The Economics of the Summer Ice Cream
As the British summer is in full swing, many of us are enjoying a stroll along the seafront or through the park with a cone of ice cream in hand. But that sweet treat is more than just a refreshing indulgence — it’s a perfect little case study in economics.
Why a 99 Flake Isn’t 99p Anymore
Once upon a time, you could pick up a ’99’ for under a pound. These days, you’re more likely to pay £2–£4. That’s not just inflation — it’s the result of several combined factors:
- Dairy prices – Milk and cream costs have risen due to higher feed, energy, and transport prices.
- Cocoa costs – The price of chocolate (and therefore those Cadbury Flakes) has surged due to poor harvests in West Africa and global demand.
- Energy bills – Freezers, storage, and transport are all energy-hungry, and higher energy prices affect every link in the chain.
- Seasonal demand – On a hot day, vendors can charge a premium because demand is high and stock may be limited.
Business Lessons from the Ice Cream Van
Your local ice cream seller is doing what every business has to do — adapting to rising costs and seasonal demand. The principles apply whether you’re running a van on Brighton Pier or a national company:
- Understand your cost base so you can price products sustainably.
- Factor in seasonality when planning cash flow.
- Communicate value so customers understand why prices are what they are.
The PSF Perspective
At PSF Accounting, we know that even small, seasonal shifts can have a big impact on profitability. We help businesses plan for cost fluctuations, manage seasonal cash flow, and adapt to market changes — whether you’re selling ice creams in August or festive hampers in December.
So next time you treat yourself to a cone by the beach, remember — there’s a whole world of economics behind that single scoop.