Ice Cream Turns Into Hot Business for UCEDC Clients

Two guys, fresh out of college without full-time jobs, decide they want to build on their summer job experiences as ice-cream vendors and start their own Jersey shore ice cream operation.  They start small with their own money and sweat equity from family and friends and by their second season, they’re looking for funding to help them grow. 

Good for them, but who would give their seasonal, start-up business – Ensign Ice Cream -  a chance? 

“They came to us with experience in the field, a sound business plan, good personal credit, and with their own money to invest,” recalls Mark Leichtling, UCEDC loan officer.  “They’re exactly the kind of client we like to help.”

UCEDC’s help came in the form of a $15,000 microloan that gave Ensign co-owners Ryan Downie and Nick Musumeci the extra cash they needed to obtain vending permits for the summer season and to purchase and convert additional vehicles.

Those vehicles are used mini-school buses that they retrofit and trick out in eye-popping colors and designs.  With the help of some handy family members and friends, Downie and Musumeci do the conversion work themselves, stripping out the interior, installing freezers, etc.   When they hit the road, the newly minted trucks sport a few dozen different types of frozen treats.

A Day at the Beach

Ice cream salesman was never on Downie’s or Musumeci’s list of potential careers. Musumeci has a degree in Kinesiology along with a teaching certificate and is currently a substitute teacher in Toms River while he looks for a full-time phys-ed position.  Downie was a economics and anthropology major and recently started a job at a financial services firm.  But they worked ice cream jobs throughout college and the lure of the beach was strong.

 ”You spend your days outside, near the beach, talking to people who are in a good mood.  What could be better?” asks Downie.

But you can’t just show up at a shore town and start selling ice cream.  Each town has its own permitting system, with fees ranging from $500 - $1,000 per truck.  And the more desirable routes, like Beach Haven, for example, can command an auction for the coveted permit, with bids reaching $7,000 or more. Lavallette, another productive town, uses a lottery system to sell its permits. Winning the right routes for the right fees is a critical part of Ensign’s business plan.

“This year we got the Beach Haven permit, but lost Lavallette,” explains Musumeci.  “That’s revenue that can’t be made up any other way.  But hopefully, next year we’ll be in both towns, along with our current routes in Beach Haven, Harvey Cedar, Barnegat Light and Toms River.”

Learning the Ropes

Like any new business, Ensign Ice Cream has experienced some mis-steps along the way.  One of their trucks broke down for good in the middle of the season, costing them two weeks of sales.   Downie admits that perhaps they weren’t as diligent as they should have been about maintenance.  And they made an expensive error when they expanded into a second office/freezer storage facility, thinking that it would save them time and money.  Turns out the freezer didn’t exactly live up to its name.

But despite the growing pains and the crazy weather of Summer 2011, Ensign Ice Cream has had a strong showing.  “I guess the one thing I am most proud of is that we’ve managed to create jobs – Nick’s sister worked full time for us and we had a few part time fill-ins,” says Downie.

In fact, Ensign did so well that Downie and Musumeci decided to pay off their microloan in less than a year (microloans do not carry a prepayment penalty). 

While the ice cream business is strictly a sideline for the two as they pursue their fulltime careers, both Downie and Musumeci are committed to seeing Ensign Ice Cream grow stronger and smarter next summer.  “It’s a lot of work, but it’s been great to see that work pay off.  And we still manage to have some fun along the way.” says Musumeci.