of business are the costs associated with transportation of the cart to events, licenses and permits, and insurance.

Once the start-up costs have been paid, additional expenses, such as marketing and advertising, will need to be budgeted. Marketing and advertising expenses can range from $1,000 to $5,000, depending on the size and length of the marketing campaign. This expense is critical to getting the word out about your business and attracting customers.

To succeed as a shaved ice business owner, it is essential to be aware of and prepared for the various expenses that come with starting this type of business. With proper planning and budgeting, the start-up costs can be managed, and the business can flourish.



Shaved Ice Cart Purchase

As a seasoned business consultant, I have encountered countless entrepreneurs looking to enter the shaved ice industry. And one of the most common questions that arise is how much would it cost to start a shaved ice cart business?

Based on recent statistical data, the average startup cost for a shaved ice cart business ranges from $15,000 to $50,000. The cost will depend on various factors, such as location, size of the cart, equipment needs, and inventory.

Here's a breakdown of the average costs:

  • Shaved Ice Cart: $2,000 to $10,000
  • Equipment: $1,000 to $2,000
  • Inventory: $2,000 to $5,000
  • Licenses and Permits: $500 to $1,500
  • Marketing and Advertising: $500 to $2,000
  • Insurance: $500 to $1,500
  • Employee Wages: $1,000 to $3,000

Keep in mind that these are just estimates and costs will vary depending on your location and other factors.

Tips & Tricks:

  • 1. Research: Do your research and compare costs before making any purchases. Look for suppliers who offer competitive prices, and negotiate to get the best deal.
  • 2. Location: Choose a high-traffic area for your cart, where there are many potential customers. Check with your local authorities for zoning and permit requirements.
  • 3. Branding: Invest in eye-catching branding for your cart, and make sure it reflects the quality of your products. This will help attract customers and create a memorable experience for them.

Starting a shaved ice cart business can be a profitable venture if done right. With proper planning and execution, you can build a successful business and become an established player in the industry. As always, good luck and happy shaving!



Shaved Ice Machine Purchase

As a professional business consultant, I have helped many entrepreneurs to start their businesses, and I know that one of the most critical factors in opening a successful shaved ice beverage shop is the purchase of a high-quality shaved ice machine.

According to the latest statistics, the cost of a new shaved ice machine can range anywhere from $300 to $5,000, depending on the type, size, and features. On average, a mid-range shaved ice machine suitable for a start-up business can cost around $1,500. However, for a high-end machine with additional features like self-serve dispensers or multiple attachments, the cost can go up to $5,000.

  • Tip 1: Before purchasing a shaved ice machine, determine the business's expected volume.
  • Tip 2: Consider the cost of a machine as an investment and choose wisely for a long-term partnership.
  • Tip 3: Take advantage of discounts and look for used machines in good condition or rent one before purchasing a new one.

Additionally, when starting a shaved ice beverage business, there are additional start-up costs. For example, in addition to purchasing the machine, you'll need to rent or purchase a space, buy ingredients such as ice, syrups, toppings, cups, spoons, and napkins.

Furthermore, you'll need to invest in marketing, advertising, and building branding. Other costs that should also be included are legal and accounting fees, business licenses and permits, utilities, and insurance.

Lastly, it is essential to remember that the total cost of starting a shaved ice beverage business will depend on various factors, including the location, demand, and quality of the ingredients and supplies.

Tips & Tricks

  • Research and compare prices of machines from different vendors.
  • Don't forget to include additional costs for ingredients, supplies, and branding in your budget.
  • Utilize social media and local events to promote your business inexpensively.


Excel financial model

Shaved Ice Beverage Financial Model

  • 5-Year Excel Financial Projection
  • 40+ Charts & Metrics
  • DCF & Multiple Valuation
  • Free Email Support



Inventory of Flavored Syrups

As a business consultant with years of experience in helping entrepreneurs launch their ventures, I know that inventory is one of the most critical aspects when it comes to starting a shaved ice beverage business. Flavored syrups are the main ingredient that goes into making the delicious and refreshing treats.

The inventory of flavored syrups for your start-up will depend on the location, size, and target market you are aiming for. However, the costs and expenses involved are approximately between $2,500 to $6,350.

  • Basic syrups such as blue raspberry and cherry cost between $15 to $20 for a gallon
  • Specialty syrups such as coconut or lychee cost between $20 to $30 for a gallon
  • Top-tier/high-end syrups like bubblegum or cotton candy cost between $30 to $35 for a gallon

Nevertheless, before you invest in inventory, it's crucial to research which flavors are popular among your target market and invest accordingly.

Tips & Tricks for Inventory of Flavored Syrups

  • It is always good to start with basic syrup flavors before moving to specialty or high-end syrups, as they not only cost less but are known to be popular among all age groups.
  • Purchasing syrups in bulk might lead to some savings in terms of costs. But make sure you have the appropriate space to store the inventory.
  • Be mindful of seasonal trends. Offering seasonal flavors such as pumpkin or eggnog during the fall and winter season might lead to higher sales overall.

In conclusion, the inventory of flavored syrups is a crucial aspect when starting a shaved ice beverage business. Knowing which flavors to invest in, ensuring proper storage, and taking into account seasonal trends can lead to success in this business venture.



Transportation of Cart to Events

As a business consultant who has helped start thousands of businesses in my career, one of the most common questions I get is regarding the expenses involved in starting a shaved ice beverage business. One important cost to consider is the transportation of the cart to events. Here, I'll break down the latest statistical information in USD for this startup expense.

The cost of transporting the cart can vary greatly depending on the distance and frequency of transportation. On average, it can cost anywhere from $100 to $500 to transport the cart to an event. This includes the cost of gas, maintenance, and labor involved in the transportation process.

Additionally, some event vendors may charge a fee for the placement of your cart, especially if it takes up a significant amount of space or requires extra setup time. These fees can range from $50 to $200, depending on the event and location.

One way to cut down on transportation costs is to invest in a smaller, more portable cart that can easily fit in the trunk of a car or van. This can help reduce the need for larger transportation vehicles and eliminate some of the labor costs associated with transportation and setup.

Tips & Tricks for Transportation Costs

  • Consider partnering with other shaved ice beverage businesses in your area to share transportation costs and split fees
  • Research potential event locations and vendors in advance to determine any additional fees or requirements for cart transportation and placement
  • Invest in a high-quality cart that is easy to transport and set up to save time and reduce labor costs

Overall, transportation costs are an important consideration for any shaved ice beverage business owner looking to start their business. By understanding the latest statistical information and following these tips and tricks, business owners can save money, time, and resources when transporting their carts to events.



Licenses and Permits

Starting a shaved ice business requires several licenses and permits. First, you need a business license, which can range from $50 to $400 depending on the state. In addition, you need a food handler's permit, which costs around $100. Other permits, such as a sales tax permit or a sign permit, may also be required.

According to recent statistical information, the average cost for licenses and permits for a shaved ice business ranges from $500 to $1,000. However, costs can vary depending on the location and type of business.

Tips & Tricks

  • Research the licensing requirements in your area before starting your shaved ice business.
  • Factor in the cost of licenses and permits when creating your business plan.
  • Consider hiring a professional to help you navigate the licensing process.



Insurance

As a business consultant who has helped numerous entrepreneurs start their ventures, one aspect that cannot be ignored is the importance of insurance. No business can run without some form of insurance, and the cost of insurance can vary depending on numerous factors. Here, we’ll discuss the startup costs and expenses related to insurance and provide you with the latest statistical information in USD.

Tips & Tricks

  • Do your research – get quotes from multiple insurance brokers to ensure you’re getting the best deal for your business.
  • Consider bundling your insurance policies – you may be able to save money by bundling property, liability, and other policies together.
  • Don’t skimp on coverage – while it may be tempting to choose the cheapest insurance options, it’s important to make sure you have adequate coverage to protect your business from unforeseen circumstances.

Depending on the type of insurance coverage you need, the cost of starting a shaved ice beverage business can vary. Here are some general estimates:

  • Liability insurance – this is typically the most important insurance coverage to have and can cost anywhere from $1,000 to $5,000 per year depending on your industry and risk level.
  • Property insurance – this covers damage to your physical business assets (like equipment and inventory) and can cost anywhere from $500 to $2,000 per year.
  • Workers’ compensation insurance – if you have employees, you’ll need to provide workers’ comp insurance, which can cost around $1,000 per year per employee.
  • Commercial auto insurance – if you have a business vehicle, such as a food truck, you’ll need to insure it under your business and this can cost anywhere from $750 to $2,000 per year.

Keep in mind, these are just general estimates and your specific costs will depend on numerous factors, like the size of your business and the amount of coverage you need. It’s important to consult with an insurance broker to get an accurate estimate for your unique situation.

While insurance costs can be a significant expense when starting a shaved ice beverage business, it’s important to ensure you’re properly protected from potential risks and liabilities. By doing the proper research and consulting with professionals, you can find the best insurance coverage for your business at the most affordable price.



Marketing and Advertising Expenses: How Much Does It Cost To Open/Start/Launch Shaved Ice Beverage?

As a seasoned business consultant, I have helped countless entrepreneurs embark on their business journey, and one of the questions I get asked the most is, 'How much does it cost to open/start/launch a shaved ice beverage business?' And one of the key expenses that every aspiring business owner needs to consider is marketing and advertising costs. So, based on the latest statistical information, let's dive into the estimated marketing and advertising startup costs/expenses for a shaved ice beverage business in USD. Online Advertising: The internet has become a crucial platform for businesses to advertise, and online advertising is a cost-effective way for a shaved ice beverage business to reach a large audience. However, online advertising costs vary depending on the platform and type of ad. On average, social media ads can cost anywhere from $1 to $2 per click, while Google Adwords can cost between $0.50 to $2 per click. For a national campaign, expect to pay anywhere between $3,000 to $5,000 per month. Local Advertising: Local advertising can be an effective way to target a specific geographic area. Advertising in local newspapers, magazines, billboards, and flyers can lead to increased brand awareness. Depending on the advertising medium, the cost per impression (CPM) can range from $30 to $50. Local advertising budgets can range from $2,000 to $6,000 per month. Sponsorships and Partnerships: Sponsorships and partnerships can provide valuable exposure to a shaved ice beverage business. The cost of sponsorships and partnerships varies significantly depending on the type of event, location, and target audience. The cost of sponsoring a community event can range from $500 to $5,000, while partnering with a large organization or event can cost upwards of $50,000.

Tips & Tricks:

  • Tip 1: Start with a budget in mind, and plan your marketing and advertising expenses accordingly.
  • Tip 2: Prioritize your local community and target audience when planning your marketing strategy to increase the likelihood of success.
  • Tip 3: Utilize social media to your advantage by creating engaging content and interacting with your audience.

In conclusion, the cost of marketing and advertising a shaved ice beverage business can vary significantly depending on the medium, location, and target audience. It is important to start with a budget in mind and prioritize your marketing efforts to achieve the greatest return on investment. By utilizing a mix of online advertising, local advertising, and sponsorships/partnerships, you can build a strong brand image and reach your desired audience. Remember to keep in mind the tips and tricks shared above to help get your shaved ice beverage business up and running.


Starting a shaved ice beverage business can be a lucrative venture, but it is important to understand the costs involved and how to run a successful operation. Based on our research, the start-up costs for a shaved ice beverage business can range from $10,000 to $80,000, depending on the equipment and location. It is also important to consider ongoing operational costs such as ingredients, labor, rent, and marketing expenses.

However, with the food and beverage industry experiencing a massive growth of 5.1% over the last year, a shaved ice beverage business has potential for success. It is crucial to carefully plan and execute marketing strategies, create a unique menu, and provide excellent customer service to stand out in a crowded market.

Ultimately, opening a shaved ice beverage business requires hard work, dedication, and financial investment. But with the right approach and a willingness to adapt to changing market trends, this can be a rewarding business venture. We hope this article has provided valuable insights for those considering starting a shaved ice beverage business.


Excel financial model

Shaved Ice Beverage Financial Model
  • 5-Year Financial Projection
  • 40+ Charts & Metrics
  • DCF & Multiple Valuation
  • Free Email Support