Dessert Industry Profitable? Ice Cream Franchise Review



In today’s video Patrick is going to talk about the dessert industry. An important fact to keep in mind for the coming year is that the dessert catering sector is expected to continue to grow in the years ahead.

You can learn more here: https://www.vettedbiz.com/dessert-industry/

Want to speak with a franchise specialist? Click here:
https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw

Take more info from dessert industry brochure
https://www.vettedbiz.com/industries/food-and-beverage/

You can learn more about Crumbl Cookies here: https://www.vettedbiz.com/crumbl-cookie-franchise-profits-2021-review/ and about Häagen-Dazs here: https://www.vettedbiz.com/listing/haagen-dazs/

00:00 Introduction
00:09 Dessert Franchises
00:30 Adapting To Changing Consumer Conditions
1:14 Royalty & Marketing Fee
01:31 Growth in The Ice Cream & Frozen Desserts Sector
01:41 Trends Positioned By The Consumers
04:23 Location-dependent
05:11 Stabilization
05:53 Conclusion

#DessertIndustryProfitableIceCreamFranchiseReview #VettedBiz

Hey, Patrick Findaro here, co-founder at Vetted Biz. Today, we’re gonna talk about the dessert industry including ice cream franchises. So this is a very popular franchise industry that many prospective franchisees will first investigate. Because they’re quite familiar with the space even from their childhood. You might have gotten Häagen-Dazs, a Baskin-Robbins, or other frozen dessert, or even cookie franchises like Mrs. Fields Cookies.

There is a lot of emerging brands. And the one nice thing about this industry, with the product, you can adapt very fast to changing consumer conditions. This is very different than a fitness franchise, a gym that requires a $3 million capital investment in equipment. You can adapt as fast to the different consumer taste when you have a very high build out. But with this type of business in the desert industry, you can adopt the product that you’re selling pretty quickly. Obviously, it’s 2022 now. Going into supply chain issues, it might be a little difficult to adapt as fast as pre-COVID.

So, overall stats, the royalties are about 5% for frozen dessert franchises. This includes ice cream franchises. And the marketing fees right around 2%, this is an industry average encompassing about 100 frozen dessert franchises. The ice cream and frozen dessert sector alone is very big in the United States. $6.7 billion dollars. It’s growing a little above 2% year-over-year.

There’s a lot of changes going on. Increased customization, more dietary options. Thinking about a franchise where we understand pretty well, Cinnaholics vegan bakery. Where, in the past, there wasn’t as much demand but people are becoming much more health conscious, focus on sustainability, ethical sourcing, as well as convenience more than ever. So, combining all those things can be quite tricky depending on the franchise system. And those that have adopted have really benefited from these changes in the industry.

The first thing that comes to mind when people think about franchising dessert concepts are businesses like Great American Cookies, Cold Stone Creameries, even an emerging concept now that has a hundreds of brands, Crumble Cookies. We did a video on them recently. And these are just some of the franchises in the space. There’s also some popular brands like Carvel, Nestle’s Toll House Cafe that are franchising and are pretty well known American brands or in Nestle’s case Swiss brand.

One major trend though is this push to healthier. So that might sound like an oxymoron where, it’s dessert, it’s a ton of sugar. There’s a scale, probably deserts that have a lot of butter, lots of sugar, very processed would be on one end, and then you have a vegan, gluten-free, low-sugar dessert option on the other end. So, it’s definitely a spectrum and consumers are gonna fall somewhere in there. But don’t kid ourselves, generally, when you’re going to buy dessert, it is not the healthiest thing that you’re consuming that day.

Another big push is moving towards fresher ingredients and less additives. So there’s a gelato franchise that is using organically sourced products, vegan gelato, very big shift from where you look 5, even just 3 years ago. And, also, frozen desserts need to be packaged in cooler temperatures in order to maintain freshness, as there’s a lot of take-out and delivery that the consumers have gotten used to throughout the pandemic. So I think of a franchise that does nitrogen ice cream, Chill-N, which is pretty well-positioned to take advantage of this. Because you can just add more nitrogen and the product’s gonna stay cold for a longer time compared to traditional ice cream.

You can learn more here: https://www.vettedbiz.com/dessert-industry/

Want to speak with a franchise specialist? Click here:
https://share.hsforms.com/1ZtNM19w4R8WIXyNa_97N7w4e0xw

Take more info from dessert industry brochure
https://www.vettedbiz.com/industries/food-and-beverage/

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