Hot dog vendor gets the skinny on the economy

Cory Bakker is a former concrete worker who has been running his own hot dog cart, “The Hot Dog Hut”, for two years in Bellingham, Washington.  He got the idea after watching a morning talk show story about the hot dog cart business.  What appealed to him was the social aspect, sort of like being a bartender without the hassles that come with serving alcohol.

“I love talking, and it’s amazing what sort of conversations you have throughout the day out here,” Bakker said. “At some point, I’m going to have to write them down for a book.”

One of Corey’s challenges is that hot dog carts are not quite as familiar to folks in Washington state as they are to people in places such as New York or Chicago.  He hopes to see more people open hot dog carts in Bellingham and believes it would ultimately help his own business.

If anyone wants to help Cory out by becoming his competition, you can get started by listening to the free hot dog cart podcasts on this website.

-Steve

P.S.  Selling hot dogs is a lot easier on the knees than pouring concrete…

Hot Dog Cart Business For Sale $89,000

I just ran across an established hot dog cart business for sale in Bakersfield, CA.  It’s located in front of a busy Lowe’s home improvement center and has annual sales of $92,000.  Not bad.

The owner has listed this business through a broker, and it is a franchise operation, so there are some extra costs involved which bring the profit margins down to 40% which is really low (the average independent hot dog cart operator keeps 60% to 70% of profits).  The asking price is $89,000.

Good deal?  If you apply the usual business valuation formulas such as setting the asking price as a multiple of revenue or EBIDTA (Earnings Before Interest, Depreciation, Taxes, and Amortization), possibly.  But I’m not so sure.  Here’s why…

With a little bit of knowledge, you could duplicate this business almost anywhere in the country with start up costs under $5000.  With a little more knowledge, you could do it for $1500.  You would save $87,500.

That’s what I teach regular folks to do every day.  People with no previous business experience.  Would you pay $500 to learn how to do this?  (Hint: You won’t have to pay nearly that much.)

Where can you get this knowledge?  Right here: How to Start a Hot Dog Cart Business.

To your success,

Steve