Subscribe to keep reading
Get new posts and unlock the full article.
You can unsubscribe anytime.Ice Skating Rink Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- The minimum required monthly operating budget to sustain the ice rink before revenue generation is approximately $120,250.
- Facility overhead, driven primarily by the $32,000 monthly lease and $22,000 in electricity for refrigeration, constitutes the largest fixed expense category.
- Due to high fixed costs, operators must secure a minimum working capital buffer of $133,000 to manage potential cash flow dips projected for September 2026.
- Achieving the projected $91,000 first-year EBITDA hinges critically on meeting the $177 million annual revenue target necessary to offset substantial fixed overhead.
Running Cost 1 : Facility Lease Rent
Lease Cost Check
Facility lease rent is a major fixed drain at $32,000 per month. Before signing, you must confirm the lease structure, especially the escalation schedule and any Triple Net Lease (NNN) obligations. This cost hits every month, regardless of ticket sales.
Inputs Needed
This $32,000 covers the base rent for the physical space needed for the Glacier Glide Arena. You need the signed lease agreement to calculate the annual commitment, which is $384,000. Also, check the amortization schedule for any tenant improvement allowances received.
- Base rent amount: $32,000.
- Lease term length.
- Start date of payments.
Cost Control
Managing this cost means scrutinizing the lease fine print now. A Triple Net Lease (NNN) means you pay property taxes, insurance, and maintenance on top of base rent. If the escalation clause is 4% annually, that $32k quickly becomes $38k in year five. Avoid surprises.
- Audit NNN reconciliation annually.
- Cap annual rent increases.
- Negotiate a rent abatement period.
The NNN Risk
Never assume NNN terms are standard; they shift operational risk onto you. If the lease is NNN, your $22,000 utility bill for ice maintenance might be separate from the NNN property tax portion. Get legal review for escalation caps; otherwise, this fixed cost will defintely increase faster than planned.
Running Cost 2 : Base Utilities (Electricity)
Fixed Ice Power
Your primary utility expense is electricity for ice maintenance, fixed at $22,000 monthly. This cost is a major operational drag because it ties directly to volatile wholesale energy markets, demanding immediate hedging strategies to stabilize margins.
Cost Breakdown
This $22,000 covers the constant power needed by the refrigeration system to keep the ice frozen solid. To model this, you need the facility's expected kilowatt-hour (kWh) usage multiplied by the commercial rate per kWh, plus any fixed demand charges assessed by the utility.
- Covers chiller operation only.
- Input: kWh usage rate.
- Input: Demand charges.
Manage Price Risk
Since this cost is fixed but price-sensitive, focus on locking in rates now. Negotiate a fixed-rate power purchase agreement (PPA) for at least 18 months to buffer against price spikes. Also, audit your chiller system; older units can cost 20% more to run than modern, variable-speed compressors.
- Lock in energy rates early.
- Audit chiller efficiency now.
- Review demand charge structure.
Operational Impact
Honestly, this $22k is a huge operational fixed cost, rivaling your $32k facility rent. If regional energy prices jump 15%, your operating cash flow immediately shrinks by $3,300, so budget for contingency or secure long-term fixed contracts defintely.
Running Cost 3 : Core Staff Wages
Fixed Payroll Snapshot
Your fixed payroll for 2026 is set at $51,250 per month. This covers 85 full-time employees (FTEs) across management, operations, and specialized ice technicians. This is a major fixed overhead that must be covered regardless of daily ticket sales.
Staffing Cost Drivers
This $51,250 monthly figure represents the base salary expense for 85 FTEs planned for 2026. It includes the General Manager (GM), Operations staff, and specialized Ice Techs required to run the facility year-round. This number is the foundation for your operating expense budget before factoring in payroll taxes or benefits.
- FTE Count: 85 staff members.
- Key Roles: GM, Operations, Ice Techs.
- Budget Year: 2026 projection.
Managing Fixed Labor
Fixed labor is tough to cut when volume dips, so focus on efficiency now. Avoid over-hiring early; scale staffing only as private bookings and lesson enrollment ramp up reliably. A common mistake is budgeting for peak season staffing year-round, which defintely strains cash flow.
- Stagger hiring based on volume milestones.
- Cross-train staff to cover multiple roles.
- Review benefits packages for cost savings.
Payroll Breakeven Impact
Labor is your second-largest fixed cost after rent, which is $32,000 monthly. If your facility needs significant contribution margin just to cover overhead, every shift in utilization directly impacts your bottom line. You need high utilization rates to absorb this fixed cost base.
Running Cost 4 : Property and Liability Insurance
Mandatory Insurance Budget
You must budget $3,500 monthly for property and liability insurance. This cost is fixed and mandatory because an ice skating rink presents significant inherent risk exposure for slip-and-fall incidents and facility damage.
Cost Inputs
This $3,500 monthly premium covers both general liability for guest injuries and property insurance for the physical arena and fixed assets. Estimate this by getting firm quotes based on your facility size and projected maximum daily attendance. This cost is fixed overhead, separate from variable COGS.
Managing Premiums
You can't negotiate much on the base rate for this high-risk venue, but you control claims frequency. Implement rigorous safety checks daily to keep incident reports low. If onboarding takes 14+ days, churn risk rises from inexperienced staff causing accidents. Don't skimp on the limits, thoughh.
Overhead Context
Given that facility lease rent is $32,000 and base utilities are $22,000 monthly, this insurance payment is a small but critical component of your fixed operating structure. Missing this payment voids coverage when you need it most.
Running Cost 5 : General Maintenance and Repairs
Routine Upkeep Budget
You must budget $4,500 monthly for general facility maintenance. This covers daily operational fixes, keeping the building safe and functional, separate from large equipment replacement costs.
Defining Routine Repairs
This $4,500 estimate is for routine upkeep, like HVAC filter changes or minor plumbing issues. It specifically excludes major capital expenditures (CapEx) such as replacing the Zamboni or the primary chiller system. Track vendor quotes monthly to validate this baseline. Anyway, this budget feels tight.
Managing Maintenance Spend
Avoid deferring small fixes; they become expensive failures fast. Use preventative maintenance schedules to lock in lower service contract rates. Since electricity is high at $22,000, ensure HVAC servicing is rigorous to maintain efficiency. Defintely track all repair tickets.
- Schedule quarterly HVAC checks.
- Bundle small vendor work orders.
- Review service contracts annually.
CapEx vs. OpEx Line
Always segregate this $4,500 operational expense from future capital budgeting for the chiller or Zamboni replacement fund. Misclassifying these items distorts your true operating margin reporting.
Running Cost 6 : General Marketing Budget
Fixed Marketing Spend
Your general marketing budget is set at a fixed $3,500 per month. This amount covers ongoing brand awareness and customer acquisition efforts. Importantly, this is completely separate from any variable costs tied to specific event promotions you run later on.
Budget Structure
This $3,500 allocation is a fixed overhead cost, meaning it hits the P&L every month regardless of ticket sales. It supports baseline acquisition, unlike Skate Maintenance and COGS which scales with volume. It sits alongside major fixed drags like the $32,000 lease and $22,000 in base electricity.
- Covers baseline digital ads and local outreach.
- It is not tied to event ticket volume.
- Budgeted for 2026 operations.
Managing Fixed Spend
Since this spend is fixed, you must demand clear attribution from every dollar spent here. If you can't track which channels drive admissions or rental bookings, you're just burning cash. Keep this separate from event budgets to isolate performance metrics, it's an important distinction.
- Track leads generated by this spend.
- Avoid funding large, unmeasurable awareness campaigns.
- Test small, measure fast, then scale.
Fixed Cost Coverage
Every dollar of this $3,500 marketing cost must be covered by contribution margin from your first sales each month. If your contribution margin is tight, this fixed marketing spend acts just like rent—it must be paid regardless of how many people show up to skate.
Running Cost 7 : Skate Maintenance and COGS
Variable COGS Snapshot
Your variable costs for skate upkeep and shop goods are surprisingly low to start. In 2026, these costs hit just $809 monthly, but you must model them growing directly with every skate rental and concession sale. This is pure volume-driven expense that needs constant monitoring.
What Drives This Cost?
This $809 estimate covers skate sharpening, replacement parts, and inventory costs for the cafe and pro shop sales. It’s driven by how many people skate and what they buy to eat or wear. If you run 1,000 rentals, maintenance costs rise proportionally, so track usage closely.
- Skate sharpening and repair kits
- Cafe inventory purchases (COGS)
- Pro shop merchandise restocking
Managing Volume Costs
Keep tight control over Pro Shop inventory turnover to avoid obsolescence, which kills margin fast. For skates, schedule maintenance efficiently; don't sharpen blades after every single session if usage doesn't warrant it. You need defintely better tracking here to optimize labor time.
- Negotiate bulk pricing on skate parts
- Use FIFO for cafe perishables
- Track skate hours vs. sharpening frequency
Scaling Risk Check
Don't let the small initial $809 figure lull you into complacency; this is your purest measure of variable operational scaling. If volume doubles, this cost doubles, directly impacting your contribution margin before fixed overhead like the $22,000 utility bill even matters.
Ice Skating Rink Investment Pitch Deck
- Professional, Consistent Formatting
- 100% Editable
- Investor-Approved Valuation Models
- Ready to Impress Investors
- Instant Download
Related Blogs
- Startup Costs to Launch an Ice Skating Rink
- How to Launch an Ice Skating Rink: 7 Steps to Financial Success
- How to Write an Ice Skating Rink Business Plan: 7 Actionable Steps
- 7 Core KPIs to Track Ice Skating Rink Profitability and Growth
- How Much Do Ice Skating Rink Owners Make Annually?
- 7 Strategies to Boost Ice Skating Rink Profitability
Frequently Asked Questions
Base monthly operating costs are approximately $120,250, primarily driven by $32,000 in rent and $22,000 in utilities The fixed costs alone total $69,000 before payroll;