Van Leeuwen generates $300,000 a day from Ice Cream business; it all started with a $60,000 investment

 

Earlier this year, Ben Van Leeuwen faced an unexpected challenge. The newly opened Van Leeuwen ice cream shop in Washington, D.C., ran into a problem. The demand for their ice cream was much higher than they anticipated, and they actually ran out of ice cream over the weekend.

 

Ben, the CEO of the company, who had moved on from the hands-on tasks like making deliveries, found himself in a surprising situation. He was part of a text conversation discussing the situation at the new store.

 

“It was 11 p.m. on a Saturday night, and there was no way to get more ice cream delivered,” Ben recalls. “So, I made a decision: ‘Fine, I’ll take care of it.'”

 

And that’s how, eight hours later, at the age of 39, he found himself at the Van Leeuwen factory in Greenpoint, Brooklyn. He loaded up a refrigerated truck with numerous containers of their well-known ice cream, and then embarked on a five-hour drive to D.C.

 

“Since Monday was approaching and there were business commitments, the original plan was to deliver the ice cream and then immediately return to New York,” he says.

 

However, upon arriving, he was met with a surprise. About 100 eager customers were already waiting in line. Ben decided to lend a hand and spent an hour serving ice cream to help manage the rush. “I ended up scooping ice cream until midnight because the demand was so high,” he shares. “But it was an enjoyable experience.”

 

Days like that are rare for Ben. Since he started Van Leeuwen in 2008, it has grown into a nationally recognized brand. They now have almost 50 ice cream shops in seven different states across the U.S., and you can find their ice cream pints in nearly 10,000 grocery stores, including Walmart and Whole Foods.

 

So, how did Van Leeuwen transform from a single ice cream truck in SoHo into a multi-million-dollar enterprise that can bring in over $300,000 per day just from their scoop shops?

 

A basic introduction to the world of ice cream

When Ben was a sophomore in college looking to earn extra cash, he spotted a newspaper ad that promised $500 every week for selling ice cream. Intrigued, he took up the opportunity and found himself driving a Good Humor truck, selling various frozen treats like Chipwiches and SpongeBob SquarePants ice cream bars.

 

Little did he know, this experience with Good Humor would play a significant role in shaping his future endeavors with Van Leeuwen ice cream.

 

“I was able to save enough money thanks to this employment to avoid having to go back to school. Instead, I got to travel the world for nine months, and that journey had a profound impact on me,” he recalls.

 

During his gap year travels, he explored Southeast Asia and traveled extensively across Europe. His time spent in Spain, Italy, and France completely changed his perspective on food.

 

He looks back and recalls, “Back then, I was a young American who hadn’t really traveled abroad. It was astonishing for me to see these places where incredibly tasty food was just a normal part of everyday life.”

 

After returning to college, the ideas and experiences he had gathered during his travels lingered in his mind without an outlet. However, in 2008, he had a pivotal moment when he encountered a Mister Softee ice cream truck in New York City, a well-known sight in the city.

 

“That’s when everything fell into place, both consciously and subconsciously,” he explains. “I realized that I had a deep passion for exceptional food, but I wanted it to be something that everyone could enjoy easily.””

 

“New York City, then and now, has always embraced those who strive for excellence. People here respond to and get excited about individuals who are committed to doing things in the best way possible,” he adds. “So, I decided, ‘Let’s revolutionize the concept of the ice cream truck.'”

 

Starting up Van Leeuwen

Ben had a clear desire to start his own ice cream business, but he faced a major hurdle: he had zero experience in making ice cream.

 

At that time, Ben was just 24 years old and shared an apartment with his brother Pete and close friend Laura O’Neill. To overcome his lack of knowledge, he decided to take matters into his own hands. He ventured into their apartment’s kitchen and embarked on a journey of learning.

 

Following a recipe from a famous chef named Thomas Keller, he attempted to make vanilla ice cream. To his surprise, the process was quite manageable, and he decided to shape Van Leeuwen’s distinctive style based on this simple yet high-quality recipe.

 

Once armed with a solid recipe, Ben, Laura, and Pete began crafting a business plan. They calculated that they would require $250,000 to kickstart their venture. This money would cover purchasing and renovating a truck, securing a factory space, and building a website.

 

Despite their best efforts, they managed to gather only $60,000 from their network of friends and family. This, however, was sufficient to acquire a pair of used Post Office trucks from eBay, which they transformed into customized ice cream trucks. They also allocated funds to hire an artist who could define the unique visual identity of Van Leeuwen’s brand.

 

In 2008, Van Leeuwen officially launched, although the operation was far from polished. With a modest starting capital of $60,000, the founders had to handle almost every aspect of the business themselves.

 

Due to budget constraints, they couldn’t establish their own ice cream production facility. Instead, they outsourced production to a small factory in upstate New York. This meant they had to travel to the factory for each production run, actively participating in tasks like grinding ingredients such as nutmeg and cinnamon.

 

After production, the ice cream was transported to a freezer in the Bronx. Ben would then load it into his Subaru Impreza, blast the air conditioning, and hurriedly drive it to their trucks. Unfortunately, this process took a toll on his car’s suspension.

 

Ben recalled, “For the first 10 years, there was no corporate team. We took on roles like bookkeeping, CFOs, CMOs, and retail directors. We were even involved in constructing the stores and repairing the trucks.”

 

Success

Right from the start, Van Leeuwen Ice Cream became incredibly popular. When Ben, Laura, and Pete parked their hand-painted truck at the corner of Greene and Prince in SoHo, people immediately started queuing up for their ice cream.

 

The crowd’s attention caught the eye of a representative from a local Whole Foods store. This person approached the truck and asked the owners if they were interested in selling wholesale. Despite having just started selling scoops a few hours earlier, Ben agreed.

 

“Keeping our doors open to various income possibilities, we welcomed the concept of wholesaling,” Ben recalls. “To our astonishment, merely three months later, our ice cream had already found its place on the shelves at Whole Foods.”

 

When the initial summer came to a close, Van Leeuwen was running three trucks throughout New York City. People were absolutely loving flavors like Honeycomb and Sicilian Pistachio. By 2010, their revenue had reached $1 million.

 

During the same year, Van Leeuwen made a significant decision by opening their first physical store in Greenpoint. This choice ended up reshaping their business journey.

 

“Almost immediately after opening the shop, we realized that we wouldn’t go back to making ice cream trucks,” Ben explains. “Shops were much more convenient. They brought in more money. There was a consistent water supply, reliable power, and most importantly, a fixed location.”

 

Branding

In 2012, Van Leeuwen started producing ice cream in Brooklyn. Then, in 2017, they decided to change their appearance, making their colorful ice cream pints look really appealing. This makeover helped them sell 50% more ice cream.

 

The money they earned from selling ice cream was used to expand their operations and get ingredients from all over the world for their unique flavors. Interestingly, they never spent money on advertising.

 

“For the first 10 years, we simply relied on people trying our ice cream and telling others about it to make more people know about our brand,” Ben, the founder, explains.

 

Nowadays, Van Leeuwen is not only famous for its fancy flavors but also for creating special ice creams in partnership with other brands like Kraft Mac & Cheese and Hidden Valley Ranch. These new flavors attract more people to their brand, and the hope is that once people try these unusual flavors, they’ll also give their classic flavors a chance.

 

“These collaborations help us spread the word about our brand in a smart way,” Ben adds. “We want people to not just enjoy the unique flavors but also try the more traditional ones like vanilla, honeycomb, and Earl Gray tea.”

Van Leeuwen sells about 50,000 pints of ice cream per day to various stores and serves around 40,000 customers daily at their scoop shops during the summer.

 

The company is confident about how much people love their ice cream. They plan to open 18 new scoop shops by the end of 2023, including their first one outside the US, in Singapore. And they have even bigger plans for next year, with around 25 to 30 more shops in the works.

 

“As long as our customers are happy and we keep serving them great ice cream, we’ll keep growing,” Ben assures.

 

And if there’s ever an urgent need for ice cream at one of their scoop shops, Ben is prepared to step in.

 

“I’m still actively involved in our shops as the CEO and founder,” he mentions. “It’s enjoyable. I prefer being active and helping customers over sitting in my office all day.”