How to Start a Hot Dog Stand and Profit

If you've always dreamed of having your own business but don't want to be stuck in an office then you might be interested in starting a hot dog stand. This type of business has flourished for decades, offering a product nearly everyone loves at affordable prices. That's a recipe for success!

Let's take a look at a few points that you need to consider to start a hot dog stand and manage it successfully.

Taking Care of the Paperwork

First let's get some of the basic necessities out of the way such as taxes and operating structure. You can incorporate as your own company, start a sole proprietorship, buy a franchise or lease a cart from an established business. Investigate which option would be more advantageous regarding taxes and profit potential before you make a decision.

You will also need a business license and a food handler's license. A food handler's license is issued after you attend a course of a few hours duration and pass a test based on the content. Once you have that you can apply for a business license that gives you the legal right to operate your business.

Hot Dog Stand Equipment

Now that the red tape and paperwork are out of the way, take a look at what you will need to successfully start a hot dog stand.

Your first requirement is a cart. These usually have two wheels on one end and two legs on the other for mobility and stability. 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 that you can shelter under on a rainy day.

Your cart will need a steamer, cooker, warmer and a storage area for supplies and condiments. If you plan to set up in a heavily trafficked area you'll need lots of storage space or a convenient area to keep extra buns, hot dogs and other things you might run out of. Your cart will probably operate on gas so you must be sure that it is set up safely. Keeping your merchandise at the ideal temperature is important and you should check the steamer often to be sure the buns are not soggy.

Location

Your best chance at making exceptionally high profits in the hot dog business will come when you position yourself near a hungry crowd. You need a lot of people nearby your spot or you have to have a lot of foot traffic passing by. Other things to consider when deciding on a location are the number of competitors that are operating nearby and any zoning restrictions you may be facing.

Up-Sell Additional Products

What kind of extras do you want to offer your customers? Would you like to sell beverages, chips, snacks or candy? These can be very lucrative as some people don't want a hot dog but would like a snack to take back to the office. You can make a lot of sales to people returning from lunch or breakfast if you have healthy snacks as well as chips and other junk food.

Offer your customers deals to encourage them to purchase more than just your hot dogs. Offer a value price for a hot dog as well as a drink or a packet of potato chips.

Customer Service

The most important aspect of your business is how you make your customers feel. 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 the hot dog. It adds to your overhead but people will choose your hot dog stand over the guy on the next block who doesn't offer these little conveniences.

How elaborate do you want to make your hot dogs? Do you want to offer more than ketchup and mustard? Consider offering chili sauce or other extras. This can make your stand more popular than others but also puts more demands on your storage space. If you think that most people in your area would like these extra things, plan to buy a cart that can accommodate them.

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 merchandise but you won't get return business if your customers don't 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 customer's preferences will get you a customer for as long as you're in business. Taking the time for a brief chat may also make people want to come back.

Inventory

Of course, inventory is a vital part of your business. You will need a system of keeping track of your supplies so that you don't run out of something or store up too much of a product, especially perishable items like buns. There are several excellent programs you can download that will help you keep track of what you have at present and what you need to order soon.

You can make a very good living with a hot dog stand, especially if you live in an area that has mild winter weather. It is ideal for someone who enjoys people, being outdoors and the freedom to set their own working hours.