Estimated profit from operating hot dog stand?

Author
avis
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2006/04/22 02:32:21 (permalink)

Estimated profit from operating hot dog stand?

Hello,

I was recently laid off and decided to try to earn some cash while I look for a job. A hot dog stand seems perfect since I can choose the hours I want to work and take off for interviews. I'm looking into the San Diego area and have already checked with the city and county for licensing/permit requirements. I've read some of the previous posts and it seems that expected revenues vary quite a bit depending on location, event, etc.

I haven't identified a spot yet but I'm think possibly locating them next to office parks, high traffic areas, etc. If anyone has operated a hot dog stand, I'd be curious to find out what you netted on the average on a typical weekday.

Thanks!
#1

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    tmiles
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 15:27:52 (permalink)
    Just this morning I stopped at hotdog stand with new ownership about 40 miles from my house. At 11:30 on a Saturday morning I was the only customer. My foot long dog with butter grilled roll was very good (but not great), and at $3, not, IMO, a very good deal, especially with other, better, stands within a mile of him in each direction, on a main but not busy road.

    The place was neat and clean, and the 2 person team (husband and wife?) was friendly. My dog was grilled to order, so I was there for 5 to 10 minutes. No other customer stopped in. When the lady opened the screen to put condimemts out, I asked in a friendly way(thinking she had just opened)if I was the first customer. She replied in a snippy way, "No, you are the third, we open at 9". I felt very bad now. I waited another minute for my dog, and left to eat it in my car. Having failed in several businesses myself, I felt their pain.

    I think that this store owner "had done his research" and understood "overhead costs", and what he "needs to get". As an interested observer, I have seen lots of similar places come and go. By offering several egg dishes he may be looking for biz earlier in the day, but 9 seems like a funny time to open. As I pointed out, he is not selling much.

    I have never owned a food biz except for a farm stand, so other folks with more knowledge can chime in here......, but IMO, if you can't find a location where you have traffic, and low enough overhead so that you can price your product to compete, you will not make much. You may actually lose money.
    #2
    mountain_charlie
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 17:08:50 (permalink)
    Why would anyone open a hotdog stand at 9:00am?
    #3
    markolenski
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 17:25:43 (permalink)
    The one stand in San Diego off of the 163 and Balboa has shut down. He had Sabrett dogs. Not sure if it was a problem with the landlord or lack of business.
    #4
    garryd451
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 18:36:17 (permalink)
    location, location, location

    That is also why i haven't jump into this type of business.

    I live half way between Dowagiac Michigan and Niles Michigan.

    Three years ago a man opend a Hot Dog Kart in Dowagaic. it folded after one season.

    Two years ago a man opened one in Niles Michigan, it folded after one Season.

    The Greater Dowagaic Area has a Summer population of about 20,000 people

    The Greater Niles Area has a year round population of about 30,000.

    Both had good Hot Dogs. both had good locations, the Dowagaic one was a little pricey, the Niles on was reasonably priced.

    #5
    Twinwillow
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 19:07:57 (permalink)
    quote:
    Originally posted by markolenski

    The one stand in San Diego off of the 163 and Balboa has shut down. He had Sabrett dogs. Not sure if it was a problem with the landlord or lack of business.

    Hot dogs in San Diego? That sounds like an oxymoron to me. Better it shoulda been "soy dogs".
    #6
    GB944
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 19:36:07 (permalink)
    Better yet, open a cappucino and latte stand. Huge profit margins, and people on the left coast are used to spending $4 for a cup of joe that costs 25 cents to make.
    #7
    UncleVic
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    RE: Estimated profit from operating hot dog stand? 2006/04/22 19:49:22 (permalink)
    quote:
    Originally posted by mountain_charlie

    Why would anyone open a hotdog stand at 9:00am?


    UncleVic may stray thru the neighborhood!!! But ya, anything before 10:30, offering just dogs is not going to get business.. If you want to start early, offer donuts (muffins and coffee) or something on the breakfast snack line. But if your just doing the dogs and chips deal, I'd say 11am to 3pm at the latest.. But again, it will depend on your location. Another good revenue would be the bar crowd at nights, roughly 10pm till close... People get the munchies and always look for convienece for their food offerings... It's you on the corner or Taco Hell or BK down the street.

    #8
    tmiles
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    RE: Estimated profit from operating hot dog stand? 2006/04/25 12:03:34 (permalink)
    Based on your comments I have edited my reply. They open at 9AM, but besides dogs, they offer various egg plates.
    #9
    brighteyes818
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    RE: Estimated profit from operating hot dog stand? 2006/05/05 16:17:27 (permalink)
    Hi,
    Well I'm not sure if you got an answer to your question, but here is my best shot..it depends on the cost of the dog, bun,, those are of course the most obvious expenses but I had to take into account insurance, health inspection cost, licensing fees, cost of the cart and supplies. Oh yeah I also had to take into account how I was going to move the cart, either with a tow hitch to the cart or in a separate trailer. So this wasn't a fast cash adventure. Now it also does come to location, if you can go to your location and watch the traffic maybe this will help. I'm not sure anyone can give you an exact figure because we don't know the amount of people coming from these locations, only you can answer that, then take a low ball people number (because weather is also a factor) x the amount you can sell your item for and then - out expenses maybe that should give you an answer.
    #10
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