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.
Oh, by the way, you can read the original story from the New York Post here.
Later,
-Steve
John Kennedy
// Jan 7, 2009 at 6:29 pm
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
steve
// Jan 7, 2009 at 6:58 pm
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. Send it to steve@HotDogProfits.com.
-Steve
Virgil Bierschwale
// Jan 7, 2009 at 8:26 pm
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
http://www.KeepAmericaAtWork.com
Guy
// Jan 8, 2009 at 3:24 pm
What’s the story with all the Home Depots? I live in central florida and see they have contracts for all the hot dog carts. After some research I found the same guy holds all the contracts for all the Lowes and Depos around my area and towns near by. I called streeteats but that was a mistake. You need to do all the leg work after paying them for a service thats a scam. so how does one get into lowes or the depot?
Cathy Deskins
// Jan 8, 2009 at 8:56 pm
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
Steve
// Jan 9, 2009 at 2:08 pm
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
steve
// Jan 9, 2009 at 2:59 pm
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
John Kennedy
// Jan 9, 2009 at 4:49 pm
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…
JAMES
// Jan 12, 2009 at 4:15 pm
what was the answer to Guys inquiry about the Home Depot and Loews food concession scam.
Ralph
// May 18, 2009 at 6:19 pm
Just another example of the good stuff on this blog OOOOHHHRRRAAAHHH John and Steve.
Joe
// Apr 16, 2010 at 10:05 pm
does anyone know what the deal is to own and operate a hot dog stand outside Home Depot? I’m looking in Florida, Broward and Palm Beach County. I’d really appreciate some help
willydog
// May 18, 2010 at 12:33 pm
Aside from location, here are some other tips to make your business enterprise successful
http://www.worldsbesthotdogcarts.com/business-guide/customer-service-guide-for-the-hotdog-cart-vendor
Jose Trujillo
// Aug 19, 2010 at 1:23 pm
Is there anyone that know who I need to contact to get a hot dog car at HOME DEPOT, Jt
Jose Trujillo
// Aug 19, 2010 at 1:24 pm
Correction, I would like anyone to help me who to contact, to get a hot hog stand at a HOME DEPOT in ORANGE COUNTY, CA, JT