How do pop-up restaurants/food concepts make money when it's so short-term?
I've identified some crucial factors that help pop-up restaurant owners make money in a short period.
Optimization/Austerity: They have learned to operate with just the basic necessities, and keep to a tight budget. They will think twice before investing in a sumptuous decor, high-end materials or any other unnecessary expense. That way, they minimize their costs, while focusing on what truly matters (the food) and increase their profit margin.
Food-centered experience: In my opinion, this is the crucial factor behind pop-up restaurants' success. Most pop-up restaurants find their differentiating factor in providing unique menus and experiences around the food they serve.
Location: Another key factor for a pop-up restaurant is its location. Good restaurant owners study different areas, and project customer traffic and costs to make the right location choice. This far-sighted mindset can help ensure success.
Third-party or self-endorsement: These restaurants are usually owned or accredited by remarkable chefs or influential people inside the industry. Endorsement helps them market themselves in a better way. They use their contacts to spread the word and get valuable (and wealthy) customers to their tables.
Increased average ticket: Since they put all their effort into creating unique menus and food experiences, these pop-up restaurants can earn more in a single ticket than other restaurants.