Rarely does a food concessionaire achieve success without some guidance from other vendors. Over the years I have asked a lot of questions of more experienced vendors. I in turn, have also answered a LOT of questions from concessionaire startups. This realization spurred me to 1) write the Food Booth book, 2) start a one on one consulting service, and 3) start a Q&A list to pool our knowledge.

Want to participate in the concession Q&A?

Do you have a question that needs an answer? Or, would you like to share a tidbit of your own expertise with other vendors? Please submit them to: carnival@foodbooth.net (title it Q&A). If you are sharing your experience just phrase your submission in the form of a Q&A. Further, if you have a different perspective or want to expand on the answers that are listed please submit your thoughts on that as well. Our collective knowledge is a valuable and entertaining resource for us all, particularly since the concession business and culture varies across the country and around the world!

I reserve the right to edit for brevity.

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Q: What exactly is a food concession business?

A: The business of food concessions is broad with many variations, levels of involvement, and opportunities. Many people build their business around one venue; such as a coffee kiosk in a hospital lobby, a food stand in front of Home Depot, or an occasionally operated hot dog cart at the local ball park. In each case these booths repeatedly do business at the same location. Another type of food concession routinely does business at different venues, such as community fairs, festivals, sporting events, auctions, flea markets, and outdoor concerts. At each of these venues the booth is transient and will be at the location for a limited period of time. Because mobile concessions travel from venue to venue they are managed and licensed differently than stationary concessions. Their product is also marketed differently because, unlike a stationary concession, their pool of customers is large and their window of sales opportunity is brief.

Q. What sort of experience do you need to run a concession business?

Luckily a food concession operator doesn’t need any particular type of experience. What is important is the operator has character traits that are typical of all entrepreneurs- independence, ambition, and an ability to follow through with the tasks before them. However, there are some conditions that are important such as physical health, a certain level of energy, and common sense. And, there are other traits and skills that are unnecessary but are helpful such as: experience in food service, small business management, or even graphic design or mechanics. Most of a concessionaire's previous life experiences will benefit their concession business.top of page

Q. Why is the food concession business a good field to go into now?

A food concession business always has certain benefits that one doesn’t get from working for wages: independence, more spare time, cash income, tax benefits, ….It also has some benefits that one doesn’t get from most other forms of self employment such as cash income (again), requiring a small financial investment relative to the potential returns, a fun working environment, a high probability of success relative to the level of expertise and effort applied, regulatory leniency, an ability to customize one’s investment of time and resources to meet one’s goals. Food sales are generally secure against economic downturns. People always need to eat. Additionally, during this time of economic uncertainty it is also a very good hedge against layoffs or lost benefits.

With that said, as for the impact of our current economy, different areas of the country will be affected differently. I suspect most areas might see low turn out at events, and limited purchases by those who attend. It is difficult because we don't have the liberty of raising our prices to help cover the higher cost of fuel, and in fact may feel the need to lower prices in a price war fashion to attract more customers. (That's something I almost never do, and probably still won't. It is hard to see the point of paying higher expenses and then charging less for my efforts. But then, I have an established customer base, without which lowering prices might be required to stay in the game. OUCH!). Other areas of the country that are not so badly hurt by this economy will probably only notice the slow down at larger events where the attendees pay to park and pay to enter. Those events are the first to be scratched off the list of family outings. And, I'm sure all vendors will be questioning the viability of their events that require traveling a long distance.

Taking the broader view however, gas prices are not likely to ever go down, folks still need to get out and have a good time, and, this economy may be with us for a long time. I think anyone seriously wanting to get started in the business should just do it. The concession business is, and always has been a cyclical business. Additionally, I assume many vendors will be dropping out which will open up space for new blood. There is no time like now (if you can afford it) to get your business established and be sitting pretty and prepared when the economy turns for the better.

Q. How does the money equation compare to punching a time clock?

It varies depending on your level of success, the wages you are comparing it to, and your perspective. Typically, a new vendor’s overall sales will improve each year he or she continues in the business. After several years of trying a variety of events while fine tuning their menu, honing their skills, and improving their operation, a vendor will establish a seasonal schedule of their favorite and most prosperous events where they build up a fairly dependable base of steady customers. The value of those events in combination with the sales capacity of the operation and level of operational effectiveness is what determines the level of revenue. top of page

Q. OK, so how much money can you make in this field?

I have seen some vendors go broke and others earn upwards of $200,000.

Q. So, besides fairs and festivals, at what other types of events can a concessionaire sell food?

Nearly anywhere that people gather. A large booth that takes a lot of time to set up and is expensive to operate would need to focus on venues with high attendance. Small, easy to set-up and operate booths that are self-contained needing no power or water hook-ups can find many events such as auctions, ballparks, a boat ramp, the local beach, and special interest gatherings like horse shows and go-cart races. Caution: Some locations that might be good for sales may be off limits due to local restrictions, particularly if the location is on public property.

Q. How do you know what licenses you need?

To start with, no matter the venue, if you prepare and sell food for the public you need to be licensed by the Health Department. If you sell repeatedly at the same location you need a mobile food unit license, which is similar to a restaurant license but is for non-permanent structures. You would likely also need a licensed commissary which is an extra facility used for food preparation and storage, and maintenance of your mobile food unit. If you sell food for a limited number of days at a variety of locations you need a “temporary restaurant permit” for each event. The Health Department uses this "booth permit" to monitor transient or temporary operations such as non-profit fundraisers, carnival food booths and concession booths that sell in different counties at special events. Always contact your local Health Department for specific requirements in your area.

Q. What do you like most about the business?

Hands down it’s the CASH! A paycheck with FICA and all the other taxes removed just doesn’t have the same satisfying feel as a bank bag stuffed full of crisp and crinkled bills. Other favorites are harder to describe but they or things like, freedom, independence, control, the opportunity for financial growth, travel, meeting new people, and pride in what I do. Also, the food concession business is never boring. top of page

Q. What can I do now, while I’m still working at my regular job, to lay the groundwork for starting my concession business?

Research and plan. Visit local events to study the booths, menus, and signs. Talk to local vendors about regulations in your area. Search out sales of various types of booths. Visit used restaurant equipment stores for equipment ideas and prices. Visit wholesale grocers for prices and product options. Look into possible venues. Researching and then writing a detailed list of ideas and calculations is the best way to fully brainstorm and plan your business.

Q. By writing the Food Booth book aren’t you giving away trade secrets?

First, I believe the market will control how many vendors are in the field. No matter how many people read my book and therefore do a better job competing on the midway, there are still only a limited number of events and customers in any given area to support the vendors. Newbies that are more competitive will raise the bar for everyone, and a certain number of vendors will not be able to find enough events or customers and will necessarily drop out. Others will find that the business is harder than it looks and quite. Second, I love the fact that this is one of very few businesses that gives nearly anyone a shot at improving their financial situation. It is sad to see so many people start out full of hope, then quit a few weeks later because they can't get past the steep learning curve. Third, the publication of Food Booth will keep me involved in the concession business and continue earning an income when I can physically no longer work my concession. In this way I am benefiting from my experience and expertise the way many other experienced professionals do.

Q. How do I deal with a customer that loudly returns food in front of other customers with the complaint that they don’t like it and want their money back.

Q. Why do veteran vendors usually outsell the rookies though in many cases the rookie has a better booth and product?

This question speaks directly to a marketing principle that affects all businesses. People are creatures of habit and will religiously buy from the businesses they are accustomed to, and satisfied with. This impacts the sales and long-term viability of a concession in a profound way. A vendor who participates in an event for repeated and consecutive years will build up a customer base of repeat customers. If the vendor skips one year, the spell is broken because the steady customers will start a new event ritual of buying from a different vendor. A new vendor may do everything right; have a nice booth, good signage, great food and book into excellent events. But, the real earning potential of the booth won’t be realized until the attendees become happy repeat customers.

Q: What is the secret to cleaning greasy surfaces in the booth? Nothing I use takes all the grease off the back and sides of my deep fryer.

A: Hands down the best cleaner I know of is Oil Eater. I find it at Costco and buy it in one gallon containers. It cleans grease up to the point that oven cleaner would be the next step. Oven cleaner is very caustic but Oil Eater isn’t so harsh and rinses clean.

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