An Inside Look at a Funnel Cake Concession Busines!

Enjoyed at amusement parks, carnivals, sporting events, and more, funnel cakes are one of the all-time favorite fun foods. Perfectly fried and topped with an irresistible layer of powdered sugar, many have found this tasty treat is a recipe for success when starting a concession business. Let’s take an inside look at the funnel cake business with concessionaire Corey Lyons*.

Gold Medal: How did you get started in the concession business?
Corey Lyons: After being told it was a “recession proof” business, I did my research. I realized there was a lot of potential and the risks were low. I decided to just start out small and rented a funnel cake fryer. Business took off quicker than I expected and it wasn’t long before I purchased my first two fryers.

GM: Why focus on funnel cakes?
CL: Everyone loves funnel cakes. I’ve never heard anyone say they don’t like funnel cakes. They’re popular and you can make them quickly, which means you can serve more customers.

GM: Tell us about the profit potential.
CL: It will 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.

GM: What products do you sell at your concession stand?
CL: We sell the 6-inch funnel cakes. I feel they’re the most inviting size. We do offer toppings like apple or strawberry, too. Additional items that we sell are beverages and occasionally cotton candy.

GM: How do you get business?
CL: Honestly, most of my business is via word-of-mouth. We do anything from birthday parties to church events to large festivals. To protect your position and secure pricing, I always suggest coming up with a contract when booking.

GM: Do you have any special tips?
CL: Practice, practice, practice. You have to be able to move fast to keep the lines moving. Be prepared with all your concession supplies (funnel cake mix, plates, forks, napkins, etc.). If you’re not, it will just slow you down.

GM: Explain the philosophy behind your concession business.
CL: I try to make it as simple as possible. Don’t try to do too many different products at once. The best thing you can do is find out what you do well and focus on that.

GM: What advice do you have for those starting a concession business?
CL: 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.

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Since 1931, Gold Medal has been helping entrepreneurs start their own concession businesses, both large and small. Put our knowledge and experience to work for you! Interested in learning more? Contact Beach Cities Wholesalers at 562-355-4074 or info@beachcitieswholesalers.com

Popcorn Business Tip: Strategize Your Pricing!

Setting the right price point for your concessions is a key strategy for increasing profits. Whether your popcorn business is at an amusement park, a roller rink, a convenience store, or a little league concession stand, you’ll quickly see how important pricing is. Along with promotions and merchandising techniques, this variable will allow you to test your market, track your results, and move forward with the best price for you and for your customer.

You’ll see that because Gold Medal popcorn is so affordable, you’ll have great flexibility in pricing while still generating strong profit margins. Here’s a breakdown showing an example of your costs, your pricing, and your profit:

Example: Food Cost Per 1-oz Serving of Popcorn
50 lb. Bag (#2040) = 4.4¢
Oil Bars (#2042) = 5.0¢
Flavacol® (#2045) = .5¢
Container – 44-E Scoop Box (#2066) =10.0¢
= 19.9¢ food cost per 1-oz serving
Suggested Retail – $1.25 to $2.00 per one-ounce serving.

Another pricing practice is to know what your competitors’ prices are, as well as their quality and options (Is their popcorn cheaper? If so, is it cheaper for a reason?). Also know your customers, which will likely vary by location. Popcorn pricing (margins) will be different at a high-end candy shop/bakery (which can offer gourmet popcorn) than at a youth event, for example.

Selling popcorn on its own is effective, but you can also consider bundling it with another concession item as a special offer. While this lowers the price per item, it will likely increase your overall profit because of the upsell.

Ideas for Popcorn Pricing Promotions

• Use your menu board to create tie-ins such as a large popcorn with a large soft drink. This “two for” can be a permanent part of your menu board—not just a coupon special.
• More than 75% of all households in America are avid coupon redeemers. If there’s a way you can pass out coupons at your admission gate or ticket window or as customers buy a given item with a coupon tipped on, try it. Coupons work.
• Offer a serving of popcorn with butter at half price for a specific hour. Be sure to push this promo on social media for maximum reach. Use Facebook, Twitter, and/or Instagram to announce it ahead of time or on the spot.
• Designate a “Free popcorn with every $4.00 purchase or more” promotion. This kind of special builds goodwill, and it doesn’t cost much.

Track Your Results

Pricing is a bit of an art form, so test your results by keeping a simple spreadsheet with the date, food cost, total sales (dollar amount and number of items sold), and your promotions. Use this to make informed decisions for your next event and put your plan in writing so that it’s easier to remember and execute.

For more Concession Tips, call Beach Cities Wholesalers at 562-355-4074!