Ice cream, fresh juice, shakes, falooda and kulfi are favourites across India, especially in the long, hot summers. An ice cream parlour or juice bar near a college, market, beach, mall or busy street can do brisk business, and franchise brands have made it easier to start with a known name. But margins depend on hygiene, cold chain, wastage and managing a business that’s busiest in the hottest months.
This guide explains how to start an ice cream parlour or juice bar, the rules, equipment, GST, pricing and how to handle seasons.
Key points
Table of Contents
- Choose a model: your own brand, an ice cream or juice franchise, or a combined dessert and juice bar.
- FSSAI registration or a licence is required, along with local trade or health licences.
- Hygiene is critical: safe drinking water, ice made from potable water, washed fruit and clean equipment.
- Under GST 2.0, ice cream and packaged fruit juices moved to 5% from 22 September 2025, and restaurant-style service is generally 5% without input tax credit.
- Plan for seasonality: summer peaks and quieter winters, especially in northern India.
The market in numbers
Ice cream parlours and juice bars fall under what MoSPI’s surveys call food and beverage service activities. In 2023-24 this group had about 37 lakh small establishments employing 87.2 lakh people, with average value added of ₹4,77,219 a year in urban areas. Businesses with hired workers added ₹9,19,348 on average.
Step 1: Choose your model
- Ice cream parlour: scoops, sundaes, shakes and cones, using ice cream from a brand or your own production.
- Ice cream franchise: a brand’s outlet, with supply, recipes, branding and training. See how to evaluate a franchise.
- Juice bar: fresh fruit juices, smoothies, shakes and cut fruit.
- Traditional desserts: kulfi, falooda, rabdi and seasonal specials.
- Combined dessert and juice bar, to balance seasons and broaden appeal.
- Making your own ice cream needs an FSSAI manufacturing licence, dairy hygiene and more investment; see how to start a dairy or milk business.
Step 2: Location
High footfall, especially in the afternoons and evenings: near colleges, schools, offices, markets, malls, beaches, parks, cinemas and hospitals. Visibility and space for customers to stand or sit matter. Takeaway counters can work in smaller spaces with lower rent.
Step 3: Licences
- FSSAI registration or a state licence, depending on turnover and whether you manufacture. See our FSSAI guide.
- Trade or health licence from your municipality.
- Shops and establishments registration. See shop and establishment registration and trade licences.
- Signage licence, fire safety and, for seating, an eating house licence in some cities.
- GST registration above the threshold, or earlier for franchise and delivery apps. See GST registration for small businesses.
- Udyam registration: free. See our Udyam guide.
Step 4: Equipment and cold chain
- deep freezers and dipping cabinets at the right temperatures for ice cream
- refrigerators for milk, fruit and toppings
- juicers: cold press or centrifugal, and a sugarcane crusher if you offer cane juice
- blenders for shakes and smoothies
- an ice machine using potable water, or ice from a reliable, hygienic supplier
- a water purifier for all drinking water and ice
- sinks and handwashing stations
- power backup: a power cut can ruin a freezer’s stock in hours
Monitor freezer temperatures daily, and never refreeze ice cream that has melted.
Step 5: Hygiene
Juices and ice cream can carry harmful bacteria if handled badly:
- use safe drinking water for juices, ice and washing fruit
- make or buy ice only from potable water; ice is a common source of contamination
- wash fruit thoroughly, and peel or cut it just before use
- clean juicers, blenders and scoops after each use, and sanitise at the end of every day
- staff hygiene: clean aprons, head covers, gloves for handling cut fruit, and frequent handwashing
- cover and refrigerate cut fruit and toppings, and discard what’s left at the end of the day
Step 6: GST
- Ice cream and packaged fruit juices, as goods, moved to 5% under GST 2.0 from 22 September 2025.
- Restaurant-style service, where you serve food and drinks to customers to consume on the premises or as takeaway from a restaurant or cafe, is generally taxed at 5% without input tax credit.
- Food delivery apps collect and pay GST on orders through them.
How your sales are taxed depends on what you sell and how. Ask a chartered accountant, and make invoices with Advanton’s free GST invoice generator.
Opening and closing checklist
Opening:
- check freezer and refrigerator temperatures, and record them
- check the water purifier and ice supply
- wash fruit for the day’s first batch
- clean and set up juicers, blenders and scoops
- check stock of cups, cones, spoons and toppings
Closing:
- discard leftover cut fruit and opened toppings that won’t keep
- clean juicers, blenders, scoops, counters and floors thoroughly
- check that freezers are closed and running, with power backup ready
- record the day’s sales, wastage and items running low
Step 7: Menu and pricing
- Keep the menu focused, with bestsellers and a few seasonal specials.
- Cost every item: ingredients, cups, cones and spoons, a share of electricity (freezers run all day), wastage and rent.
- Sizes: small, regular and large, to raise the average bill.
- Combos: a juice with a snack, or a sundae with a shake.
- Fresh fruit prices change with the season, so review juice prices regularly.
An illustrative example: a glass of fresh orange juice
These figures are illustrative. A 300 ml glass needs about 4 to 5 oranges. If oranges cost ₹8 each in season, the fruit costs ₹36, plus about ₹6 for the cup, straw and ice, for ₹42. Selling at ₹80 leaves ₹38 a glass before rent, staff, electricity and wastage. When oranges cost ₹14 each out of season, the same glass costs about ₹69 to make, and the price must rise or the item come off the menu.
Step 8: Handle seasonality
- Summer: extend hours, add staff and stock up; take advance orders for parties and events.
- Monsoon and winter: add hot items such as soups, hot chocolate, waffles or seasonal desserts; promote winter fruits and carrot juice; offer party and catering orders.
- Festivals and weddings: ice cream and kulfi counters at events can be very profitable.
Use Advanton’s cash and payroll planner to plan cash through the year, so summer income covers quieter months.
Step 9: Get customers
- Instagram: colourful shakes, sundaes and juices photograph well.
- Google Business Profile with photos, menu and reviews.
- The India Business Directory: list your parlour free.
- Food delivery apps for evening and weekend orders, priced to cover commissions.
- Loyalty cards for regulars, and student offers near colleges.
Step 10: Grow
- open more outlets or kiosks in busy locations
- add catering and event counters
- launch your own recipes or brand, protected by a trademark; see trademark registration
- hire staff for peak hours; check costs with Advanton’s hiring cost calculator
- funding: a Mudra loan for equipment and fit-out; see business loans and government schemes
A getting-started checklist
- Choose your model: own brand, franchise or combined.
- Find a high-footfall location with good power supply.
- Apply for FSSAI and local licences.
- Install freezers, juicers, a water purifier and power backup.
- Set hygiene routines for water, ice, fruit and equipment.
- Cost your menu and set prices.
- Plan for summer peaks and winter alternatives.
Costs to plan for
- rent and fit-out, with signage and seating if any
- freezers, refrigerators, juicers, blenders and a water purifier
- power backup, essential for freezer stock
- opening stock of ice cream, fruit, milk, toppings and disposables
- staff wages, higher in peak season
- electricity, which runs high with freezers
- franchise fees and royalties, if you choose a franchise
Common mistakes
- Unsafe ice and water, which can make customers ill.
- No power backup for freezers.
- Ignoring seasonal fruit prices.
- A huge menu that creates wastage.
- Underestimating winter slowdowns.
Frequently asked questions about starting an ice cream parlour in India
Do juice bars need a water purifier?
Yes, for juices, ice and washing fruit.
Should I make my own ice cream?
Only with an FSSAI manufacturing licence, dairy hygiene and the right equipment. Many parlours start by selling established brands.
Can I sell ice cream on delivery apps?
Yes, with insulated packaging and short delivery distances, so ice cream reaches customers frozen.
How do I reduce fruit wastage?
Buy fresh fruit daily in the quantities you’ll use, store it properly, use ripe fruit first in shakes and smoothies, and track wastage by item.
How much does it cost to open an ice cream parlour?
It depends on the model and location. A small kiosk with freezers needs much less investment than a franchise outlet with seating. Add every cost, including power backup and working capital.
Do I need an FSSAI licence for a juice shop?
Yes. FSSAI registration or a licence, depending on turnover, is required for all food businesses, including juice shops and ice cream parlours.
What GST applies to ice cream after GST 2.0?
Ice cream as goods is taxed at 5%. Restaurant-style service is generally 5% without input tax credit.
Is an ice cream franchise better than my own brand?
A franchise gives a known brand, supply and support, but you pay fees and royalties. Your own brand gives more control and margin, but needs more marketing. Compare carefully.
How do I keep the business going in winter?
Add hot drinks and seasonal desserts, promote winter fruit juices, and take party and event orders.
Sources
- FSSAI, Food Safety Compliance System (FoSCoS)
- MoSPI, Annual Survey of Unincorporated Sector Enterprises 2023-24, full report
- Central Board of Indirect Taxes and Customs, GST
- GST portal (Goods and Services Tax Network)
- Pradhan Mantri MUDRA Yojana
Last reviewed November 6, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
