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Home › Forums › Restaurant Professionals Forum › Professional Hot Dog Vendors › Hot dog cart/stand vs brick/mortar shop › Re:Hot dog cart/stand vs brick/mortar shop

September 20, 2010 at 2:34 pm #2766086
Foodbme
Foodbme
Member

Let’s use Billy B’s example and convert it to percents using Billy B’s 20% rent percentage as a base:
Sales 100%
MINUS:
Rent 20%
Sales Tax 9%
Labor 20%
Payroll 15%
Food Cost 30%
Paper Cost 8%
Total Costs 102%
You’ll loose money every month unless one or more of the controllable expenses is reduced. The only Major
Expenses that can be controlled significantly are Rent & Labor.  You can control Food Cost and Paper Cost a little bit, but the biggies are Rent & Labor.
 
So if your Rent is $3000 and the rent factor is 20%, you would need $15,000.00 in sales a month just to pay the rent. It your average sale is $5.00, you would need to sell 3000 units,( Hot dog-Drink-Chips) in a month OR approximately 100 units a day.
$64,000 Dollar Question—–Can you sell more than 100 units a day?
If not, you would loose 2% every month!
Something needs to change—Sales, Rent and/or Payroll or FAGITABOUTIT!
 
[:0] Oh, and by the way, there will be other expenses not listed above like Repairs, Licenses, Insurance, Cleaning Supplies, Trash Removal, Utilities etc. Those above are just the Basics! 
 

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