Hot Dogs Saved My Life! by Ben Wilson

Author:Ben Wilson
Language: eng
Format: epub
Tags: self employment, hotdogs, entrepreneur business ownership business plan business for sale exit plan succession planning business escrow sacramento business valuation sacramento business value, entrepeneur, vending, hot dogs, hot dog cart, hotdog cart, vendor, hot dog truck, concession, push cart, benscartscom, benscarts, bens carts
Publisher: Ben Wilson

CHAPTER 9

Catering and delivery

I have already given you some ideas for catering in the beginning of Chapter 8, but many vendors get involved in this business with the idea of catering only. They do birthday parties, office parties, holiday parties, grand openings, store closings, etc.

Regardless of whether you plan to cater, you will get asked. You are serving customers on your cart; some of these customers will be so impressed with your attitude or your theme and your menu, that they ask if you cater.

Catering benefits include having a set time for the job and usually a set price, which means you know what you are going to make before you begin. One hot dogger wrote me about his ten-year stint at a car dealership. He worked every Saturday for a flat rate of $600, his take home about $420. Not bad for one day of work.

You will get the occasional, “Can you do my little Johnny’s birthday party?” Remember, it will take the same effort to set up and clean up after serving thirty hot dogs to some children, as it would if you served 400 dogs to an office party. I don’t do the little parties and I have a minimum I charge. Your minimum may be different but, whatever it is, stick to it.

You can determine your minimum with a little simple math: figure what the minimum you are willing to do the job or event. Let’s say it’s $150. Remember, you will have set up and clean up, and you will probably only want to agree to one hour there for that fee. Divide the $150 by $5.00 (or whatever price you decide to charge for your meal). In this case, 150 ÷ 5 = 30.

Add it all up and there is your minimum. Costs per meal can vary depending on whether you are serving eight-year olds or eighteen-year-olds.

I use this method to calculate any catering:

I want to bring in the same as if I had sold 100 meals. My meal price is $5.00, and I give them a $1 discount ($4.00) and my minimum is $400. This covers up to 100 meals (two dogs, drink and chips). This guarantees you a $400 income, less your costs of about 32%. You actually profit about $280. Keep in mind, if they get a larger turn out than expected, let them know up front that you will prorate the additional meals at the same rate.

I am very fair when it comes to doing this. I don’t count all the drinks they take, I don’t worry about the guy who ate five hot dogs; I just simply serve food and let them have fun.

Let’s say I bring 300 buns—that’s 100 extra, and I know I will use approximately 200. When I finish the event/party, I will quickly count my buns. If I have eighty left, I don’t worry about the extra twenty. But, if I have seventy left, I charge for ten extra meals. I essentially give them a fudge factor of twenty meals for those big eaters or that kid who drank twelve Mountain Dews.

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