Starting Your Own Ice Cream Business in South Dakota

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Starting Your Own Ice Cream Business in South Dakota

Selling ice cream in South Dakota

Want to start an ice cream business? What does it take to sell ice cream in South Dakota?

There are many options, from making and selling ice cream, to buying ice cream and selling it to cxonsumers, such as an ice cream truck.

Well, the South Dakota cottage food law - Home Processed Foods, SD Codified Law 34 18 to 37. does not allow the making and selling of ice cream from your home.

But don't give up yet! Some of the options have less regulation, permitting and costs associated with the.

Where to buy a used ice cream truck in South Dakota

There is a website that helps you buy or sell used ice cream trucks in Sioux Falls & Rapid City, SD. Used ice cream trucks for sale include soft serve, Mister Softee, Good Humor & more. Browse ice cream machines, ice cream freezers, ice cream carts, ice cream franchises, ice cream vendors, ice cream facts & ice cream news.

Permits and regs for ice cream carts and trucks, a.k.a., Peddler/Mobile Food Licensing

The state of South Dakota requirements for mobile food businesses are here.

Each city has its own regulations and permit requirements, but they are usually fairly similar, so here as an example, is

Sioux Falls mobile food and peddler requirements:

  • Application fees are usually around $30 to $50.
  • Mobile food permit is an additional $75.00 application fee (cash or check)
  • Mobile food vendors also must have a Liability Insurance Certificate (Ordinance 117.140(b)) with a minimum liability limit of at least $1,000,000 per occurrence. Your insurance agent (State Farm, Allstate, etc.) can provide this. They're typically not expensive. ($100 - $300 / year?)
  • A surety bond for $1,000 is also required.
  • If you plan on selling food items, a Health Department inspection and approval may be required. For additional information you may contact Police Records at 605-367-7226 or the Health Department at 605-367-8760.
  • If you plan on peddling in the downtown area, please contact Planning and Development Services at 605-367-8180 for additional guidelines.
  • If you plan on peddling in a Sioux Falls City park, please contact the Parks Department at 605-367-8222 for information on their permitting process.
  • All peddlers must operate in accordance with all provisions and restrictions as defined in City Ordinance, Chapter 117.
    Please be sure to review the full ordinance requirements listed in Peddler Ordinance Chapter 117
    Please review the resources below outlining the requirements necessary for each type of license.
  • Has the applicant (after age 18) been convicted of any crime, misdemeanor, or violation of any state or federal law or municipal ordinance or code OTHER THAN TRAFFIC OFFENSES? If so, list the nature of the offense, the punishment or penalty assessed, if previously convicted, and the place of conviction, if any.
  • South Dakota State sales tax number is required and will be verified when your application is processed. For information on obtaining a sales tax number please contact (605) 367-5800.
  • If you have any further questions after reviewing the resources, please contact Police Records between the hours of 8 am. and 5 p.m., Monday through Friday.

Ice cream trucks, carts resources

Temporary Food Businesses

To obtain a food service license for a temporary event, use the Temporary Food Services Application and refer to Food Safety at Temporary Events.

What if you want a permanent ice cream shop instead?

How about a retail shop selling only pre-packaged ice cream (no eating on premises)?

Basically that's a standard retail shop or convenience store. Another website has written up those steps; see the links below:

The state of South Dakota has a page specifically for starting a business here. Here are some links from that page:

Ice Cream Shop (fixed location) requirements

In this model you are serving food (ice cream). The South Dakota food business page is here. Reproduced below (2/2021)

FOOD SERVICE LICENSING

STEP 1 ; COMPLETE THE FOOD SERVICE LICENSING PACKET

Download following materials or call the Office of Health Protection at 605-773-4945 to request the packet:

NOTE: If you need a food service license for a temporary event, use the Temporary Food Services Application and refer to Food Safety at Temporary Events.

STEP 2 ; MEET REQUIREMENTS

A. South Dakota Codified Law 34-18-23 requires establishments to notify the Department of any construction or alteration projects.

  • 30 days before construction starts, submit detailed floor plan of food service kitchen to Office of Health Protection. Layout plans must be stamped by a professional engineer or architect for facilities larger than 4,000 square feet..
  • Submit completed Plan Review Questionnaire and floor plan to:
    SD Department of Health - Office of Health Protection - 600 E. Capitol - Pierre, SD - 57501-2536

B. If the establishment uses private sewer or water systems, they must be approved by the South Dakota Department of Environment and Natural Resources, 605-773-3351.

C. Complete, notarize, and submit the license / registration application with correct fee 30 days before completion of construction to:

  • SD Department of Health - Office of Health Protection - 600 E. Capitol - Pierre, SD - 57501-2536

D. ARSD 44:02:07:03 requires food service establishments to have a certified food service manager. | scheduled Certified Food Service Manager courses

STEP 3 ; DEPARTMENT OF HEALTH REVIEW

A. Department staff review the layout plan and plan review questionnaire.

B. Department sends written notification regarding approval or changes required.

C. Department approves plan once all areas of plan comply with ARSD 44:02:07 (Food Service Code).
Questions? Contact a Health Protection Advisor in your region.

STEP 4 ; STATE INSPECTION

During the construction process and before business opening, Department conducts onsite inspection to determine compliance with administrative rules.

STEP 5 8212; APPROVAL FOR LICENSING

Department of Health issues food service license once license application is made, plan review completed, final inspection made, and Certified Food Service course completed.

ADDITIONAL INFORMATION LINKS

Governor's Office of Economic Development, Business Start-Up information
South Dakota Plumbing Commission
South Dakota Electrical Commission
South Dakota Department of Revenue
Scheduled Certified Food Service Manager Courses

Of course all food employees must:

GET CERTIFIED AS A FOOD SERVICE MANAGER IN SOUTH DAKOTA

Administrative Rules of South Dakota 44:02:07:03 require food service establishments to have a certified food service manager. To meet this requirement:

  • Attend an approved course and pass the test with a score of 75 or higher.
  • Contact any of the following to find an approved course near you
    • South Dakota Retailers Association, Restaurant Division, 1-800-658-5545
    • Cash-Wa Distributing, 1-800-652-0010, Ext. 7123
    • Professional Server Certification Corporation, 1- 800-247-7737
    • Prometric
    • Reinhart FoodService, 1-800-756-5256 Ext.222
    • US Foods - North Dakota, 1-800-831-7318
    • Training Services, 651-355-8486
    • SuperSafeMark, 1-877-399-4925
    • Sysco North Dakota, 1-866-327-4699, Ext. 6307
    • National American University, 855-899-7915


  • Or, check this schedule of available Certified Food Service Manager courses.
  • Online training is available from Professional Server Certification Corporation. Student completes the training on the computer, then has a proctor administer the final examination. Call 1- 800-247-7737 or see www.Rserving.com
  • Above Training/StateFoodSafety develops and publishes technology-enhanced food safety training and certification programs that provide superior value to regulatory, restaurant, and hospitality communities. https://www.statefoodsafety.com/
  • Established in 1997, with a goal to lessen the stresses faced by food service operators, the primary goal of AAA Food Handler Training School (AAAFHTS) is to make your Certified Food Manager, Basic Food Handler, and all other certification processes as easy and painless as possible. http://www.aaafoodhandler.com/
  • 360 Training is a leading provider of online food and alcohol safety training solutions for both businesses and professionals including ANSI accredited Food Handler and Food Manager programs, and State specific Alcohol Seller/Server training.
  • Contact the Office of Health Protection at 605-773-4945 to request approval of alternative courses.

Recommendations:

Beyond the requirements, common sense, good practices and reducing liability suggests you should do the following.

Training

Take the ServSafe® training classes for Manager and employees, the 7th Edition Book that accompanies this course should be purchased here.. 

Testing of pH

​It's best to use a pH meter, properly calibrated on the day used. I use this one, which is reliable and inexpensive. And this pH meter is really good, but isn't always available.
Short-range paper pH test strips, commonly known as litmus paper, may be used instead, if the product normally has a pH of 4.0 or lower and the paper's range includes a pH of 4.6.

Record-keeping is suggested

Keep a written record of every batch of product made for sale, including:

  • ​Recipe, including procedures and ingredients
  • Amount canned and sold
  • Canning date
  • Sale dates and locations
  • Gross sales receipts
  • Results of any pH test

Sanitation

Although inspections are not required, you should consider doing the following:

  • ​Use clean equipment that has been effectively sanitized prior to use
  • Clean work surfaces and then sanitize with bleach water before and after use
  • Keep ingredients separate from other unprocessed foods
  • Keep household pets out of the work area
  • Keep walls and floors clean
  • Have adequate lighting
  • Keep window and door screens in good repair to keep insects out
  • Wash hands frequently while working
  • Consider annual testing of water if using a private well

BeBest Practices

  • Allergens: Most state home baking acts require an "ingredient statement" and/or an "allergen listing" on the label of the bakery item for sale; but if your state does not, you should anyway. The eight major food allergens are l>
  • milk,
  • eggs,
  • fish,
  • crustacean shellfish,
  • tree nuts,
  • peanuts,
  • wheat and
  • soybean.
  • Cross-allergenicity: There are also ingredients available, even flours, that can cause a cross-allergenicity. The American Academy of Allergy Asthma & Immunology explains cross-allergenicity as an allergic reaction when proteins in one substance are similar to the proteins found in another substance. For example, consumption of lupine flour may trigger an allergic reaction to peanuts, and cricket flour may trigger an allergic reaction to shellfish. Again, providing such information might be a beneficial marketing tool and help keep potential consumers safe.
  • The 2 Hour/4 Hour Rule - Anyone wishing to make and sell refrigerated bakery items should remember to follow the "2 Hour/4 Hour Rule." This is a system that can be implemented when potentially hazardous foods are out of temperature control (temperatures greater than 45 degrees Fahrenheit) during preparation, serving or display for sale. The rule guidelines are as follows:
    • If a potentially hazardous food has been out of temperature control for 2 hours or less, then it may continue to be used or be placed back in the refrigerator.
    • If a potentially hazardous food has been out of temperature control for more than 2 hours but less than 4 hours, it needs to be used quickly or discarded.
    • If a potentially hazardous food has been out of temperature control for more than 4 hours, it must be discarded.

    • More resources:

    Additional help:

    SDSU Extension offers:

    • staff who can be an information resource to provide data regarding food safety considerations on the product and process.
    • testing your product for pH and water activity.
    • review your label to check if it is meets the FDA Labeling requirements as outlined in the FDA Labeling Course.
    • an ingredient declaration and nutrition facts panel based off of the recipe provided by you, the processor.
    • Of course, it is your responsibility to ensure the accuracy of the label, but SDSU Extension can provide assistance using Genesis R&D Labeling software. The cost is $150 per product.

    Interstate or Wholesale Commerce

    South Dakota statutory requirements for the sale of baked goods and home-canned processed foods can be found in these SDSU Extension publications:

    Questions? Contact Information:

    For more information, contact

    • Curtis Braun, MBA
      SDSU Extension Food Safety Field Specialist
      SDSU Extension Sioux Falls Regional Center
      2001 E. Eighth St.
      Sioux Falls, SD 57103
      Office: 605.782.3290

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