If you scale this down, the hot dog is the first to disappear into a blur. That's not great for a hot dog stand.
And it's not only about making it small, things also appear small when they're far away. You want your logo to be recognizable from 2 blocks away or from the top floor of a skyscraper. That's where distinct outlines and strong contrasts come in. It's no problem to lose a little detail, but a logo shouldn't become a blob.