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A Bicycle Business Opportunity On The South Rim

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By David and Kay Scott - November 9th, 2023

The National Park Service is looking for a bicycle concessionaire at Grand Canyon National Park

If you’ve dreamed of operating a bicycle business in one of America’s most scenic locations, your ship may have arrived. The National Park Service recently released a prospectus seeking proposals for the operation of a bicycle rental and tour business on Grand Canyon National Park’s South Rim. 

The business includes a shuttle service for bicycle riders and their bikes. In addition to cycling, the prospectus includes food and beverage sales of prepackaged sandwiches, snacks, hot and cold drinks, plus limited retail.  Somewhat surprisingly, the latter has historically generated twice as much revenue as the bicycle business.  This is partly explained by the seasonal nature of cycling on the South Rim (April through October is required, with year-round operation optional), while food and beverage service is required year-round. The concession is at a heavily-visited location near the park’s visitor center and park store.

NPS estimates the cycling and food service business will require an initial $727,000 investment, primarily for personal property.  A minimum of 100 bicycles is required by the prospectus, although additional bikes are likely to be needed, considering the existing concessionaire has 400 bicycles in inventory.  The concessionaire is responsible for providing employee housing. NPS has assigned four trailer sites to assist with this. A minimum franchise fee of 15 percent of revenues are to be paid to the NPS.

Revenues of approximately $3.5 million are projected for 2025, the initial year of the 10-year contract. NPS estimates a little over half of revenues will originate from the food and beverage service, with guided bicycle tours generating more revenue than either bicycle rentals or the shuttle service. 

Prices for most concession goods and services sold by private concessionaires in national parks are subject to final approval by the park superintendent. Currently, bicycles at Grand Canyon rent for $23/hour or $50/day with discounts for youths under 17 and multi-day rentals. Specialty bikes, including tandems and tricycles, rent for slightly more.  Bicycle tours run $70 to $80 with discounts for youths.

Parties interested in submitting a proposal must notify NPS employee Jennifer Parker ([email protected]) by 4 p.m. on January 9, 2024.

 

David and Kay Scott are authors of “Exploring the Oregon Trail: America’s Historic Road Trip” (Globe Pequot).

           

           

           

           

 

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