Start Your Business In 10 Easy Steps
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What you need to Operate
First you have to decide what you are going to sell IE: Chile Dogs, Cheese Dogs etc. This will of course determine what you need to purchase
We strongly advise you to keep it simple for the first few days. Things will get confusing enough out there on your first few days, the more choices you offer your customers, the more confusing it will get. As you get more comfortable and more experienced then you can expand your product line. The bottom line is to give yourself every break you can as you get started.
Although when you get rolling it will be wise to purchase in bulk, it may not be wise to do this when you are just starting out, especially perishable items. If you can avoid freezing anything, that is ideal. Freezing does detract from the quality of the product, there is no way around it. Hence to get started it may be wise to simply go to the supermarket for most items (there are exceptions). By doing this you can get only a few days worth of inventory and instead of tying up $500 or $1,000 at a time when you may need the cash, you will only be tying up a $100 or so. Yes this will cut into your profits for the first few days, but it is best to establish a pattern before you start tying up large sums of money by making major bulk purchases.
The Basics
The following are the mandatory items you will need to get started. We Will also offer some tips, both for short term and long term purchasing.
Hot Dogs
You can’t run a Hot Dog Cart without selling Hot Dogs. It would be wise to bring at least 200 Hot Dogs with you to the site. Restaurant supply companies can supply you with Hot Dogs in 10 Lb. Boxes. The amount of Dogs in a 10 Lb. box will vary depending on the size and shape of the dogs. 3 or 4 of these boxes will do to get you started. Refrigeration of course could become a problem. This is something you will have to address as you get rolling. DO NOT freeze any dogs immediately. if you have to later that is OK, but if you can use them unfrozen you will be much better off. A 10 Lb. box of Dogs should run between $12 - $15. This should keep your Hot Dog cost under $0.15 per unit as opposed to $0.25 - $0.30 per unit in the supermarket.
There might be a temptation to deal with a brand name Hot Dog. That is fine if you can purchase locally. If you cannot, the shipping charges will add almost 100% cost to your Dogs. It just does not make sense.
Rolls
You should start with 15 to 20 dozen rolls. We will address storage issues on the cart later. Rolls can be purchased from any local bakery. Most bakeries have delivery trucks that will deliver right to your door. These are the same trucks that deliver to the supermarkets. This is ideal because you can start with fresh rolls everyday. This is important, there is nothing worse than selling a product that is determined not to be fresh by your customer.
Ice
You need ice for your cooler. If you have freezer space available, buying ice in bulk from an ice house or making your own will save you a fortune. Ice at $0.69 - $1.00 per bag will add up quickly, but if this is your only option, it is your only option
Soda
Soda is funny. Many times it can be purchased at the supermarket at a lower price than from a restaurant supply house. Keep your eye on the sales flyers, you can get some great deals. Try to keep it as simple as possible with your sodas. The more flavors you offer, the more time you will spend fishing through your cooler looking for a particular can. Also be sure to offer bottled water, this is a huge seller these days. You can also offer things like Lemonade from a thermos. If you make it from concentrate yourself this will be a big profit item.
Condiments
You should offer at a minimum
Mustard
Relish
Onions
Ketchup
If there is anything that has local appeal, be sure to offer that as well
Onions should be pre-sliced at home. You do not want to spend time in the field doing this.
It is best to keep condiments in Tupperware containers with covers.
A big problem with your condiments will be contamination. IE the mustard getting in the onions or vice versa. This can be a real turn off to someone who does not like onions or mustard. You should supply a plastic spoon or knife for each condiment. This will not completely stop contamination, but it will help.
Every time you get a chance, remove any contamination you see from the condiments.
Pre-made Packets can solve this problem, however they are much more expensive, they also tend to get thrown away unopened by customers (They will take 5 packets and only use 1). Also the empty or unused packets tend to get thrown on the ground and you are constantly cleaning up. We advise not to use the packets but that is up to you.
Plastic Utensils for condiments
Discussed above
Potato chips - Candy etc.
You need to offer at least something aside from just Dogs. Chips and candy are high profit items as well. 20 or 30 bags of chips and 20 or 30 candies should be fine to get you started. These are impulse items, hence you want to place them in a visible location. This is exactly why we have supplied you with a display case. Since the case has Plexiglas doors, try to park the cart in the shade or such that the umbrellas shadow covers your display case. Candy will melt quite happily and quite quickly if the display case is exposed to direct sunlight.
Propane
This may sound obvious, but don’t forget to fill your propane tank, this will cost you about $7.00 and should last you about 2 weeks if you work 40 hours per week.
Water
Be sure to fill your water supply tank before setting out to your site. This however may not be enough water to last you through the day. You will likely not use this water for hand or utensil washing but you will need it to steam or boil your dogs. You will get a lot of water loss during the day and 5 gallons may not be enough. You can carry extra water in gas containers - be sure they are only used for water and keep them clean.
Some vendors have success using bottled water to boil their dogs, this is advised if you live in area with hard water. This will cost you a few dollars extra but in some cases will radically improve the taste of your Dogs.
Napkins and Paper Towels
Napkins must be supplied to your customers. Paper towels can be used to keep your cart clean.
Serving Tongs
When serving a dog, handle the bun in a napkin and use the tongs to remove the dog from the tray. If you are removing it from the boiling water, let it drain for a few seconds, you should try to avoid doing this by keeping dogs in the warming tray, but if push comes to shove you can get away with it. There is no BIGGER turn off in this disease conscious society to have someone see you handle their food with you hands. We all know it happens but seeing it has a whole different numbing effect.
Cash Apron
It is much easier to work out of an apron than your pockets. One of your largest challenges in operating a cart is collecting the money and making change. The more you can speed this process, the better off you will be.
Change
Be sure to bring at least $50 in change. More is even better. 2 or 3 Tens, 5 or 6 five’s and at least 25 ones. Bring at least 10 Dollars in coin change. There is nothing worse than losing a sale, and to lose one because you cannot make change is unforgivable.
Garbage Container
If there is not a trash can supplied where you are operating, bring your own. It is an absolute must to keep your area clean. A customer seeing trash all around you is a signal beacon for them to keep on walking.
Extras
If you are selling Chile Dogs, obviously you need Chile etc.
Optional but advisable items
Extra Cooler
The soda cooler supplied can hold about a hundred cans of soda, but remember you have to keep your Hot Dogs somewhere too. Hence you could get jammed for space. Also Hot Dogs can get in your way when searching for soda. It is best if you can keep the stand by Dogs in a separate cooler.
Extra Propane Tank
A Propane tank will cost you about $20 - $30. You could easily lose this amount if you run out just once. This also allows you to run a tank all the way down before refilling.
Keep this one thing in mind. Leaving your site because you ran out of something will not only be an inconvenience but will cost you money. Also if you run out of something and cannot offer it to your customer, you lose money. You goal is to not run out of anything.
If you do happen to run out of things in the first days, don’t worry about it, it is not the end of the world. It is very hard to guess what your volume will be in the first few days
At the Job Site
Everything you need to bring to the site will not and cannot be kept in the cart. This means you will need to use the trunk or interior of the towing vehicle for extra storage. If you have a pick up, the bed would be ideal.
As stock gets depleted, remove items from storage in your car or truck and place them on the cart so they will be immediately handy.
***** Warning *****
Do not attempt to tow the cart with covers loose or the umbrella in position.
Your work area at home
You should to try to set aside an area in your home strictly for the operation of your cart. This is where you can store all your stock etc. This will also be a place where you can have a spare refrigerator. In the ideal world having a refrigerator dedicated strictly to your Hot Dog business is the way to go. A freezer would be a bonus as well. We do not under any circumstances recommend freezing food but if you must you will have the space. However, the biggest bonus of having a freezer will be to have a place to make your own ice, or at least buy it in bulk and store it. This will save you a huge amount of money over time.
Jack Nicklaus who is arguably one of the greatest golfers to ever play the game says that he knows he is going to hit at least 5 bad shots in every round. Once you learn to accept you are going to make mistakes, you can then go on to learn from them. Don’t sulk over them. Accept you will make some mistakes, and move on.
During these first few days, pay attention to what you are doing. Develop habits that emphasize minimum motion and maximum speed. It is likely you will not get bombarded on your first day (but you might). In any case developing good habits will be the key to be able to keep up with the crowds when they come.
Also pay attention to how your cart is set up, where things are, what is the best way to place things etc. We will discuss this further in the next section - “Setting up your cart”. In any case organize you cart so it works for you.
We will not lie to you. The first days on any job will be hard. Operating your cart will be no different. Just hang in there, and above all don’t get discouraged. Keep in mind it beats the hell out of throwing on heels and a dress or a shirt and tie and working in some office somewhere.
Food Preparation
Note : Although we will refer to cooking your hot dogs : in actuality Hot Dogs are already cooked when you purchase them. All you are really doing is heating them
Your cart is supplied with 2 burners. In general one burner is kept on high to boil the water in your cooking tray. The other burner is kept at a lower warming temperature (approx. 140 Degrees F). It will take some experimenting to determine what the proper setting is for your warming tray. The required setting will vary with outside temperature, wind etc.
1 of the large trays should be used for cooking your Hot Dogs, the 3 remaining trays can be used to keep cooked hot dogs warm, buns, Chile, sauerkraut, melted cheese etc.
Boiling is the preferred technique for cooking your dogs. There are several reasons for this.
WHY BOIL
Boiling is FAST
Your goal in this business is to pump out volume. Boiling will allow you to make the most and sell the most Hot Dogs per hour. if you are in a high volume situation, this will be the only way you will be able to keep Hot Dogs constantly available. People are also used to boiled dogs off of a cart. Because the dog is already cooked, you can boil a dog in about 60 seconds. You will have to do some experimenting with this. Your goal is to only boil the dog as long as you need to, but to boil it long enough so that the center is hot. There is nothing worse than biting into a Hot Dog with a cold center.
Boiling is Efficient
Boiling is the most effective way to get the entire Hot Dog hot. Boiling can also resurrect a dried out dog, steaming or grilling will only make this worse. Hence by boiling you will throw away less dogs and less profits.
No Lost Sales
The biggest advantage you have in this business is speed. McDonald’s and Burger King are called Fast Food, but they cannot come close to competing with you in the speed at which you can deliver your product to the customers hands. People today just do not want to wait for ANYTHING. Hence if you have Hot Dogs all heated and ready to go, you will not lose sales. However if you are grilling or steaming your dogs and you run out, a person may have to wait as much as 10 minutes for the next batch to be done. More than half your customers will not be willing to wait and you will lose those sales.
Boiling allows the flavor of the Hot Dogs to seep into the water. This makes for a
more tasty Dog
Steaming
Some people prefer to steam their dogs. if you choose to do this you will need an additional steamer insert for your pan. This can be obtained from us or from any restaurant supply house at a cost of about $25.
If you choose to steam your dogs you must keep the tray covered as much as possible, or else your dogs will take forever to get warm. This presents a problem since you will have to pop the cover every time someone wants a dog, if you are busy it will be very tough to get your dogs hot.
Grilling
Grilling is great, it gives a hot dog a nice look if done properly. If not done properly you will be throwing away a lot of dogs, and your profits with them. Although you may have the best intentions of dutifully watching the dogs on the grill and turning them at the proper times, you can be easily distracted by customers or be busy doing other things. Bottom line is that if you do decide to grill dogs, you will be throwing a lot of them away. One solution to this problem is to have another person work with you and have their only function be to work the grill, or you can work the grill and let the other person do everything else.
A grill can be supplied as part of the cart at an additional $300. You will lose some warming tray space with this design. You can also have a separate grill off to the side as well.
REMEMBER THIS
In a recent survey we asked a few of our customers to ask their customers what was their reason for purchasing from a Hot Dog Cart. This was by no means a scientific survey, but here are the answers we received.
Speed or convenience : 61%
I was Hungry and I saw you : 25%
Other : 14%
In addition we also found from this survey that more than 70% of customers are regulars or at least had purchased from the cart before. Hence repeat business is a key factor in your success
As you can see, speed is your big edge in this business. Boiling is the ONLY way to go.
Keeping Product Warm
The biggest thing you want to watch for is allowing your Hot Dogs to dry out. If you are boiling you can simply pop a dried out dog back in the water and it will be OK. If you are not, any dried out dogs are lost.
Many people choose to keep their buns warm. DO NOT STEAM BUNS. Steam operates at 212 degrees F. This is enough to actually start to cook the roll. If you attempt to steam rolls to keep them warm, they will start to get hard and give the appearance to your customer they are stale. This is not a good thing.
Things like melted cheese, Sauerkraut, Chile etc. should be kept covered at all times. Insects just seem to love Chile. Other than that, 140 degrees should be more than enough to keep these items warm.
Insurance
Some jurisdictions may require you to carry business liability insurance. this can be obtained for usually around $100-$200 per year. Contact your local chamber of commerce to see who in your area supplies this service. Not every insurance company handles these type policies.
Pricing
What you can demand for a dog will depend highly on the area you are in, what the competition is etc. The best way to determine pricing is to see what other cart operators are charging and go from there. Keep in mind it is easier to drop your price than raise it, so start high. if it seems to be a problem, you can always drop it.
When pricing your items, try to keep the pricing simple. We recommend $0.25 increments. This simplifies the math and requires you to only carry quarters for change. Anytime you can set a price at an even Dollar amount, that simplifies things even more.
If Sales tax applies to your area, take that into consideration and add it in to your price. If you do not, you will be charging all kinds of weird amounts and spending too much time making change.
Working the cart
Many people are surprised when we tell them the biggest challenge in operating the cart is collecting the money and making change. Scooping a dog out of a tray and serving it is a 3 second job once you get used to it. The money part of it can take as much as 30 seconds at top efficiency. Now we know 30 seconds does not sound like much, but it all adds up, especially if people are lined up, and of course that is what you hope for.
Here are some tips for operating your cart and organizing your time.
Use easy pricing as mentioned above
This makes giving change much easier. It also cuts down on mistakes in addition or subtraction., A few mistakes can be expected, but too many of them can be costly. A customer will tell you in a second if they are shortchanged but if they are overpaid, most will walk away with a smile. In fact some people make a game out of deliberately trying to confuse you. Just always keep in mind that collecting the money is the MOST important function you have out there. Money is what this is all about, never forget that and you will be OK.
Condiment Handling
Your goal in dealing with your customer is to get there money and get them out of the way. This may sound rather harsh and of course you cannot be rude to your customers, but this is really your goal. The reason is very simple. Your cart only affords you a very small area to work. if you have customers crowding that area it has 2 negative effects. First they are physically in your way, second if your cart appears crowded, someone may choose not to stop. Remember your best asset with the cart is the convenience. If the area around your cart looks crowded, the convenience disappears for a potential customer.
In keeping with this strategy - DO NOT put condiments on the customers dogs for them. Let them do it themselves. Also be sure to locate the condiments as far away from your working area as possible. In fact a portable card table ten feet from the cart is an ideal place. This naturally moves the customers out of your way. I cannot emphasize the importance of this more.
Sodas
Next to collecting money, your biggest time consumer will be fishing for a particular flavor of soda. There are a few strategies you can implement to speed this process.
Organize you cooler as best you can
Minimize the amount of flavors you sell. 4 or 5 should be plenty.
Keep Hot Dogs in a separate cooler out of your way
Dealing with People
I have been both a bartender and a Hot Dog Cart operator in my time. You cannot believe how similar the 2 jobs are. Just like a bartender you are going to find that you will develop regular customers that just want someone’s ear to bend. I really cannot offer any solid advice on how to get rid of these people but I can tell you, get rid of them. You are there to make money. You cannot afford to get tied up in a meaningless conversation. Do your socializing after the cart is put away for the day.
Be nice but businesslike. Do not encourage long conversations, but don’t be too short either. It is a definite balancing act, but remember, this is your job and you are working. NEVER ignore a waiting customer to finish a conversation with a customer that has already been served. Always keep in mind that your time is valuable and is best used by filling your pocket.
Keep your Cart and area clean
Lack of cleanliness will be your biggest loser of business. People will likely not be impressed if your cart and area are clean, but they will be unimpressed if your area is not spotless. You should clean up your area before you leave for the day and clean your cart thoroughly when you return home. Since the cart is all stainless steel this is not a difficult task.
Growing your hot dog empire
The first and easiest thing to do to grow your sales is to add strategic items. These do not even have to be food items. It could be balloons, flowers, maps etc. Start off with small quantities and see what works.
Another way to grow even faster is to operate more carts. By getting to the point of operating your first cart, you have overcome many obstacles, health inspections, permits. leases etc. You have gained valuable experience and done something that most people get discouraged from even trying after their first phone call or two. Why let this experience go to waste. Future carts will be easy to get going.
The problem with expansion however is employees. If you can get someone you trust to operate other carts, that is great, but if you need to hire someone or simply do not completely trust a person, there is an easy way to operate another cart and not worry about getting ripped off. You merely lease the cart to someone. This way they buy their own product and have an unlimited profit potential. You collect $100 or $150 per day for use of the cart. It is an ideal situation for both parties. Yes you could make more money by paying a person $6/Hour to run the cart but you will also have an exponentially higher aggravation factor. This way you give someone a chance to make a dollar and you can pay for the cart in a month. It is a good way to go. You can even have the person return the cart to you every day, this way you can make sure the cart is being kept clean and is not being abused.
Summary
If you keep in mind what this business is all about you will do just fine with your cart. You are not running a gourmet restaurant. You are offering a hearty meal at a small price that can be delivered in seconds. That is ALL you are doing. If you do not lose site of this you will be OK. People who try to get exotic see their efficiency go way down along with their profits. This is not rocket science - just remember that.
Your appeal is convenience, it is not even the quality of the product you sell (although the quality must be good). The point is that you could have the best damn Hot Dog in the world but you would be hard pressed to get 10 cents extra for it. Some would happily pay, but most would not. Leave the gourmet Hot Dogs for the Labor Day Backyard Barbecue.
The other thing you cannot lose site of is the purpose of this endeavor - making money. As long as you stay focused on that and make all your decisions and operate your cart based on that goal, you will do just fine.
We at VE Services wish you all the Luck in the World.
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