The restaurant industry can be described as exhibiting monopolistic competition as there are many sellers in the market but each seller is slightly differentiated from the rest. A restaurant can be horizontally differentiated by the type of cuisine its serves, the quality of the food, the service, the ambience and décor and the location. The prices that can be charged for these differentiating features are constrained in large part by the geographic location of the restaurant and the local competition. Consumers will tend to not travel long distances for their meal, no matter how differentiated the product. The consumers will weigh the convenience of the location against the price of the meal and so cross-price elasticity of demand may be high. Substitutes to restaurant meals are home prepared meals and frozen dinners. The restaurant will be profitable if it has a superior location. Failing that, a restaurant can be profitable by creating a loyal following for its horizontally differentiated product, so that consumer demand is relatively inelastic.