
Mobile Food Concession or Fixed Location Restaurant?
1. Location Selection. A typical restaurant operator is generally required to commit to a long-term lease and he better hope he chooses the right location. If he doesn't, he's stuck in a bad location and forced to pay a hefty penalty for getting out of the lease early. On the other hand, the operator of a mobile food business has the ability to change locations at almost time should conditions warrant. Further more the owner of a mobile food business may find that he can operate in more than one location. For example, he may run a lunch time business in one location, then move to another location better suited for evening business and operate in still another location on the weekends.
2. Initial Capital Costs. The cost for a building lease, leasehold improvements, equipment, seating, etc., for a fixed location restaurant can easily surpass $150,000. And if you do pick a bad location, all that money spent on leasehold improvements is lost. You can't take that with you. With a mobile food business your investment and exposure is so much less. Most successful mobile food operators start with one cart, then grow as they learn the ropes, adding additional concession stands and/or vehicles, hiring employees, partners or subcontractors.
3. Time Commitment. A typical restaurant owner is tied to his business for excruciating long hours, sometimes 7 days a week, every week, month in, month out. According to an old adage, the two happiest days in a restaurant owners life is the day he bought it and the day he got rid of it. Notice they do not say "sold" it, as that is not always the case. On the other hand, the mobile food operator can pick and choose his hours. Most hot dog vendors work 4-5 hours a day, five days a week. Some even start out as a part time venture, working only the weekends, building the business before making a full time commitment. And the truth is, the hot dog vendor will earn more money than 99% of the "struggling to survive" restaurant owners out there. Plus he'll be able to enjoy his life and spend quality time with his wife and kids. On the other hand, according to published statistics, the majority of new restaurant owners will last less than one year, lose all their investment capital, probably file bankruptcy and lose their families in the bargain. Is it worth the risk? You decide.