This post was a part of our look at "How the Creator Economy Can Save the Hospitality Industry". To learn more about how we're helping hospitality entrepreneurs thrive in a new era, check out The Hospitality Stack.
A closer look at a traditional restaurant’s business equation and unit economics reveal many of these issues. Restaurants sell perishable inventory for thin margins. Their capacity is constrained by both space (seats, kitchen, etc.) and time (freshness), and cannot scale without the high variable costs of food and labor. The business is exposed to the risks of a single income stream, which has proved fragile to say the least.