How Much Can You Make From A Concession Business?

An Introduction to Common Questions

Owning a concession trailer business can be a lucrative and exciting opportunity for the right candidate. When considering whether or not this is the type of business is for you, it is important to understand the industry of mobile food sales and the requirements of running this type of operation. You must familiarize yourself with the costs associated with start-up, daily operations, inventory, and the maintenance of existing equipment. There are myriad varieties of food services that can be offered by a mobile catering business and many platforms from which to sell your goodies. When you have decided that starting a concession business is the right choice for you, it will be time to formulate a business plan with which to approach lenders for capital.

Getting To Know The Business

Mobile concessions are the trade of providing sustenance for large or small groups at gatherings, events, or job sites. The concept of selling food from a mobile concession trailer is an old one with a rich history of appearing in gatherings and events since antiquity. The idea is to fulfill a need that is ever-present and un-ending: the necessity of eating. People only spend a portion of their lives in the comfort of their own home where their pantries are within reach. For the other portion, they will need to be fed from the kitchens of others.

Best Concession Trailer Opportunity: State Fairs

The fair is an excellent example of successful application of trailer concessions, with a mobile platform and food that is exclusive for the event. Food at these events are expected to be pricey, people gladly pay knowing they will not have the opportunity to do so again until the next scheduled event. Many common fair foods like cotton candy, deep-fried Oreos and ice cream, and corn dogs all have the ability to elicit an emotional or nostalgic response from those who experienced the food as a child.

Past and Future Market Statistics for the Mobile Concession Industry

According to the latest industry statistics, the mobile concessions industry, both public and private, has experienced a steady rise in growth. Despite economic woes, or as a result of them, consumers have turned to more budget-friendly choices for food and snacking. The market has almost doubled since 2006 when it was estimated to be around $2.5 billion. Current statistics show an increase to over $4 billion as of 2012. On the other side of the coin, the same study shows that the industry displays no signs of losing momentum as governments and local health organizations oversee better standards of practice and offer financial incentives to new owners. The next six years are expected to see similar steady growth of the mobile concession work force.

Earning Potential of a Concession Trailer Business

The potential to make a small or considerable profit depends on many factors, so it is hard to tell you exactly how much you will make as a concession trailer owner. One of the biggest considerations is pricing, in regards to supply chain and the sale price of final product. Do you know where to get cheap supplies for this business? If so, you could earn more by making your item relatively cheap. If not, you must charge a little more to make it worthwhile. Another crucial element that can make or break the earning potential of a business of any kind is a lack of planning, preparation, and organization. On average, the professional trailer owner can make from $40-100k annually depending upon region, product, events, and operating costs.

Preparation and Organization

Knowing which direction to take when starting out is vital to the success of any new business. When it comes to the mobile food business, this involves having a concession business model in which to follow and a concession business plan to keep you focused on the mission statement. A business model will help new and seasoned vets alike to keep their costs low, their company direction established, and their profits flowing.

It is important that you understand what restrictions the state and local government places on the particular service that you choose to sell. Know which licenses to carry, when to have inspections, whether you need permits to work at certain events. These details will help reduce headaches later, and like all organized companies, yours will be adjustable and adaptable to changing trends. There is a ton of potential in the mobile business industry these days. With popularity only expected to rise in the next half dozen years, the concession trailer business is a savvy investment.

No related posts.

Leave a Reply