Is there money in the hot dog cart business?

A resounding "yes" is heard from coast to coast from vendors who are new and old in the business of hot dogs. The question is do you want to be an average hot dog vendor or do you want to be one of the top dogs in the industry? Here are a few tips for finding a profitable location in your area that I have found to be money makers. Keep in mind that in order to make money you do not want to sacrifice the quality of your food.

1) Call or visit your Parks and Recreation Department in your city to inquire about any independent food service contracts that are available for bidding. When bidding these contracts always bid a % of sales up to 20% but never over this amount. Take into consideration what they provide. Some may reasonably provide you with commissary, electricity, water and storage room..some may even have access to ice and other necessities to reduce your overall cost of doing business in the industry. These kitchens are almost always equipped as commercial kitchens although small in nature could serve as a home base for your business and you only pay when you make money. These contracts are normally signed in one year agreements with a multiple year renewal. I usually ask for 4 years. Common in the political arena.

Example: You contract for concessions for 3 city pool locations, these locations gross 10k per month which is very realistic, they furnish the facilities, you pull the license, hire the staff, pay the wages and sales taxes and 15-20% which will likely be 70% of your total income and pocket the profit of 34% because your overhead is fixed for utilities, rent etc at the 15-20% mark. Best of all you do not physically run any of the locations yourself. During my career as a restaurant owner just my food costs could run around 30%, employees 35% not including my rent and utilities by the time I was finished for the month I may have only net a mere 5% for all of my hard work.

Soccer fields are great for income, however keep in mind that you must be hearty in your mission as this sport occurs in the midwestern US during the coldest months of the year. Early Spring and late fall are the most profitable times of the year.

Dont limit yourself to outside contracts, as a vendor, become a caterer and diversify your business so that you may operate year around.

Dog House Carts, Inc located in Fort Wayne Indiana can manufacturer you a custom made hot dog cart with electrical capabilities for indoor use. Turning your business to an all year food service business can increase the odds of your success while increasing your bottom line. Although in most areas of the upper midwest you will have to close your business sometime in November, the line can form inside...and being a hot dog vendor you wont' want to miss a business opportunity.

2) Fairs & Festivals, special events. By all means, schedule your life and make it easy. If you choose this avenue you can expect to make big money and not work the traditional 5 day a week work week. Make sure that you dont find yourself buying bad hot dog cart vendor real estate as I call it. Fair and festival boards have a common goal in making money. They don't offer rain checks so dont gamble on a large event with big dollar entry prices unless you are willing to loose it should mother nature decide to take it from you. You may be willing to do the work during a stormy day but your customers have the choice of eating inside a building...nice and cozy instead of eating out in the rain and getting soggy buns.