When people think of ice cream, they often think of happy memories and sweet treats. Unfortunately, when inflation gets involved, it’s not all happy and sweet. Inflation is affecting the entire world, driving prices up in every industry, including ice cream. If you’re wondering whether inflation will hurt the ice cream industry, the answer is yes. However, there are ways to mitigate the effects of inflation. Keep reading to learn more.
Inflation’s Definition and Effect
To understand how inflation is hurting the ice cream industry, we need to start with the basics. In economics, inflation occurs when the purchasing price of goods and services increases and the purchasing value of money decreases. Costs go up, but the value of money goes down. Different economies experience different inflation triggers, but some of the biggest inflation causes are increased production costs, such as higher wages and more expensive raw materials.
Inflation and the Ice Cream Industry
Inflation is specifically affecting our ice cream industry through an increase in the cost of raw materials. Whether you’re making soft serve in a restaurant, an ice cream truck, or another setting, you’ve probably noticed that your ingredients and supplies cost more. Those running ice cream trucks have probably also noticed an increase in gas prices and car parts.
To keep up with these higher costs, you’ve probably had to raise your selling prices. Normally, ice cream only costs between 3 and 5 percent more each year due to expected inflation, so you’d only need to raise your prices a few cents. But this year, ice cream may cost up to 15 percent more, which is a difference that customers will notice. And since inflation is also squeezing consumers’ wallets, they may not be as willing to spend money on items such as ice cream.
How To Combat Inflation
Inflation is going to happen no matter what. But you can protect yourself against it by staying creative. If you own an ice cream truck, focus on working events instead of using gas to drive around and serve customers. If you have a brick-and-mortar store that sells ice cream, try to cut raw material costs by making cones yourself so that you don’t have to pay for cups. Use social media to your advantage and advertise any specials or deals you may have.
Yes, inflation will hurt the ice cream industry. But with a good understanding of the economy and some creativity, your business will survive. If you want to break into the ice cream industry and need a soft serve ice cream machine supplier, DSL can help. Our machines are versatile and reliable, making them a great choice for anyone who wants to serve up smiles.