"Must Read!" If your Business is going downhill!!!

Post
brickboo
Cheeseburger
2013/06/28 20:29:32
Taken from
Bloomberg Businessweek
Why Americans Are Eating Fewer Hot Dogs By Paul Lukas
June 27, 2013
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Americans spent $1.7 billion on hot dogs last year—and that’s just at supermarkets; it doesn’t count wieners purchased at restaurants and sports facilities or from street vendors. And no day is better for hot dog consumption than the Fourth of July, when Americans are expected to eat about 150 million of them—enough to stretch from Washington, D.C., to Los Angeles more than five times.
While those numbers are impressive, overall hot dog sales are declining. According to figures from IRI, a Chicago-based market-research firm, sales dropped more than 3 percent in 2012 from 2011, following two consecutive years of smaller declines. Figures for this year are looking soft as well. The slump is surprising in light of the sluggish economy—hot dogs are usually considered the ideal recession foodstuff.
Illustration: Jennifer Daniel; Hot Dog: Getty; Guinness World Records
Ronald Plain, a professor of agricultural economics at the University of Missouri, offered a few possible explanations for the frankfurter’s failing fortunes. Hot dogs are particularly popular among children, for example, so America’s declining birth rate may be to blame. Changing immigration patterns and demographic profile may also play a role. Janet Riley, president of the National Hot Dog & Sausage Council, a trade group, sees other factors at work. “Higher raw-material costs are leading to higher retail price points,” she says. “Consumers are very sensitive to that.” Ryan Stalker, brand manager for Hebrew National, whose sales are off by 5 percent this year, agrees. “The biggest challenge facing our industry is the rising costs of goods, especially beef prices, over the past few years, which usually translates into softness in sales.”
None of this surprises Josh Ozersky, a food journalist and historian. He predicts the hot dog will become increasingly marginalized as the U.S. palate broadens. “I would be willing to bet that more Americans, and especially younger Americans, now eat nachos or tacos than hot dogs,” he says. But what about the many outlets that serve nachos on hot dogs? “That’s just proof of the desperate state of the hot dog!” he says. “That’s like a middle-aged actress who gets Botox and breast implants to try to stay relevant.”
One brand has bucked the downward trend: Nathan’s Famous (NATH), whose sales are up 17 percent from last year. “Naturally, I think it’s because we have the best hot dog,” says President Wayne Norbitz. “In tough times, if people are going to eat fewer hot dogs, they often choose a premium product. They choose to indulge.” Nathan’s also gets a promotional boost from its annual July 4 hot-dog-eating contest at Coney Island.
The hot dog still has one stronghold: baseball stadiums. Fans can buy everything from sushi to barbecued ribs, but hot dogs remain the top seller at almost every big league ballpark. (The exception: Miller Park in Milwaukee, where sausage is king.) There’s also a smattering of artisanal dog restaurants, such as Bark, in Brooklyn. The owner, Josh Sharkey, bastes his hot dogs with “Bark sauce,” a concoction of smoked lard whipped with butter.
Even Sharkey says it’s not easy being in his line of work. “It’s a pretty tough business model, because it’s based on a low price point,” he says. “So it’s a volume business—you have to sell a lot of hot dogs.”




 
post edited by brickboo - 2013/06/28 20:31:04
C2CD
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/06/28 22:23:26
I seen this from another source, it is terrible news. Just means we have to step up and sale our product to the people, start using top quality stuff and stay competitive.
Tristan225
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/06/29 00:20:50
I thought it meant i should get breast implants and Botox
bartl
Double Chili Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/06/30 18:53:13
I suspect that the price is the #1 factor. For a number of years, I have been buying (for myself) the Hillshire Farm and Johnsonville "sausages". Where I am, they run, on sale, about $2.50-$3.00 a pound (they freeze well; I open the package and wrap them individually in waxed paper). When the cheapest garbage hot dogs often running $4-5 a pound when, a couple of years ago, they often ran $1 a pound, , the ones I buy seem to have gone from "high end" to "low end" without their price changing. When hot dogs cost more per pound than hamburger, mothers are going to make hamburger. And if Nathans (or Sabrett, or Hebrew National) cost the same or less than Bar S or Ballpark, guess which ones people are going to buy?
 
Bart
C2CD
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/06/30 19:03:38
Tristan225

I thought it meant i should get breast implants and Botox

That might boost your sales too 
Foodbme
Porterhouse
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 02:57:55
As cited above, Demographics plays a big role in this on both ends of the spectrum. Fewer kids around, Baby Boomers becoming more health conscious. Also greater food choices are available today.
Tristan225
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 09:22:37
Hey, maybe taco's would sell in your area!
brickboo
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 10:53:51
1. Could I really make a better Taco than Taco Bell for .99 cents?
2. A new place just opened and sells Tacos for .50 cents.
I don't think a Taco is the solution for my business. I can't imagine what I could put on it to sell it for $2 let alone $3.
 
Perhaps Pulled Pork. I'm convinced that Auctions and special events is the place to be. Problem is there are only enough to make a little extra income.
post edited by brickboo - 2013/07/01 22:13:25
Tristan225
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 18:10:43
1. Yes
2. Why try to compete on price.
 
Look around, you can find recipes that are better than any taco death food. How about a basic "authentic" taco-well seasoned cheap steak, onion, cilantro, with a lime wedge (no cheese-no bull ****). Even people around here in the north are taco crazy right now. Figure out your own version of what the big time trucks are selling (only a little more basic). Right now I'm selling more taco's than hot dogs every day. I hear "that's the best taco I have ever had" every day! You can get cheap steak for under $.50 per portion, and make up for total dollars on volume.
C2CD
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 20:08:19
Taco bell isn't even real meat. It is a soy based product with a bunch of fillers and empty calories. if you made real Tacos with real Ingredients people could justify paying a little more.
If people are on a health kick in your area, have you ever considered switching up and doing veggie dogs? How about like Hummus wraps or something like that?
Ever considered turning your Hot Dog cart into a Gyros Cart?
brickboo
Cheeseburger
Re:"Must Read!" If your Business is going downhill!!! 2013/07/01 22:21:23
Guys I can't even pronounce Gyros. I don't have a clue. I assume I'd have to cook at a commissary?
 
I'll have to check out one of the favorite Mom and Pop Mexicans' lunch stops that are very busy with maybe 6 or 7 tables and try a taco and check the price. They make terrific Beef or Pork Burritos for around $5 I think. They are 10 - 12 miles from where I'm trying to work.