Concession stands are a lucrative business with lower startup costs compared to restaurants and food trucks. A well-placed concession stand selling popular items like hot foods can significantly capitalize on customer traffic. Notably, selling products such as cotton candy and popcorn can yield a profit margin of up to 94%.
An owner working 300 days per year with daily sales of 100 $5 orders could potentially earn around $37,000 annually.
Startup Costs and Equipment
The price of an equipped concession stand ranges from $6,000 to $45,000 for a used one, and a new medium-sized stand costs between $11,000 and $21,000. Opting to build your own stand will not only allow for customization but could be a more labor-intensive option that reduces initial expenses.
Necessary Initial Steps
- Draft a business plan.
- Obtain all required permits and licenses.
- Find a prime location that suits your menu and target customers.
- Construct or purchase your concession stand.
- Install essential equipment, including a sink, refrigerator, and freezer.
- Stock ingredients that promise profitability.
- Implement marketing strategies to draw in customers.
Building a Concession Trailer
To create a concession trailer from scratch, begin by sketching out a design for the internal layout, prioritizing the selection and placement of necessary equipment. After purchasing a trailer frame, proceed to assemble the walls and roof, typically utilizing materials such as plywood and insulation. Shelving and cabinetry are also crucial additions for storage.
It’s imperative to familiarize yourself with local building codes, health department regulations, and have a clear understanding of your business needs. If you have a background in construction and access to a set of tools, you can potentially construct your own trailer under $1,000, not including the costs of inventory and insurance.
Remember to engage with local vendors and the health department early on to ensure you meet all the requirements for operating a concession trailer.