Ice cream sells fast. But it only stays profitable when your portions are precise.
Most ice cream shops lose margin in three places: extra scoops, free toppings, and oversized cones.
This guide shows how to cost scoops, sundaes, and milkshakes with a simple formula. It also includes U.S. dairy price signals so you know when to reprice.
Quick Summary
- Standardize scoop weight before you set menu prices
- Cost toppings per ounce, not per spoon
- Charge separately for waffle cones and premium mix-ins
- Reprice when dairy inflation accelerates
Why Ice Cream Shops Lose Margin
- Scoops are not consistent.
- Toppings are free by habit.
- Waffle cones cost more than cups.
- Milkshake yield is miscounted.
- Seasonal demand causes over-prep waste.
If any one of these is loose, your best seller stops making money.
The Core Costing Formula
Scoop cost = (Base ice cream cost per ounce) x (Scoop weight in ounces)
Sundae cost = Scoops + Toppings + Sauce + Whip + Cherry + Container
Milkshake cost = Ice cream + Milk + Flavor + Cup + Lid + Straw
Food cost % = Item cost / Menu price
Always cost from weight. Volume-only estimates lead to drift.
Choose a Scoop Standard (And Lock It)
| Scoop size | Approx. weight | Use case |
|---|---|---|
| Small | 3 oz | kids cup, mini flight |
| Standard | 4 oz | single scoop |
| Large | 5 oz | premium single, pint add-on |
Pick one standard for each size. Then cost and price around it.
Example: Sundae Cost Build (USD)
This is a sample build using typical supplier pricing. Replace with your real invoice costs.
| Component | Portion | Unit cost | Cost per serving |
|---|---|---|---|
| Vanilla base | 4 oz | $0.20/oz | $0.80 |
| Hot fudge | 1 oz | $0.15/oz | $0.15 |
| Chopped nuts | 0.5 oz | $0.25/oz | $0.13 |
| Whip + cherry | 1 set | $0.20 | $0.20 |
| Waffle bowl | 1 each | $0.45 | $0.45 |
| Spoon + napkin | 1 set | $0.07 | $0.07 |
| Total | $1.80 |
If the sundae price is $7.50:
Food cost % = 1.80 / 7.50 = 24%
That is healthy for ice cream. But it collapses if your scoop grows.
The Topping Rule That Saves Margin
Create two topping tiers:
- Standard toppings (sprinkles, crushed cookies, syrup)
- Premium toppings (nuts, brownie, cookie dough)
Give each tier a fixed portion size. Then price premium toppings as a clear add-on.
A $0.75 add-on for premium toppings often covers the full cost.
Milkshakes: Cost the Yield, Not the Cup
Milkshakes are margin friendly, but only when you measure:
- Ice cream ounces per size
- Milk ounces per size
- Syrup or flavor per size
- Cup, lid, straw
If your 16 oz shake uses 8 oz of ice cream, never let it become 10 oz.
Waffle Cones: Price the Upgrade
Waffle cones are not a free swap. They take time, create waste, and cost more.
Use a fixed upgrade price:
- $0.75 to $1.25 for waffle cone
- $1.25 to $1.75 for waffle bowl
Do not hide it inside the scoop price.
When to Reprice
Use a simple rule:
- Quarterly menu review
- Immediate reprice after major dairy spikes
The U.S. average price for prepackaged ice cream was $6.403 per half gallon in Dec 2025. Dairy cost signals like this tell you when to adjust.
USDA ERS forecasts food-away-from-home prices up 4.6% in 2026, so delaying price updates can erase margin.
A 10-Minute Weekly Cost Check
- Update base mix price
- Recalculate 3 best-selling items
- Compare food cost % to target
- Adjust portions or price if needed
Small updates beat big, rare price jumps.
Do This Now
- Weigh your scoop on a scale and lock it in (4 oz is standard)
- Measure milkshake portions (ice cream + milk + syrup per size)
- Price waffle cones and bowls as paid upgrades ($0.75-$1.75)
- Create two topping tiers (standard and premium) with fixed portions
- Set a quarterly reprice reminder and check immediately after dairy spikes
Related Guides
- Recipe Costing Guide
- Food Cost Ratio Guide
- Prime Cost Guide
- Bakery Cost Guide
- Boba Tea Shop Cost Guide
- Donut Shop Cost Guide
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