Hot-dog next to a hamburger is the most famous sandwich in the world. In the USA there is even an association (National Hot-Dog and Sausage Council) which inspects sausage in the bun.
According to the organization an average American eats 67 hot-dogs a year, which equates to 20 billion hot-dogs. The price of 1 hot-dog ranges from $1.00 -$1,25 which gives a market potential of 20 – 25 billion dollars a year. Unfortunately data from other countries aren’t available, but considering its popularity in bars and gas stations it is safe to say that hot-dog consumption is not low.
Thanks to our machine it is possible to successfully acquire a large share of this market. Here is why:
a) The novelty effect, will allow to acquire space for the machines and new customers who
will be interested in trying the “old” product in a new form,
b) Small size, a very popular way to sell Hot-Dogs are stands. However, they take up more
space and esthetically don’t match certain environments, environments where Hot&Go is
a perfect fit,
c) Versatility, the ability to sell beverages and desserts/snacks replaces 2 other vending
machines and Hot-Dog stand. This means that our machine can replace other vending
machines from good locations.
d) Costs, until today in order to sell a Hot-Dog a salesperson was required, a salesperson
who needs to get paid a salary, takes a sick-leave or a vacation, HOT&GO doesn’t
generate these costs . Furthermore it takes up a lot less space (approx. 1 square meter)
which affects the costs of rent.
e) Availability, the machine sells for 24h and can be located in a place where a hot-dog
stand has no access (railway platform, metro/train station etc.)
f) Trend for „to go” and „street food”, a busy lifestyle attracts customers who can have a
meal prepared quickly in widely available locations
g) Profitability – as a result of low costs of maintenance of our vending machine, locations
that weren’t turning profits may now become profitable.
By selling beverages and snacks, our machine will also compete on that market. It is worth noticing, that all 3 million vending machines in the US have control over 11% of the entire beverage industry (according to IBISWorld that industry is worth about. 47 billion dollars). According to the same source the snack vending machine industry is worth about 30 billion dollars.
When mentioning about the potential of our machine we should also bear in mind our main product which is the Hot-Dog. Fast food restaurants and chains sell hamburgers (McDonald’s), sandwiches (Subway), pizza (Pizza Hut) or chicken (KFC). There are no fast food chains offering hot dogs.