I got an email from a soldier in Iraq who wants to start a hot dog cart business when he gets home, but he has a hard time believing he could make a real income selling hot dogs. If any of you have the same doubts, they will be totally blown away after reading this story.
What’s the difference between making money and making a LOT of money? How about 100 feet?
New York City hot dog cart operator Pasang Sherpa knows the value of the right location. Sherpa sells his dogs outside the Metropolitan Museum of Art and recently outbid two rivals for the rights to both the north and south entrances to the museum.
Before I tell you the winning bids, think about how much you would pay for the rights to these locations. Keep in mind that together, his two carts are right in the path of over 5 million visitors a year – and the only other food is blocks away.
Here’s a hint: The north entrance gets a lot more traffic because many museum visitors use the nearby 86th Street/Lexington Avenue subway express stop. So Sherpa paid $80,000 more per year for this spot which is 100 feet away from the one at the south entrance.
OK – are you ready for this? The rents are $362,201 for the north, and $280,500 for the south. Holy #%&* ! I’m having a hard time getting my mind around this. How many hot dogs, chips, and sodas do you need to sell just to break even? Let’s do the math:
Keep in mind this is a premium tourist destination and there is no where else to eat. I’m guessing that a dog, chips and soda would sell for $8. If so, Sherpa needs to serve 80,338 meals to break even. That’s less than 2% of the 5 million folks who walk right by his carts on the way in or out of the Met each year. Granted he has other overhead to cover, but nothing even close to those rent payments. If he sells to just 10% of the tourists he will gross…
Four million dollars a year. I’m getting dizzy.
But here’s a lesson. Before you sign anything, make sure all your ducks are in a row. Only one of Sherpa’s carts passed the health department inspection, and his coveted north entrance will be blocked by construction for months. Again, holy #$&* ! Wouldn’t you have done a little more due diligence before jumping into the big leagues? So now he doesn’t want to pay. Big surprise.
If you want to know how to make just a tiny fraction of 4 million dollars a year with your own hot dog cart business, head on over to HotDogBiz101.com. There you’ll learn everything you need to know to start and run your own highly profitable hot dog cart business, including how to get locations rent free. See you there.
Later,
-Steve
Steve, does that soldier already have your book? If not, I would be willing to pay for half the book and shipping if you can find someone to pay the rest!
John
You’re awesome John! I’ll pay the rest. The soldier’s name is Kevin and I saved his email address. I’ll try to contact him today for his APO address. And just so everyone knows, this needs to be a one time thing. I’m sorry that I can’t afford to do this for every one but I’d lose my shirt.
I’m actually working with a gentleman who is starting a nationwide hot dog cart franchise in conjunction with a non profit organization to help returning vets get into business for themselves. As you can imagine, many are disabled and have a hard time finding employment upon their return. More details to come.
Kevin, give me your email address so we can get together on this.
-Steve
Now thats a good article to somebody that can no longer find good paying work like I’ve had in the past.
Keep up the good work because there are lots of us that are reinventing ourselves and who knows, if I can put the money together to open a place here in town, I might just become one of your customers too.
Virgil
Hi Steve,
This article was great! I’m so interested in getting a hot dog stand going. My grandparents, who were retired school teachers, did this in the fifties and I used to help them during the summer. Most fun I’ve ever had!
Anyway, if I can ever find a way to get enough money together to get started, I’m going to try it. I work at a school, as well, so needless to say, I’m not getting rich here.
Keep up the good work!
Thanks,
Cathy
I just heard back from SGT Kevin:
Hi Steve, i want to thank you and John for the book, i really appreciate it as i was thinking one day while on patrol, “man that would be nice working hard for myself for a change if i worked as hard for me as i have for others i could possibly do better” anyway, thanks again and i will give this 120% effort and i feel more confident now that i have read all about the business on your site, thank you SGT Kevin Alcorn
We send SGT Kevin a copy of “Carts of Cash – The #1 Hot Dog Cart Startup Guide” courtesy of our friend John Kennedy (see comment #1).
Here’s the email I sent this morning:
Hi Kevin,
I happened to mention you and your question on my blog, “Hot Dog Cart News” the other day. A customer of mine named John Kennedy (yes that’s his real name) responded and offered to buy a copy of my book “Carts of Cash” for you. He paid half and I paid half.
John said, “Least we can do for those who put their lives on the line for us. I
hope he enjoys it as much as I did mine.”
So, I’m shipping it out today to your APO. Enjoy! And thank you again for all you do for us.
To your success,
Steve
Excellent! I’m glad we could get this together for Kevin. I’m sure he’ll succeed no matter what he decides to do when he returns.
John
PS: I just ordered the cart plans…
Just another example of the good stuff on this blog OOOOHHHRRRAAAHHH John and Steve.
Yah so whats up everybody, im thinking about starting up a hot dog stand in az because i fell into possession of a cart and my bro’s girl made some bomb hot dogs last night, got me inspired. john that was very altruistic what you did for that soldier, good for you. Good luck everyone
I just recently applied to the Home Depot in Pocatello, Id. to put my hot dog cart in front of the building there. The GM is on board and that specific location hasnt had food in front of it for two years. The only way to get in there words straight from the GM is to go through Street Eats Limited so as far as I’m concerned it is not a scam. Good luck and happy selling!
Derek,
Street eats is a legitimate company. Expensive but legitimate. In the right location, it can definitely be worth doing. Thanks for your input Derek – good stuff!
Hi Derek,
This si my first year slinging dogs and I started in front of a Menards in the Minneapolis Mn area. Am paying $500/mo. but the foot traffic is pretty good and my sales have been steadly increasing. What do you pay for the Home Depot site and is it working out for you. My menu is is very simple, hotdogs, coneys and brats – how about yours?
Here’s an answer for your home depot questions. You do not have to go through street eats in some cases. If you talk to the manager and explain that you can be an asset, he or she in most cases will say, “sure, when can you set up?” You will definitely have to go through zoning and environmental health first. Street eats and managers may find you spots all day long, but these two agencies have the first saying. You will also need a commissary as your base of operation. Do not buy a cart until you do the research.
I just did.
I have begun to study the business and am wondering if anyone has an idea on what I should be buying hot dogs at? Cost wise. I am trying to break down the cost of everything and what to set my menu prices. Think I want to go with a high quality dog like Sabrett, but not living in NY, am finding them to cost me 15.00 for 5lbs, which is like 38 cents a dog. Is that a good price?
BM
Hi Bryleigh,
38 cents a dog is a bit on the high side but you can still make a good profit at that price point. The key is to sell a unique product. Create some “signature” dogs with names of their own. Use out of the ordinary condiments. Give the customer a fun experience. Those are the things that differentiate you from the green $1 hot dogs on the roller grill at the gas station. Those are the things which make it possible to charge $3 to $4 a piece for your hot dogs.
As far as pricing, commissaries, permits, locations, inspections, and all the other details required to be successful, I’m going to give it to you straight.
Here’s what I recommend:
If you’ve never done this before, you need to join my Hot Dog Profits Premium membership. You’ll learn more there than you would in a month of expensive and stressful trial and error at the job site.
It’s really an investment in your success. You can get more info at www.HotDogProfitsPremium.com
Go ahead and sign up today. I’ll see you inside.
Let me know if there is anything else I can do for you Bryleigh!
Street eats wants 1500 a month to lease Home Depot spot is it worth it? Can I make sell enough to make a profit?
It depends of the amount of foot traffic. That is awful steep rent though. See if you can hook up with another store in the same strip mall where you can deal directly with the store manager. You could take advantage of the Home Depot traffic and perhaps swing a better deal rent-wise. It’s still a free country.
Is it better to have a location where people are walking in and out of a store or gas station or on the side of the road where people are driving by providing there will be adequate parking ?
Either one will work. From my experience, the roadside option takes a bit longer to build an established customer base.
One more question lol. We are out scouting locations and you have been a big help. Question. There will be a huge mine opening soon planning to employ around 1,500 people. We were told we could sit at or net to the location. To me this sounds great and where this is has not much food options other them a convienient store???; )
Sounds like a goldmine Christine – pun intended 😉
Seriously GO FOR IT!
Hello. I just left a location where I was making about 250 a day but had to leave because the man letting me use his parking lot opened a kitchen. I have a big following and there is just a Italian resturaunt and now this new kitchen in the area. I wanted to just go up the road to stay close to my customers but an ace hardware 10 miles from my old location is letting me sit. There is a lot more food options because I’m in town more. It is a huge ace. Should I give it a chance because I only made 12 dollars my first day. I’m temped to go back to my old area close. I’m kinda
Freaking out now lol. It’s either sit in a dirt lot off the side of the road where my regulars know where I am or start over at a location with people traffic. Ugg. Should I give this a chance
This is why you should be building a customer email list from day one. Then you could simply shoot an email to everyone telling them where your new location is.
Hi Jose, the whole state of california makes food carts extremely hard to operate, most cities usually will not allow hotdog carts, even food trucks are very hard to start up in some cities. With regards to home depots, lowes, walmarts, etc? with my experience, they only allow non profit organizations to sell food , very sad.
Respectfully Steve, that’s just not true as a blanket statement. We have many California students who have achieved success. You just need to work with your inspector and develop good relationships with the folks at city hall. Can it be a challenge? Yes. Can it be done? Absolutely!
to steve how much will it cost to open up a small hot dog restaurant in the Birkenhead or Northampton area in uk ok then please call me on 0151 666 1673 ok asap thank you
It varies tremendously. That is like asking how much new cars cost. Do you want a Mercedes or a Ford Fiesta?
Hi Steve!
I just want to thank you, for being such a great American! If you’re not the best in the business, I’d say you’re 99.99 & 3/4! I so look forward to your thought provoking information. You, and all the great slingers, are such an inspiration.
Ron
Mo Hot Dogs
Thanks Ron. You and all the folks who read this newsletter (especially those who share their knowledge in the comments) are what makes HotDogProfits such a great resource. The credit goes to you Ron!
Another great article and thread of comments….. As you know Steve, in ’15 I was paying right at $450/mo for my location in a downtown setting. Come 2016, they wanted $600/mo, which I declined, and moved 4blocks south and paid $200/mo (income cut by a third at new location. Now in October 2016, I’m paying $1500/mo in my new brick&morter, but now I’m in the heart of the historical downtown area, sales are up five times what they ever have been – my point, just like you said, location is everything. Customer service & experience has a lot to do with success, but that first step is LOCATION!!!!
Great job Mike!!! Location make a huge difference indeed.
Oh yea, 38cents doesn’t sound like a lot to me on the meat cost. I pay 47.5cents per dog (Nathan’s 8:1’s), and 71.5cents for 4:1 Nathan’s. $2.50 8:1’s retail, $4 4:1’s all day long (well, 11am to 5pm during the weekdays, not all day – lol) my generic all-beef (9:1’s) cost 22.5cents ea, retail for $2 – the generic is my dog for those who want a cheap dog, and it’s only about a 1/3 of my daily sales.
Right on Mike.
Steve…
Purchased a hot dog cart and almost bailed out. I kinda didn’t do my homework and purchased the cart to then realize how difficult the state and city makes it for you. The location is certainly first and foremost before venturing into this business.I just received great news that a local gas station will allow me to set up. But the owner like myself have no idea how to determine a fair price for the location. Any idea how to determine a reasonable price? Tks
I like to barter advertising. You have a cart, tow vehicle, menus, punch cards, etc. All of these are places to advertise his business. Make a deal.
I am a disabled veteran with both yellow and white nyc lic also mobile food vending dept of health cert where can I sell in nyc.
You’ll have to check with the city to find out for sure.
Steve i’m in a discussion regarding is there data on how far or time a person(s) will travel for lunch or hot dogs (might make quite a difference) given these people have a time constraint such as working hours. for example if the cart is in a different location verses fast food row. use your self or your members as an example and also throw in a cart vendor at another location.for results as two or more carts will be in the playing field. Thanks Joe
I don’t have that granular of a data set to extrapolate an answer for you. I think common sense and trial and error testing at your own cart will give you the answers you need.
Joe Roman, I can tell you from personal experience. When I was a kid learning the legal biz as a poor (and starving!) legal clerk, there was a hot dog vendor in front of the building where I worked. If I forgot a packed lunch, I flew down the steps, ate on the sidewalk and zipped back to work (no paid lunch hours back then!). Would I have gone 4-5 blocks to my car and driven to a hot dog stand. No way. Proximity is paramount, be where the people are *hungry*. That’s my 2 cents worth.
Do you have any thoughts on having hot dog stand close to a busy transit/train station with 50000 people walking past every day? Are there any estimates on what percentage of walk by traffic would convert to be customers? Are transit stations good locations for hot dog stand?
Any place that has a lot of foot traffic during meal hours would be a good place to set up. How many convert to customers is a function of many variables, including your placement (10 feet can make a big difference), visibility, appearance, signage, etc. The only way to know for sure is to try it. Good luck!