How to Start a Hot Dog Stand Business Free Guide

Author Steve Sutherland Copyright 2012

Legal Notice/Disclaimer/Disclosure
Copyright 2012 Steve Sutherland. All Rights reserved No part of this publication may be sold, copied, reproduced, stored in a retrieval system or transmitted in any form or by any means including electronic, mechanical, photocopying, recording, scanning, or otherwise without prior written permission from the author. All trademarks mentioned in this report are the property of their respective owners. The information contained in this guide represents the opinions of the author. The author has made all reasonable efforts to ensure that the information is correct and up to date. However, it cannot be guaranteed that this is the case and we make no representations or warranties with respect to the completeness or accuracy of the following information. By reading this guide users acknowledge that they cannot hold the author or publisher liable for any losses suffered as a consequence of their actions. This information is intended for educational purposes only and should be used at your own risk.

Table of Contents
1) Introduction - Read This First.........................................................................................4 2) Good Reasons to Start a Hot Dog Stand.........................................................................5 3) Start up Considerations..................................................................................................8 4) Licenses and Regulations.............................................................................................11 5) Naming a Hot Dog Business.........................................................................................15 6) Business Opportunities................................................................................................18 7) Guides and Start up Kits...............................................................................................20 8) Business Plan Template................................................................................................22 9) Locations - Where to Put a Hot Dog Cart.....................................................................26 10) Menu Ideas - What to Sell from a Hot Dog Cart or Trailer.........................................29 11) How Much to Charge - Price Guide for a Hot Dog Cart..............................................32 12) Equipment and Supplies.............................................................................................35 13) How to Sell Hot Dogs at Events..................................................................................38 14) Ideas and Tips.............................................................................................................41

1) Introduction - Read This First

Welcome! If you are considering starting a hot dog stand business then the following free guide will be essential reading for you. I did some research into the hot dog cart business between 2010 and 2011. During this time I did a lot of reading and also chatted with business owners. I have not yet started a business in this area but I still intend to at some point in the near future. As I had a lot of notes on this topic I thought I'd compile them into a guide to share what I learned about this exciting and potentially lucrative business model. If you are interested in doing further reading on this topic I'd also recommend that you check out www.StartaHotDogStand.com as this site offers a unique perspective on the hot dog vending industry. I hope you enjoy the following report. There is a table of contents so you can skip to the areas that interest you if you don't want to read everything. Sincerely Steve Sutherland

2) Good Reasons to Start a Hot Dog Stand

The hot dog business offers great opportunities to entrepreneurs wanting to start up their own profitable business quickly and easily. In the following article we look at some of the many compelling reasons to start a hot dog stand and why it could be just the business opportunity that you have been looking for. Scope of the Market Hot dogs are a delicious, reasonably priced and convenient snack or meal that most people enjoy and eat regularly. Americans eat billions of them every year so the market potential is enormous. This industry is stable and secure with consistently strong demand. Opportunities are everywhere and there is plenty of business to go around for those that know how to go out and get it. Low Start up and Operating Costs Firstly, a hot dog stand can be started for minimal start up costs. It is possible to be up and running for well under a thousand dollars if you are careful. For less the $5000 you can be fully set up with new equipment and your own professional looking operation. Overheads are generally small and will include expenses such as rent for a commissary or licensing fees. Operating costs like propane, napkins and other supplies are also reasonable. Healthy Profit Margins Profit margins in the hot dog business are awesome. The ingredients required to make hot dogs are all cheap and readily available. Profit margins can be as high as 70 to 80% if you run an efficient operation.
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Great Income Potential Hot dogs are not a hard sell. In fact they virtually sell themselves. Even a guy with the worst sales skills can make this business work given that he sets up in the right spot. You can feel good knowing that you are giving people what they want. It is honest work and you don't have to lower your standards or ethics to make sales like other business people often do. Income potential in this business is awesome. It is not unheard of for vendors to take home several thousand dollars a week from one stand. Once you own multiple stands then the sky really is the limit in terms of income prospects. A Cash Business One other fantastic reason why a hot dog stand is such a great business to be in is that it is an all cash business. As you get paid cash up front you will not be plagued by the cash flow problems that other businesses encounter due to having to wait for clients to pay an invoice. Lifestyle and Flexibility As a hot dog business owner you will have a fair amount of control over your working location, the hours that you work and who you work with. If you like, you can work on your business full-time or if you prefer it can be a part time thing that you do only on weekends. Most hot dog vending set ups are portable so you can easily move around and try out different locations or even move your business to another city. If you like skiing then set up at a ski resort. If you want to be close to the beach then there are plenty of opportunities there too. This is one business opportunity that can fit in well with any lifestyle. Minimal Entry or Exit Barriers No formal education or degree is needed to operate a hot dog stand. You can learn the business quickly and easily and have your own business up and running within a couple of weeks.
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If you find out that the business is not for you then it is also easy to get out. Your investment in your business will have been minimal and there is a healthy market in used hot dog vending equipment and businesses. A Recession Proof Industry The hot dog business is about as close to recession proof as you can get. People have to eat and hot dogs are an inexpensive, fast and easy meal that people purchase no matter what the economy is like. Working Environment Compared to a job or other business models, a hot dog stand can offer you a pleasant working environment. This business is relatively 'low stress', uncomplicated and doesnt require a lot of physical effort. If you enjoy chatting to a range of different people throughout the day then this business is ideal for you. Growth Prospects Once you have one profitable stand up and running it is not difficult to replicate its success by opening others. Scale up your successful hot dog business easily by opening your own chain of stands and hiring employees to run them for you.

3) Start up Considerations
One of the reasons why many businesses fail within the first few years is due to the fact that business owners are often not able to take the heat that comes along with ownership of a new business for an extended period of time. While running a hot dog stand is not as stressful or risky as other business models, you still have to be sure that you have what it takes to make a success of it. If you know exactly what is involved then you can identify your strengths and weaknesses and try to concentrate on improving your shortcomings. Before you put your money on the line with a new business venture take some time to consider if your abilities and personality are compatible with the demands placed on hot dog vendors. Being Organized Being organized is one of the keys to success in the food service business, just as it is with any other business model. Having systems in place to ensure that business runs smoothly every day will ensure that productivity is maximized and customers are kept happy. Patience is a Virtue You need to be patient to be in the hot dog business. While you will want to reach short term targets so badly it is almost certain that you will be held up by other people, including suppliers, staff and customers. You must learn how to be patient. Time Management When you are self employed you must learn how to manage your time effectively. It takes discipline to get up in the morning when you dont have a boss to answer to. You must run your business on a schedule so that you are out there selling hot dogs during the best time periods. People Skills

In business it helps to understand and enjoy people. Having good communication skills and an interest in others will serve you well when it comes to building relationships and communicating with customers, suppliers and employees. Some people like to have a quick chat when they buy a hot dog and if you take the time to talk to them they may just become regular customers. A hot dog stand vendor who is smiling and talkative is more likely to attract business than one who is quiet and has a serious look on his or her face. Working Outdoors As a hot dog stand operator you can expect to be working outdoors for most of the year. This is a big draw card for many but it can be tough in the heat of summer or during a cold winter. Problems with weather can be worked around to some extent by creating shade in the summer or by dressing up warm in the winter. Variety of Work As a hot dog business owner your working day will always offer variety. From food preparation, cart set up in various locations, vending products and clean up, your day will always offer a variety of work. You may also spend time looking for new locations or events and as your business grows you will increasingly be focusing on hiring and training employees. Handling Pressure While the hot dog business in generally low stress, as with any food service business you will encounter busy times or 'rush hours' throughout the day. You have to learn to identify these time periods and to prepare for them. You have to be able to focus during these busy periods and know how to maintain control. Then you can make the most of the opportunities that your location presents. Determination to Succeed Lastly, you need determination to succeed. Like anything, it takes time to master the various aspects of running a hot dog stand. You have to find out what works well for you and continue to make tweaks and adjustments to your business model until you are running efficiently and maximizing profits. You will need to be persistent if you want
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to overcome some of the hurdles that you will encounter and eventually push on through and find success.

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4) Licenses and Regulations

Before you start a hot dog stand it is crucial that you find out exactly where you stand in terms of local regulations. If you hope to make a healthy profit by establishing a hot dog business then you must start off with a plan that is legally sound. In this article we look at the necessary steps that you will likely have to go through to get a hot dog stand license and to comply with other regulations in your area. Basic Requirements The basic requirements will include a business license and possibly a sales tax license. In addition hot dog vendors will need some form of certification from the local health department and a permit to operate a concession stand at specific locations. Every State is Different As the requirements for starting a hot dog business vary between states we have not set out the precise requirements for each state in this article. If you make inquiries locally then it should not be too difficult to determine what you have to do to comply with regulations in your area. The following should be taken as a rough guide only to give you an idea of what to expect. Location - Private or Public? If you are hoping to operate a stand in a public space such as a street or a park, then in most states you will require a hot dog vendors license or mobile food servers permit. This is issued locally, sometimes by the police department, park authorities or other city or county officials. These licenses are often not in unlimited supply so if you are in a city that is already packed full of street vendors then you may find that you have to get on a waiting list or look at other areas for a location. There may be other restrictions depending on the area where you are setting up. Some municipalities limit the amount of signage that you are permitted to use to advertise
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your business for example. City's may also have ordinances that require you to have a certain number of trash cans nearby. These requirements should be explained to you as you go through the application process. Such a license or permit will usually not be necessary if you run your business on private property. In this case it is likely that you will need permission only from the property owner or event organizer. Health Department Requirements Local health authorities will have varying requirements when it comes to the acceptable design of a hot dog cart and the facilities and equipment within it. It is likely that your stand or trailer will be subject to an inspection. You may be required to have adequate cooking equipment, hot and cold running water, refrigeration and sinks for hand washing and cleaning. You may have to submit a menu to your local health department for approval. Hot dog vendors are often only permitted to sell pre-cooked hot dogs and not other forms of meat that have to be cooked from a raw state. Certain condiments and toppings that spoil easily or contain dairy products such as mayonnaise or cheese may also not be permitted. If toppings require refrigeration then you should definitely check with your local health inspector before putting them on your menu. In some cases you may be able to use commercially manufactured products, yet not be permitted to make your own home made versions The sale of canned or bottled beverages and packaged snacks such as chips or cookies should be no problem at all. Once initial approval is given remember that you will be subject to occasional inspections, so you must maintain high standards at all times. The best way to start out is to call up your local health authorities and tell them about your plans. Always get your information first hand rather than relying on what you hear from others in the industry. The best way is to be open and honest with your health inspector. He or she is then likely to be helpful in recommending what kind of set up and equipment you will need to comply.
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Operating a Safe and Hygienic Business Your local board of health will also have specific requirements relating to how you run your hot dog stand. Vendors are not permitted to touch hot dogs or buns with their bare hands. For hygiene purposes you will need to use gloves, serving utensils and hair restraints while the stand is in operation. It is highly likely that staff will not be permitted to smoke or eat at or nearby the stand. Your hot dog cart or stand will have to be cleaned down with hot soapy water and sanitized every day after it is used. In some states hot dog stand operators are required to take a course in food preparation and hygiene before they are allowed to operate a business selling food. This course is usually fairly straight forward to complete and can often be completed online. Aside from the obvious safety requirements associated with preparing and serving food there are also those that are often overlooked. One example is to remember that hot dogs present a choking hazard to children under four years of aged due to their rounded shape. It is recommended that you cut them lengthwise or into small pieces so that they can be safely consumed by young ones. A Commissary Some states require that you have access to a commissary. A commissary is basically a place where you can store and prepare food as well as clean your equipment. Ideally, you will need access to a commercial kitchen space. You may be required to store your hot dog cart and equipment at your commissary. Finding a commissary is not as difficult as it sounds though as you can often negotiate with a church, a school or a restaurant to use their kitchen after hours. Some states will allow you to have your commissary on your own property if it meets health department standards. Most vendors find that they dont spend much time at their commissary anyway and many order supplies as they need them and thus dont require much in the way of storage space.
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The process of getting a hot dog stand license should not be too difficult. The application process can be lengthy though so you will have to allow for a least a couple of months before all of the paperwork can be finalized. Once you have passed all of the requirements be sure to carry your license and other paperwork with you at all times in case you are questioned by the police or other authorities.

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5) Naming a Hot Dog Business

The name of your hot dog stand is an important statement that you make to the public about your products and service. It is important to send the right message so you must have an appropriate name. A great choice of name could really have an impact on attracting customers to your stand while a bad choice could drive them away to the competition. In this article we look at some ideas for choosing hot dog stand names and we discuss why having a great one can be a factor that will contribute to your level of success. The Importance of a Name Some people may not imagine that a name is a very important consideration when it comes to starting a hot dog stand. After all, you have so many other things like regulations and equipment to deal with that seem much more important. However, it is crucial that you come up with a brand name that can help you to make a good first impression on people in your area. A strong name will also give customers something to associate with all of the positive experiences that they have with you and your hot dogs over time. Make it Obvious Many effective business names give potential customers a clear message about what products or services they offer. To make it obvious you should strongly consider going with something that includes the words hot dogs' or at least 'dogs'. Keep it Clean You will find many posts on online forums discussing funny hot dog stand names. Due to the shape of a hot dog and related words like 'sausage 'and 'wiener 'some people actually consider using names with sexual connotations. With this approach you can come up with some really funny results and you may even end up with a name that is loved by a small segment of your market. However, unless you feel that such a choice would suit a unique location it is better not to risk isolating any part of your market. Keep it clean and make sure that there is nothing about your name that could possibly
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be offensive to any age group, gender, religion or culture. This is not to say that you can't come up with something that is clever or funny though. Some of the best hot dog stand names involve the use of puns or a witty choice of words. Just make sure that most people will 'get it' and not be left scratching their heads. Brainstorming for Ideas One great way to think of some great names is to sit down with a piece of paper and write out a list of words that you could include. You could consider words related to your family, your location, your products or your service. If you specialize in 'Chicago Style' dogs for example then you may want to include to word 'Chicago' in the name somehow. Simple and Unforgettable Make sure that you go with a name that is simple, memorable and easy to pronounce. Once you have selected a shortlist of options you should run them by your friends and family and see which ones they can recall and pronounce correctly a few days later. If you keep it short and sweet it will also be easier to display on your logo, signage and other marketing materials. A Name of Your Own Your name should be distinct in the market and should clearly set you apart from any other local fast food businesses. Before going with a name it is important to check that the your selection is not in use by any other related business. If your name infringes on trademarks registered by other companies then you may either face expensive legal action or you will be forced to re-brand. Research your proposed name and confirm that it is available and not infringing on the property of others. Keep Yourself Happy You should go for a name that you love. You will undoubtedly be hearing and seeing your hot dog cart name a lot and you dont want to get sick of it. It should inspire you and drive you to work hard and succeed.
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Snap up the Domain Before finalizing your decision you may want to check and see if a suitable domain name is available. And once you go ahead and make a decision you should register it right away. You may at some time have to get a website online and you wouldn't want anyone getting it first. Get It Right the First Time Changing a business name once your business is operational is a frightful thought. Not only will you be doing damage to the reputation and goodwill that you have built up but you will also be facing printing and signage costs as you re-brand Make sure that you give this important decision the attention that it deserves. A name makes up a big part of the image that your hot dog stand will have in the public eye. Make sure that you choose an appropriate name that can fulfill its purpose and serve you well for many years to come.

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6) Business Opportunities
Income opportunities in the hot dog business are impressive. With such a high markup on hot dogs, vendors that know what they are doing and who are able to shift serious volume can make a killing. Total cost for a hot dog with a bun and toppings averages around 40 cents or less and the finished product can easily be sold for at least two dollars in most markets. And in some locations a much higher price is possible. There are numerous opportunities to profit in this industry. Below we take a look at some of the opportunities available in the hot dog business and how entrepreneurs are capitalizing on them. Up-sell Opportunities Opportunities are plentiful when you consider some of the up-sell options that a hot dog business operator has. There are the obvious add on or side purchase that customers may include with an order like chips, beverages or extra toppings. However there are numerous other products that can also sell well such as flowers on Valentines Day or disposable umbrellas on a rainy day. Potential is only limited by a business owners license, imagination and willingness to try out new ideas. Opportunities to Expand It is not unheard of for hot dog stand operators to be making a six figure income and this becomes even more realistic once a business owner is managing multiple stands. Some hot dog stand owners profit by running their own stand and then eventually expand to own more stands in a wider area. Develop and Flip Another approach is to get stands up and running to the point where they are making a good profit and then sell them off. Hot dog stands regularly sell for five to six figures when the owner is able to market it is as a going concern and can prove the level of profit that the business is making. Events
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A hot dog cart or trailer will be reasonably portable. One great business model is to work a variety of locations and events. If you follow the crowd, so to speak and get access to festivals, sporting events and concerts in your city then you can make excellent profits while working minimal hours. Restaurants Just like pizzas and burgers, hot dogs have recently been going more upmarket with all kinds of 'gourmet' options springing up. While people still love the common hot dog, some entrepreneurs are now opening eateries that specialize in the finest quality hot dogs with gourmet sauces and toppings. Running a restaurant is a totally different game from a stand though and presents a different set of opportunities and challenges. Franchises There are a number of hot dog restaurant chains that are franchising although these have large start up requirements in terms of the funds that you need to invest. There are many advantages with the franchise route as you benefit from the franchisor's reputation and the systems that they have developed. However, with a franchise you will usually be looking at start up costs that can run into five or six figures where as with your own cart or stand you can easily get started for four figures. As it is typically easy to start a hot dog stand, cart or trailer, franchises are not so common in this industry. Hot dog stand owners usually just establish their own brand and business model rather than proceeding under the umbrella of a franchise. Some famous suppliers such as Vienna Beef may allow you to use their branding if you are purchasing supplies or equipment from them.

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7) Guides and Start up Kits

So you have made the decision to start a hot dog stand and need to know exactly how to go about it. It is crucial that you do some preliminary research so that you understand what is necessary for you to start a business in this industry and be successful. One great way to pick up useful tips and information is to buy some of the hot dog stand guides and e-books that are available online. In the following article we look at why the kind of information contained within these products is useful and we offer advice on choosing the best information products for guidance on setting up a stand or cart. There are a number of successful hot dog stand operators who have published books that advise entrepreneurs on how they can get started in this potentially lucrative business. Readers benefit by sharing in the knowledge and resources of these established operators who have been in the business for many years. They are able to help you by explaining certain aspects of the business that may otherwise take you months to figure out. They can give you the tips, tricks and advice that you need to succeed and they can tell you how to avoid common mistakes. Why do these experienced business operators want to share the valuable information that they have picked up during the course of many years of hard work and research? Some have retired or have sold their businesses and moved into other lines of work. Others simply want to share their knowledge and help beginners by passing on what they have learned. Publishing a product to share the unique information that they have picked up is also a great way for them to make a little extra money or establish themselves as industry experts. There are books that focus on how to start a hot dog stand specifically and these are available online from book retailers like Amazon.com. However, while it is great to buy real hardback and paperback books to be delivered and have sitting on your shelf for future reference, don't forget that there are also some great e-books that you can buy and download immediately. Many of the e-books and guides that you can buy on the Internet are actually more like complete start up kits that offer numerous other resources like lists of suppliers and hot
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dog recipes. If you take a look at the variety of books available at sites like Amazon.com you may notice that some of them are not actually written by experienced hot dog stand operators. Rather, they have been put together by authors who write generic 'start a business' guides and throw in some specific information that they have picked up from their research and inquiries While these products can still have value, you should try to read some material that has been written by real hot dog stand owners. Their writing style may not be as great as a professional writer but their content is likely to be more authentic and valuable to you. No matter what you are buying you should consider your right to get a refund in case you find that the material is not up to standard and is of little value to you. It can be extremely difficult to get a refund on physical books if they have been read and you have the hassle of packaging them up and shipping them back to the supplier. Vendors who sell products online though usually offer some form of money back guarantee. This is often handled by their payment processor. By making the decision to start a hot dog stand you will be committing yourself to spending at least several thousand dollars in start up costs. You will also be investing a lot of your valuable time. Before you take this risk and put your time and start up capital on the line you should buy the information that you need to set yourself on the right path towards success.

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8) Business Plan Template

One characteristic of successful business owners is that they focus on their goals and follow them through to the end. Without a solid business plan to guide you it is difficult to find success in any industry and the hot dog vending business is no exception. Even if you dont need a business plan to take to investors or potential partners you will still find one useful. It will be the central place where you can compile your thoughts, lay out you research findings and state your business goals. The following gives you a basic outline of a hot dog stand business plan that includes details on some of the sections that you may consider including. Executive Summary While this section of a business plan always comes first you should write it up last as it is basically a summary of all the other sections. It should be carefully written in a convincing manner so as to entice readers into reading the entire document. Summarize the opportunities that you see in the market and how you intend to capitalize on those opportunities. Table of Contents A decent business plan for a hot dog stand should be around 10 to 30 pages. Help readers to easily navigate their way to the chapters that most interest them by including a table of contents. Background Offer the reader some background information on yourself and why you want to start your own hot dog business. Also offer some background on the hot dog industry in the US at both the local and national level to give readers an idea of the scale of the opportunity. Outline the current status of your plan if you have already completed some of the
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necessary steps towards getting licensed and set up. Business Description Offer a description of the business. This section will likely include basic information like name ideas, products offered, cart details, proposed locations, opening hours and scale of the operation. Give details on the legal structure of the business and whether you will be operating as a sole proprietor or a limited liability company Business Goals Write out your vision of how you intend to develop your hot dog stand business in the future. You initial aim may be simply to have one hot dog stand operating profitably within a certain time period. Other hot dog stand entrepreneurs may intend to own and manage multiple stands within several years. More short term targets could include goals for daily revenue, the number of hot dogs sold or food cost percentages. Start up Requirements Set out a list of equipment and inventory that you will need to get started. Calculate anticipated start up costs and make a note of how the venture is to be funded. Set out your options and ideas for financing the project. Go into detail about all of the licensing requirements and regulations that you must comply with in order to set up a legal hot dog business. Report on your research and discussions with health departments, police chiefs and other city or county authorities. Set out a time line for compliance. Market Research Write about the current state of the hot dog business in the market area that you are hoping to enter. Assess the potential that the local area has for supporting a hot dog stand at your preferred location. Set out any relevant details on the demographics of the local population and how this will influence the kind of stand that you intend on setting up. It is ideal if you can include some census data or survey some local people and present your findings. Scout out some potential locations and then visit them during the peak hot dog
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business hours and see how much traffic is going by. Peak times for a hot dog stand will usually be around lunch time and dinner time unless you are in a location close to a citys night life. Competitive Analysis Spend some time spying on other hot dog businesses in your area. By taking note of which ones are doing good volume and which ones are not you will get ideas on where to locate your own hot dog stand and what kind of hot dogs to sell. Write up profiles of your main competitors and try to understand how they run their businesses. Borrow and adapt characteristics of their business that work and look for weaknesses in their business models that you may be able to capitalize on. Figure out how you will differentiate your brand from theirs. Marketing Plan Set out a plan for bringing customers to your hot dog stand and maximizing the sales opportunity that you have with each customer. Discuss branding, signage, menus, displays, advertising, promotions, up-sells and customer service. Make a note of all the products that you intend to sell, your pricing strategy and your reasoning behind these decisions. Operations and Management Outline the management structure if you are starting out with more than one owner. If multiple partners are involved then you should clearly outline the responsibilities that each partner has so that there is no confusion at a later date. This part of the plan should also set out details of your day to day operations. Make a note of where your cart will be stored, how you will purchase and store supplies, how you will prepare and clean up and which commercial kitchen you will be using for your commissary. Also state how you intend to comply with health department rules, safety requirements and other local regulations.
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Financial Analysis and Projections Create a spreadsheet that shows anticipated cash flow forecasts over the first few years of business for a variety of scenarios. This can be done by estimating average daily customer numbers and the average amount spent per customer. Then you can subtract your costs to get an idea of potential profits. Try to identify a 'break even' point in terms of the number of hot dogs that you need to cover costs. Also include figures for a variety of different scenarios that show expected outcomes in cases where things go better or worse than expected. Appendix Attach any supporting documentation to your business plan as an appendix. This could include your commissary agreement, reference letters or information from suppliers. Keep a copy of your business plan on your PC as well as in files or in a binder in case of emergency. Dont see it as being something that gets put aside once your business gets underway but rather as a guide book that is continually referred to and updated as you go along. Dont forget about your business plan once you have started to operate your stand. Refer to it regularly to make sure that you are on track to meet targets and dont be afraid to make changes to where necessary.

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9) Locations - Where to Put a Hot Dog Cart

If you want to succeed in the fast food industry then location will be one of the major keys to your success. Locations can roughly be divided into two categories. Firstly, you have permanent locations where a vendor will set up a regular long term operation at a certain spot. Secondly, you have temporary locations where a hot dog vendor may set up his or her cart for a short period of time such as the duration of a fair or other such events. In this article we take a look at some of the things that you should consider when it comes to analyzing and deciding on hot dog stand locations. Permanent Locations for a Stand You can learn everything that you need to know about where to put a hot dog cart by observing a variety of locations and taking an interest in the activity and flows of people in each location. Your best chance at making exceptionally high profits in the hot dog business will come when you position yourself near a hungry crowd. People are unlikely to travel very far out of their way to get something to eat so you must be close to where they live, spend time or pass by. And you must be there at a time when they are likely to be hungry. Spots where people are busy and hurrying past can work well. A hot dog is one of the fastest meals around and busy people near train and bus stations who do not have time to go into a restaurant and order food may consider grabbing a hot dog on their way past. Try to position yourself in a location where people that are passing through cannot avoid coming into close contact with your cart. Foot traffic is generally better than vehicle traffic as it is easier for pedestrians to stop at your stand and wait for you to deliver their order. Some towns are spread out though and don't have areas with decent pedestrian density. It is possible to run a hot dog stand on the road side in certain locations. Being visible and on a straight section of road with slow moving traffic definitely helps as people need time to react and slow down. Strategically placed signage and nearby parking will also help you to find success
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with this approach. Different locations will offer different opportunities depending on the time of day. During the day, at lunch time and during dinner time, try to be located close to where people will be. Locating close to where people work, study or spend time during the day is sensible. In the late evenings there is a good trade to be had outside bars and clubs as hungry people emerge and make their way home. Another thing to consider when deciding on a location is the number of competitors that are operating nearby. While it is not necessarily bad to have other food businesses nearby it is best if you can find a spot with few direct competitors. Locations can take time to develop and become profitable. It takes time for people to get used to you being there and to find the time to try your products. If you have a location that you are unsure of, don't right it off as a dud until you have tried it for at least a few weeks. Some locations will take a few months to develop to their full potential. Temporary Cart Locations Many hot dog stand operators dont have a fixed location that they work on a regular basis. One alternative to a permanent location is to work events that happen only for a short period of time. If you can secure the right to set up your stand at a busy event then it can be possible to rake in thousands of dollars in a day. Working two of three events every month could earn you more than you would make if you worked every day in a fixed location. Such events can include fairs, festivals, parades, exhibitions, concerts and sporting events to give just a few examples. A hot dog cart should be fairly mobile. If you can get a vendors permit to sell hot dogs on the street then you may be able to move around freely and try out a variety of locations. Make sure that you keep detailed records of your sales at each location. Eventually you will know where the best spots for your cart are on a day to day and an hourly basis. Some locations are seasonal and you may find that you can do well at parks and beaches during the summer time or ski resorts during the winter for example. Some great locations may be temporary in that it is only worth your time to be there
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for a few hours a day. Locating your cart outside a busy factory or construction site for a few hours at lunch time or when the workers are finishing their shifts could be a profitable option. However, being there all day may not be viable. Keep in mind that humans are creatures of habit. Once they get used to the idea that you will be in a certain place at a certain time they may become regulars. If they are expecting you to be there and find that you aren't then they may not come looking for you again. So try to stick to a time schedule if possible. If you are just starting out it is advised that you secure your first location before purchasing a hot dog cart if possible. You can then buy the right equipment to suit the location and you won't be out of pocket if it takes longer than you thought to find a suitable spot

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10) Menu Ideas - What to Sell from a Hot Dog Cart or Trailer
It is important that you get the right mix of products to sell from your hot dog cart. The products that you choose to sell should be easy to transport and prepare, offer good profit margins and most importantly should be what customers at a specific location want. If customers are happy with your product selection and like your hot dogs then they will become the regulars that you need if you want to reach an excellent level of profit. Menus should be fairly simple in both design and in the variety of product offerings that are included. If your hot dog cart menu is too complicated then customers will become confused and you will waste time answering questions. On the other hand, if your menu is too simple and doesn't cater to common demands then you will be leaving money on the table and not maximizing profit potential. Don't forget to include some 'combo' deals to encourage customers to include other menu items along with their hot dog purchase. Below we have set out some common hot dog stand menu ideas that you may consider when it comes to deciding on exactly what products you want to sell. The Best Hot Dogs Firstly, you need to have great hot dogs and possibly a variety of different kinds. When it comes to hot dogs, some people prefer regular frankfurters while others go for variations like Polish or Italian sausage. Carry out a few taste tests on friends to find out what kinds of hot dogs they prefer. Don't let them know what brand or style they are tasting until they have compared a variety and made their judgment. After you have surveyed a decent number of local people then you should have a good idea of taste preferences in your area. You generally can't go wrong by dealing with the top suppliers. Brands like 'Vienna Beef' and 'Nathans' are well loved all over the US.
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Size is another interesting variation that you can offer if you are doing decent volume. Not everyone wants a full sized hot dog and you can provide your customers with more options by offering 'foot long', medium or smaller sized options. You can also offer 'double dogs' for customers who are meat lovers. Some customers may even ask for a 'low carb' option or a hot dog without the bun. Take into account the demographics of the area that you decide to locate in when you put together your menus. People of different age groups or backgrounds will have different preferences when it comes to the style of hot dogs, snack foods and beverages that they like. If you are setting up in an area with a Jewish community then you will need to offer kosher hot dogs. For a Muslim community you would do well by having a halal option and so on. There is usually also a small demand for vegetarian hot dogs and you may find that it is worth your while to stock a small volume. Vegetarians often go out with friends that eat meat so if you win over one customer you often win over the group. Hot dogs can be cooked in several different ways and this can affect the overall taste. In North Eastern cities like New York hot dogs are often fried or grilled, in Chicago they are typically simmered and in the south it is common to simply boil them. Find out what is popular in your area and make sure that you take this into account when ordering equipment for your stand. Buns and Toppings Secondly, you have to combine your hot dogs with fresh buns, condiments and toppings in a way that you can make up an interesting menu to suit all tastes. It is convenient to simply steam a hot dog bun, however you will also find vendors that serve buns toasted. Regional preferences even extend to the kind of buns that hot dog stands serve. A 'Chicago style' dog is usually served on a poppy seed bun for example. Of course, many people like to choose their own toppings, but if you offer them a selection of 'Chili Dog', Chicago style or other options then they may go for your offerings instead of wasting time deciding on exactly what they want. Sauces and toppings are numerous in variety and a good vendor should stock
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everything that is commonly requested. At the basic level you have sauces like ketchup, mustard and relishes. Other common sauces include barbecue sauce, chili sauce and mayonnaise. Toppings can then include onions, cheese, kraut, pickles, chili beans and even coleslaw. These are just a few ideas and there are many websites that you can check out to learn about some of the more gourmet options that people are going for these days. Don't forget to take regional preferences for toppings and sauces into account. If you are starting up in New York then you would be foolish not to consider including red onion sauce on your hot dog stand menu. Other Hot Fast Food Items If permitted under your license you may decide to offer a variety of fast food items in addition to hot dogs. This can often make things more complicated than they need to be though as you have to have the space and equipment to prepare them. One common fast food item that compliments hot dogs is French fries with various toppings such as cheese fries or chilli cheese fries. Cold Food Items Cold food items are great in that they usually require little preparation on-site. Hot dog stands often sell coleslaw or other kinds of salads. Nachos could also be great for your menu as they can be quickly and easily prepared Snacks and Beverages Adding snacks like chips or candy bars to your menu is a no brainer. They require no heating or refrigeration, are able to be stored easily and they provide you with a good profit margin. Beverages take up valuable refrigeration space but are a high turnover item with a great price mark up. With soda, go for cans over bottles as cans generally take up less space in your cooler. Don't forget to also offer bottled water and diet soda.

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11) How Much to Charge - Price Guide for a Hot Dog Cart
One stumbling block that new hot dog stand owners sometimes struggle with is knowing exactly how much to charge for a hot dog. While there aren't really any easy pricing guidelines that you can follow, you can find the ideal price points for your business by using your intuition as well as doing a little research. Hot dogs in the US currently sell for anywhere between $1.50 and $6 and probably have sold for much more than that. How much a customer is prepared to pay will come down to a variety of factors such as how hungry they are, how good your hot dogs look and what other options they have to get a meal or a snack nearby. If you have a captive audience such as you would in a baseball stadium then you can charge top dollar. If on the other hand you are lined up against many other concession stands that are all competing for business then your pricing would have to be more realistic. It is important that you get your pricing right. If you price too low then you will struggle to make a profit and your business model won't be viable. If you price too high then you will be missing out on sales and that will mean that your overall profits will not be as high as they could be. Here are some pricing tips and some of the factors that you can consider to help you to figure out how much to charge for your hot dogs and other menu offerings. Local Competition It is helpful if you can get an idea of average hot dog prices by studying other vendors in your local market. This will give you an idea of what people in your city or area are used to paying for their hot dogs. After you have done a broad assessment of prices in the wider area you can then look at the prices of the competition in the immediate area around your stand.

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You should either look to price your products in line with other local hot dog or fast food vendors or you should look to price higher than they do and offer more value in the way of service or product quality. Whatever you do, don't try to undercut other local businesses as there is no sense in starting a price war and doing damage to the industry. Costs Affect Pricing When it comes to determining prices it helps if you have a good understanding of your costs in terms of ingredients per hot dog as well as other overheads. If you have paid a lot of money to get a vendors permit or to secure a concession space at a major event then you will have to have strong prices that reflect these costs. Go for Volume In the fast food business you are generally better off pricing your products cheaply and making your profits on sheer volume of sales if you can pull it off. This will ensure that you are clearing your stock regularly, that you can get discounts for bulk buying and that your hot dog stand looks busy and popular. If your location can sustain a decent volume of sales then this is generally better than doing lower volume and looking to make a higher amount of profit on each sale. Value Meals Consider offering 'value' or 'combo' meals on your menu that include a hot dog as well as other offerings such as a drink and a bag of chips. This encourages customers to buy other products from you in addition to their hot dog. Additional Toppings Some stands offer a set price for a hot dog that includes a certain number of sauces or toppings. Customers can then request additional toppings for a small additional charge. Price Points Give some thought to price points and the psychology behind consumer buying decisions. In the fast food market the $5 price point is still a common mental barrier for
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many folks. If you offer meal combinations that remain slightly below this level then you should do well. Another good approach is to choose price points that are convenient when it comes to change. If you round off your prices to even dollar amounts then you will obviously not have to spend as much time counting out change for a customer. Discounting to Clear Stock There is no sense taking home stock such as hot dogs, buns and other ingredients at the end of the day if you can avoid it. You don't necessarily want to become known as a regular discounter and have people turn up at a certain time looking for a bargain. However if you are working a temporary location then you may as well offer a discount towards the end of the day to clear your stock. Price Testing Make sure that you test prices over time to find out which price points produce the highest profits for your business. Just don't change your prices too often if you are in the same location or you will find that it bothers your regulars.

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12) Equipment and Supplies

To get set up with a new hot dog stand you will be looking at approximately $5000 to $6000 for the stand, cooking equipment, coolers and other food handling equipment. For around $10,000 you can buy a customized trailer in which you can operate your business. For those on a budget it makes sense to look at purchasing used hot dog stand equipment. Used equipment can typically be acquired for around half the price of new equipment and sometimes much less. Leasing is also a great option as you will be paying regular payments over time as you earn money instead of having to come up with the lump sum that is needed if you were to buy equipment. This enables you to preserve your capital for business growth. If you lease, you will also have an easy exit option if you decide that you want to discontinue your business at some point in time. Let's consider some of the equipment and supplies that a hot dog stand will require to get started and to operate on a regular basis. A Hot Dog Stand or Cart Your first requirement is a quality stand or cart. These usually have two wheels on one end and two legs on the other for mobility and stability. Stands are usually made up of mostly stainless steel components and they should be easy to take apart and clean. Some people choose to build their own hot dog stand and it is possible to buy plans that explain how to go about this online. This approach usually requires a significant outlay to purchase a kit set or the necessary parts. It can be done for well under a thousand dollars but may not be worth it if you are not technically minded. A good stand should be able to be towed around by a vehicle. It will also have a sink for washing and cleaning, a water tank and a waste water tank. Some make use of a pump system for delivering water while others simply rely on a gravitational system. Hot dog stands are generally powered by propane or LPG tanks although in some cases
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they are run on diesel. If you are doing a good daily trade then you may also have to have a spare tank available. Hot dog stands are usually required to have a fire extinguisher on hand. There are stands with umbrellas, stands with portable awnings and stands with no overhead protection at all. Unless you will be operating indoors you should probably choose a stand with some sort of protection from the weather. Remember to take everything with a grain of salt when it comes to talking to equipment dealers. While most are reputable and honest, there are some who will give you false information just to make a sale. In particular, you should talk to your local health department directly rather then listening to what a dealer has to say about local regulations. Many of the top selling hot dog carts are still manufactured in the US. China is starting to produce some of their own brands that are targeted at the US market. Importing a cart is one option to get a great deal although you would need to consider the risks involved and ensure that the cart was up to US health standards. Food Storage and Preparation Equipment Your cart will need a steamer and a broiler or grill for cooking hot dogs and warming or toasting buns. If you plan to set up in a heavily trafficked area youll need lots of storage space or a convenient area to keep extra buns, hot dogs and other things you might run out of. You will need condiment dispensers that can hold large volumes of sauces and you may also need a display rack for condiments if you are encouraging customers to add their own. You may consider buying an extra cooler if you will be selling large volumes of beverages. Most hot dog carts have coolers built in but they are often not large enough to cater to demand on a hot day. Other food preparation equipment that you may need will include knives, a cutting board for slicing buns and spoons for adding certain toppings.
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Display Cases and Racks People are often more likely to purchase food when they see it displayed. You may consider displaying beverages, coleslaws or salads in a refrigerated display case. Other product items like chips can be hung from racks so that everyone can easily see the selection of brands that you offer. Other Supplies and Considerations It may be viable to purchase supplies at local wholesale stores like Costco or Kim's club. The other option is to use a local food wholesaler such as those that supply local restaurants and cafes. Prices should be comparable although you may find that the range of goods stocked by local restaurant suppliers is more diverse than those from discount wholesalers that are open to the public. Other supplies that you will need to purchase on a regular basis aside from food include food handling gear, cleaning equipment, soap, napkins and boxes or foil bags for serving hot dogs to customers. You will need a safe place to put the money that you take in each day. A cash register is only really practical for larger trailers. Most stands or carts get by with a money box. Make sure that you use a box that can be locked. For security purposes it is ideal if the box can be chained to your stand in some way.

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13) How to Sell Hot Dogs at Events

New hot dog vendors often don't realize how the dynamics of running a stand change when you go from a casual location with small to medium sales volume to an event with high sales volume. Events can offer you a chance to make a really good profit within a short period of time so it is crucial that you maximize this opportunity by getting everything right. After you have done a few events you will get the hang of it and will be able to prepare based on past experience. However if you are just starting out with your first concession stand, here are some tips on how to sell hot dogs at large scale events. Get the Details Clear Make sure that you have accurate details from event organizers. You should have up to date information on event dates and times and know when you will be allowed to have access to set up. To get an accurate idea of the kind of sales volume that you will be doing you need to have a good idea of event attendance as well as how you will be positioned to gain access to attendees. You also need to know how many other vendors will be selling food at the event. In most cases it will be obvious as to what kind of people will be attending an event. A rock concert will attract a different crown from a garden festival so you should keep this in mind when putting a menu together. Visit the Site Beforehand Wherever possible you should visit the site beforehand to check it out. This will give you an idea of what kind of space you will have to work with and what facilities are available. Scale Down your Menu As you will be selling hot dogs and drinks to large numbers in a busy environment you
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should keep your menu quite simple. This will limit the time that customers take to make choices. It will also keep your inventory requirements under control and help to limit mistakes with orders. Estimate Staff Requirements You need to make sure that you have enough people on hand to handle a high sales volume at any given time. Yet to make a good profit you want to limit staff to only the number that are essential. It is likely that you will need at least two people and possibly more depending on the size of the crowd. It is great if you can have one person dealing with money and orders while the other prepares the hot dogs. A team of two also allows you to have one person manning the stand while one is free as a 'runner' to go and get additional supplies when necessary. Hot Dog Pricing at Events It is likely that you are paying a considerable sum to be at the event so you have to make sure that your time there is profitable. The great thing about selling hot dogs at events is that your prospective customers are usually in a fairly captive environment. Depending on the number of other food vendors at an event, customers may not have a lot of options to get a snack apart from your hot dog stand. This may give you some power to price a little more aggressively. Where possible you should go for optimal pricing points that enable faster service. If you keep your prices at even dollar amounts ($3 rather than $3.20 for example) you will avoid the need for a lot of coins as you will be handing over mostly dollar bills as change. If your staff have to scramble around calculating and getting together the correct change then you are wasting time. At an event you should be looking at selling every item for at least one dollar anyway. Spare Change Make sure that you start off with a huge amount of change as it is typical for customers to hand over a large bill for a small purchase. There is nothing worse than running out of change and not being able to sell a hot dog to someone who only has a twenty dollar
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bill. In some cases you can approach other vendors at an event for help but it is always best to be self reliant. Systems and Productivity It is important that you and your team focus on developing a system so that productivity is maximized. Each part of the process, from taking an order and preparing a hot dog through to handing over a customer's order should be analyzed, refined and made to run as smoothly as possible. Observe the process of delivering a hot dog to a customer at Costco as they run one of the most efficient operations that you will find. Crowd Control In a busy environment you will find that you have customers lining up to buy your hot dogs and other products. Under normal circumstances a small line can be good for business but remember that if it gets too big then it can turn people off. Make sure that you don't let your line get out of control. One great way to manage a line is to create a separate line for those wanting to order only drink as you will be able to fulfill these orders much faster than orders for cooked food. Other Considerations Also give some thought to the weather. If you are attending an outdoor concert in the summertime for example, then you should consider stocking extra bottled water. Working a hot dog stand at a large event like a sports game or music festival is a whole new level compared to running a roadside cart. To make the most of the excellent opportunities that events represent you must know how to sell hot dogs quickly and efficiently.

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14) Ideas and Tips

There are winners and losers in the hot dog business just as there are in any industry. Sometimes it is difficult to understand why some operators succeed and others fail. Often it is the little things that business people do that makes all the difference. Here are some hot dog stand ideas and tips that you may consider implementing in your business. Work with Competitors Believe it or not, it is possible to work with your competitors in a way that is mutually beneficial. Just because you are competing against each other it doesnt mean that you cannot also help each other out. Buying in bulk is one way to cooperate with the opposition. You may be purchasing similar supplies and equipment and if you combine your orders it may be possible to get cheaper prices. Sharing equipment with other hot dog vendors is also a good idea if permitted under your license. If one vendor is working from Monday to Friday and another is doing events on weekends only then why not share equipment and have it in use seven days a week. If you own equipment you could also look at renting it out to other vendors on days that you don't need it. Marketing Ideas Just like the big chain fast food restaurants you should package your product offerings into combos or 'value meal' deals. The usual way to do this is to package a hot dog, packet of chips and a soda together and sell it for an attractive price that is a little cheaper than if to customer bought each of the items separately. Always try to up-sell your customers on additional items. If they only order a hot dog then you may as well ask them if they would like a beverage as well. Once you have secured a location, use your hot dogs as a way of spreading the word about your business. Hand out some free samples to key people such as managers or foremen and hope that they let their staff know about you.

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One of the best ways to advertise your hot dog stand is the smell of hot dogs cooking. Make sure that you always have hot dogs cooking and their smell will grab peoples attention and encourage them to purchase. Loyalty cards can work well and encourage regular customers if you are operating in the same spot every day. Give customers a card and stamp it each time they order a hot dog. After ten purchases you could then give them a free one. Expansion Plans Dont be in too much of a rush to expand your operation to multiple locations and to hire employees. It is essential that you understand the business first. Once you have one stand that is running smoothly and profitably you can then duplicate what you have learned at other locations. Quality Products If you will be in a location where you will be relying on repeat customers then you must focus on having excellent quality products. Look for the best quality hot dogs, buns and toppings and you will keep customers coming back for more. On the other hand, if you are setting up at events and it is likely that you will only be selling to people once, you dont need to place such an emphasis on quality products and can try to save money by going for cheaper alternatives. Customer Service Have you ever tried to juggle a food item and a drink while carrying a briefcase or a shopping bag? You may want to offer some sort of plate for your customers to use or a box for their hot dog. It adds to your overhead but people will choose your hot dog stand over the guy on the next block who doesnt offer these little conveniences. Remember that you, as a hot dog cart operator are what brings the customers back. You can undercut the competition and have the very best products but you wont get much return business if your customers dont have some sort of relationship with you. This can be as simple as a cheerful greeting or telling them you hope they have a great day. Remembering a regular customers preferences will get you a customer for as long as youre in business. Taking the time for a brief chat may also make people want to come back.
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Always keep the area around your hot dog cart clean, even if it means picking up other people's trash. This will allow you to maintain your good reputation among your customers, potential customers and your landlord, if you have one. Another way to appear to be neat and organized is to wear a uniform. Another idea is to consider offering services that will make your cart stand out from other market players. If you allow customers to phone in orders then you help them to save time and you may get some large orders from groups in offices or factories. You could even provide a hot dog catering service where clients order your hot dogs and other items for a picnic or party and you simply have someone drop off the goodies. Managing Inventory If you have to throw away large volumes of inventory on a regular basis then such bad management could really start to eat into your profits. It is important to have enough inventory on hand at any one time so that you never have to turn customers away. Having too much inventory on hand can lead to waste and can also tie up your operating funds. Make accurate records of what you need on a daily, weekly and seasonal basis so that you can plan ahead and buy only what you need. I hope that you found this short report beneficial. For further information check out StartaHotDogStand.com

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