Garret Tichy has been a friend for over a decade. I watched him grow Hygge and successfully sell it to COhatch. He’s always been transparent, which I appreciate — so I reached out to him about his new ice cream venture Seemingly Overzealous with partner Jessica Berresse.
(1) How much did it cost to open Seemingly Overzealous Plaza Midwood?
Our total costs were $245,155. This was 2nd generation space, so we didn’t have to do any major plumbing or electrical work. We got this done in less than 90 days, which means we can move quickly after we sign a lease.
Sure, we could have cut corners and saved money on the buildout, but doing it right creates an excellent customer experience. To us, this felt right.
Rough breakdown of our costs:
- Leasehold improvements – $119,558 (construction and materials)
- Signage – $7,500
- Mural design & installation – $17,000 (internal & external)
- Furniture – $3743 (booths), $250 (bar stools), $860 (outdoor tables & chairs)
- Special merch collab – $4,500
- Photo & Video – $1,440
- Equipment (new purchases + acquired in lease buyout) – $13,839 + $50,000
- Misc – $3,393 (decal work), $6,300 (sign & lite brite)
- Business admin (legal fees, broker) – $10,000
- Random Amazon Purchases – $2,882 (this is everything from napkin holders, gumball machines, to TVs and SONOS speakers).
- Rent while not open – $7,000
(2) Can you walk us through ice cream shop economics?
We expect a dense neighborhood shop to exceed $550-600K annually. The ceiling gets a good bit higher if we expand on the hours and product offering.
- On a given product, margins range from 44% to 78%. So, we have to sell a lot of $5 scoops of ice cream to cover our other costs (payroll, rent, etc) and turn a profit.
- Payroll is our biggest expense. We pay above industry standards in hopes of having a more committed staff, which translates into better customer service (as evidenced in reviews).
Because we centralize production and can open efficiently, our model allows us to afford higher rents in prime locations.
- We’re looking for 1,000-1,500 square foot spaces that typically charge $45-$50 per square foot.
(3) Advice for others opening similar businesses?
Know profit margins on each product, down to the penny. If it doesn’t make money, stop selling it. There’s no room for loss leaders in a business where you’re this small. You have to earn that by scaling.
Being local isn’t enough anymore. You have to be good, if not great (possibly awesome) in brand, product, marketing, and experience in order to survive in a landscape where a bigger national brand can afford to undercut you in just about every way.
(4) What’s the #1 most misunderstood thing about your business?
Most ice cream shops are NOT making their ice cream from scratch. They either order fully churned ice cream or use a pre-gel where they add their choice of water and/or milk. It’s wild how many beloved ice cream shops serve similar, if not the exact same ice cream, as another shop right down the street.
Everything we make is 100% from scratch. It’s really fucking good. We’re quality freaks given that we’re dairy, egg, and gluten free. Our customers trust us and we’re not willing to mess with that.
(5) Any productivity hacks that have allowed you to move fast?
We don’t spend a lot of time wondering “if” we can do things. We move quickly from idea to execution. The ideation phase is a time suck.
Get a great accountant and financial advisor. Every small business is always so quick to outsource things like social media first. Give up the management of your books, tax prep, etc. You’re probably leaving thousands of dollars on the table.
(6) What’s next for Seemingly Overzealous?
- Open a 3rd and possibly 4th shop in 2025.
- Expand the brand to include products that allow us to operate in the morning.
- Grow our ice cream vending machine presence. The one at Monday Night Brewing has been really successful. Breweries are the spot. We just need connections (if you know an owner that would be up for it, message me).
(7) When will the business have financially “made it” in your eyes?
A third shop should get us to our personal goal of generating well over $1M in annual revenue. This doesn’t mean we can live a lavish lifestyle (it’s revenue, not profit!), but this gives us greater flexibility to decide what’s next.
Note: If you’re interested in getting a behind the scenes look at the finances of a growing business, Garrett has started a newsletter and plans to share the financial journey of Seemingly Overzealous (subscribe here).
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