How To Start A Concession Stand

How To Start A Concession Stand - Business Background Info:

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.
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.

The unique possibility of making a relatively large amount of money in a short period of time, a moderate investment of time and capital, and the ambiguity of a cash business with minimal licensing requirements, are some of the unique benefits that make the concession business accessible and attractive to people who otherwise would not consider self employment.

How To Start A Concession Stand - Tasks And Skills Needed:

Business Specific Tasks:

If you are planning to do all the business tasks or hiring or subcontracting tasks, here's a list of tasks that need to be attended to when it comes to the business side of running a concession stand business:

Bookkeeping

Accounting

Industry Specific Tasks:

Same as above if you plan to do everything yourself or get help, here are some of the tasks necessary to operate a concession stand business:

Purchase food items for sale

Purchase equipment as needed

Purchase napkins, straws, etc. as needed

Inventory management of all items

Sell concession stand item

How To Start A Concession Stand - Approximate Daily Hours Needed:

General Hours of Operation: - When your business is open - 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.

Hours Needed to Prepare - Before Opening and After Hours Activities - Clean and store equipment, restock supplies and food, dispose of trash, set up and break down equipment and stand as needed.

Number of Employees Needed To Run This Business:

Minimum Number of Employees -During the Start Up Phase: You can start this business yourself on a full-time basis.

Number of Employees - Once Your Business is Up and Running Successfully:

Website maintenance

Record/Bookkeeping

General office

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.

Skill Requirements for This 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.

Licenses:

The first step is to determine what kind of permits are required for your area. A state food handlers license is required in most states and you may have to have a local vendors permit. Other permits, such as permits to operate in a public venue may be necessary. You will need liability insurance and workers compensation insurance in most states. Your mobile food trailer will need a trailer license. Contact your local health department and inquire as to what permits are needed to start a mobile concession stand.

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.

Approximate Minimum Start up Cost:

Bare essential: - 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.

Minimal exposure - There are several ways to advertise for free but the stand itself has signage normally and exposure in high traffic areas such as sports arenas, city corners, etc.

Necessary Equipment to Run this Business:

Necessary Start-Up Equipment & Supplies:

Computer

Printer

Cell phone

Website

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.

Supplementary Equipment: - Equipment or helpful products that you can acquire to once your business is off and running:

Additional refrigeration and warming units

Additional storage for inventory

Monthly Expenses To Consider:

Wages
Phone/cell phone
Internet access
Permits
Advertising/Marketing
Electricity
Water

Special Requirements and Considerations For This Business:

Find out all you can about the trends in the industry. Know your competition, in particular, their strengths and weaknesses. This will help you identify your competitive advantage. In other words, this will help you figure out what you can give your customers that they're not getting from the other businesses. And keep from emulating the competition's strategy. Instead, make the most of your own advantage points.
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.
What kind of mobile concession trailer you buy depends on what kind of food you will be serving. Health department rules determine whether the trailer must have certain items such as a vented hood. The simpler the food you are preparing the simpler the mobile concession trailer might be.
For foods like cotton candy a very simple mobile food trailer will suffice. You can often find used mobile concession trailers for sale on sites like eBay and in your local paper. If you buy a used food concession trailer make sure that all of the equipment is in good working order. If machines such as cotton candy machines are part of the package, have the owner demonstrate that they are working.
What kind of mobile concession trailer you buy depends on what kind of food you will be serving. Health department rules determine whether the trailer must have certain items such as a vented hood. The simpler the food you are preparing the simpler the mobile concession trailer might be.
If you're a non-profit looking for a fund raising opportunity, a family wanting to work together to acquire the special things that are hard to save for, someone who needs a back-up plan in case of job loss, are under-educated, over-aged, or an ex-con and hard to employ, a student earning your way through college, a retiree needing to pad your retirement account, someone who needs the tax advantages of being self-employed, or, a free spirit wanting all the personal rewards of being responsible for your own income, the concession business is an equal opportunity, opportunity.

Pros And Cons of Opening A Concession Stand Business:

The Pros of Running a 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

The Cons of Running a 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.

Type of Customers You Need to Attract:

Types of customers vary according to the location you set up your concession stand at but you are generally dealing with the public at large.

Revenue:

Many food vendors generate thousands of dollars in a single weekend...if they know the secrets of the business.

Compared with nearly any other business with the same potential earnings a food concession business can be started with very little start-up capital. Better still, substantial full time income can be generated with part-time effort.

With a food concession you have the freedom and independence to build the business and income as large as you wish without needing to settle for what your time is worth at a regular job. Further, you never need to worry about receiving the dreaded pink slip. And, if you do happen to pursue another occupation, the concession is always there to fall back on if needed.

Concession Stand Business Resources:

Concession Stand Associations: These websites provide individuals with the opportunity to receive training and discounts to help them become a success in the concessions industry.

Concession Stand Business Plans: Business plans are necessary for attracting investors and obtaining business loans. These websites offer business plans for the concessions industry.

Concession Stand Forums: These websites provide a gathering place for those in the concessions industry to share tips, ideas, questions, and experiences with their peers.

Concession Stand Equipment: Each of these websites provides their customers with the equipment and supplies necessary to run a thriving concession business from anywhere in the country.

Concession Stand Supplies: Each of these companies work hard to provide their customers with great prices and convenient ordering options for supplying their concessions businesses.

Concession Stand Trailers: Detailed information on basic concession trailers and available upgrades are provided here. Concessionaires can select needed features and request quotes.

Businesses To Related to a Concession Stand Business:

Food industries
Baking/Cooking
Retail Sales
Catering