A concession stand sells food that costs little and sells fast: a hot dog costs about $1.10 and sells for $5, a fountain soda about 55 cents for $3.50. What a stand pays is the event's cut: fairs and ballparks often take a commission, a fifth of sales or so, instead of a flat booth fee. The plan turns on that commission, helpers for long event days, a trailer, and a season that runs with the weather. In the example, an Indiana concession stand starts with $47,500, ends its first year about $36,500 ahead before the owner's pay, and makes about $6,700 a month at full speed. Below is each part of the plan, the first year month by month, the startup budget, and a free template.
The short version
- Describe the stand in a paragraph: the events, the menu, the goals.
- Cost each item: the food, the plate or cup, and the event's commission.
- Plan sales by product: hot dogs, nachos, sodas, popcorn.
- Fairs and ballparks often take a share of sales; put it in the cost.
- Get a temporary food permit for each event.
- Plan for a season, not a year.
- TaroStack makes each item a recipe, so its true cost follows the price of what's in it. More below.
Part 1: the business description
Tri-State Concessions, a made-up concession stand in Evansville, Indiana, writes:
Tri-State Concessions runs a concession trailer at county fairs, minor league ballgames and festivals around Evansville, selling hot dogs, nachos, fountain sodas and popcorn. In a summer month it aims to reach $21,000 of sales.
Part 2: what an item costs
| Item | Food | Plate, cup or bag | Event commission, 20% | Cost | Price | Cost share |
|---|---|---|---|---|---|---|
| Hot dog | $0.95 | $0.15 | $1.00 | $2.10 | $5.00 | 42.0% |
| Nachos with cheese | $1.25 | $0.20 | $1.30 | $2.75 | $6.50 | 42.3% |
| Fountain soda, 32 oz | $0.35 | $0.20 | $0.70 | $1.25 | $3.50 | 35.7% |
| Popcorn, large | $0.40 | $0.25 | $1.00 | $1.65 | $5.00 | 33.0% |
Most events take cash and cards through the stand's own register; the commission is paid to the event at the end of each one. Popcorn on its own is in popcorn business plan.
Part 3: events, helpers and permits
Two helpers work each event with the owner. Fairs run a week; ballgames are evenings through the summer; festivals are weekends. Each county fair and festival is a separate temporary food permit, in temporary food permit. The trailer is stocked and cleaned at a commissary between events.
Part 4: what each product earns
| Product | Price | Variable cost | Contribution | Margin | Units a month at full speed |
|---|---|---|---|---|---|
| Hot dog | $5.00 | $2.10 | $2.90 | 58% | 1,200 |
| Nachos with cheese | $6.50 | $2.75 | $3.75 | 57.7% | 800 |
| Fountain soda, 32 oz | $3.50 | $1.25 | $2.25 | 64.3% | 1,800 |
| Popcorn, large | $5.00 | $1.65 | $3.35 | 67% | 700 |
At full speed the business sells $21,000 a month and keeps $12,875, 61.3%; sodas bring $4,050 of it.
Part 5: the first year, month by month
Fixed costs are $6,200 every month: wages for helpers ($4,500), trailer fuel and propane ($600), commissary kitchen ($300), insurance ($300), permits ($200), and other costs ($300). Sales start at 35% of full speed:
| Month | Sales | Profit | Cash, year to date |
|---|---|---|---|
| 1 | $7,350 | −$1,694 | −$1,694 |
| 2 | $8,820 | −$792 | −$2,486 |
| 3 | $10,290 | $109 | −$2,378 |
| 4 | $11,760 | $1,010 | −$1,368 |
| 5 | $13,230 | $1,911 | $544 |
| 6 | $14,700 | $2,812 | $3,356 |
| 7 | $16,170 | $3,714 | $7,070 |
| 8 | $17,640 | $4,615 | $11,685 |
| 9 | $18,900 | $5,388 | $17,072 |
| 10 | $19,950 | $6,031 | $23,104 |
| 11 | $21,000 | $6,675 | $29,779 |
| 12 | $21,000 | $6,675 | $36,454 |
The year's sales are $180,810, and the business ends it $36,454 ahead, before the owner's pay. It breaks even at about $10,110 of sales a month, in the third month. The lowest cash point, −$2,486 in month 2, is covered by the $8,000 of working cash with about $5,500 to spare. The plan treats every month like a summer month once it's built up; fairs and ballgames run from May to September, so a real year has a quiet winter, and the working cash is there for it.
Part 6: the startup budget
| Item | Example |
|---|---|
| Used concession trailer | $25,000 |
| Hot dog roller, nacho warmer, popcorn machine and fountain | $8,000 |
| Generator | $3,000 |
| Opening inventory | $1,500 |
| Permits and licenses | $1,000 |
| Signs and menu boards | $1,000 |
| Working cash | $8,000 |
| Total to start | $47,500 |
The $39,500 before working cash is earned back in about 6 months at full speed. A single-item cart is in hot dog stand business plan, and a full kitchen on wheels in food truck business plan.
Get the template
Download the concession stand business plan workbook. Four sheets: your products, each with its price, variable cost and units a month at full speed; the first year, month by month, with sales ramping up, profit, cash, the first profitable month, the lowest cash point and whether the working cash covers it; your fixed costs; and the startup budget. It's an ordinary Excel file with no macros, and it works in Google Sheets, LibreOffice and Numbers.
Where this stops working
The plan uses one commission and one food cost. Each event takes a different cut, rain cuts a fair week short, and by Sunday night the trailer's buns and cups don't match what sold.
How TaroStack does it
TaroStack makes each item a recipe, so its true cost follows the price of hot dogs, cheese and cups.
Items as recipes. Each item is a recipe by weight, so its cost moves when the supplier's price does.
Counts with no signal. The cooler and dry storage can be counted on a phone with no signal, and the reorder list shows what runs out first in days of cover.
Waste with a reason. Hot dogs and nacho cheese thrown out at the end of an event is recorded as waste with a reason, reported by item.
| The job | Notebook | In TaroStack |
|---|---|---|
| What a item costs this month | Worked out once | True cost from the recipe |
| What to order before the weekend | A guess | The reorder list |
| What was thrown out | Not recorded | Waste by reason and item |
Recipes, counts and the reorder list are on every plan, from $49 a month. The first 30 days are free, with no credit card. If you'd like a hand setting up, ask, and we'll do it with you.