Story

My ice cream business brings in $2.8M/year

CNBC Make It

Malai is a South Asian-inspired ice cream company that generates $2.8M annually by featuring authentic flavors like cardamom, rose, and saffron. The business operates four brick-and-mortar scoop shops across major US cities, with 80% of revenue coming from these retail locations and the remainder from wholesale, e-commerce, and catering.

Summary

Malai differentiates itself in the ice cream market by moving beyond traditional vanilla and chocolate flavors to introduce South Asian spices and ingredients such as cardamom, rose, saffron, and nutmeg. The founder emphasizes that these flavors are ubiquitous to many people globally and deserve to be mainstreamed into American dessert culture. The company operates a dedicated production facility where they manufacture ice cream along with specialty novelties including kulfi pops, ice cream sandwiches, and ice cream cakes. Kulfi, a traditional South Asian frozen dessert, is served in pop form and has a chewier, denser texture than conventional ice cream. Three of their most popular flavors are rose with cinnamon roasted almond, cardamom pistachio crumble, and mango and cream, which are stocked across their retail locations. Malai operates four brick-and-mortar scoop shops strategically located in Brooklyn, Washington D.C., Philadelphia, and Manhattan (their newest location). Over the course of one year, the business has generated approximately $2.8-3 million in revenue, with approximately 80% derived from their retail scoop shops. The remaining revenue is distributed across wholesale partnerships, direct-to-consumer e-commerce sales, and catering services.

Key Insights

  • Malai's core differentiation strategy is introducing South Asian spices like cardamom, rose, saffron, and nutmeg into American ice cream, positioning flavors that are already familiar to many people globally as mainstream American desserts.
  • The founder personally oversees flavor development and taste testing to ensure South Asian flavors taste authentic to their traditional preparations.
  • Malai produces not just ice cream but also specialty novelties including kulfi pops (a chewier, denser version of traditional kulfi), ice cream sandwiches, and ice cream cakes from their production facility.
  • The company generates $2.8-3 million annually with brick-and-mortar scoop shops accounting for approximately 80% of revenue, while wholesale, e-commerce, and catering make up the remaining 20%.
  • Malai operates four strategic retail locations across major metropolitan areas: Brooklyn, Washington D.C., Philadelphia, and Manhattan, with Manhattan being their most recent expansion.

Topics

South Asian-inspired ice cream flavorsKulfi and traditional dessertsMulti-location retail operationsRevenue streams (retail, wholesale, e-commerce, catering)Product innovation and flavor development

Transcript

[0:02] Malai is so different because we go beyond chocolate and vanilla by introducing South Asian flavors like cardamom, rose, saffron, nutmeg into ice cream. [music] Flavors that are so ubiquitous to so many people around the country and the world that we want to mainstream into American flavors. We just did a flavor change and I like to make sure that the flavors taste like how they're supposed to taste. It's a hard job, but someone has to do it. Welcome to Malai's production space. This is where all the magic happens, [music] where we produce [0:33] some of our ice cream and all of our novelties for our scoop shop. Kulfi pops, ice cream sandwiches, [music] ice cream…

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