New Business - Where Do I Start

December 17, 2008 9:37 AM

BusinessStartupFilter: I'm looking to get into the sports concession business but have idea where to start.

I am specifically interested in the mobile/cart concessions (you see them at Basektball games in the aisleways of the arena). Mini-donuts. Nacho stands, etc. I have about $10k for this project and a willingness to do whatever it takes. But I have some basic questions:

1) How do I get started with equipment?
2) How does one get 'in' with the sports arenas.
3) Is this even a good business to be in?

I am in the Denver Metro area.

posted by shew to work & money (5 comments total)

Anecdotal, limited-experience story:

Interestingly enough, we asked a vendor outside of the LA Convention Center, during E3 (the Electronic Entertainment Expo, back a couple years ago) what his story was.

He told us that police would come by and shut down his (and the other vendors') carts with regularity, sometimes two or three times a day, by confiscating it, since he was too close to the convention center and they required a permit and approval to operate on their grounds (since they sold concessions indoors). At about $5 a hot dog, though, it turns out that his contingency plan was to just have several other "carts" (they were more like propane grill things on a shopping cart-type-base) stashed away that he would switch to, at a cost of about $45 a cart. He said that on some days, he would go through 2 or 3 carts, but it was otherwise worth it.

More realistically, almost all arena's have their concessions managed by a single large company, or several companies with rights purchased. For instance, at Chase Field in Arizona, nearly every single "regular" food stand (the non-chain-branded food) is managed by Levy Restaurants as part of a massive contract. The chains also have some spaces, but you can bet they're incredibly expensive to rent out. Since aisle vendors need a base of operations and usually sell their wares elsewhere from a regular stand in the stadium, I'm guessing $10k isn't enough to break into the space in terms of rights and such. You'd be better off selling water and peanuts and candy and such outside of a stadium that allows you to bring such items inside.

But call the operations or information line at your local team's arena. Ask who you can speak to that would know about managing concessions or selling opportunities.
posted by disillusioned at 9:49 AM on December 17, 2008

I would start up with a smaller venue, which would be more open to individual vendors and work up from there. It would allow you to learn and make mistakes before you are really financially committed.

I used to run one of 3 hot dog carts my friend had. About 20 years ago, the one cart brought in about 250-300/day just outside of a liquor store, on a regular street.

My friend bought a house and put his kids though college with 3 carts.

I think there would be many opportunities that could still be sports related, but not arena attached, maybe at popular trainings, pre season practices, outside sports bars...
posted by Vaike at 10:55 AM on December 17, 2008

Also, what made my friend popular was he was FAST and entertaining. (house o' weenies tried to put us out of biz by setting up a cart next to ours with a 2 for 1 discount. Everyone ignored them and even waited in line for ours, while house o' weenies' cart stood empty)

Loyalty and consistency played a big part in his business.
posted by Vaike at 11:01 AM on December 17, 2008

A lot of food vendors in our area (Metro Detroit) hang around outside auto plants and other factories and do some pretty good business. (Not every plant has a catering truck that stops by regularly.) A friend of mine worked at GM and used to make a lot of extra money just by buying certain things in bulk at Sam's Club (popcorn, pepperoni sticks, things like that) and would stand near the parking lot at the end of his shift selling snacks to the guys coming in for the next shift.
posted by Oriole Adams at 7:45 PM on December 17, 2008

I know two guys in the hot dog business and they've recently expanded by putting carts into a local nightclub. They are making a killing, although as they point out the hours suck and drunk people are tedious.

Still, perhaps a smaller venue that is less difficult to get into would be easier.
posted by DarlingBri at 4:36 AM on December 18, 2008