Tony Lamb is the founder and CEO of Kona Ice, the cellular shaved ice franchise (ranked #30 on the 2025 Franchise 500) identified for its tropical vans, kid-friendly Flavorwave station and deep neighborhood involvement. Lamb began out in gross sales, then launched Kona Ice in 2007, initially as a facet hustle to show his youngsters about enterprise. He felt the ice cream truck mannequin was outdated, usually related to poor high quality and unreliable operators. When he thought-about shaved ice — with its low product and labor prices and its extra interactive nature in comparison with ice cream — he knew it was the proper match.
Kona Ice has since grown right into a 2,200-unit nationwide franchise that is returned greater than $200 million to colleges and native organizations. Regardless of the expansion, the model’s $3,000 annual royalty price hasn’t modified in practically twenty years.
Through the pandemic, Lamb expanded his portfolio with Travelin’ Tom’s Espresso, a cellular espresso idea (#217 on the Franchise 500) named after his father and Beverly Ann’s Cookies, a dessert truck impressed by his mom.
Find out how Lamb constructed a recession-proof, feel-good franchise enterprise — and what recommendation he has for aspiring entrepreneurs — right here.
Responses have been edited for size and readability.
How did your prior expertise put together you to launch a cellular shaved ice enterprise?
I began promoting vacuum cleaners throughout school, door-to-door, in Kentucky. I finally graduated and ran six workplaces, had 300 salespeople and made “rock star” cash for some time. It is a powerful enterprise, however it teaches you the whole lot about small enterprise: advertising, buyer interplay, sourcing and constructing groups. After that, I did advertising consulting for some time. That gave me the arrogance to suppose, If I can determine vacuums and cellular advertising, I can determine an ice cream truck.
Associated: Emma Grede Dropped Out of College at 16. Now the Skims Boss Runs a $4 Billion Empire — This is How.
What sparked the concept for Kona Ice?
One summer time, I used to be in my yard, and an ice cream truck got here down the road. My youngsters ran towards it, and it was the whole lot you warn youngsters about: a shirtless man in a white van with a couple of stickers on the facet. I believed, This business is already a part of our tradition, however it’s been dragged all the way down to the bottom frequent denominator. What if we constructed one thing lovely, open and interactive that folks may belief?
Associated: The right way to Flip Massive Enterprise Moments Into Lasting Model Momentum
A lot of individuals have nice concepts. How did you go from an concept to your first truck?
I knew how you can make a automobile look nice as a result of I might constructed cellular billboard vans earlier than. I employed an engineer and a designer, brainstormed the whole lot from format to buyer interplay and constructed the primary truck in 2007. I believed I might have, perhaps, 5 vans as a facet hustle to show my youngsters about enterprise. However after I let somebody within the subsequent county strive one they usually succeeded, I knew I had one thing larger.
Associated: The right way to Get better from a Unhealthy Enterprise Choice (and Rebuild Belief)
You began franchising only a yr later. Why so quick?
A man noticed the truck on trip and wished one in Nashville. I noticed franchising was one of the simplest ways to carry the model tightly. Security and belief had been central, and you’ll’t get that if anybody can run their very own model. I set the royalty at $3,000 a yr — and I’ve by no means raised it. I did not need to get grasping. I wished franchisees to maintain the lion’s share of the cash.
What had been the important thing improvements that helped Kona Ice develop?
The massive one is the Flavorwave, a self-serve taste station on the facet of the truck. It gave youngsters a “keys to the sweet retailer” feeling and justified a better worth level. For franchisees in colder climates, we added the Kona Mini so they might work indoor occasions. And, from day one, our franchisees made cash, which fueled progress.
Associated: What My First Failed Startup Taught Me — and How I Lastly Received It Proper 20 Years Later
The pandemic worn out all occasions for a big period of time. How did you adapt?
We had been 95% event-based, and inside two weeks, each occasion was gone. I spent two days within the fetal place, then we launched “Curbside Kona” utilizing tailored supply software program. Clients booked stops on-line; we optimized routes and texted them arrival occasions. That saved us in April and Might. From there, we constructed a $4 million customized platform, Kona OS, which now handles the whole lot from routing to advertising. It has made scaling a lot simpler.
Kona Ice can be identified for giving again. How did that begin?
In 2008, through the financial disaster, PTAs informed me they’d no price range. I provided to return to colleges, promote to youngsters and provides the PTA 25 to 30% again. Shaved ice has nice margins, so why not? It locked us into the neighborhood — we weren’t simply promoting a product; we had been serving to fund helmets, playgrounds, uniforms. That turned our tradition, and now our franchisees have given again over $200 million.
Associated: Wish to Personal a Franchise? This 3-Tier Strategy Can Assist You Select Correctly.
You’ve got since launched Travelin’ Tom’s Espresso and Beverly Ann’s Cookies. What was the inspiration to launch these manufacturers?
Throughout Covid downtime, I dusted off some ideas I might been sitting on. We prototyped a espresso truck and named it after my dad — a colourful, gregarious man. It took off. Then I created a cookie-and-ice-cream truck named after my mother, utilizing her school portrait on the facet. Each manufacturers use the identical cellular merchandising rules that make Kona profitable.
Wanting again, what is the single most necessary determination you made that set Kona Ice on this path?
Not altering the royalty. Traders have informed me to change to a proportion, however that is not who we’re. Maintaining it at $3,000 a yr makes franchisees wholesome and retains competitors out. You possibly can’t construct what we have constructed and cost what we cost — and I need the individuals doing the work to make the cash.
Tony Lamb is the founder and CEO of Kona Ice, the cellular shaved ice franchise (ranked #30 on the 2025 Franchise 500) identified for its tropical vans, kid-friendly Flavorwave station and deep neighborhood involvement. Lamb began out in gross sales, then launched Kona Ice in 2007, initially as a facet hustle to show his youngsters about enterprise. He felt the ice cream truck mannequin was outdated, usually related to poor high quality and unreliable operators. When he thought-about shaved ice — with its low product and labor prices and its extra interactive nature in comparison with ice cream — he knew it was the proper match.
Kona Ice has since grown right into a 2,200-unit nationwide franchise that is returned greater than $200 million to colleges and native organizations. Regardless of the expansion, the model’s $3,000 annual royalty price hasn’t modified in practically twenty years.
Through the pandemic, Lamb expanded his portfolio with Travelin’ Tom’s Espresso, a cellular espresso idea (#217 on the Franchise 500) named after his father and Beverly Ann’s Cookies, a dessert truck impressed by his mom.
The remainder of this text is locked.
Be part of Entrepreneur+ in the present day for entry.
