Create a Dog Proposal

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Create a Hot Dog Proposal ECO 561 June 13,2012 Create a Hot Dog Proposal Starting a business is not easy. It is important to know about the economy, supply, and demand. Elasticity of demand and the market structure are vital to the businesses success. Is the business a monopoly, monopolistically competitve, or oligopoly? Angie, the owner of Create a Hot Dog started her business with a vision that became a success. Create a Hot Dog was established in 2004 by owner Angie Smith. Angie had a vision to bring the popular hotdog back to life. She wanted an affordable and enjoyable place where customer could create his or her own foot long hotdog. The owner selected a location in a busy shopping center in Laguna area of Elk Grove. The menu included foot long beef hot dogs and a variety of toppings. There were no names for specific combos the customer would purchase his or her hot dog, chips, and a soda for $5. There is a condiment bar customer can add topping of his or her choice. The toppings include: mustard, ketchup, relish, onions, jalapenos, chili, bacon, cheese, and sour cream. On the first day of business more than 100 customers attended the grand opening. Angie was excited as this was a good way to start the new eatery. Create a Hot Dog made over $500 dollars in profit. The eatery averaged about 30 customers per day, which brought in about $4200 per month in profit. Two years later the eatery was doing well and Angie hired more employees and opened another location in Sacramento. In addition to the new location, she increased the price to $8. She upgraded the eateries and added televisions, so that customers could enjoy sports throughout the year. This increased the customer base. The customer per-day average went from 50 to 70. Both locations were doing well until the economic

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