Thinking about venturing out and starting your own hot dog cart business in 2024? Look no further than this ultimate guide to give you the information you need to get started the right way. Unlike most information published online this advice comes straight from an active hot dog vendor Matt Gladfelter of Bow Ties and Hot Dogs.
Gladfelter has been operating his hot dog cart more than five years, but got started as a part-time side hustle while employed as a restaurant manager. In this post, Matt walks through the 7 steps needed to start a profitable hot dog stand. From startup costs, inventory and equipment needs, marketing, and even how much you can really expect to make running a hot dog cart business is outlined right here.
Jump To Section: How Much Can You Make? | Menu | Startup Costs | Business Plan & Market Research | Vending Locations | Vending Supplies & Ingredients | Permits & Licenses
This guide below is broken up into different sections. You can save this page as your reference guide to starting your hot dog business. I recommend listening twice to audio accompaniment for the the Hot Dog Cart Business Planning section. Finally, to get the most value possible out of this guide, have a pen and notepad handy so you can write down action items.
How-To Start a Hot Dog Cart Business (Step by Step)
Step 1: How Much Does a Hot Dog Cart Make?
I’ve hear about restaurant businesses doing $50,000 in monthly sales and having massive days where they sell 750 hot dogs in a single day so the skies the limit in this industry.
Advantages and Disadvantages of This Business Model – As with any business model, there are pros and cons to operating this type of business. I want to be 100% transparent with you about so you know what you’re getting yourself into. This business can result in long hours, trial and error, and hot or unpredictable weather that many articles don’t tell you about.
Step 2: Create Your Hot Dog Cart Menu
Making a menu for your hot dog cart ain’t like painting the Sistine Chapel. You gotta remember: keep it simple, focus on what sells, and use quality ingredients. The goal is to create a menu you’re proud of, that’s easy to manage, and keeps customers coming back for more. Here’s how you do it.
- Start with the Basics: You’re selling hot dogs, not five-course meals. Stick to classic dogs to start with. What usually performs well on hot dog menus? Chili Dogs. People go nuts for ’em. Chicago Dogs. A classic. These should be your bread and butter. Add in 4 or 5 of other popular hot dog options, but don’t go overboard. They’re easy to make and everybody loves ’em.
- Premium Ingredients, But Not Too Many: Use quality ingredients, but don’t get too fancy. You’re looking for that sweet spot where cost meets quality. Premium beef, organic, or locally sourced sausages can set you apart. Better to have a few items that people will crave instead of a whole bunch of average folks can get anywhere. You want folks coming back for that one amazing dog they can’t get outta their head. If you’ve got too many options, you’ll slow down service and jack up your costs.
- Create the List of Suppliers and Products: Start by listing your go-to suppliers. This could be places like Costco for bulk buys – they’re good for getting your basics like hot dogs, buns, and condiments at a decent price. If you’re looking to differentiate yourself, maybe you’ve got a local butcher for top-notch sausages or a bakery for fresh buns. Don’t forget your produce – onions, relish, tomatoes, all that stuff. A local grocery store or a farmers’ market can be your best bet here.
- Use Specials for Experimentation: Wanna try something new? Roll out a special now and then. If it’s a hit, consider adding it to the menu. If it flops, no big deal.
- Feedback Is Gold: Listen to your customers. If they’re all asking for something specific, think about adding it. If something ain’t selling, ditch it. Sometimes sales speak louder than anything else. Keep track of your top selling hot dogs. Keep what works and drop the ideas that flop. Eventually, you’ll come up with a menu that people love.
Remember, the hot dog is a blank canvas so I understand if you want to go wild with unique flavors. But don’t go nuts right outta the gate! Start with some tried-and-true favorites and add more items slowly as you learn the business.
Step 3: Write a Hot Dog Cart Business Plan
- Organizing Your Thoughts: When you’re slingin’ dogs, there’s a lot to juggle. A business plan helps you lay it all out. It’s like a roadmap for how you’re gonna run your cart, what you’ll sell, and where you’ll sell it.
- Suppliers, Ingredients, and Recipes: It’s smart to have all your supplier info in one place. Who gives you the best buns, the juiciest dogs, the crispiest onions? Write it down. What are your killer recipes? Get ’em in there. This way, you’re not scrambling to remember where you got what or how you made that special sauce everyone loves.
- Vending Route and Contacts: Your plan should outline where you’re selling. Got a sweet spot near the park on Tuesdays? A busy street corner on Fridays? Maybe rainy days are slow – so you come up with a plan for indoor locations. It’s all about being one step ahead. Include contact info for event organizers or anyone you need to coordinate with inside the document.
- Financial Planning: Let’s talk numbers. A business plan helps you keep track of your dough – what’s coming in, what’s going out. It’s key for figuring out if you’re making a profit or if you need to tweak your prices.
- Long-Term Vision and Goals: Where do you see this cart in five years? Maybe you want to expand, get a second cart, or even open a restaurant. Your business plan is where you dream big and set goals to get there.
- Troubleshooting and Strategy: Things don’t always go smooth. The plan helps you strategize. Maybe rainy days are slow – so you come up with a plan for indoor locations. It’s all about being one step ahead.
In short, a business plan for your hot dog cart ain’t just fluff. It’s the tool that keeps you organized, focused, and ready to tackle whatever comes your way. It’s about knowing your business inside and out and being prepared for growth and challenges. Keep it handy, keep it updated, and it’ll keep you on the path to success.
Step 4: Inventory Vending Supplies and Ingredients
Here is a sample inventory list for efficient inventory management and financial planning for a hot dog vendor. By completing one of these tables for your business you’ll be able to document suppliers and price changes overtime.
| Product Item | Supplier | Quantity | Cost per Item | Total Cost |
|---|---|---|---|---|
| Hot Dogs | John’s Meats | 100 | $0.50 | $50.00 |
| Buns | Daily Bread Co. | 100 | $0.30 | $30.00 |
| Mustard | Condiments Galore | 1 Gallon | $4.00 | $4.00 |
| Ketchup | Condiments Galore | 1 Gallon | $3.50 | $3.50 |
| Relish | Green’s Groceries | 1 Jar | $2.00 | $2.00 |
| Onions | Green’s Groceries | 10 lbs | $0.70/lb | $7.00 |
| Napkins | Warehouse Supply | 500 | $0.01 | $5.00 |
| Disposable Gloves | Warehouse Supply | 100 | $0.10 | $10.00 |
| Soda Cans | Beverage Bros. | 50 | $0.40 | $20.00 |
| Bottled Water | Beverage Bros. | 50 | $0.30 | $15.00 |
| Total Inventory Cost | $146.50 | |||
Step 5: Estimate Startup Costs & Equipment
Click Here to View the Hot Dog Business Startup Cost Spreadsheet – This post breaks down all the startup costs associated with opening a hot dog cart from initial inventory to propane tanks, cooking equipment lists, smallware like tongs and spoons, the cart and even insurance.
How to Cut Startup Expenses in a Smart Way – Do you like spending more on things than you need to? How about flushing money down the toilet? Didn’t think so. In this post, we cover specific ways you can cut costs with a hot dog business and avoid food waste. After all, at the end of the day it’s not how much you make, but how much you get to keep that matters in business.
Step 6: Create a List of Vending Locations
Alright, let’s talk shop about picking the right spots to set up your hot dog cart. Location is everything in this business. You gotta be where the hungry folks are. Here are some prime spots:
- Bars and Nightlife Areas: This one’s a no-brainer. Set up near bars, especially on weekends. You’ve got a crowd of folks who’ve been drinking and are looking for something to soak up that booze. Hungry, a bit tipsy, they’ll gobble up hot dogs like there’s no tomorrow.
- Industrial Areas with Shift Workers: Factories or big warehouses can be goldmines. Lots of workers, often with limited food options nearby. Catch ’em on their lunch breaks or during shift changes.
- Farmer’s Markets: These places are great, especially if you’re using quality, local ingredients. People there appreciate good food. Plus, the regulars get to know and look forward to your stand.
- Private Parties and Catering: This is where you can make some good, steady money. Birthdays, graduations, family reunions – folks love having a hot dog cart for their guests. You can charge a flat fee or per hot dog, and you know exactly what to expect.
- Sporting Events and Concerts: If you can get a spot near a stadium or concert venue, you’re in for a busy day. Just check the local regulations and permits you might need.
- Tourist Spots and Beaches: If you’re near a tourist area or a popular beach, especially during summer, you’re set. Tourists are always looking for a quick and easy bite.
- Business Districts: Set up near office buildings for the lunch rush. Office workers looking for a quick, tasty lunch will flock to you.
Remember, each spot has its own rules and regulations, so do your homework. And, don’t be afraid to mix it up. Try different locations on different days to see what works best for you.
Step 7: Get Permits, Licenses, Insurance and More
To run a hot dog cart, you gotta play by the rules and get your paperwork straight to legally operate this business. Here’s what you need:
- Business License: This is your ticket to legally sell. Each city or county has its own rules, so hit up your local government office or their website. They’ll tell you what you need to do to get licensed. Usually involves filling out some forms and paying a fee.
- Health Permit: Health departments don’t mess around, and you don’t want to either. This permit shows your cart is clean and safe. Again, rules vary by location, so check with your local health department. They’ll likely inspect your cart and you might have to take a food safety course.
- EIN / Resale Number: The EIN (Employer Identification Number) is like a Social Security number for your business. You get it from the IRS, usually online, and it’s free. If you’re gonna collect sales tax (and most places you will), you’ll need a resale number too. This you get from your state’s department of revenue.
- Insurance: Don’t skip on insurance. Liability insurance covers you if someone gets sick eating your hot dogs or gets hurt around your cart. Shop around for quotes or ask other food vendors who they use. InsureMyFood.com is a good resource for insurance in the food industry.
To find this info, start with a good old Google search. Something like “how to start a hot dog cart in [Your City/State]” should do the trick. Check out your city or county’s official website, and the state’s department of health and department of revenue websites. If you live in a larger city like Los Angelos, all of this information might be clearly outlined for you on their website. And don’t be shy about calling up these offices either. They’re there to help, and sometimes talking to a real person is the quickest way to get the info you need.
Additional References:
Hot Dog Cart Manufacturer List and Reviews – Looking for a hot dog cart? Here we’ve listed all the major manufacturers from across the United States and Canada so you can see what your options are in terms of new carts.
We hope you enjoy this “ultimate” guide to breaking into the hot dog industry. If you have any questions, don’t hesitate to leave a comment below.
