TAKING A STAND
Hot dog cart business drives home $2 million!
By Stan Roberts
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One morning in 1986, a man walked into Joel Goetz’s deli and offered him a used hot dog cart for $200. “I bought it on a whim,” recalled Goetz. He polished the cart, set it outside his St. Petersburg, Florida, store with a $500 price tag and sold it the next day.” I was hooked.”
Goetz started purchasing second-hand carts from garage sales, restaurant closeouts, classified ads and shoppers and never failed to sell them at a profit. Eventually, he began handling new carts made in China but he never was satisfied with their quality. In 1999 he began manufacturing his own line of carts. By 2008 sales reached $2 million.
Goetz’s company is named American Dream Hot Dog Carts for a good reason. Aside from his own success, he is proud that he is enabling his customers to achieve the American dream of owning a business.
Typically, his customers rent space at retail outlets, sports venues, bars, farmer’s markets, car dealerships, shopping malls, service stations and car washes and sell hot dogs, sausages and other foods—burgers, burritos, ice cream and coffee.
“Carts sell for $2,699 up to $17,000,” said Goetz. “Where else can you get into a business for such a relatively small investment? As part of our service, we advise customers on finding high-traffic locations, getting required licenses and food permits, buying supplies—we even help get financing.”
Many vendors are Mom and Pop operations and work either part-time or full-time, said Goetz. For example, three years ago a husband and wife from Lincoln, Nebraska, purchased a cart from Goetz’s website and rented space in front of a major chain hardware store. “Now they are up to three carts and each grosses $75,000 per cart a year,” said Goetz.
A Tampa couple operates weekends at a flea market and brings in $500 to $700 a day. In Dallas, Texas, a retired policeman started at a farmer’s market and now operates carts from six sites, including city parks and a downtown library. “He’s a mini-CEO,” said Goetz. “He hires vendors, orders hot dogs and condiments and stops by to pick up receipts.”
In Sarasota, Florida, the manager of a shopping center chain sells food and coffee at eleven sites. “They’re profitable and provide a service to shoppers,” said Goetz.
Goetz’s career started in catering in New York City. Later he joined Open Road Industries, a recreational vehicle manufacturer based in Portland, Oregon. As director of sales and operations, he helped design mini-kitchens—a skill that paid off later.
When the gas crisis struck in the 70s, Open Road hit a detour and Goetz moved to St. Petersburg, his wife’s hometown, and opened Jo-El’s Deli & Catering. After flipping a cart for a quick profit, Goetz started trading carts as a sideline. “Over a six-year period I bought and sold 150 carts,” he said.
From time to time Goetz got calls for new carts but he had none to sell. He made some calls and tracked down suppliers of new carts in Hamilton, New Jersey, and Canada. He was selling 200 carts a year but he wasn’t happy. “I didn’t like the idea of buying products made in China,” he said.
Goetz unexpectedly resolved those issues in 1999. A customer asked Goetz if he could replace a cart’s damaged shelf. A friend steered Goetz to House of Metals in Clearwater, owned by Doug Calibey, a 34-year pro in metal fabrication.
When Goetz picked up the replacement shelf, he was shocked. “It was better than the rest of the cart,” he said. “I asked Calibey if he could build a whole cart of that quality, and he said, ‘Sure’.”
Goetz acted quickly. He merged his operation with Calibey’s and they began manufacturing ten carts a week from food-grade 304, 18-gauge stainless steel on fully-welded tubular, rust-resistant frames. Unlike China-built carts, bolts don’t protrude from the frames, preventing operators from getting cuts or bruises.
Models range from the basic Malibu, a small maneuverable cart that sells for $2,699, to the Columbia, a 6-foot by 8-foot mobile kitchen equipped with steamer, char-broiler and fryer, and three sinks, that starts at $12,999, a virtual restaurant-on-wheels. All models are equipped with stainless steel sinks, heating and cooling gear and can be towed by car or truck. Carts are powered by gas or electric and are equipped to cook hot dogs, burgers and tacos and serve hot and cold drinks. They are shipped by common carrier anywhere in the U. S. and abroad.
Goetz’s carts meet standards of the National Sanitation Foundation so they are accepted in every state. “We keep up with municipal, state and federal regulations and advise our customers on obtaining all required permits,” said Goetz.
Goetz markets mostly over the Internet, trade shows and through word-of-mouth. The company employs 13 and produces 15 to 20 carts a week from a 25,000-square-foot factory directed by Calibey. Goetz handles sales. He takes calls from a cell phone.
He is unfazed about competition. “They’re selling the quality of carts that pushed us into manufacturing,” he said.
Upbeat about the future, Goetz foresees sales of $5 million in two years. “This is doable because we have the production capacity, we’re adding new models and increasing our in-house sales force,” he said. “This really is the American dream.” •
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