So You Want to Start a Funnel Cake Stand

Funnel Cake Stand

Everyone knows the familiar smell of funnel cake drifting on the air of a crisp fall evening at the fair. But the allure of this deep-fried treat doesn’t have to stop when the neon dims. No longer are funnel cakes pigeon-holed strictly into the "fair food" category. Today, customers will search high and low for a great funnel cake at almost any entertainment or sports venue. If there’s an outdoor function happening, you can expect to generate substantial funnel cake business.

Table of Contents

Startup Costs

Because it requires only a few pieces of inexpensive equipment, introducing a funnel cake stand is relatively easy. You may prefer the mobility a trailer or food truck can provide, or you may want to rent space at your local flea market or an existing concession stand.

One may have fewer startup costs, while another may grant more foot traffic. Once you’ve secured the structure that will house your funnel cake stand, you can begin equipping it. The basic package you'll need will consist of a funnel cake fryer, cake molds, funnels, a few utensils, and enough mix for a few batches to get you started. Your funnel cake business can be as simple as that, but there are some other options you can choose if you’re going all out.

If you’re looking for a stand-alone funnel cake business, the startup funds needed are minimal, and you can begin making a profit quickly. When considering food cost alone, you can expect returns in the 70-80 percent range.

Funnel Cake Equipment

If you’re simply looking to supplement your menu by adding the occasional funnel cake, a cost-effective solution would be to purchase a small countertop fryer. There are also high-output gas or electric fryers that can cook six to eight cakes at once with quick recovery times to help you eliminate long lines and increase profit potential.

Flat-bottom fryers are best for funnel cakes because they are heated from below and have plenty of space for your cakes to float on top of the oil. They also typically don't have heating elements in the oil, which means any loose batter pieces produced in cooking funnel cakes won't get stuck and burn.

Some units run on electricity, while others run on gas. LP tanks will probably be your best option as they can go anywhere, but with the increasing popularity of natural gas, you may find places that offer those hookups.

Cooking Details & Tips

Oil

One of the most important aspects of serving excellent funnel cakes is the quality of your oil. While peanut oil will create a delicious product, so many people are allergic to peanuts and peanut products that you may want to choose another option. Peanut oil tends to be very expensive, as well.

Safflower, sunflower, soybean, and canola oil are also good options due to their ability to handle high heat without smoking and the fact that they won’t impart their own flavor into your cakes. General vegetable oil tends to be the least expensive and is a blend of corn, soybean, and sunflower oils.

Mix

Funnel cake batter can be made from scratch and requires only flour, eggs, sugar, milk, and baking powder or soda. There are even recipes that simply call for pancake mix and water. To take the guess work out completely, there are several commercial mixes available, as well, and they may be the best option if you'll have several cooks in the kitchen.

Cooking Technique

There's a fine line between a golden, crispy treat and a gloppy mess. Perfect the technique you use to make and pour the batter to create a perfect cake every time.

A simple measuring cup will work, but a funnel will help ensure you pour the batter at the right speed. You'll want to start with a batter that is about the same consistency as cake batter. If it's too thin, the batter won't hold together when it hits the hot oil, and your cake won't have form. If the batter's too thick, it won't pour properly, and you'll end up with an unevenly cooked cake.

The speed at which you pour the batter will also have an effect on the finished product, so take your time to create this classic favorite.

Serving & Options

If you’ll be offering toppings for your cakes, you may need topping dispensers and some way to keep fruit, whipped cream, and ice cream at proper temperatures. You may opt for a reach-in refrigerator or freezer, or you may want a dispenser that keeps whipped cream cold as it's pumped. If you want to serve hot fudge or caramel sauce, there are dispensers that will keep those warm, as well.

No matter how creative you get with your toppings, you'll need to have a sifter to present the classic cake with a topping of powdered sugar. Funnel cakes are typically plated on paper or Styrofoam plates, but new variations use finger-shaped molds to create smaller versions that are easier to eat and can be served in cones or disposable food trays.

You’ll want to complete your startup inventory with consumables like batter mix and toppings, such as strawberry and chocolate sauces.

Equipment Maintenance

Funnel cake fryers have no distinct sediment zone, so it's important to clean them regularly to keep sediment from scorching and affecting flavor. This also ensures your oil is clean and fresh and can extend its life; replacing degraded oil is by far the most expensive part of using a fryer. Oil that has begun to break down will result in an undercooked, greasy mess and hinder return business.

To prevent this, you'll need to drain the oil, remove the fry baskets, and remove residue buildup on a regular basis. Once a week, you should scrub the machine using dishwashing detergent and warm water. Rinse well, and you'll be ready to fry another week.

Fryer cleaning tools and an oil-quality test kit will help ensure your oil is at the proper consistency to produce this fan favorite all year long.

The Details of Running a Business

Scheduling

If you're taking your business on the road, you'll want to make sure to check with those in charge of the event you hope to set up at well in advance. Space is often limited, and you'll want to make sure there's enough room for your cart or truck. Some long-standing fairs and events even have wait lists for vendors, so you'll want to do your homework to ensure there will be a place for you.

Supplement Your Cakes

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 critical follow up. You can easily add canned or bottled soft drinks or water by getting some coolers. You can also opt for fountain drinks with drink dispensers and portable ice makers.

Another addition 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've got yourself another easy source of income. French fries or fried pies are other options for making your funnel cake stand even more profitable.

Licenses and Permits

Before you can begin serving up this classic treat, you will need to ensure that you have the proper licenses and permits. These vary from state to state and municipality to municipality. A number of fees may be associated with temporary vending, and in most cases, you’ll need a license to peddle food at fairs, festivals, or events. Typically, you’ll also need a health inspection, the thoroughness of which will vary depending on location. You’ll also be required to keep track of your sales so you can pay local, state, and federal taxes on any revenue you generate.

Labor Concerns

As with any business, good help can be hard to come by. You’ll need to make sure you hire dependable people who will help take care of your equipment and your customers, along with insurance that covers them and you in the event of an accident.

If you plan to give high school kids a chance to earn some spending money, you will also need to check the laws in your state regarding hiring minors. In some states, child labor laws put tight restrictions on the number of hours and the time frames teens can work, and concession workers are sometimes not excluded from these situations.