Last Updated: July 1, 2025 by Alex Hastings
Thanks to the rise of the mobile food and beverage industry, culinary entrepreneurs are no longer limited to brick-and-mortar locations. Trucks, trailers, carts, and vans are all valid options for business owners in place of a physical storefront. But is going mobile the right choice for you?
We’ve broken down the pros and cons of opening a mobile food business compared to a restaurant to make this important decision easier. Get the scoop at a glance in the chart below before we dig into each deciding factor.
| Mobile Food Business | Restaurant | |
|---|---|---|
|
Best For |
Entrepreneurs looking for lower expenses, flexibility, and the ability to reach customers across various locations |
Entrepreneurs seeking space to grow, higher revenue potential, and stability |
|
Pros |
✅ Low startup costs ✅ Low operating costs ✅ High profit margins ✅ Wide customer reach ✅ Flexible |
✅ More room to grow and scale ✅ High revenue potential ✅ Stability ✅ Expanded menu ✅ Less weather sensitivity |
|
Cons |
❌ Limited space for growth ❌ Commissary kitchen requirement ❌ Complicated regulations ❌ Weather sensitivity ❌ Vehicle reliance |
❌ High startup costs ❌ High operating costs ❌ Low profit margins ❌ Location-dependent ❌ Vehicle reliance ❌ Less flexible |
Pros and Cons of Opening a Mobile Food Business
With the rise in popularity of mobile food vending businesses in recent years, it can seem like a no-brainer to opt for this structure over the traditional restaurant approach. But like any choice, there are upsides and downsides to taking the less traditional path.
✅ Pro: Low Startup Costs
Mobile food operations tend to have lower startup costs than restaurants. The average startup cost for a food truck is about $100,000, but the cost of starting a small restaurant ranges from $175,000 at the lowest to $375,000 or more.
Most entrepreneurs aren’t able to cover startup costs on their own, which is why they turn to bank loans, grants, and community crowdfunding via GoFundMe or Kickstarter. However, higher startup costs mean larger loans, so even though you can get financial assistance setting up either type of business, it costs less in the long run to go mobile.
✅ Pro: Low Operating Costs
Beyond the initial setup, mobile businesses have relatively low operating costs compared to restaurants. These include expenses related to:
- Staffing: You don’t need as many people on your payroll to run a mobile food vending business as you would with a restaurant
- Rent and utilities: Not needing to rent a commercial storefront saves you thousands of dollars on rent each month, as well as utilities like water, electricity, and sewer usage
✅ Pro: High Profit Margins
A byproduct of lower operating costs is the ability to maintain higher profit margins. On average, food trucks have a margin of 6.2%. This appeals to many food entrepreneurs who historically face narrow margins, making running a business even more stressful.
✅ Pro: Wide Customer Reach
Being able to move your business to various locations gives you the unique ability to get out in front of multiple audiences that aren’t fixed to one specific area. You can set up in a commercial office one day to capitalize on the lunch rush and sell at a farmers market in the next town over tomorrow — something restaurants can’t do.
✅ Pro: Adaptable to Trends
Customer expectations are constantly changing in the food and beverage industry. New flavors and fusions emerge every year, and as much as people love the familiar, they also want to try something new. Mobile businesses have smaller menus than restaurants and can be more flexible when it comes to meeting new consumer demands.
Pro Tip: Curious what trends are shaping the industry this year? Check out our 2025 food and beverage trends report for exclusive data!
❌ Con: Limited Space for Growth
No matter what size vehicle you have for your business, space will be precious. Even the largest food truck models still have less room for new gear, more staff, and higher volumes than a small restaurant.
This makes scaling your business a challenge. Many mobile businesses expand their fleet as they grow, though managing more than a few vehicles can become a handful. That’s why many of them eventually venture into the restaurant space, like beloved West Coast ice cream franchise Salt & Straw, which started as a food cart.
❌ Con: Commissary Kitchen Requirement
Depending on where you live, your state, county, or city government may have a commissary kitchen requirement for mobile food businesses. This means that, to operate legally, you must rent a commercial kitchen space to serve as your operation’s home base. In most cases, all food prep and storage must occur in this location.
The cost of renting a commercial kitchen varies, but it usually includes a membership fee of $50-$200 per month and an hourly rate of $15–$75.
❌ Con: Complicated Regulations
Mobile food businesses are still relatively new compared to their brick-and-mortar counterparts, so legal requirements surrounding them are constantly evolving. This can make it confusing for business owners to know exactly which licenses and permits they need to operate above board and avoid getting fined or shut down.
Also, some areas are considered friendlier to mobile businesses than others because their laws aren’t as restrictive.
For instance, Portland, Oregon often ranks among the best cities to start a food truck. This is because it’s relatively easy to get the permits and licenses you need compared to a city like Boston, Massachusetts with a lot of bureaucratic hoops to jump through.
❌ Con: Weather Sensitivity
Mobile food businesses are more sensitive to adverse weather conditions than a traditional restaurant, for the most part. While a heavy storm might significantly decrease traffic to a restaurant, it could completely cancel the outdoor event you were set to sell at.
It’s worth noting that it may be harder to maintain safe food temperatures with a mobile business. If your van’s air conditioning breaks on a hot day, your refrigerated or frozen foods may spoil by the time you get to your destination.
❌ Con: Vehicle Reliance
While typically cheaper than maintaining a building, the vehicle you use for your mobile business will need routine maintenance and any necessary repairs. Keeping your vehicle in good, working order is critical for your success — after all, your business isn’t mobile if you don’t have a way of getting around.
TL;DR
Starting a mobile food business is more economical than a restaurant, thanks to lower startup and operating costs. Going mobile also means wider profit margins, increased flexibility, and the unique ability to reach customers where they are by moving locations.
However, limited space, weather sensitivity, and reliance on a vehicle can be challenging. Complicated local regulations and commissary kitchen requirements add complexity.
Pros and Cons of Opening a Restaurant
Now that we have a clearer understanding of the pros and cons of running a mobile business, let’s examine the pros and cons of starting a restaurant.
✅ Pro: More Room to Grow
Even the smallest restaurants tend to be bigger than vehicles used for mobile businesses. This extra space makes it easier for your business to accommodate more customers and higher volumes, so it can grow more easily than a van or food trailer.
✅ Pro: High Revenue Potential
The average new restaurant (less than one year in business) has a monthly revenue of $111,860.70. Of course, that’s all before you subtract your expenses, but in comparison, the average food truck revenue ranges from $20,000 to $42,000 monthly.
Most mobile food businesses can’t match the amount of money a restaurant pulls in. Since revenue is one of the most crucial key performance indicators (KPIs) for food businesses, it’s worth noting that restaurants have the upper hand here.
✅ Pro: Greater Stability
Having a fixed location for your business can contribute to your business’ stability. People always know where to find you, which makes it easier to create repeat customers.
This isn’t to say mobile businesses can’t build customer loyalty, but depending on how frequently they move from one place to the next, this aspect of their business can be more challenging.
✅ Pro: Easier to Scale
Having already established yourself in a physical storefront, you’re in a prime position to open new locations as your business grows. It can be easier for restaurateurs to open up new revenue streams via takeout, delivery, and catering than mobile businesses that operate from different locations throughout the week.
✅ Pro: Control Over Customer Experience
Compared to mobile food entrepreneurs, restaurateurs have greater control over factors like environment and ambiance. You can decorate and design the interior of your space to reflect your brand, vision, and the way you want your customers to feel.
Mobile businesses don’t have this luxury, and are more dependent on the atmosphere at each venue they visit.
❌ Con: High Startup Costs
Startup costs are one of the biggest blockers to many food-oriented entrepreneurs. While the typical funding sources are available, mobile businesses are more affordable to start — especially for new entrepreneurs.
❌ Con: High Operating Costs
Restaurants don’t just cost more to start; they cost more to run, as well. While restaurants and mobile businesses have some crossover in terms of what kinds of expenses they have, restaurants will almost always owe more.
For example, restaurants require a larger team to operate smoothly, so the amount you owe for monthly payroll will be higher than it would be if you ran a food truck and only had a couple of employees.
While many mobile businesses need to rent a commissary kitchen to comply with local laws, this costs less than leasing a commercial space for your brick-and-mortar restaurant. For a prime location that sees a good amount of foot traffic, you could pay as much as $12,000 a month for rent.
❌ Con: Narrow Profit Margins
Just like lower operating costs mean wider margins for mobile businesses, the reverse is true for restaurants. They’re known for operating on razor-thin margins, meaning unexpected expenses can quickly affect your bottom line. For most restaurants, this means a margin between 3–5%.
❌ Con: Location-Dependent
Restaurants are vulnerable to that old saying in real estate: location, location, location. If your storefront is off the beaten path, not easily visible from the road, or doesn’t see a lot of foot traffic, getting people through the door is harder without a savvy marketing strategy.
This isn’t much of a concern for mobile business owners, who can move their setup around as needed to find venues and spots that work for them.
❌ Con: Greater Staffing Needs
A big team doesn’t just equal more money spent on payroll; it also means more responsibility when hiring the right people for the job and ensuring you have the appropriate number of employees.
You can hire a shift or store manager to manage the day-to-day team, but this comes with a price tag. The average restaurant manager’s salary is just over $60,000.
❌ Con: Increased Competition
Because traditional restaurants are, well, the tradition, there are more of them in any given area than food trucks. This means competition is stiff, and you’ll compete with restaurants that have been well-established in the community. Some of them may even have operated in the same spot for decades.
TL;DR
Thanks to their fixed location, restaurants offer more room to grow and scale their businesses, higher revenue potential, and greater stability. However, high startup and operating costs paired with narrow margins make them more expensive to grow and maintain than a mobile food shop business.
They also require larger teams and face intense competition from established food and beverage businesses in the area.
How to Start Your Mobile Food Business Safely and Successfully
If the world of mobile food businesses is your cup of tea, you’re in for an exciting entrepreneurial adventure into a booming industry. Between 2018 and 2024, the number of food trucks in the U.S. grew 15.9%, and that upward trend doesn’t appear to be slowing down.
Start your mobile food business strong by following our comprehensive how-to guide! You’ll get tips on how to conduct market research, price your menu, and ensure your operations are covered with the right liability insurance.
FAQs About Mobile Food Businesses vs. Restaurants
What Insurance Do I Need for a Food Truck Compared to a Restaurant?
- Food trucks and other mobile food businesses need the following types of insurance from FLIP:
- General liability
- Food trailer endorsement (if you use a trailer for your business)
- Tools and equipment (inland marine)
- Liquor liability (if you sell or serve alcoholic beverages)
- Workers compensation (if you have employees)
- Commercial auto
In comparison, insurance coverage for a restaurant also includes:
- Business interruption insurance
- Commercial property insurance
- Employment practices liability insurance (EPLI)
- Equipment breakdown insurance
What Kinds of Liability Claims Do Mobile Food Businesses and Restaurants Face?
Common food truck claims include:
- Allergic reactions
- Contaminated food
- Slips and falls
- Equipment theft
- Employee injuries
Restaurants face similar claims to the above. However, because restaurants tend to do more business and have a higher volume of customers than mobile businesses, they may be more vulnerable to expensive third-party liability claims.
How Can I Test My Restaurant Concept Before Committing to a Brick-and-Mortar Location?
Starting with a mobile business, like a food truck or food cart, is a great way to test a restaurant concept. Many mobile businesses transition to a brick-and-mortar business model as they grow and scale, because it’s more affordable to start out as a food truck or food cart.
If customers love your food and brand, you can move into the restaurant space after a few years of steady profits.
By Alex Hastings
Alex is a Marketing Copywriter at Food Liability Insurance Program (FLIP). In her free time, she enjoys reading, birding, traveling, and finding any excuse to get brunch.
