Concession Stand Ideas

12 Steps to Starting a Concession Stand Business

1. Ensure A Concession Stand Business is for You!

You have a choice as to what business you're going to start, so start one that's right for you. Getting into the right business can dramatically increase your success. Get into the wrong business and your success rate drops. Read Five Secrets to Getting into the Right Business for more information.

2. Understand How A Concession Stand Business Operates

How can you run a Concession Stand Business if you don't know much about the business? What if you run into an issue that you can't or won't deal with? Then what? You're in a business that you hate working in and that's a problem. See Understand How a Business Operates for more information.

3. Make Sure there is a Profitable Market for Your Business

What's the use of starting a Concession Stand Business that is not profitable? You'll be putting all your effort in something that can't support itself or you. There are a variety of issues when it comes to setting the stage for profitability. See Tips for Identifying a Profitable Market.

4. Create a Business Plan For Your Concession Stand Business

A business plan is a must for any size business because it helps you stay focused, see the big picture, and get funding. It's something that you create when you start your business and then update as your Concession Stand Business evolves. Read our free online guide on How to Write a Business Plan

5. Set up your Business Team

Setting up your team includes finding the right employees and professionals that will help you run your Concession Stand Business.

You don't need to employ everyone you work with, but you will need a team of people you can depend on, which could consist of a lawyer, accountant, banker, and consultant, as well as professionals in your industry. See Creating a Business Team for more on this subject.

6. Get a Small Business Loan if You Don't Have the Money to Start

If you don't have the money to get started, then you'll need the necessary financing or you won't have the opportunity to start your Concession Stand Business. This can be done as a small business loan, a personal loan, or other small business financing options.

For more on financing your Concession Stand Business see our guide on Financing Your Small Business

7. Legalize Your Concession Stand Business

In order to run your Concession Stand Business legally you'll need to abide by government rules and regulations on the state and local level.

You'll need to do your research, determine what type of business (sole proprietorship, corporation LLC, etc.) to register, create and register your business name, and register your Concession Stand Business with state and local authorities.

To go through the business registration process, see Chapter 6: Making Your Business Legitimate, starting with 6 Easy Steps to a Good Business Name.

8. Get Equipment for Your Concession Stand Business

In order to run your Concession Stand Business successfully and efficiently you'll need to acquire the right type of equipment. How can you run an online business without a computer? You can't! This is an important issue. See Acquiring Equipment for more on this topic.

9. Insure Your Concession Stand Business

Make sure you have the proper insurance for your Concession Stand Business. Without the right coverage you could lose everything you've worked for. For tips on insuring your Concession Stand Business, see our free online guide: Insuring Your Small Business.

10. Prepare To Accept Money

You'll need a way to accept money, you can't depend just on cash or checks. You'll need to accept plastic: Visa, MasterCard, and American Express. To do that you'll need to apply for a merchant account. See Setting Up a Merchant Account for more on this topic.

11. Set up Your Accounting System

Running a Concession Stand Business requires you to collect taxes, and report your earnings. So it's best to set up an accounting system in before you start your Concession Stand Business. See Setting Up Your Accounting System for more on this topic.

12. Acquire Customers for your Concession Stand Business

In order to exist, every business needs customers. Getting customers is one thing you'll need to be good at. If you can master the tasks of getting customers, it's just like turning on a cash machine almost any time you want. See Acquiring Customers for more on this topic

See Also: Our Free Online Guide to Starting A Business

Background Information about the Concession Stand Business

A concession stand typically consists of selling snacks, ice cream, hotdogs, candy, sodas, popcorn, sandwiches and pizza.

A mobile type concession stand often locates close to people who can't get away for lunch, such as construction workers, or people who are looking for a quick snack throughout the day, which can be anyone walking down the street.

If you have access to a mobile concession stand, love working with people, and would enjoy moving around serving customers snacks and lunches then perhaps a mobile concession stand business is the best small business venture for you.

What’s Involved in Running A Concession Stand Business?

Before you open up your concession stand business, you need to make sure that you have everything you need by taking inventory. If there is something that you are out of or low on, get some more to ensure you do not run out over the course of the workday.

You need all the help you can get in running your concession stand. Do not be afraid to ask for help from family and friends.

You will need to get to your concession stand early each morning to determine what is selling and what is not. If popcorn, hamburgers and pretzels are your best sellers, then you will want to prepare them in advance to cut down on customer wait time.

You have to be polite and friendly and be sure to listen to everything your customers say. Serve everyone as fast as you can, no matter his or her age.

The cities are filled with anxious workers who are looking for a quick lunch, hungry kids as well as attendants to sporting events and other activities. Concession stands are great in places where fast-paced people tend to gather.

It is critical to know which type of food to serve at each location.

For example, if you are working at a baseball game or other sporting event, you will have good luck with hot dogs and hamburgers. If you were stationed at the county fair, perhaps cotton candy would be a better choice. The types of food that you can offer are almost limitless; just be sure to do your homework to determine what is right for your location.

Pros of the Mobile Concession Stand Business

Running a concession stand is one of the easiest ways to get into the food service industry.
In the right location, a substantial income can be made from running a concession stand business.
You get to meet a wide array of interesting people on a daily basis, as well as connect with your regular customers.
You get the benefit of flexible working hours and arrangements.
You will get to travel to different locations during your work day, giving you the chance to see a number of different sights and not have to look at the same place for too long.
It can be a low start up cost business

Cons of Running a Mobile Concession Stand Business

You may have to work in bad weather conditions, making it quite unpleasant to do business. That weather may also drive away business because no one wants to be outside in bad weather.
Choosing the type of food to sell can be challenging.
You cannot simply set up shop at any location you choose. You need permission from the landowner and rental fees could cost you anywhere from $200 to $600 each month for a good spot.
At the end of the day, most concession owners must take their dirty dishes home to be washed each night. This is to avoid paying the fee to hook up to city water.
Concession business owners work in all kinds of weather and may lose some customers when the weather is not pleasant.
You may also have to spend a good deal of money on upkeep of your equipment so that you can have the freshest supply of food at the safest levels to transport it.

Equipment Necessary to Run a Concession Stand Business:

Graphic of A Concession Stand

The equipment that you need for your concession stand business varies depending on the type of food you plan to serve.

A pull-behind smoker is ideal if you plan to sell barbeque.
A concession trailer on wheels is a great way to become more of a permanent structure, allowing you to cook an almost unlimited number of different types of food. A trailer with only electrical, plumbing, cabinets and windows will run you about $9,000. A concession trailer that comes with everything you need to run your business can cost as much as $35,000.
A hot dog cart is right for a small investment.
A concession truck is like having a permanent building on wheel, but is the most expensive.
A cotton candy machine will cost you anywhere from $50 all the way up to $400.
A hot dog rotisserie will typically hold up to 48 hot dogs at once and generally costs from $400 to $800.
Nacho equipment actually comes as two separate pieces: a nacho warmer will run you around $200-$400, and a cheese warmer typically costs from $200 to $500.
There are two types of shaved ice machines. One makes small pellets from a bag of ice, while others shave a block of ice. Both types of machines generally cost from $1,000 to $3,000.
A commercial popcorn machine will typically cost you anywhere from $100 all the way up to more than $1,000.
You will need the tools, such as the microwaves, refrigerators, and other equipment to store your food. You will also need the food itself to sell. Additionally, you will want to supply things such as plates, napkins, and straws to help your customers eat the food they purchase from you.

Licenses necessary for running A Concession Stand Business:

You will need a business license, and because a concession stand sells food, you may have to be inspected by the health department and obtain a food vendor license. Average licensing costs for a concession business is between $60 and $300 per year.

Skills Necessary to Run a Concession Stand Business:

General knowledge of the operation of various food service equipment such as a microwave, soda dispenser, cash register, freezer, refrigerator, sno-cone machine, etc.
The capability of establishing and maintaining a working relationship with city officials, landowners, employees as well as the general public.
General knowledge of all laws and regulations related to food service.
General knowledge of preparing and serving food and beverages.
General knowledge of any occupational hazards, safety precautions, etc.
Ability to comprehend and carry out both written and oral instructions.
Ability to deal courteously and tactfully with the general public.
Some experience in the food service industry, or a combination of experience and training that will provide the ideal abilities, skills and knowledge to run a concession stand business.

Hours of Operation:

You will want to operate your stand anytime that there will be a lot of traffic in the area you are focusing on. This is heaviest around lunch time and early morning, if you are selling things like coffee or bagels. You could also do well with selling very late at night, as people are leaving bars. They may want food on their way home and you can use this knowledge to your advantage.

Associations:

National Association of Concessionaires

International Association of Food Industry Suppliers

Refrigerated Foods Association

Food Marketing Institute

Employees & job Requirement

Graphic of French Fries

Concession stand manager – The is a year-round job for a person whom will be responsible for the overall running of the concession stand. This person must be knowledgeable, dependable and capable. The concession stand manager is responsible for dealing with location owners and event coordinators. This person must also attend some type of workshop on food safety that is recognized by the Health Department.
Concession stand attendant – This person is responsible for the preparation and selling of various food items to guests of local events, etc. In order to qualify for this position, you must be friendly, well groomed and efficient. You must be willing to follow the standards as they are laid out for you, possess basic math skills, good customer service skills and be able to manage a cash register. You must be able to stand for several hours at a time and lift heavy objects.

Approximate Minimum Start-up Cost

The cost of starting a concession stand usually breaks down to 25% for food, 25% for labor, 5% for power, etc., 15% pre-tax profit, 5% for insurance and 25% for miscellaneous costs such as vending equipment service, paper, liability, workman's' comp, condiments, etc. Therefore, if you sell 100 orders per day at $5 each for 300 days a year you will be able to pay yourself $37,000 per year for your labor.

Additional Information:

There are a few different types of concession stand businesses. A freestanding business stays in the same spot and lets customers come to you. A mobile concession stand, or a concession trailer, allows you to move from place to place, serving flea markets, festivals, fairs, etc. A concession cart also allows you to move about from street to street to serve hungry people. A concession tent can be either temporary or permanent and are the least expensive to open.

Concession Stand Business Issues's:

Estimating Startup Costs - Find out if you're missing something

Concession Trailers - Find a suitable concession stand

Business Location - Choosing A suitable one For Your Concession Stand Business

Build or Buy A Business? - Buying an existing Concession Stand Business

Concession Stand Business Research:

Here are some popular terms people are looking for online. These may help you during your research.

concession stand ideas
used concession stands
concession stand foods
concession stand profits
concession stand rules
concession stands clip art

Business Builders For Your Concession Stand Business:

Business cards for Your Concession Stand Business

Business Plan for Your Concession Stand Business

Business Insurance for Your Concession Stand Business

Small Business Loans: Finance Your Concession Stand Business

More Business Ideas:

Share |