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How Much Money Can You Make Selling Funnel Cakes?

Do you want to know how much money you can make yearly selling funnel cakes? If YES, here is an analysis of the income & profit margin for funnel cake business owners.

Today, customers will search high and low for a great funnel cake at almost any entertainment or sports venue. To succeed in this market, you will need to research your market and find locations primed with enough foot traffic such as seasonal fairs and carnivals, as well as school sporting events. You can also focus on outdoor events, including football and soccer games, for a more continuous income stream.

The Estimated Profit Potential of a Funnel Cake Selling Business

The exact amount anyone or business selling funnel cakes can make will surely vary based on the event and the level of experience. However, it’s simple math. A funnel cake can sell on average from $3.00 – $5.00. Yet, it costs less than $1.00 to make, so you will yield as much as $4.00 profit on each cake.

These sweets can generate a desirable $10,512 as yearly profit based on a preparation cost of $0.54 per serving – $0.27 for batter mix, $0.07 for powdered sugar, $0.06 for frying oil and $0.14 for an 8 – inch paper plate. Hence, the value in funnel cakes extends beyond their 73 to 82 percent profit margin.

A fool – proof way to generate additional profits and keep your customers happy is to add beverages to your funnel cake business. With any starchy food, a drink is a necessary follow up. Consider also adding canned or bottled soft drinks or water by getting some coolers. You can also choose to settle for fountain drinks with drink dispensers and portable ice makers.

Another consideration or decision you can make without purchasing too much equipment is corn dogs. They can cook on one side of your fryer while the cakes cook in the other. Add a few packets of mustard and some serving sleeves, and you will definitely get yourself another easy source of income. French fries or fried pies are other options for making your funnel cake stand even more profitable.

What You Need to Start a Funnel Cake Business

It’s very necessary that you always seek permission from the authority in question before slinging your fried treats. You will also need several key items to make funnel cakes on a concession basis. You will need a fryer that is big enough to accommodate at least two funnel cakes at a time for faster service.

You will also have to choose between gas or electric models, the latter being more economical but less portable. You also need funnel cake rings or moulds to retain the shape of the fritter as it is being poured, a pitcher with a funnel tip, tongs, and industrial oil such as block shortening, batter mix, paper plates and utensils.

Have it in mind that starting this business without legal problems simply means contacting your state, city and county licensing authorities to ascertain what permits you are mandated to obtain to operate as a funnel cake business. Also note that you may have to acquire permits for every district in which you operate a stand.

Remember to get a sales tax permit from your state, as well as an employer identification number from the Internal Revenue Service. Be sure to register for any business licenses or mobile food kitchen licenses as stated by your jurisdictions and pay the associated fees.

To find out if your business meets up to health standards, you will be inspected by your local or state health department before the business opens and on an ongoing basis thereafter. It’s very important that you observe the safety regulations of your state.


Enjoyed at amusement parks, carnivals, sporting events, and more, funnel cakes have continually maintained its place as one of the all – time favourite fun foods. Perfectly fried and topped with an irresistible layer of powdered sugar, many have found this tasty treat a recipe for success when starting a concession business.

When starting this business, first, do your research. Really understand what it takes. Seek out those with experience. Align with a dependable supplier who can help you navigate as you grow your business. And most importantly, make sure you enjoy what you do.