In this post, you will find the steps to take for starting a hot dog cart business, as well as a few points to take into consideration.
Steps to Starting a Hot Dog Cart Business
- Researching a Hot Dog Cart Business – See An Inside Look Into the Business You Want To Start.
- Choosing a Location for Your Hot Dog Cart Business For more, see Choosing The Best Location for Your Business.
- Choose a Name for Your Hot Dog Cart Business. See How to Choose a Business Name.
- Legalizing Your Business – See  How to Register your Business.
- Create Your Corporate ID – See A Complete Introduction to Corporate Identity Packages.
- Hot Dog Cart Business Equipment
- Estimating Your Start-up Cost – See Estimating Start-up Costs: Are you Missing Anything?
- Writing a Hot Dog Cart Business Plan – See How to Write a Business Plan.
- Set up a Business Bank Account – See, How to Open a Business Bank Account.
- Get the Funding for Your Hot Dog Cart Business – See Getting a Small Business Loan.
- Software Setup
- Business Insurance
- Hot Dog Cart Business Office Setup – See, Here are Considerations for The Setup of Your Office.
- Choosing Suppliers for Your Hot Dog Cart Business – See, How to Choose a Supplier You Can Depend on
- Create an External Support Team – See, Building a Team of Professional Advisors for Your Business
- Hiring Employees – See How and When to Hire a New Employee.
Points to Consider Before Starting
Hot dog stands can be operated from nearly anywhere. People can buy a hot dog when they are left without enough time to get a meal.
If you decide that you want to start this type of business, your first step will be to find a high-traffic area. If there is a lot of traffic around lunch, dinner, or other meal times, you may be able to set up a stand right in the middle of this location.
Keep in mind you can test different areas and see which one works best for you, that’s one benefit of being a mobile operation.
Hot dogs are a quick, easy lunch, an all-American institution, and a great way to make a living.
Skill Set:
- Good people skills
- A special recipe for hot dogs and condiments is helpful
- Work under pressure – When you have a line of people in a hurry to get their order
- Common Business Skills
Hours of Operation:
You can set your own hours. You will want to be smart about this, however. Set up your stand during the hours when most people will be hungry. This means lunchtime, early evening, and maybe even late at night as the bars are letting out.
Equipment and Supplies:
- You will need a hot dog cart along with enough hot dogs, buns, condiments, and napkins to make everyone happy. You should have drinks, whether they be cans of soda or bottles of water.
- Investing in other forms of food can be helpful as well. Hot dogs have a reputation for being unhealthy, and by having more health-friendly options available, like whole-wheat buns and maybe even vegetarian hot dogs, you will be able to bring in more customers.
- You may need a pickup and trailer to transport your cart
Licenses:
You need whatever local permits are required to operate hot dog vending carts in your local area. This can range from special permits to health board inspections to ensure that your equipment is working properly.
See Our Page on Licenses and Permits
Approximate Minimum Startup Cost:
Bare essential – Currently, new hot dog vending carts are retailing in the range of $2,800 to $12,000 each, depending on the features. However, as a method to reduce startup costs, consider purchasing a secondhand one, they’re typically half the cost of a new one.
Once you have your cart, you could be able to start for under $500, which includes supplies and enough food to work for at least a few days.
Tips and Considerations:
- Choosing the best location to start your hot dog stand will also be crucial in the success of your business.
- Make sure to choose locations where there are a number of your prospective clients. Some of the best places to operate are near schools and similar public places.
- It’s also a good idea to take your cart to sports events, conferences, beaches, and parks where you will find huge crowds.
Pros and Cons:
The Pros:
- Very profitable, because the average money made is nearly 70 cents on every dollar.
- You can work for as many hours a day as you want, although if you plan to be open in a high-traffic area during a lunch rush, you stand to make quite a bit of money. You set your own hours and you make a good profit.
- This is a mobile operation, easy to relocate when a market declines
The Cons:
- Your business depends on the weather
- You are working with a lot of cash in an unprotected area, which can be hazardous