Stat,
You miscalculated how many hot dogs Sherpa dai has to sell to stay in business. Even if he sells 2000 hotdogs a day (1000 on each cart which is realistic), he'll make decent money ($327K per year)
Total Reveneu per year 2000/day* $2(Sales price) * 364 days = $1456000
Expenses:
Rent $600,000
Hotdog cost each $.5*2000*364 = $364000(including ketchups, mayo, mustards all) I know it will cost even less because there are lots of hot dog shops who sell hotdogs 69c each and still make money)
Wages: $12/hr * 12 hrs a day (work hour) * 364* 2 (for both shops) = $104832
Misc expenses: $50,000/year
Total Expenses = $1118832
Net profit per year = $1456000-$1118832 = $337168
$327K per year... NOT BAD