Bryan,
Quick answer, no, we do not break even. Long answer….
The average cost for us to compete within 2 hours or less is about $700. This includes entry fee, meat, gas, food and beer. By having a couple other people cook with you, it is much easier to absorb those cost when split between you.
We tried competing and vending at 2 events last year. We have 2 main people who do the cooking, with 3-7 people that will come throughout the 2 day events and help us out. Even with that many people, competing and vending to the point of trying to turn a profit is extremely hard. At our first event last we lost a couple hundred dollars, but we also had a lot of equipment to buy since we were vending for the first time. The next event we broke even. I can tell you neither event was worth the amount of work we put into it.
Our next 2 events last year we competed only, and had a much better time. At our first event we made revenue from our people’s choice sales (that event pays you per sample to sell people’s choice) and we won people’s choice, so we broke even for the event. At the next event it was a first year event and very close to us, so it was cheap and we were only out about $400 overall.
This year we have separated, for the most part, when we are going to vend and when we are going to compete. Our turn ins definitely suffered when we were vending as well. We did okay at our first even this year that was vending only, but nothing that you could make a living off of.
You have to look at so many variables for an event for it to be worth it to vend. What is the vending fee, flat or a percentage of sales? I have 2 local events that I will not do because they take 20% of your revenue, on top of a $100 entry fee. We prefer to vend at events that have a flat fee that we take into consideration from the start. How many people usually attend the event? Obviously established events do better since they have been doing it for years. How many other teams will be vending? Is there a people’s choice event (Always the cheapest way for people to try different BBQ)? What are the health department regulations?
In Georgia most events get by the health department because they meet a certain set of rules. 1. Sponsored by a political division of the state (county or city) or 501c (this is why most events benefit a charity), 2. Last 120 hours or less, AND 3. Is authorized to be conducted by the city or county where located. When the event meets that criteria food still has to be cooked to a proper temp, and sanitary processes followed, but you do not have to have a permit.
In Georgia there is also temp food establishment permit for events that last 14 days or less, but they are required to meet a lessened set of the normal health department regulations. There are BBQ events that do not meet the above rules and therefore you must get a permit for a temp food establishment from the local county. To us, that is not worth the effort.
As far as risk, while it is always there, most people at these events eat from multiple vendors so if you are properly handling and cooking your food, I think someone would have a hard time coming back at you. Now if you are touching food with your bare hands for service, serving questionable looking (even if it is done) food, and not handling properly, I am sure someone could easily remember that and come after you.
As for setting up a corporation, in Georgia to get a food related business license (there are a couple exceptions) you must pass a county health examination, which requires you to have or have access to a commercial kitchen. Your kitchen at home can not be a commercial kitchen.
If I were you I would try your hand at a couple backyard events to see if it is for you. The entry fee is usually less (but so is the prize money and number of payouts) and sometimes you don’t cook all 4 meats, which would also bring down your cost. It’s a lot of work and very little sleep, but you may get hooked and want to form a team and go for the bigger prizes.