Scuzo Ice ‘O’ Magic Success Story: India’s Pioneering Live Popsicle Concept and Dessert Café

Muskaan Kapoor

Jul 14, 2023 — 13 min read

Scuzo Ice ‘O’ Magic Success Story - India’s Pioneering Live Popsicle Concept and Dessert Café

Company Profile is an initiative by StartupTalky to publish verified information on different startups and organizations. The content in this post has been approved by Scuzo Ice ‘O’ Magic.

Indulging in delicious desserts is a pleasure shared by people around the world. From mouthwatering gelato to delectable popsicles and tempting sundaes, the dessert industry continues to captivate taste buds and create unforgettable experiences. One such example of a dessert brand that is making its name shine in the industry is Scuzo Ice 'O' Magic.

Scuzo Ice 'O' Magic is not just your average dessert cafe. It is a haven for dessert enthusiasts, a place where flavors come alive and sweet memories are made. Founded by the visionary entrepreneur Mr. Gagan Anand, Scuzo Ice 'O' Magic has quickly become a beloved name in the dessert scene.

In this article, let's explore the captivating world of Scuzo Ice 'O' Magic. From its founder's journey to its business model, delightful products, triumph over challenges, and more.

Scuzo Ice 'O' Magic - Company Highlights

Company Name	Scuzo Ice 'O' Magic
Headquarters	New Delhi, India
Industry	Food and Beverage
Founder	Gagan Anand
Founded	2020
Website	scuzointernational.com

Scuzo Ice ‘O’ Magic - About

Scuzo Ice 'O' Magic is a beloved dessert cafe headquartered in Okhla, Phase 2, New Delhi. Established in September 2020, Scuzo has quickly gained popularity among people of all ages. With its wide variety of delectable treats, including refreshing popsicles, gelato, indulgent sundaes, and more, Scuzo Ice 'O' Magic offers a delightful and guilt-free indulgence for dessert enthusiasts.

With a commitment to using natural ingredients and a passion for exceptional dessert experiences, Scuzo has become a sought-after destination for those seeking a memorable and enjoyable dessert experience.

Scuzo Ice ‘O’ Magic - Industry

The gelato and ice lolly market (also known as popsicles) has been a popular and thriving segment within the frozen dessert industry. The demand for these refreshing treats has been on the rise, driven by factors such as increasing disposable income, changing consumer preferences, and the desire for indulgent yet convenient options. Flavor innovation, a natural and artisanal focus, health, and wellness considerations, and diverse retail channels have also contributed to the market's growth.

It's important to note that the industry is subject to evolving consumer preferences, market dynamics, and competition. The gelato and ice lolly market may experience further changes and developments over the next few years, driven by factors such as emerging trends, technological advancements, and shifts in consumer behavior.

As for Scuzo Ice 'O' Magic, the company envisions expanding its presence globally over the next 5 to 10 years. With a strong market position, a robust product portfolio, and strategic partnerships, Scuzo anticipates entering new markets and capitalizing on emerging trends. By continuously investing in research and development, Gagan, the founder of Scuzo Ice 'O' Magic, is confident that the company will remain at the forefront of innovation and successfully meet the evolving needs of its customers.

Scuzo Ice ‘O’ Magic - Founder and Team

Gagan Anand is the founder of Scuzo Ice ‘O’ Magic.

Gagan Anand

Mr. Gagan Anand is the visionary and mastermind behind Scuzo Ice 'O' Magic, India's pioneering Live popsicle concept and dessert café. Despite embarking on his career at the young age of 17, Mr. Anand displayed exceptional determination and managed to successfully complete his graduation and master's while juggling part-time work.

Throughout his journey, Mr. Anand garnered invaluable experience and honed his skills at renowned food establishments such as Pizza Hut, Keventers, Rasna Buzz, and Gloria Jean's Coffee. His diverse background in the food industry served as a solid foundation for his entrepreneurial endeavors and equipped him with the necessary expertise to spearhead Scuzo Ice 'O' Magic.

Scuzo Ice 'O' Magic is powered by a dedicated team of 70+ professionals stationed across different locations in India. Their collective efforts play a pivotal role in driving the company's success and expansion nationwide.

Scuzo Ice ‘O’ Magic - Startup Story

The decision to launch the Scuzo Ice 'O' Magic brand was driven by a desire to provide a distinctive and exceptional experience to customers. The idea for Scuzo Ice 'O' Magic originated from Gagan's childhood experiences and love for sweets. Growing up, his mother would make jaggery, and he developed a strong affinity for desserts.

"I vividly remember chasing after the Ice Cream Man in my neighborhood, creating lasting memories associated with ice cream and sweets," said Gagan.

Throughout his career, Gagan has had the opportunity to work with various F&B brands, including Rasna Buzz. It was during this time that his childhood nostalgia and the flashbacks of ice cream vendors triggered a moment of inspiration. This eureka moment paved the way for the establishment of Scuzo Ice 'O' Magic.

Fueled by a passion and unwavering belief in the vision, Gagan embarked on the journey of launching Scuzo Ice 'O' Magic and opened the first store in Netaji Subhash Place, New Delhi, in November, following the first wave of the pandemic. The aim of Scuzo Ice 'O' Magic is to provide a unique, enjoyable, and guilt-free indulgence that aligns with the preferences and well-being of our customers. This interactive and personalized experience has become the driving force behind our business.

By introducing the concept of live popsicles and emphasizing the use of 100% natural ingredients, the aim was to differentiate Scuzo Ice 'O' Magic from the competition. The primary objective is to create a platform where people of all age groups can indulge in lively and joyous sweet moments without concerns about excessive sugar content or any adverse health effects. The commitment is to offer healthier options without compromising taste or enjoyment. Their focus on using natural products and ensuring a delightful experience for customers sets Scuzo Ice 'O' Magic apart in the market.

Scuzo Ice ‘O’ Magic - Vision and Mission

Scuzo Ice 'O' Magic's long-term vision is to become the definitive global dessert brand and the epitome of success in the frozen treats industry. The company strives to deliver customers an unparalleled and blissful dessert experience that surpasses all expectations while simultaneously fostering and empowering the entrepreneurial spirit.

Their motto is to provide 'Wow and Joyful Dessert Experiences' and to inspire and promote entrepreneurship.

Scuzo Ice ‘O’ Magic - Product/Service

Scuzo Ice 'O' Magic Products - Popsicles, Gelato, Milkshakes — Scuzo Ice 'O' Magic Products

Scuzo Ice 'O' Magic offers a wide variety of delicious treats across seven categories, including popsicles, gelato, sorbet, milkshakes, waffles, pancakes, sundaes, and mocktails. With an extensive selection of approximately 90 unique products, Scuzo strives to provide a diverse range of options to satisfy every customer's taste buds.

While the initial focus was on popsicles, the product range was later expanded to cater to a wider audience. By offering a variety of desserts, Scuzo aims to attract and satisfy the diverse preferences of its customers.

The core value of the company lies in offering wholesome and natural products, ensuring that customers can enjoy high-quality treats. Furthermore, Scuzo prioritizes customers' individual dietary preferences by providing vegan and sugar-free options to accommodate specific needs.

Innovatively, Scuzo combines traditional kulfi unit principles with innovative technology in its popsicle churner unit. This unique approach allows the brand to embrace the essence of traditional craftsmanship while harnessing the benefits of modern advancements. The goal is to create a seamless fusion of tradition and innovation, resulting in the production of exceptional, high-quality popsicles.

Scuzo Ice ‘O’ Magic - Business and Revenue Model

Scuzo Ice 'O' Magic has successfully set up 13 franchise outlets across India, with the first franchisee opening in Super Mart 1, Gurgaon. Additional franchise locations include Noida, Faridabad, Gujarat, Mizoram, and Andhra Pradesh. In line with the company's growth strategy, there are ambitious plans to open 6–7 more outlets by July 2023. Expanding the franchise model is a key objective as Scuzo Ice 'O' Magic aims to reach more customers and extend its presence nationwide.

The stores have established a strong customer base, with an average of 2,500 visitors per day, amounting to around 30,000 customers per month. Additionally, approximately 18,000 new customers are attracted each month, showcasing the company's ability to expand its customer reach and maintain a steady growth trajectory.

At Scuzo Ice 'O' Magic, a significant number of transactions are processed at the stores. On average, each store handles approximately 65–70 transactions per day. With a total of 12 stores, this amounts to approximately 780–840 transactions per day across all outlets. This consistent flow of transactions reflects the popularity and demand for Scuzo Ice 'O' Magic products among its valued customers.

Scuzo Ice ‘O’ Magic - Launching Company Strategies

When Scuzo Ice 'O' Magic initially launched, the company recognized the importance of understanding the needs and requirements of the target audience. A thorough market study was conducted to gain insights into what potential customers were looking for in the industry. The decision was strategically made to enter a marketplace where other established brands were already present. This choice provided a built-in customer base and increased the likelihood of attracting early adopters. By positioning Scuzo Ice 'O' Magic alongside well-known brands like Giani, Baskin Robbins, and Naturals, the company was able to leverage their existing customer base and increase its visibility in the market.

Considering the limited marketing budget as a bootstrapped company, Scuzo Ice 'O' Magic had to be resourceful and find cost-effective strategies. One approach that worked well was providing samples of the product to the crowd. This allowed the company to showcase the quality and unique aspects of the offering, enticing potential customers to try it out.

Through this approach, Scuzo Ice 'O' Magic was able to generate initial interest and initiate word-of-mouth marketing. Satisfied customers who enjoyed the product became advocates, spreading the word to their friends, family, and social networks. This organic approach played a crucial role in gaining traction and acquiring the company's first 100 customers.

Scuzo Ice ‘O’ Magic - Customer Acquisition and Retention Strategy

Quality Products and Service: Providing high-quality, delicious treats and delivering exceptional customer service is crucial for building a loyal customer base and generating positive word-of-mouth.

Targeted Marketing: Identifying the target audience and tailoring marketing efforts to effectively reach them. This includes utilizing social media, online advertising, and offline marketing channels to create awareness and attract customers.

Online Presence: Maintaining an engaging and visually appealing website along with active social media profiles to showcase products, interact with customers, and provide updates about new offerings and promotions.

Partnerships and Collaborations: Collaborating with complementary businesses or influencers to expand reach and attract new customers. This can involve joint promotional campaigns, cross-selling opportunities, or tie-ups with local events or organizations.

Viral Marketing: Creating unique and memorable marketing campaigns that have the potential to go viral, capturing the attention and interest of a wider audience. This could involve creating engaging content, utilizing storytelling techniques, or leveraging user-generated content.

Customer Loyalty Programs: Implementing loyalty programs or referral programs to incentivize repeat business and encourage customers to share positive experiences with others.

Regarding the budget allocation for marketing and growth hacking, it would vary from business to business based on their goals, resources, and market conditions. Typically, businesses allocate a percentage of their revenue or a fixed budget for marketing activities. The specific amount spent on marketing would depend on various factors such as the scale of operations, growth goals, competition, and available resources.

Scuzo Ice ‘O’ Magic - Growth

Scuzo Ice 'O' Magic was bootstrapped with an initial investment of 70 Lakhs from Gagan's personal savings. The company has experienced significant growth since its establishment, with a current turnover of Rs 5.3 crore. In the period from April 2022 to March 2023, the company achieved a turnover of Rs 4.60 crore, showcasing a consistent year-on-year growth rate of 30%.

To cater to a wider customer base, Scuzo Ice 'O' Magic is accessible through popular food delivery platforms such as Swiggy and Zomato. Excitingly, it will soon be available on the Open Network for Digital Commerce (ONDC) as well. While these platforms currently contribute 25% of the overall business, the company aims to surpass this figure to reach its desired target.

Scuzo Ice 'O' Magic - Challenges Faced and Overcoming Strategies

One of the most challenging aspects encountered by Scuzo Ice 'O' Magic was the lack of customer awareness about the benefits of Gelato and natural fruit popsicles in comparison to traditional ice cream. Customers frequently compared the products with those of nearby ice cream brands and perceived them as more expensive. Despite ongoing efforts to educate customers, it was challenging to convey the value proposition during peak hours, resulting in dissatisfied customers who evaluated the brand solely based on value for money.

To overcome this challenge, Scuzo Ice 'O' Magic implemented several strategies:

Education and Training: From the beginning, the company made educating customers about the unique qualities of Gelato and natural fruit popsicles a top priority. Staff members were trained to engage with customers and explain the differences, emphasizing the superior taste, freshness, and natural ingredients used in the products. Visually appealing displays and signage were created to highlight the health benefits and premium quality of the offerings.

Product Sampling and Tastings: Scuzo Ice 'O' Magic introduced product sampling and tastings as a way to provide customers with a firsthand experience of the superior taste and quality of the Gelato and natural fruit popsicles.

Workshops and Interactive Sessions: Hosting workshops and interactive sessions proved to be an effective strategy to educate customers about the art of Gelato making and the benefits of consuming natural fruit popsicles.

Personalized Approach: Scuzo Ice 'O' Magic realized that solely relying on traditional marketing methods such as print advertisements and flyers did not yield the desired results. Instead, a more personal and engaging approach was necessary to effectively communicate the unique qualities of the products.

Scuzo Ice 'O' Magic - Funding

Scuzo Ice 'O' Magic is actively seeking external funding from potential investors to support its growth and expansion plans. The company aims to secure approximately $1 million in investment, which is equivalent to around Rs 7-8 crore. Out of the funding obtained, approximately half will be allocated towards B2B and B2C marketing initiatives, focusing on enhancing brand visibility. The remaining funds will be utilized for crucial backend operations, franchise development, and infrastructure enhancements.

By securing this investment, Scuzo Ice 'O' Magic intends to accelerate the brand's growth and expand its market presence. The funds will enable the company to execute robust marketing campaigns, strengthen its supply chain, develop new franchise opportunities, and enhance its operational infrastructure. This strategic allocation of funds will drive revenue generation, boost brand recognition, and facilitate overall business expansion.

Scuzo Ice 'O' Magic - Marketing Campaigns

Scuzo Ice 'O' Magic has implemented several sustainable initiatives to reduce environmental impact and promote responsible consumption. One notable endeavor is the development of rice straws flavored and colored with edible ingredients. These rice straws offer a safe option for consumption and contribute to environmental conservation.

An exciting addition to edible food packaging is the introduction of edible spoons designed specifically for enjoying gelato. This innovative concept allows the company to completely eliminate the use of plastic cutlery at its stores. By embracing this edible alternative, Scuzo Ice 'O' Magic aims to inspire customers to make conscious choices while savoring their meals.

The edible spoons have received tremendous positive feedback, making them one of the company's most successful marketing campaigns. Scuzo Ice 'O' Magic takes pride in offering a sustainable and enjoyable experience to customers while simultaneously contributing to the reduction of plastic waste.

Scuzo Ice 'O' Magic - Competitors

Scuzo Ice 'O' Magic faces competition from established brands such as Gelato Vinto, Dolce Gelato, Naturals Ice Cream, and Emoi Popsicles in the market. However, Scuzo sets itself apart from these competitors by offering superior quality and value for money. Numerous customers who have experienced popsicles from both Scuzo and its competitors have provided feedback affirming Scuzo's superiority.

Despite the presence of well-known players in the industry, Scuzo has managed to carve a niche for itself by consistently delivering exceptional-quality products. Customers have repeatedly expressed their satisfaction with Scuzo's popsicles, demonstrating a clear preference for Scuzo over its competitors.

This positive feedback further strengthens Scuzo's position as a leading brand known for its product quality and customer satisfaction. The company's commitment to excellence distinguishes it from direct competitors, cementing its reputation as the preferred choice for popsicle enthusiasts.

Scuzo Ice 'O' Magic - Future Plans

Within a span of three years, Scuzo has successfully established 13 stores, with four of them located in Delhi, NCR. Excitingly, the brand has plans to expand further by opening seven new stores across various regions of the country in the upcoming month. Currently, Scuzo's primary focus is on metro cities and Tier 2 cities. However, the brand also intends to venture into Tier 3 cities in the future, aiming for broader market penetration.

The company is actively working on launching its retail model, which indicates a strategic shift in its business approach. The goal is to open a total of 100 outlets across India by 2024. This expansion will consist of a combination of franchise and company-owned stores, allowing Scuzo Ice 'O' Magic to effectively reach and cater to a diverse range of customers throughout the country.

FAQs

What is Scuzo Ice ‘O’ Magic?

Scuzo Ice 'O' Magic is an innovative dessert cafe that offers delightful and guilt-free indulgence. It is known for its pioneering concept of live popsicles made with 100% natural ingredients that provide a delightful and interactive experience for customers.

Where is Scuzo Ice 'O' Magic headquartered?

Scuzo Ice 'O' Magic is headquartered in Okhla, Phase 2, New Delhi.

When was Scuzo Ice 'O' Magic established?

Scuzo Ice 'O' Magic was established in September 2020.

What are the offerings of Scuzo Ice 'O' Magic?

Scuzo Ice 'O' Magic offers a wide variety of delicious treats across seven categories, including popsicles, gelato, sorbet, milkshakes, waffles, pancakes, sundaes, and mocktails.

Who are the competitors of Scuzo Ice 'O' Magic?

Scuzo Ice 'O' Magic faces competition from established brands such as Gelato Vinto, Dolce Gelato, Naturals Ice Cream, and Emoi Popsicles in the market.

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