3 ms·
The key to such a business surviving is volume - there are lots of fixed costs and very narrow margins, so you need to be getting lots of people per operating h
by azernik 6y ago
The key to such a business surviving is volume - there are lots of fixed costs and very narrow margins, so you need to be getting lots of people per operating hour. Driving around to various residential areas will just never get you nearly as many people as a busy street or an office district will, and the driving time itself will also kill your efficiency. (Generally, lunch and coffee places near offices do well, because office density is a LOT higher than residential density.)
This is part of why food in less-dense areas dominated by big chains - when all your customers need to drive half an hour or more to get to you and food culture isn't driven as much by novelty-seeking, it's hard to get a following before your runway runs out. Big chains are very experienced/cost-efficient, and have the capital to last if things start slow.