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- TSCheredar, on 01/07/2009, -4/+64Now to find someone dumb enough to pay $362, 201 for one hot dog.
- thecheatah, on 01/08/2009, -2/+49Judging from the comments, you guys have NO idea how much money the street vendors make.
- madpainter, on 01/08/2009, -3/+48Well it's looks like he's made a bad long term investment, paid far too much for the rights to a second tier site (south side versus north side), is contractually obligated for a year at a higher operating cost than his competetors, and failed to see the long term decline in sales revenue due to on going construction.
By those yardsticks he's qualified for a bailout from Congress. - ChromaVita, on 01/08/2009, -0/+35I hope he's able to cut the mustard. If he were to fall behind in his finances, it'd be hard for him to ketchup. But if he pulls through he'll be able to relish in his success.
- DickyT83, on 01/08/2009, -2/+36Reply works.
- Bananaboy8000, on 01/08/2009, -3/+33"There's always money in the banana stand"
- kanundro, on 01/07/2009, -2/+30Wow, from the title i was assuming the only vendor that could afford that would of been the Chicken and Rice halal cart on 53rd and 6th Ave (Avenue of the Americas).
Those guys had lines that wrapped around a city block... hour long waits... and open late into 4am in the morning. - pers1an, on 01/07/2009, -2/+29He's gonna have to sell alot of hot dogs to make that money back.
- hypocriticizer, on 01/08/2009, -1/+26People who think this guy is an idiot are fans of instant gratification.
- CTK14A, on 01/08/2009, -0/+21A Buddhist monk walks up to a hot dog vendor and says "Make me one with everything."
- crossmr, on 01/08/2009, -0/+20that would be assuming he got those dogs for free... he probably has to sell closer to 1300-1500 a day, but it mentions he has 2 carts, so he may also have employees. Not to mention the guy is expecting profits... probably significant, so he can possibly expect to sell 3000 dogs a day. as for storage, carts are big, hot dogs are small... 3000 don't take up that much space
- rebirf, on 01/08/2009, -0/+20http://thehotdogcart.com/hd_income.html
"The average income for a hot dog vendor, working year round is about $100,000/ear. The maximum income for you, is essentially unlimited
A hot dog with bun and toppings costs an average of 50 cents
An average vendor resells a hot dog for $2.25
Sell 100 hot dogs a day you will earn $58,500/year
Sell 250 hot dogs a day you will earn $146,250/year" - aralls, on 01/08/2009, -2/+18But the vendor is crafty - he's paying that $362K back in hot dogs.
And if he's struggling financially, there's always money in banana stands. - fattehboi, on 01/08/2009, -1/+17Won't be too hard... I mean hey..this IS America
We're not known to pass up food - CTK14A, on 01/08/2009, -1/+16Depends on where it's been.
- CTK14A, on 01/08/2009, -2/+16I'm gonna go on record and say this is an absolute steal. Under $400k for ownership of legal legitimate commercial real estate in midtown Manhattan? Who the ***** cares that his business is hot dogs? He will make a lot of money from this, 362k debt notwithstanding.
Don't laugh, people, hocking hot dogs will send this guy's kids to Cambridge. - overtoke, on 01/08/2009, -0/+14a real wiener of a move, if you ask me
- pilot3033, on 01/08/2009, -2/+15and the best dammed chicken and rice in the whole city
(PS: only tourists call it "Ave of the Americans," even in parens) - CTK14A, on 01/08/2009, -0/+12There's also the refrigeration cost. But all in all, the overhead is very low.
- CTK14A, on 01/08/2009, -1/+13At a dollar apiece, that's a little under a thousand hot dogs a day for a year. (It's probably closer to $1.25 for a plain dog and $2 and up with special toppings.) In New York City, on a busy street corner, entirely possible. I just wonder where he keeps all those weiners.
- aralls, on 01/08/2009, -0/+11why would you hate the best show ever?
- charlie55, on 01/08/2009, -0/+10i would suspect he makes more off cans of soda than hot dogs.
- pryoee4, on 01/08/2009, -1/+11"I'm going to pretend you're the New York Knicks."
- aralls, on 01/08/2009, -0/+10According to GTA4, I believe hot dogs are $5 each. Please correct me if I'm mistaken.
- Mexrocker, on 01/08/2009, -0/+10For those that don't know:
http://www.53rdand6th.com/
http://en.wikipedia.org/wiki/53rd_and_6th - haydesigner, on 01/08/2009, -0/+10With Paris Hilton?
- retral, on 01/08/2009, -1/+10"Hot dogs, get your hot dogs.. only $49.99"
- Virgule, on 01/08/2009, -0/+9Further evidence that you need money to make money.
- netant, on 01/08/2009, -0/+9He'll really be in a pickle if he can't meet his earnings projections, particularly in this dog-eats-dog business climate. And the chilly weather will increase his condiment expenses.
- mwalker05, on 01/08/2009, -0/+8a hotdog vendor can throw around $362,000?? and here i am going to college like a sucker
- Dr3w, on 01/08/2009, -0/+8The dollar was added to pay an auto industry CEO
- anachronaut, on 01/08/2009, -0/+8"it seems like that is a one time cost"
FTFA: "The 50-year-old former jewelry salesman outbid his competitors by $65,000 a year to obtain the sales spot"
So he apparently does intend to pay $362K every year just for the privilege of selling hot dogs from that spot. Either he's crazy or he's making a lot more profit selling hot dogs than I ever imagined was possible. - covertbadger, on 01/08/2009, -0/+7Misleading at best. Listing the trade price for hot dogs then reporting gross income makes the number look higher than it is.
100 * 2.25 * (5/7) = $58500 for a 5 day week, no public holidays or vacations.
But take off the trade price, and you get
100 * 1.75 * (5/7) = $45,500 for a 5 day week, no public holidays or vacations.
From that, take off expenses for condiments, pitch, equipment, maintenance, rates, taxes, and there's not a great deal left. And if you have a poor pitch and don't sell 100 a day, you're in even worse trouble. - frogman54, on 01/08/2009, -2/+9Bad negotiation. I think I could have gotten it for an even $362,200
- Volatile36, on 01/08/2009, -0/+7Oh no, street vendor hot dogs have risen to stadium prices now...
- pintomp3, on 01/08/2009, -0/+6Holy *****. I remember going there regularly after clubbing years ago. Didn't realize it had gotten that popular. Extra white sauce!
- nukeleearr, on 01/08/2009, -1/+7$1.25 for a plain dog in NYC? I doubt it. It's probably $2.00 a dog and $3.00 for a sausage. Then there's drinks/chips which have huge much higher markups. The 362k is an annual EXPENSE and not a purchase of the land imo. Between the Rent expense, salaries and cost of goods sold as well as other misc expenses, the total expenses is probably around 500k depending on how much the food costs. The median sales per customer is AT LEAST $3, but even if we're being generous and saying it's $3, the break even is around 450-500 dogs a day which is very realistic. Clearly this guys making some decent $$$
- Llanowar, on 01/08/2009, -1/+6This is right up there with Google's purchase of Youtube.
It might become very profitable, and it might just be a horrible deal.
But it most certainly is a daring move. - ldkronos, on 01/08/2009, -0/+5Uh, I think you missed that part where it indicated that this wasn't a perpetual purchase, but an annual lease:
"The 50-year-old former jewelry salesman outbid his competitors by $65,000 ****a year**** to obtain the sales spot, but now faces troubles at the coveted spot." - tamaker, on 01/08/2009, -0/+5"Its hard out here for a 'Dog-seller." -- In the words Avon Barksdale - "Now go get my corners!"
- scamper22, on 01/08/2009, -2/+7Does it say it is 362K every year?
From what I read, it seems like that is a one time cost. In which case, the economics become much more profitable. Not to mention, when he decides to stop selling, he will probably sell the spot for a similar amount... at least 300k as his fellow vendors were willing to pay 300k for this spot. - zombiecarlin, on 01/08/2009, -0/+5Hot Dog vendors in New York make most of their money by selling drinks, especially water in the summer months at an incredible markup.
- Rivetgeek, on 01/08/2009, -0/+5except he only paid $81,701 more than other less favorable sites. So he doesnt need to sell 362k MORE. Just 82k more makes it profitable.
- flmchkn, on 01/08/2009, -1/+6Some (or a lot) of people probably don't realize that he can sell his business to another person and get most of it back. He might even get more then it was worth if it was successful plus the income from the profit he got when he was in business.
- flmchkn, on 01/08/2009, -0/+5360k is pretty cheap for a business. im sure he makes more then most gas stations, which cost over a million easy.
- djodorg, on 01/08/2009, -0/+4Hmmmmm. Hot dogs with fried sauted onions & chilli. Hmmmmm
- inactive, on 01/08/2009, -0/+4Also don't forget Sammy's Halal Cart at Jackson Height, a block from the 74st subway station. I used to take the E to work from Forest Hills, and on the way back i would get off there to pick up dinner.
You can't get a better meal for $5.... and who says NY food is overpriced! - weaksnyc, on 08/14/2009, -0/+4crosmr... he clearly said 450-500 is his "break even," and that he'd probably be making much more. And if you think he's paying taxes on all 500 hot dogs...
- Foda, on 01/08/2009, -0/+4Well, I guess location is everything...
- ToothyMcshark, on 01/10/2009, -0/+4If you hate AD, I think I hate you.
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