A concession stand business is a small-scale, mobile or semi-permanent retail setup that sells food, drinks, or snacks at high-traffic locations such as fairs, stadiums, parks, and events.

These stands are popular due to their low startup costs, portability, and potential for high-profit margins.

You can choose from a wide range of items like popcorn, hot dogs, cotton candy, and drinks, tailoring their menu based on customer preferences and event types.

According to IBISWorld, the U.S. food concession industry generates over $3 billion annually, with consistent growth driven by outdoor events and sports seasons.

Profit margins for individual concession stand items can range from 60% to 90%, especially for low-cost snacks like popcorn and cotton candy.

With the right location and product mix, a concession stand can become a lucrative, customer-friendly business with repeat opportunities at recurring events.

Steps on How to Start a Concession Stand Business

1. Conduct Market Research

Conducting market research for a concession stand business is essential for identifying your ideal customers, the best products to offer, and the most profitable locations.

Start by observing local events such as fairs, carnivals, school sports, and community gatherings where concession stands are typically present.

Take note of what food items are most popular, pricing strategies, and crowd behaviors.

This direct observation helps you understand demand trends and competitive gaps.

Next, analyze your target market by considering demographics like age, income levels, and lifestyle.

For example, a family-oriented event may favor kid-friendly snacks like popcorn and cotton candy, while a music festival might attract a younger crowd interested in trendy options like bubble tea or gourmet fries.

Tailoring your menu to your audience increases the chances of success. It’s also important to study the competition.

Visit other concession stands or food vendors and take note of their pricing, service speed, packaging, and branding.

Identify what they do well and where they fall short, so you can position your stand more effectively.

Lastly, gather insights through surveys or informal interviews with potential customers or event organizers.

Their feedback can guide your product selection, pricing, and marketing strategies.

a. Who is the Target Market for the Concession Stand Business?

The target market for a concession stand business is broad but can be broken down into several key customer segments:

• Event Attendees

• • Families with Children

Parents and kids at fairs, carnivals, school sporting events, and outdoor festivals often look for quick, affordable snacks—think popcorn, cotton candy, or mini-donuts.

• • Sports Fans

At high school, college, and professional games, attendees crave savory, portable foods like hot dogs, nachos, and soft pretzels, alongside cold drinks.

• Youth and Young Adults

• • Teens and College Students

This group is drawn to trendy or indulgent treats—slushies, funnel cake fries, loaded fries, or gourmet toppings—as well as value-priced combos and late-night options at concerts, campus events, and outdoor movie nights.

• • Festival-Goers and Concert Audiences

Often looking for quick energy boosts and Instagram-worthy items like gourmet popcorn, bubble tea, and stuffed churros.

• Health-Conscious and Specialty Diet Consumers

1. • Active Adults & Fitness Enthusiasts: At parks, bike trails, and outdoor fitness events, there’s growing demand for fresh fruit cups, smoothies, protein-rich snacks (like roasted nuts or yogurt parfaits), and sugar-free beverages.
   • Dietary-Restricted Patrons: Offering gluten-free pretzel bites, vegan nachos, or dairy-free ice cream appeals to those with allergies or lifestyle preferences.

• Event Organizers & Corporate Clients

1. • Weddings, Corporate Gatherings & Private Parties: Planners increasingly hire mobile concession stands for unique food-station experiences—think walking tacos, specialty coffee bars, or gourmet grilled cheese stations—to delight guests and streamline catering.

b. Is Concession Stand Business a Profitable Business?

Yes, the concession stand business can be highly profitable due to low startup costs and high markup on items.

Popular snacks like popcorn, cotton candy, and drinks can yield profit margins between 60% and 90%.

According to IBISWorld, the U.S. food concession industry generates over $3 billion annually, with steady growth driven by events and outdoor venues.

Success depends on location, product selection, and event frequency, making it an attractive venture for part-time or full-time entrepreneurs.

c. Are There Existing Niches in the Industry?

Yes, there are several existing niches within the concession stand industry that entrepreneurs can tap into to stand out and cater to specific customer needs:

• Health-Conscious Snacks: Offering gluten-free, vegan, low-sugar, or organic snacks like fruit cups, smoothies, and protein bars to attract fitness enthusiasts and health-aware customers.
• Ethnic and Gourmet Foods: Serving specialty items like gourmet grilled cheese, international street foods, or artisanal snacks that offer unique flavors beyond typical fair food.
• Kids’ Themed Stands: Focused on child-friendly snacks and fun presentations, such as character-themed treats, colorful cotton candy, or mini desserts.
• Eco-Friendly and Sustainable: Using biodegradable packaging and promoting zero-waste products to appeal to environmentally conscious consumers.
• Seasonal and Holiday Themes: Offering themed snacks and drinks for holidays or specific seasons, like pumpkin spice in fall or peppermint treats in winter.

d. Who are the Major Competitors?

The major competitors for a concession stand business can vary depending on the industry, location, and target market. Here are some potential competitors you may encounter:

• Auntie Anne’s
• Wetzel’s Pretzels
• Cinnabon
• Nathan’s Famous
• Ben & Jerry’s
• Kona Ice
• Rita’s Italian Ice
• The Popcorn Factory
• Philly Pretzel Factory
• Shake Shack (food stands at events)
• Pretzelmaker
• Pinkberry
• Dairy Queen (mobile concession units)
• Waffle House (event stands)
• Dairy Bar Express
• SnoWizard
• Krispy Kreme (mobile trucks)
• Dairyland Express
• Auntie Lee’s
• Uncle Bub’s Gourmet Snowballs.

e. Are There County or State Regulations or Zoning Laws for Concession Stand Business in the United States?

Yes, concession stand businesses in the United States are subject to county or state regulations and zoning laws that vary depending on the location.

These regulations are designed to ensure public health, safety, and orderly business operations.

Before starting a concession stand, entrepreneurs must check with their local health department for food handling permits and inspections.

Zoning laws also play a crucial role in determining where concession stands can operate.

Many cities and counties have designated zones where mobile food vendors or temporary stands are allowed, often restricting their presence in residential neighborhoods or certain commercial areas.

Additionally, permits or special event licenses may be required to operate on public property, such as parks, streets, or during festivals.

Some states and counties impose additional regulations on equipment, signage, waste disposal, and hours of operation to minimize disruptions and maintain community standards.

Failure to comply with these rules can result in fines, closure, or loss of permits.

Consulting local government websites or offices, including health departments and zoning boards, is essential to obtain accurate and current information.

Working with event organizers or property owners can also help ensure that the concession stand operates legally and smoothly.

f. Is There a Franchise for Concession Stand Business?

Yes, there are franchises for concession stand businesses. Here are 10 of them:

• Auntie Anne’s
• Wetzel’s Pretzels
• Cinnabon
• Kona Ice
• Rita’s Italian Ice
• Philly Pretzel Factory
• Pretzelmaker
• The Popcorn Factory
• Uncle Bub’s Gourmet Snowballs.

g. What Do You Need to Start a Concession Stand Business?

• Business license and permits
• Health department approval
• Concession stand equipment (grills, fryers, warmers)
• Inventory of food and supplies
• Location or event permits
• Point of sale (POS) system
• Food handling and safety training
• Insurance coverage
• Marketing materials (signage, menus)
• Storage and transportation solutions.

2. Choose a Memorable Business Name

When looking to start a business, before you can begin to file the necessary documents with the constituted authorities or start your website, it is necessary that you come up with a name that you will be recognized with.

It is essential that the name you come up with can easily be pronounced, is unique and easily memorable. Some of the catchy business name ideas suitable for a concession stand are;

• Connie Whyte® Concession Stand, Inc.
• All Africana™ Concession Stand, LLC
• New Jamaica© Concession Stand, Inc.
• Sean Lawson® Concession Stand, Inc.
• Doris Thomson® Concession Stand, LLC
• Patty Edwards™ Concession Stand, Inc.
• Lucia Wayne® Concession Stand, Inc.
• Ruth Keith™ Concession Stand, LLC
• Jessica Lawrence© Concession Stand, Inc.
• Grace Brown® Concession Stand, Inc.
• Shelly Hulk® Concession Stand, Inc.
• Anna Hilton™ Concession Stand, Inc.
• Shop O’clock™ Concession Stand, LLC
• Jean McGlone® Concession Stand, Inc.
• Camelia Signature® Concession Stand, Inc.
• Michael Scofield© Concession Stand, Inc.
• Felicia Fashion® Concession Stand, Inc.
• Kids Arena© Concession Stand, LLC
• Indian Bazaar® Concession Stand, Inc.
• Loveland Williams® Concession Stand, Inc.

3. Register Your Business

a. What Type of Business Structure is Best for Concession Stand Business?

The ideal business structure for a concession stand business is determined by a variety of factors, including the size of the company, the number of owners, the level of personal liability the owners are ready to accept, and the tax consequences of the various business structures.

However, we normally recommend that you start the business with minimal liability.

An LLC is a hybrid corporate form that provides the flexibility of a partnership while also providing its owners with limited liability protection.

An LLC can have one or more owners, and the owners are not personally accountable for the debts or liabilities of the business.

b. Steps to Form an LLC

• Choose a Name for Your LLC.
• File Articles of Organization.
• Choose a registered agent.
• Decide on member vs. manager management.
• Create an LLC operating agreement.
• Comply with other tax and regulatory requirements.
• File annual reports.

c. What Type of License is Needed to Open a Concession Stand Business?

• General Business License
• Seller’s Permit
• Food service license
• Alcohol License (if applicable)
• Music License
• Health department permit
• Building permit
• Zonal Permit
• Signage Permit

d. What Type of Certification is Needed to Open a Concession Stand Business?

You don’t need any certifications to open a concession stand business, it is a business that is open to all and sundry as long as you have the business expertise and finance.

e. What Documents are Needed to Open a Concession Stand Business?

• DBA
• EIN
• Business and liability insurance
• Federal Taxpayer’s ID
• Certificate of Incorporation
• Business License
• Business Plan
• Operating Agreement for LLCs
• Insurance Policy
• Alcohol License (if applicable)
• Music License
• Seller’s Permit
• Food service license (if applicable)
• Seller’s Permit
• Health department permit
• Building permit
• Zonal Permit
• Signage Permit

f. Do You Need a Trademark, Copyright, or Patent?

A concession stand business may or may not need a trademark, copyright, or patent and this is dependent on the specific products, services, and branding associated with the business.

Be that as it may, a concession stand business may want to consider obtaining a trademark for its business name or logo to prevent others from using similar names or logos that could cause confusion in the marketplace.

They may want to consider obtaining a copyright for their original marketing materials or other creative content.

They can consider obtaining a patent if it has invented a unique piece of equipment or technology that is used in their business operations.

4. Cost Analysis and Budgeting

a. How Much Does It Cost to Start a Concession Stand Business?

The cost to start a concession stand business can vary widely depending on factors such as the size of the business, location, equipment and supplies needed, staffing costs, marketing expenses, and more.

However, a rough estimate could range from $5,000 to $50,000 or more, depending on the size and scope of the business.

b. What are the Cost Involved in Starting a Concession Stand Business

• Legal and administrative costs (the cost of obtaining business licenses and permits, registering the business, and consulting with attorneys and accountants): $2,500
• Equipment and supplies: $35,000
• Staffing costs: $35,000
• Rent/lease: $10,000 (paying for space and storage facility inclusive)
• Marketing and advertising costs: $3,000
• Insurance costs: $2,800
• Transportation cost: $3,000
• Miscellaneous Expenses: $5,000.

c. What Factors Determine the Cost of Opening a Concession Stand Business?

• The size and type of the concession stand business
• The choice of location
• The required licenses and permits
• The cost of hiring and paying a business consultant and attorney
• The cost for branding, promotion, and marketing of the concession stand business
• The cost of furnishing and equipping the concession stand business
• The cost of the insurance policy covers
• The cost of registering the business
• Source of your supplies and ongoing expenses
• The cost of recruiting and training your staff
• The cost for the purchase and customization of uniforms, shoes, and caps for your employees
• The cost for the grand opening of the concession stand business.

d. Do You Need to Build a Facility? If YES, How Much Will It Cost?

No, you don’t need to build a facility for a concession stand business because a concession stand is a small, portable setup designed to sell food and drinks at temporary or permanent locations like fairs, sports events, or festivals.

Its mobility and simplicity allow entrepreneurs to operate with minimal overhead and quickly adapt to various venues without the need for a fixed building.

e. What are the Ongoing Expenses of a Concession Stand Business?

• The cost of renting or leasing the concession stand space.
• Utility expenses, including electricity, water, heating, and cooling, are ongoing costs.
• Inventory (ongoing expenses will include the cost of purchasing or restocking inventory)
• Marketing and advertising
• Staffing
• Insurance
• Maintenance and repairs
• Licensing and permits
• Payment processing fees
• Miscellaneous expenses.

f. What is the Average Salary of your Staff?

• Shop Manager – $46,000 per year
• Cashier (Accountant) – $35,000 per year
• Sales Assistant – $28,000 per year
• Cleaners – $26,000 per year

g. How Do You Get Funding to Start a Concession Stand Business

• Raising money from personal savings and the sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Pitching your business idea and applying for business grants and seed funding from, government, donor organizations, and angel investors
• Source for soft loans from your family members and friends.

5. Write a Business Plan

a. Executive Summary

Joan Burrows™ Concession Stand, Inc., based in Detroit, Michigan, aims to become a leading provider of high-quality, convenient food and beverage options at local events, sports venues, and community gatherings.

By focusing on popular concession items such as gourmet popcorn, specialty pretzels, and refreshing beverages, the company plans to capture a broad customer base ranging from families to young adults.

The business will prioritize excellent customer service, speedy transactions, and maintaining high food safety standards.

The company’s competitive advantage lies in its commitment to using fresh, locally sourced ingredients and offering unique menu items that stand out from traditional concession fare.

Joan Burrows™ Concession Stand, Inc. will operate primarily at large-scale events, festivals, and popular venues across Detroit, leveraging relationships with event organizers to secure prime locations.

With a scalable and mobile business model, Joan Burrows™ Concession Stand, Inc. projects steady revenue growth and strong profitability.

The focus on flexibility and customer satisfaction positions the company well within Detroit’s dynamic food service market.

b. Products and Services

At Joan Burrows™ Concession Stand, Inc., we offer a diverse range of delicious, high-quality snacks and beverages designed to satisfy cravings at any event.

Our signature products include gourmet popcorn with unique flavors, freshly baked specialty pretzels, and classic favorites like hot dogs and nachos.

We also provide a variety of refreshing drinks such as iced teas, lemonades, and sodas to keep customers cool and energized.

Beyond food and drinks, our services focus on convenience and customer satisfaction.

We ensure quick, friendly service with a clean, attractive stand that enhances the event experience.

c. Mission Statement

At Joan Burrows™ Concession Stand, Inc., our mission is to provide delicious, high-quality snacks and beverages with exceptional customer service, creating memorable and enjoyable experiences at every event.

We are committed to using fresh, locally sourced ingredients and maintaining the highest standards of food safety and hygiene, while supporting the Detroit community.

Vision Statement

Our vision is to become Detroit’s most trusted and beloved concession stand brand, known for innovation, quality, and community engagement.

We strive to expand our presence across major events and venues, continuously delighting customers with unique flavors and outstanding service, while promoting sustainability and local partnerships.

d. Goals and Objectives

Joan Burrows™ Concession Stand, Inc. aims to establish itself as a top concession provider in Detroit by delivering exceptional food quality and customer service.

Our goal is to build strong relationships with event organizers and secure prime locations to maximize visibility and sales.

We also focus on expanding our product range with innovative menu items and maintaining strict food safety standards.

Ultimately, we strive for steady revenue growth, customer loyalty, and a positive community impact.

e. Organizational Structure

• Shop Manager
• Cashier (Accountant)
• Sales Assistant
• Cleaners

Marketing Plan

a. SWOT Analysis

Strength

• High-Quality Products: Use of fresh, locally sourced ingredients ensures superior taste and customer satisfaction.
• Unique Menu Offerings: Gourmet popcorn and specialty pretzels differentiate the stand from typical concession fare.
• Mobility and Flexibility: Portable setup allows operation at various events, festivals, and sports venues across Detroit.
• Strong Customer Service: Trained staff focused on quick, friendly service enhances customer experience and repeat business.
• Community Engagement: Local partnerships build brand loyalty and a positive reputation within Detroit.

Weakness

• Limited Brand Recognition: As a new business, Joan Burrows™ may face challenges establishing trust and awareness.
• Dependence on Event Schedules: Revenue fluctuates with the availability and popularity of local events and seasons.
• Limited Menu Size: Smaller, specialized menus may deter customers seeking more variety.
• Initial Capital Constraints: Limited funding might restrict marketing reach and inventory scalability initially.

Opportunities

• Expanding Event Markets: A Growing number of festivals, sports events, and private functions in Detroit offer multiple venues.
• Health-Conscious Trends: Introducing gluten-free, vegan, or low-sugar options to tap into emerging dietary preferences.
• Technology Integration: Using mobile POS systems, social media, and loyalty apps to streamline sales and boost customer engagement.
• Catering and Private Events: Expanding into corporate and private catering offers additional revenue streams.

Threats

• Competition: Established concession stands and food trucks with loyal customers may limit market share.
• Regulatory Changes: Stricter health codes or zoning laws could increase compliance costs or limit operating locations.
• Supply Chain Disruptions: Reliance on local suppliers may pose risks during shortages or price fluctuations.
• Economic Downturns: Reduced discretionary spending can impact event attendance and concession sales.

b. How Do Concession Stand Businesses Make Money?

Concession stand businesses make money by selling food, snacks, and beverages at marked-up prices during events, festivals, and in high-traffic areas.

Popular items like popcorn, soda, hot dogs, and pretzels often have high profit margins, sometimes reaching 70–90%.

Revenue is also generated through strategic event placement, catering private parties, and offering combo deals.

Consistent foot traffic, quality service, and appealing menus help maximize sales and encourage repeat customers.

c. Payment Options

• Cash
• Credit cards
• Debit cards
• Mobile payments (Apple Pay, Google Pay)
• Contactless payment terminals
• QR code payment apps (e.g., Venmo, Cash App)
• Gift cards or prepaid vouchers.

d. Sales & Advertising Strategies

• Social media marketing (Instagram, Facebook, TikTok)
• Event-based promotions and discounts
• Loyalty programs and punch cards
• Eye-catching signage and branded booth design
• Collaborations with local events and festivals
• Online presence through Google Business and local listings
• Offering limited-time or seasonal menu items
• Customer referral incentives.

Financial Projection

a. How Much Should You Charge for Your Product/Service?

The price of the products or services for a concession stand is not fixed, it will depend on the type of products or services.

b. How Much Profit Do Concession Stand Business Owners Make a Year?

The profitability of a concession stand business can vary significantly depending on various factors, including location, operating expenses, sales volume, pricing strategy, and overall business performance.

c. What Factors Determine the Amount of Profit to Be Made?

• The capacity of the concession stand business and its sales volume
• The location the concession stand business is covering
• The management style of the concession stand business
• The business approach of the concession stand business
• The advertising and marketing strategies adopted by the concession stand business.
• The number of years the concession stand business has been in business

d. What is the Profit Margin of a Concession Stand Business?

Profit margins for concession stand businesses typically range from 5% to 20% of total revenue.

However, it’s important to note that these figures can vary based on factors such as the size of the business, cost structure, efficiency of operations, competition, and market demand.

e. What is the Sales Forecast?

• First Fiscal Year (FY1): $240,000
• Second Fiscal Year (FY2): $320,000
• Third Fiscal Year (FY3): $400,000

6. Set Up Your Shop /Office

a. How Do You Choose a Perfect Location for a Concession Stand Business?

• The demography of the location
• The demand for meat in the location
• The purchasing power of businesses and the residents of the location
• Accessibility of the location
• The number of concession stands and related businesses in the location
• The local laws and regulations in the community/state
• Traffic, parking, and security et al

b. What State and City is Best to Open a Concession Stand Business?

• Fort Worth, Texas
• Seattle, Washington
• Hoboken, New Jersey
• Washington, D.C.
• Miami, Florida
• Chicago, Illinois
• Los Angeles, California
• Las Vegas, Nevada
• New York City, New York
• Nashville, Tennessee

c. What Equipment is Needed to Operate a Concession Stand Business?

• Point of Sale (POS) System including a cash register or tablet, barcode scanner, receipt printer, and software for tracking sales and inventory.
• Display Fixtures such as clothing racks, shelving units, tables, mannequins, hangers, and display cases.
• Signage and Banners, such as outdoor signage, window displays, hanging signs, and promotional banners.
• Lighting Equipment, such as track lighting, spotlights, string lights, or lamps to ensure that the concession stand is well-lit and visually appealing.
• If you plan to incorporate music or audio elements into your concession stand, a sound system with speakers and audio equipment will be necessary.
• Cash Handling Equipment such as a cash drawer, cash counter, or counterfeit money detectors to manage cash handling securely.
• Depending on the size of your concession stand and inventory, you may need storage solutions such as storage racks, shelves, or cabinets to store additional stock, supplies, and equipment.
• Reliable internet access and a computer or tablet device
• Depending on your products, you will need packaging materials such as bags, boxes, tissue paper, or bubble wrap for customers’ purchases.
• Cleaning supplies such as brooms, mops, disinfectants, and trash bins are necessary to keep the space clean and organized.
• Safety and Sanitation Equipment (fire extinguishers, first aid kits, hand sanitizers, and other safety equipment).

7. Hire Employees

The decision to hire or not to hire employees for a concession stand business depends on the size and scale of the operation.

If the business is small and operates on a small scale, it may be possible for the owner to handle all aspects of the business on their own.

However, as the business grows and the sales increase, it may become necessary to hire employees to handle various aspects of the operation.

8. Launch the Business Proper

A well-planned launch party creates buzz, draws attention to your brand, and gives the community a chance to experience your products firsthand.

It’s a powerful way to introduce your offerings and create a memorable first impression.

By hosting the event in a popular local park, sports venue, or festival setting, you can attract families, event-goers, and food lovers in your target market.

Offering free samples, live entertainment, and discounts on first purchases can generate excitement and encourage word-of-mouth promotion.

a. What Makes a Concession Stand Business Successful?

• Choose a good location to launch the business
• Make sure you offer a variety of products and services
• Throw an open house grand party before officially opening the business
• Be deliberate with your marketing and sales approach
• Encourage the use of word of mouth to promote your concession stand business
• Leverage all available online and offline platforms to promote your concession stand business

b. What Happens During a Typical Day at a Concession Stand Business?

A typical day at a concession stand business can vary depending on various factors such as the duration of the event, the type of products or services offered, and the overall setup and operations of the business.

However, here is an overview of what may happen during a typical day at a concession stand:

• Setup and Opening
• Customer Interactions and Sales
• Monitor inventory levels throughout the day and restock products as needed
• Utilize social media platforms or other marketing channels to promote the concession stand and attract customers
• Close the concession stand at the designated end time or when customer traffic slows down.
• Process any final sales transactions and reconcile cash registers or point-of-sale systems.
• Clean and tidy the concession stand space, including restocking inventory, organizing displays, and ensuring that the space is ready for the next operating day.

c. What Skills and Experience Do You Need to Build a Concession Stand Business?

• Excellent retailing skills
• Excellent logistics skills
• Excellent customer service skills
• Interpersonal skill
• Hygiene and safety experience
• Accounting and bookkeeping skills
• Business management skills
• Bargaining and bidding skills
• Work experience in a concession stand business environment
• Experience in managing people.