Are Mobile Vendors (Actually) a Threat to Brick and Mortar Restaurants?
There is a thought (a widely considered one) that mobile vending constitutes unfair competition to their Brick and Mortar (B&M) peers. There are many reasons used to support this "unfair competition" claim, but they roughly break down into three categories: Cheaper Market to Enter, Lower Maintenance Overhead to Sustain and Unlimited Geographic Flexibility. And while each of these areas does constitute a substantial difference from B&M restaurants, it is important to define what specific practical effects each of these areas might have on both mobile vendors and B&M restaurants. [caption id="" align="alignleft" width="500"]
[/caption]
It is a fact that it is cheaper to enter the mobile vending business than open a B&M restaurant. As a consequence the resulting cost savings can (and should) be reflected in lower (relative to the quality of the food produced) cost food served by Street Food vendors. The logical next question to ask is: Do restaurants receive nothing in return for the capital investments associated with opening, and running, a B&M restaurant? Of course, they absolutely get something. B&M restaurants have an ability to scale on a level that mobile vendors can never compete with. They have the ability to create more
