If liquor stores - which dot almost every street corner in some locales - are indicative of a party-loving population, then the abundance of ice cream shops on Grand River Avenue must mean East Lansing residents have a fetish for the frozen treat.
Along the mile or so of shops that are on, or surround, Grand River Avenue north of campus, five ice cream parlors, not to mention the on-campus MSU Dairy Store, battle for business as the rising cost of ice cream supplies cut profits. That combination will eventually force some retailers to fold, shop owners say.
"Those that survive will be the ones that can create a profit at the lowest cost," said Alan Groskopf, owner of Baskin-Robbins Ice Cream & Yogurt, 1137 E. Grand River Ave. "There are too many stores."
As of Friday, the price of butter - the fat of which is used as part of commercial ice cream - was about 62 cents per pound higher at the Chicago Mercantile Exchange than in 2002, a jump of about 60 percent. The result is more expensive ice cream for retailers, who in turn must eventually tighten their budgetary belts or pass the cost on to customers.
However, an overabundance of ice cream shops makes it difficult to increase retail costs, said Groskopf, who saw two supply cost increases before he finally increased his prices by about 6 percent.
"The wholesale costs of the ingredients are rising," he said. "Unfortunately, the little man is getting squeezed out. The local merchant whose name you know and whose family you know is becoming a thing of the past."
Not so, according to G.S. Scoops' owner Steve James, who said he competes directly with shops closer to campus from his family-owned store at 2850 E. Grand River Ave.
"We're not going anywhere," he said. "We're having our best year ever."
G.S. Scoops customers haven't seen higher prices this year because the store has experienced significant growth in customer volume, James said. Even though he might make less per sale with higher supply costs, more sales mean similar - or higher - profits than past years.
In all, James said his customer count is up about 10 percent, as are sales, which have been bolstered by the addition of a catering service.
However, with the recent advent of yet another campus-area ice cream parlor, Iggy's Deli and Ice Cream at 623 E. Grand River Ave., most stores along East Lansing's main road probably won't have the same luck, James said.
"Some stores are making less margin than they were before," he said. "Something's got to give. Eventually, some of the stores will fade off."
Prices, however, aren't the only determinant customers use to choose where they get their ice cream.
A store's location and ambiance all play roles when a customer decides where to go, business junior Jessica Boloven said.
"You don't want to go someplace and pay for parking," she said as she whittled away a serving of vanilla bean ice cream at G.S. Scoops. "This is more of an ice cream shop you come to as a little kid."
Even so, a selection of 32 hand-dipped ice creams and eight soft serve options was enough to snag her business.
"They have a good variety," Boloven said. "You can put your own toppings on."
Such thinking is exactly the way James sees his store differentiating itself from others.
"They make it themselves," he said. "That's our niche."
Others, such as Baskin-Robbins, use more traditional means to keep their stores bustling with business.
"We try to excel in customer service," Groskopf said, adding his brand name gives the store an identity in the marketplace.
Similarly, Tasty Twist banks on its name and reputation to hold up in the competitive market.
"We've been here for so long," manager Tommy Ackels said. "We get a lot of the same families that grew up here, then they bring their kids, who bring their kids."
