Capital Needed for Walk-Up Hot Dog Restaurant

Hi all,

I live in a pretty small town and there are no hot dog places here, can you believe it?  I love the little walk-up hot dog restaurants and the sit down ones.  Really I love any period because I absolutely love hot dogs so it is unfathomable that nothing is available.  I grew up in a place where you had about 15 options to choose from when you walked thru downtown and they were ALL yummy!

Which leads to my question...how much capital is needed to get a hot dog stand up and running?  I don't want a cart...I want an actual place that people walk up where the staff can be indoors.  I'm going to limit it to walk-up because it should be much less costly than having an actual sit down restaurant.  Can anyone help me in this area?  I have already chosen the perfect area for it and know what I want to serve.  Nothing extravagant just your good old-fashioned hot dog place.

Thanks a million!

Welcome to Roadfood!
 
This is going to be a tough question for anyone to answer with the limited information you have provided.  Do you own the property and building for your proposed venture?  If leasing, will the property owner participate in the buildout?  How much buildout is required?  We don't know how much buildout is required for a space we haven't seen.  What does your local HD require you to have in terms of equipment, drainage, etc....?  What items are on your proposed menu, and what equipment is required to prepare those items?  A local company that specializes in restaurant construction may be able to give you a general idea of buildout cost per square foot in your area.  This more than likely will not include equipment costs. 
 
Why a walk-up place instead of a cart?  While there are other limitations to cart operation, two of the biggies are limited menu (mandated by the HD in most areas), and seasonal operation.  You will certainly be a seasonal business if you don't have a means for your customers to come in out of the elements.  I would suggest operating a cart in the general area of your proposed restaurant and see how it goes.  It's a lot cheaper and much less painful if it doesn't work.
 
I didn't even ask you about your level of expertise in restaurant operation.  I will have to assume that based on your question it is fairly limited. 

Without meaning to be snippy - I think the old adage "If you have to ask, you can't afford it" is in play here.    I started my (retail) business on my 18th birthday by cashing in my life insurance policy and maxing out 18% interest credit cards.   It was 1/100th the amount I truly needed.  There were lots of runs to the convience store to pay the phone or electric bill in cash to keep from getting cut off.  There was alot of borrowing from uh "unconvential" sources and paying crazy loanshark rates  (10% of amount in interest after 2 weeks) from the "Chinese Mafia".   Alot of working 108-125 hours a week,  you have to have the drive to want to do it.    I'm happy to say I'm still in business 14  years later even in this tough economy.  If I can do it, anyone can, but don't expect anyone else to give you a magic blueprint on how to.

I definitely don't expect a blueprint on how to do it. I am simply asking how much it has taken others to start off. And it is not about not being able to afford it, it is about never having done it before. Thanks oh so much for your reply!

Whew lots of questions but very glad that you asked them :) I didn't know if anyone would want me to go into so much detail here or if they would think I was just a pain LOL. As far as expertise, my experience is limited to working in other peoples restaurants but never on the actual "business" side of it. I know I can provide the service well and keep it going with no problem, it's the facts and figures side of it that has me anxious.

I will be leasing and am fortunate enough to have found something pretty close to what I need (was an old teeny tiny restaurant) and I was thinking I would not need much to begin with since I am keeping it pretty simple menu wise.  Of course I will need the machinery specific to the items I am providing.  I will be offering hot dogs with a variety of toppings (chili, coleslaw, cheese, etc.), linguica dogs (unheard of here but so yummy that I'm going to try it), chips, drinks, and some ready made desserts. I am debating on french fries but might hold off until I see how much traffic comes thru and the demand for them. I may also sell quahogs (unheard of here as well but very popular in Massachusetts) and see how that goes. Luckily the linguica and quahogs will not put a big dent in the finances as I will buy a limited quantity and can get it pretty cheap. I am hoping that by providing something very different and new to the area, that it will help and increase interest.

Basically my main question was just about how much it took others to start up. Yes I can definitely figure this out on my own, was just curious about others experiences. As far as the walk-up vs. cart option, luckily the weather in South Carolina is awesome the majority of the year and the location is directly across the street and right beside 2 courthouses, a police station, and a couple of other government buildings. I honestly think the business would thrive in that area considering there is only one other option to go for lunch and they are a bit high priced and not that great foodwise.

I am waiting to hear back from the local HD on the specifics of what I will need to do and what needs to be changed since the restaurant is pretty old but I'm hoping most of the requirements will already have been met. I am just in the beginning stages of an idea that I have wanted to pursue for years, hopefully it will come to be :)

Thanks!!!!!

I' m afraid nobody can give you that answer. We have just went through this on another thread and started to get off base. LOL I said that. I know of two and their figures but not your area and one was a total build out and the other was very little.
You are going to have to come up with your own figures.
http://www.roadfood.com/Forums/I-need-help-with-a-new-kitchen-layout-m523821.aspx

$100,0000.00 minimum, if you want to stay in biz. BTW, there's a reason that there are no Hot Dog places in Lexington, SC, if that's actually the case, the reason is something called BBQ, that's my bet! Good luck though!

This is what I budgeted for my bbq joint.
 
Below is what my budgeted startup costs were. The only difference was that instead of leasing, I decided to build my own store, which added $125,000 to the cost. I left the leasing figures in place. By the time the doors opened, my reserve shrank to 19,000.

Building
Lease(first 6 months) 18,000.00
Remodeling (low-level updating)........... 5,000.00
Electrical & Plumbing 3,000.00

Equipment
Pit Smokers........ 13,000.00
Walk-in Cooler...... 4,000.00
Freezer............. 2,000.00
Fryer............... 800.00
Grill............... 2,000.00
Range/Oven.......... 1,200.00
Sandwich prep station 800.00
Tables and chairs... 1,000.00
Hot holding.......... 500.00
Cookware & prep tools.. 500.00
Storage containers.... 500.00
Hood system........ 7,200.00

Startup Inventory
Food........................................ 4,000.00
Prep ingredients (spices, oils, sauces, etc.)... 800.00
Disposables (dishes, napkins, utensils)...... 1,000.00
Janitorial supplies..............................500.00

Licenses & Fees
Food establishment permit...... 2500.00
Business license ............. 450.00
State Licenses and Fees ..... 300.00
Fire Certificate............. 300.00

Business Costs
Consultants ...... 2,500.00
Insurance....... 500.00
Stationary, Supplies 600.00

Marketing
Print Advertising... 5000.00
Radio.............. 1,000.00
Flyers............. 600.00
Signs............. 2,000.00

Utilities
P.U.D. (electric)...2000.00
Telephone........... 400.00

Cash On Hand
Start-up reserve.. 25,000.00

the simpler you keep it, the more you do yourself, the less starry eyed you are, the less you try to look like a chain right out of the box the less it will cost you.

I would lose the fryer and not have a grill  which will allow you to not get into the problems and special requirements involved with that whole mess. there are way too many other ways to cook a hot dog and or a sausage.

the advantage of a walk up is that even when the weather sucks, you dont have to close up. seating would be nice but at least a good sized overhang with some chairs would be good too. you can also change your whole menu any time you want, add to it, subtract from it. that is very hard to do on a cart.

since this is your first place, do it as simple as possible and avoid a giant gutting style build out. Paint works wonders and everything DOES NOT need to be stainless steel or custom tile. Lots of times, funky works. it really depends on how you make people feel when they come in and whether your food is good and considered a value.

meet with your health inspector and find what he will require and recommend (they love to give advice and the majority are ex-restauranters) remember the HD is not your enemy and its main function is to avoid making people sick which keeps you from being sued and or closed up.

do your homework before you leap and read everything you can find on this website. there really is a complete food business course in these posts.

best of luck.

I would have a 3'Grill/2 burner stove, fryer, Hood system and fan. Stand up  Dbl door freezer and Reach-in refer ....I would set it up so the people could see everything coming off the grill and then put the toppings on like Subway with a refer condiment counter ( smaller scale) This wouldn't cost you an arm and a leg........Keep it simple .... I figure the Cuahogs are stuffed baked Clams. I have only seen these in New England, and It may be a thing you have to grow up with to appreciate ...............Good Luck....Bill

chewingthefat


$100,0000.00 minimum, if you want to stay in biz. BTW, there's a reason that there are no Hot Dog places in Lexington, SC, if that's actually the case, the reason is something called BBQ, that's my bet! Good luck though!

I am so sick of BBQ LOL! My costs will definitely be less than $100k thank goodness. Thanks!

BillyB


I would have a 3'Grill/2 burner stove, fryer, Hood system and fan. Stand up  Dbl door freezer and Reach-in refer ....I would set it up so the people could see everything coming off the grill and then put the toppings on like Subway with a refer condiment counter ( smaller scale) This wouldn't cost you an arm and a leg........Keep it simple .... I figure the Cuahogs are stuffed baked Clams. I have only seen these in New England, and It may be a thing you have to grow up with to appreciate ...............Good Luck....Bill

Wonderful advice, thank you so much Bill!!! People look at me like I'm insane when I talk about quahogs and yes they are stuffed baked clams. I brought a bunch from my last trip to New England and people were falling over themselves trying to get one from me after they had a delicious taste so it just may work. Hopefully anyway :)

hippie jim


the simpler you keep it, the more you do yourself, the less starry eyed you are, the less you try to look like a chain right out of the box the less it will cost you.

I would lose the fryer and not have a grill  which will allow you to not get into the problems and special requirements involved with that whole mess. there are way too many other ways to cook a hot dog and or a sausage.

the advantage of a walk up is that even when the weather sucks, you dont have to close up. seating would be nice but at least a good sized overhang with some chairs would be good too. you can also change your whole menu any time you want, add to it, subtract from it. that is very hard to do on a cart.

since this is your first place, do it as simple as possible and avoid a giant gutting style build out. Paint works wonders and everything DOES NOT need to be stainless steel or custom tile. Lots of times, funky works. it really depends on how you make people feel when they come in and whether your food is good and considered a value.

meet with your health inspector and find what he will require and recommend (they love to give advice and the majority are ex-restauranters) remember the HD is not your enemy and its main function is to avoid making people sick which keeps you from being sued and or closed up.

do your homework before you leap and read everything you can find on this website. there really is a complete food business course in these posts.

best of luck.

That is exactly what I want to do...keep it simple!! I can always add on eventually when business starts booming. I always loved the little shacks that had the most amazing steamed hot dogs...they were simple as can be with practically no overhead costs. What's better than that? I agree with you on the grill aspect - getting a hot dog steamer makes things a million times easier as far as requirements and they are cheaper too! You gave great advice and I will keep it all in mind, thanks!!!!

When I lived in Massachusetts it would be 10 degrees out with snow everywhere and there would be a long line of people shivering outside the walk-up hotdog stand on the avenue LOL. What better place to have a walk-up than in the south where the weather is absolutely beautiful? :)

davebugg


This is what I budgeted for my bbq joint.
 
Below is what my budgeted startup costs were. The only difference was that instead of leasing, I decided to build my own store, which added $125,000 to the cost. I left the leasing figures in place. By the time the doors opened, my reserve shrank to 19,000.

Building
Lease(first 6 months) 18,000.00
Remodeling (low-level updating)........... 5,000.00
Electrical & Plumbing 3,000.00

Equipment
Pit Smokers........ 13,000.00
Walk-in Cooler...... 4,000.00
Freezer............. 2,000.00
Fryer............... 800.00
Grill............... 2,000.00
Range/Oven.......... 1,200.00
Sandwich prep station 800.00
Tables and chairs... 1,000.00
Hot holding.......... 500.00
Cookware & prep tools.. 500.00
Storage containers.... 500.00
Hood system........ 7,200.00

Startup Inventory
Food........................................ 4,000.00
Prep ingredients (spices, oils, sauces, etc.)... 800.00
Disposables (dishes, napkins, utensils)...... 1,000.00
Janitorial supplies..............................500.00

Licenses & Fees
Food establishment permit...... 2500.00
Business license ............. 450.00
State Licenses and Fees ..... 300.00
Fire Certificate............. 300.00

Business Costs
Consultants ...... 2,500.00
Insurance....... 500.00
Stationary, Supplies 600.00

Marketing
Print Advertising... 5000.00
Radio.............. 1,000.00
Flyers............. 600.00
Signs............. 2,000.00

Utilities
P.U.D. (electric)...2000.00
Telephone........... 400.00

Cash On Hand
Start-up reserve.. 25,000.00

Thanks so much for the detailed description, much appreciated!

melperez76

hippie jim

When I lived in Massachusetts it would be 10 degrees out with snow everywhere and there would be a long line of people shivering outside the walk-up hotdog stand on the avenue LOL. What better place to have a walk-up than in the south where the weather is absolutely beautiful? :)

 
We're not in Kansas anymore Toto.  Welcome to the south.  Been here all my life.  What do you do when it get's below 55 with a light breeze and southern people want to sit inside and eat?  You starve! Most people are not going to stand out in the cold or rain and wait for a hot dog.  Maybe Lexington is different.  I doubt it though.  I will see if I can find the info, but I also believe that your area runs well above the national average for precipitation during the prime hot dog selling months. 

I as a long time traveler have seen these walk up places be the first to close. Just one state, not all but every little town in TX use to have these. Buildings still there, but have been closed for at lease 15-20years. MickyD's started this way but has drive thru and sit down. Have to have a sit down area. Only one I know of that is take-out only dog shop around me is in B'ham,AL 165 miles south,in the heart of the city and probally the size of two walk-in closets. Smallest damn place. My Garage is bigger.

melperez76

chewingthefat


$100,0000.00 minimum, if you want to stay in biz. BTW, there's a reason that there are no Hot Dog places in Lexington, SC, if that's actually the case, the reason is something called BBQ, that's my bet! Good luck though!

I am so sick of BBQ LOL! My costs will definitely be less than $100k thank goodness. Thanks!

Sorry in the south BBQ, is it. Little town east of me a man went in and redid a building to the cost of 185k, hot dogs and hamburgers, he is closed after 1 year, Have all the fast food people and the one place that kicks butt to this day is a BBQ joint. Lunch and dinner cannot get into the parking lot.
Also notice if from not that area, and in the Bible Belt, ALL YOU CAN EAT, gluttony, is big. Do not ask me why. The only places that make it are Buffets.

Altho the last few posts exude optimism LOL I still think it will fly.  As far as the rain...I believe people would rather walk next door to get a hot dog in the rain than walk way down the street to the parking area, get soaked along the way, waste gas to muddle thru the horrendous traffic in the area at lunch time to drive at least 10-15 minutes before they come across even a fast food joint to get something to eat. My place will be more convenient and cheaper.

Yes BBQ is for the south, this I am aware of BUT some people would enjoy a little variety. Being right next to a section where there are a minimum of 200 employees just in the two buildings next door not including the employees and people that are in and out of the two courthouses across the street all day and the surroundings lawyers offices, police station, and such, I think it could be a success. And the closest BBQ joint is about 20 minutes away - that helps :)

One more thing I'm going to add that will bring a New England feel is coffee milk. It tastes wonderful and I've brought a few gallons of coffee syrup back for locals to try and they love it! People in the south are used to certain things and there is nothing new to experience so they get excited over the prospect of something different being around.  I know many are not in favor but after speaking to quite a few locals including many that will be working in the vicinity, I have only received a positive response.  Good luck to everyone and thank you so much for replying to my thread!!!

What I would do is drive thru, and walk up.

Drive thru, and walk up would be perfect, for an operation of this size.

If you decide to pursue this, I strongly recommend that you contact Mark Reitman (Chicagostyledog here on Roadfood) at the Hot Dog University.  If I'm not mistaken, part of his curriculum is brick and mortar operation, including buildout.