29 minute read
2021 Industry Outlook
The National Dipper asked several ice cream shop owners from around the country to look at their business for the past year and to look ahead to predict the future of the ice cream industry in 2021. This year the participants are: Robin Belleville, BG’s Frosty Fare, Bowling Green, OH; Patti Finnegan and Mary Ellen Faught, Niederfrank’s Ice Cream Factory, National City, CA; Jason Schoenherr, Erma’s Original Frozen Custard, Shelby Twp., MI; Sarah Skillin, The Ice Creamsmith, Dorchester, MA; Greg Smith, Ice Cream Station, Pompton Lakes, NJ; Donald Wagner, Papa Clyde’s, Spring Hill, FL.
QUESTION: Please give a few sentences about yourself and your store. How long have you been in business? How many stores do you own? What do you serve? Etc.
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BELLEVILLE: My name is Robin Belleville, and I own BG’s Frosty Fare in Bowling Green, OH. We have a walk-up window, a drive thru, and a lobby. 2021 is my 10th season at the helm; 15th for the store. I serve soft serve ice cream, hard dip ice cream (I purchase from two suppliers), soft serve yogurt, and a wide array of food (sandwiches, which I make most of the meat items, fried foods, etc.).
FAUGHT & FINNEGAN: Patti Finnegan and Mary Ellen Faught became the third owners of Niederfrank’s Ice Cream Factory, located in National City, California. Established in 1948 by Elmer Niederfrank, we remain an old fashioned, all-natural, ice cream factory and retail store.
SCHOENHERR: I am Jason Schoenherr, one of the owners and operate all 3 Erma’s Original Frozen Custard locations. Our menu is only frozen custard and Erma Ice soft serve. We’re open seasonally April 1 - October 31. We use modified batch freezers to create a weekly rotating flavor schedule mixing fruits, nuts, & candies into our soft serve custard. Erma’s has 25 unique layered parfaits, we roll our own waffle cones in house, mix ‘Explosions’ with a variety of fruits, nuts, and candies,
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and so much more. April 1, 2021 will be the beginning of our 80th season at our original Shelby Township, MI location. We have 2 additional locations in Warren & St. Clair Shores.
SKILLIN: Our shop, The Ice Creamsmith, located in Dorchester, Massachusetts, was opened in 1976 by my parents after my dad found an ad for used ice cream-making equipment while he was looking for a new job. My husband, Chris, and I (Sarah) took it over in 2014, while we were expecting our second child. We had both worked there on and off since high school and Chris, who felt like he wouldn’t want to be in the construction business much longer, had always dreamed of taking it over. We have just the one location, and very little about it has changed since 1976. We make all our ice cream in-house: 10 classic flavors and 3 seasonal flavors that rotate monthly (plus a frozen yogurt and dairy-free sorbet) using the same recipes my parents developed - plus some new creations of our own!
SMITH: My name is Greg Smith, together with my wife Song we have owned our store, the Ice Cream Station in Pompton Lakes, New Jersey for 28 years. We have only one store. We serve Gifford’s ice cream from Maine, homemade soups and sandwiches. We also sell custom made cakes.
WAGNER: My name is Donald Wagner and I own Papa Clyde’s in Spring Hill, Florida. I’ve always been a self employed person. I came across an abandoned ice cream store and thought I could make it successful and now I’m entering my 31st year.
QUESTION: Please tell us why and how you decided to open an ice cream store.
BELLEVILLE: I was frustrated at my previous job for my boss not be-
ing held accountable, and after having multiple unsuccessful job searches within my previous field (collegiate financial aid), I figured I’d give owning a “fun” business would be great, and it would give me time to spend with my three kids. I was early 30s, and the opportunity to purchase this store came up. I figured if I wasn’t successful at the ice cream gig, I was still young enough to reinvent myself.
FAUGHT & FINNEGAN: We were raising three young girls and wanting to get out of the rat race long enough to do just that. We left our jobs and with the help of Southwestern Colleges’ “Entrepreneurial Training Program” in 1994 we found, and fell in love with, Niederfrank’s ice cream factory and purchased it in 1995.
SCHOENHERR: Erma’s has been around since 1942 and is the oldest operating business in Shelby Township. I’ve been involved in one way or another, since I was a kid in the 1980s. I returned to the family business in 2007 because it was a unique and fun industry. The ice cream industry is, in general, all about making people happy. It’s at the core of what we do. It’s fulfilling to go to work each day providing a quality product and continuing a longtime local favorite.
SKILLIN: My dad was laid off from his job in public relations, and stumbled across an ad for used ice creammaking equipment while looking for a new job. My mom had a steady job with the Girl Scouts, so my dad teamed up with a buddy and decided to take the leap into entrepreneurship. Thanks to the income from my mom’s job, they were able to weather the first few rocky years, eventually buying out the partner and running the shop together full-time.
SMITH: We both had some experience in retail food and the store was available.
WAGNER: Look at above question.
QUESTION: How did you manage to stay in business during the COVID-19 pandemic?
BELLEVILLE: We were incredibly busy for our 2020 season. I have a lobby which shut down mid-March, but we kept our walk up window and our drive thru rolling. Our drive thru line would stack up 15 or so cars deep, and people didn’t mind waiting.
FAUGHT & FINNEGAN: COVID-19 has surely been a test but one that our long time, loyal customers were more than up for. We immediately shut down but were soon encouraged by one of our daughters, our Mayor and city leaders, to open back up, take pre-orders and start home deliveries.
SCHOENHERR: The last year has been a challenge for us all. We adjusted our operations and menu to support delivery and curbside pickup. We adjusted our sanitation practices, closed our seating areas, applied for grants and added online ordering. We listened to our customers and what they wanted. We did a lot of procurement not only of PPE, but also cleaning supplies and additional packaging. We cut other costs where we could as the price of these additional supplies added up. At the end of the day, though, our customers continued to support us, our
SKILLIN: The COVID-19 pandemic has truly tested our creativity, flexibility and perseverance. We have stayed in business thanks to a willingness to try new things and ability to adapt. We reformatted our website and invested in some new hardware in order to accept online ordering. We adjusted our hours and temporarily reduced our menu offerings in order to limit the number of staff working at any one time. Most notably, we set up a table outside our door and took orders from the sidewalk to eliminate customers having to come inside - we have a very small shop! Staying open through the pandemic required us to constantly be on our toes, ready to adapt at a moment’s notice, and while it was extremely challenging, it also taught us that if we put in the effort we can handle anything.
SMITH: The pandemic was very difficult, but after the first 2 months sales returned to normal.
WAGNER: We did take out.
QUESTION: How have you and your employees been affected by the pandemic?
BELLEVILLE: My employees were thrilled to come to work because a lot of their parents didn’t allow them to go anywhere else other than to work or sports-related activities.
FAUGHT & FINNEGAN: When the pandemic was taking hold we were in our off season, so it was just the two of us, our grandson, and an occasional part-time employee who, thankfully, had a full-time job elsewhere. Since the restaurants and hotels were not allowed to operate in-doors, and our retail front end could only operate at the doorway, we have not hired the parttime students or Naval spouses that we usually hire, and make do with the two of us and our grandson.
SCHOENHERR: Wearing masks was a bit of an adjustment. We instituted screening procedures from the very beginning and made sure employees who may have come into contact with the virus did not come to work. We also worked with everyone’s schedule to ensure they can meet their responsibilities at home, whether it’s because of online schooling or because they had to babysit younger siblings, etc. We had to be nimble and adjust schedules often as complications arose. Thankfully, no one ever became seriously ill within our organization. That’s why we will continue to institute these procedures for 2021 as well.
SKILLIN: Doing the job we and our employees are used to doing became more difficult during the pandemic - wearing masks, following new procedures, utilizing new systems - all of these changes bring an uncomfortable adjustment period. Our staff’s working hours were also greatly reduced; luckily for some, many of our staff had to bow out so the ones that stuck around ended up working the same amount of hours they would have before. Of course, Chris and I put in a lot more hours behind the scenes with all the adjustments that had to be made. We also had our kids at home doing remote learning so we tag-teamed everything, switching off being at home with the kids and at the shop making and serving ice cream.
SMITH: Due to the pandemic we have had many employees out to quarantine. It is also hard to wear a mask for long periods of time. I tell every one keep smiling things will get better.
WAGNER: Actually we haven’t changed much, just more cleaning.
QUESTION: What procedures did you put in place during the pandemic that you will continue to use even after the pandemic is over?
BELLLEVILLE: I think I may keep my walk up window as an order at one sliding window, and pass out at another sliding window. This helped to keep people from bunching up too much.
FAUGHT & FINNEGAN: We have returned to full menu offerings at the front door walk-up counter and weekly local home and office deliveries. With both of us in house 6 days a week, we have added a large selection of ice cream pies, that have really taken off, as has our social media presence.
SCHOENHERR: The opportunity for more personalized service became apparent through COVID. We have adjusted our menu to include some carryout items, began offering call ahead / curbside pickup, launched an online ordering system, and grown our online delivery options. We think these things are here to stay because our customers like these options. As far as our operations, we took a second look at how we sanitize and clean our stores. We were happy to find most of what we were doing was already COVID cleaning approved but there were some opportunities to adjust the way we do things and increase the frequencies which we sanitize.
SKILLIN: Even after the pandemic is over, we will likely maintain our online ordering option, which we’ve made available for bulk items only. Customers seem to love being able to place their orders for pints, quarts, sauces and mixins in advance, and it’s nice to be able to get those ready during downtime between customers and just hand them off when the customer arrives.
SMITH: We have always used sanitizer on tables, chairs, counter tops and. door handles. We also have limited indoor seating, which we will continue doing after the pandemic is over.
WAGNER: We have a sanitizing station for our customers and we will keep our indoor dinning at 50.
QUESTION: Are your mix/ice cream prices increasing or decreasing for 2021? To what do you attribute the increase or decrease in price?
BELLEVILLE: I am still working on pricing out products at this time for 2021. I will bump prices, but I’m just not sure yet how much that will be. Because I’m seasonal, I set the prices at the beginning of the season and then ride any price changes out so
FAUGHT & FINNEGAN: We raised our prices slightly when this first began, as it would not have been possible to sustain otherwise. We had to purchase PPE’s, disinfectants, and out-door accommodations. We do not foresee any major hikes for this year if our costs are not impacted too severely.
SCHOENHERR: We had a small price increase at the beginning of 2020 due to the increase in packaging/carryout costs. We’re still evaluating our menu and pricing for 2021.
SKILLIN: We try to make consistent, incremental increases in our prices every year so that we stay on top of any increases in our own costs and never have to make any sudden price increases that would be more noticeable and jarring to our customers. We know that each year the costs of our ingredients and supplies will rise, along with minimum wage and rent. Staying ahead of this at the start of each season saves us the frustration of implementing and explaining a change mid-season.
SMITH: We have not been advised by our vendors of any price increase or decrease.
WAGNER: They have been stable for 3 years and hope they continue.
QUESTION: What new products and/ or flavors will you offer customers in 2021?
BELLEVILLE: I’m still waiting to hear from my suppliers what’s going to be new. My main food supplier had their big food show cancelled this year by their venue, so I’m not sure that I’ll add anything new this year.
FAUGHT & FINNEGAN: We rotate flavors seasonally and add flavors as customers, chef’s or we dream them up. We did quite a few collaborations on our “Beer Creams” with local craft breweries such as Stone Brewery, South Park Brewery and 3Punk Ales. SCHOENHERR: For 2021 we are adding new flavors to our All Natural Erma Ice - Watermelon, Pina Colada, & Pineapple. We are also highlighting a new Toasted Coconut Delight with hot caramel and shortbread cookie.
SKILLIN: Part of what keeps our loyal customer base returning year after year is that they know they can expect the same high-quality product they’ve always gotten from us. We try to change our offerings very little for this reason. Sometimes as we plan out our special flavors each month there will be one that wasn’t a big seller (or there may be a key ingredient that we can’t get our hands on in time) so we’ll come up with something new - but we wait for inspiration to strike or necessity to force our hand so it’s impossible to predict.
SMITH: We have not finalized our plans for new flavors yet, we are considering offering waffles this year.
QUESTION: What was your best selling item during the 2020 summer season? Why?
BELLEVILLE: We sold a higher volume of every item overall. I think people just wanted a small treat for their family to break up the monotony. I know a lot of people came in more times a month or week due to boredom, and they trusted our sanitation routine more versus a chain store because I had “skin in the game” on my success.
FAUGHT & FINNEGAN: Hand packed pints, pre-packed half gallons and our ice cream pies were our biggest sellers, as California has been in strict lock-down most of the year.
SCHOENHERR: We found our customers wanted more specialty sundaes and parfaits versus cones.
SKILLIN: Our best selling item of 2020 was our ice cream pizza - this is a 10 inch round fudge brownie topped with vanilla ice cream, chocolate cookie crunch, M&M®’s, white chocolate chips and chocolate syrup! Part of the reason for this was out of necessity: a number of COVID-related factors prohibited us from keeping our usual variety of grab-and-go ice cream cakes in stock, so for people who didn’t plan ahead the ice cream pizza was the only option! Keeping just this one specialty item in stock allowed us to streamline production and be able to offer a fun and festive option for celebrations that could be made quickly and easily ordered online. Plus they are delicious
SMITH: Due to the fact that many places were closed or had very limited hours, our sales for cups, cones and sundaes have increased.
WAGNER: Pre package quarts that we make.
QUESTION: Good employees are one of the “keys” to a good business. How do you find good employees and what do you do to keep them? BELLEVILLE: I have started to recruit family’s kids who are kind, courteous and engaging when they come in to order. If they don’t act like a goober with their like-age peers around, they’re probably going to do okay in a busy work environment with peer-agers working with them. I try to make sure to lavish praise on them when their family members come in to boost them up.
FAUGHT & FINNEGAN: Ice cream is up-beat, cleanliness is paramount and lots of smiles make for great working conditions. If employees do that it usually adds up to decent tips on top of a fair wage!
SCHOENHERR: Hiring has been a challenge through COVID because of the lack of candidates. But we’re lucky to have people that return season after season. We try to provide positive encouragement whenever possible and reward employees for a job well done.
SKILLIN: Finding good employees is always a challenge in running a small, and especially seasonal, business. We rely on our customer base and current employees to refer good candidates to us. We know what we’re looking for - someone reliable, responsible, friendly, hard-working, willing to learn and be part of a team - and cross our fingers and hope for the best when we think we’ve found it. We do have many employees who come back to work season after season - some for over 20 years! - and we attribute this to the positive work environment we strive to create. We pay well, we allow plenty of flexibility in scheduling, we encourage them to have autonomy. We also work right alongside our employees, just as my parents always did, to ensure an equitable and amiable atmosphere. We are all there to get the same job done and we all want to have fun while doing it; it is just ice cream, after all!
SMITH: We recruit employees through current employees. We do give bonuses for employees that excel at there job. QUESTION: In your opinion, what are the other “keys” to a successful business?
BELLEVILLE: Talking to your employees and finding out what’s going on in their lives. 2020 was a critical year for checking in on each employee to find out what was new because their whole world might have been turned upside down in a few days.
FAUGHT & FINNEGAN: We never skimp on the finest ingredients. Be true to your customers and your customers will be true to you has always been our motto.
SCHOENHERR: For us, know your customer base and turn them into “fans”. Make decisions for long term growth, not short term success. And be present as much as you can.
SKILLIN: It seems like the key to a successful business is simple, though not always easy: be willing to put in the work, whatever that may entail. No one else will care about the success of our business as much as we do, so we have to be ready to show up and do whatever might be required. Whether that means working a double to cover a shift, fixing broken equipment, driving to a supplier’s warehouse to pick up an ingredient, heading back in at the end of the day to make another run of ice cream, or working late into the night redesigning our website - if something needs to be done, we have to be willing to make the sacrifices to do it. This attitude is what enabled my parents to be in business for so long, and it’s what enables us to continue the tradition. It’s also one of the main reasons we close every winter, as this type of work ethic is exhausting to maintain on a daily basis!
SMITH: Marketing and becoming a big part of the community, we sponsor teams, help churches, etc.
WAGNER: Making a superior product at a reasonable price.
QUESTION: Do you use social media to promote your business? If yes, tell us what you use and how you use it. If no, tell us why.
BELLEVILLE: Yes, I use Facebook business pages, and an Instagram page. I’m hesitant about Snapchat as I don’t use it very well myself (my own children do), and I’m worried that my staff would then be even more sucked into their phone usage than they already are.
FAUGHT & FINNEGAN: We thank God for Tricia. Our daughter has dragged us along to social media, like Instagram #Niederfrank_IceCream and Facebook in addition to our website. We attribute most of 2020 to that, customer loyalty and city support.
SCHOENHERR: Yes we’ve always had a strong online presence dating back decades. This was a function of younger employees at the time embracing newer technology. Our “fans” love the updates and information we share like our hours, flavor schedule, SKILLIN: We do use social media to promote our business on a fairly limited basis. We have Instagram and Facebook and we try to remember to post somewhat consistently (every couple of days while we are open). That they are free to use and reach such a broad audience so quickly makes them an invaluable tool. When we have a preordered ice cream cake that didn’t get picked up, nothing gets it sold quicker than a photo posted to social media!
SMITH: We use Facebook and the local town sites. We post specials and new flavors etc.
WAGNER: There is a local person who started a page save Hernando county restaurants and during the pandemic we would showcase ice creams etc. and people would ask questions and we would have a dialogue.
QUESTION: What do you see as the biggest problem in running your store? BELLEVILLE: I would love to have a consistent person during the week to help me out and be my second brain looking for items to stock, foresee staffing issues. I’m the only manager, scheduler, inventory person, and logistics. That can get overwhelming with 25 employees during the summer, all of whom are part time.
FAUGHT & FINNEGAN: We expect our customers will understand our continuing no hand to hand contact, no sampling, cones set in holders and face masks for the foreseeable future. We know there will be some who will complain, loudly at times, but if that is our biggest problem, (God willing) we will remain humble and incredibly grateful.
SCHOENHERR: The biggest challenge we face right now is COVID. This situation has given us an opportunity to grow as a family company and move our business into the future, but
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it’s no doubt been a huge challenge. So many things have changed; from the customers and their experience, to employee responsibilities, to our product not lending itself to carryout. We have to react to all of it. We continue to push forward making decisions best for our people, both employees and customers. We think our decisions will put us on the other side of the 2021 season with a stronger team, a better product, and a more nimble organization.
SKILLIN: One of the biggest problems we face in running our store is hard to quantify, but I would describe it as figuring out where and how to focus our energy. A successful business owner is faced with many opportunities, both from external sources and your own ideas. You can’t do everything and shifting focus to implement something new detracts from the successful implementation of something else. Balancing our efforts between maintaining what works for us and experimenting with new growth opportunities is a tight rope walk that requires us to be constantly evaluating whether something new is worth pushing forward or whether we should pull back and refocus on our existing strengths. Sometimes we make the right call, and sometimes we don’t, but hopefully we learn something either way.
SMITH: We are in New Jersey, the state is raising the minimum wage and other taxes, it is a constant process to raise prices and purchase products at a lower price.
WAGNER: Government intervention is the problem and we cannot solve that.
QUESTION: What was the best promotion you ran in your store in 2020?
BELLEVILLE: My best promotion for 2020 was donating $1.00 for every milkshake sold during our county fair week to the county 4H endowment. They couldn’t open their 4H milkshake stand last year, and I always donate their paper products (they normally sell about 18,000 milkshakes during the fair’s 8 day run). I updated a tally sheet each day and promoted it on social media. I ended up donating over 1600 for that timeframe. It got a lot of people to try our milkshakes who normally wouldn’t have. My store butts up to the county’s fairgrounds, and my kids are heavily involved in 4H.
FAUGHT & FINNEGAN: Our biggest promotion of 2020 was surely home deliveries. Keeping our customers close but safe as they were home working, teaching, day caring and deserving more than ever, their favorite treats. We are so blessed and thankful for each one of them!
SCHOENHERR: Our best promotion was $1 off any item $2 or more. It seems to encourage people to try new (& larger) menu items.
SKILLIN: The best promotion we ran in 2020 was not intended to be a promotion at all. During the early days of the pandemic, we gave ice cream cakes and pies away to nurses and sent 100 dishes of ice cream each week to the staff at the hospital a block away from us. We had an “ice cream for essential workers” item in our online shop that allowed customers to add a $5 contribution to their order toward this effort. Giving back to the community that supports us is something we will never hesitate to do and I think is one of the reasons our community has always been loyal supporters of us in return.
SMITH: Most years we have many promotions, in 2020 we ran only one promotion we worked together with some local libraries.
WAGNER: 4 prepacked quarts for $20.00
QUESTION: What sets you apart from your competition?
BELLEVILLE: I hammer customer service and connecting with each and every customer as you just don’t get that from my direct competition who is 1.5 miles away and offers basically the same items at a slightly lower price point. We always greet each customer, tell them what their item is as we hand it out, and wish them well in their day.
FAUGHT & FINNEGAN: We do not just make ice cream. We cook and create every flavor in house, using only the finest ingredients. We create memories, we create family gatherings, down time and most importantly – Smiles!
SCHOENHERR: I’m not sure it sets us apart from all of our competition, but a big factor in success is the longevity of our first store and it’s fan following. Erma’s Original Frozen Custard on Auburn Road has been serving Macomb County residents and Metro Detroiters since 1942. The building hasn’t changed enormously over the years and the menu still offers a lot of the basic old fashioned items our fans have loved us for decades.
SKILLIN: What sets us apart from our competition is the freshness and quality of our product. We make each 5 gallon batch of ice cream ourselves, every day. We make sure each batch is frozen and churned just the right amount before we let it out, we stir inclusions in by hand, we check the quality of each ingredient before adding it in. Once the ice cream is in cans it goes a couple feet away to a hardening freezer set at -20, then two feet away to a walk-in freezer set at 0, then right upstairs to be scooped, all within 12-24 hours. Our quality control is relentless and we want every scoop that’s handed to a customer to be just as good if not better than the first scoop sold in 1976. We will never stray from this commitment to offer the best ice cream possible - we have been doing it for 45 years and hope to be doing it for many more to come.
SMITH: We sell a better quality ice cream, we have a large outside seating area, we do custom cakes, and sell homemade soups.
WAGNER: We use high quality ingredients and do not skimp on anything! All top quality. v
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