RESEARCH CASES · Partial evidence and planning assumptions
Florida / Orlando · Research partial

Restaurant
in Orlando.

This scenario earns an operating margin, but ramp losses and pre-opening spending leave launch payments unrecovered within 60 months. A paid replacement manager is included.

This is a city planning case, not a Florida average. Local sources are combined with national prices and explicit assumptions.

Base planning scenario$370,371

Capital including operating reserve and undrawn contingency.

$299 normalised monthly EBIT
110 guests/day for EBIT break-even

Change the assumptions ↓

Conditional result · source-checked inputs do not validate demand.

One specific operating format.

Leased footprint
1,800 sq ft
Seats
48
Service
Casual full service; lunch and dinner
Trading schedule
26 days/month · 8 service hours/day

Existing restaurant infrastructure, leased; functional extraction and grease systems assumed. No purchase of the predecessor business, goodwill or key money included.

48 seats × 3 whole-day seat turns = 144 guests/day. Turns are a planning ceiling, not measured demand. Kitchen and service coverage still need a timed trial.

No alcohol, drive-through or delivery platform. Service-included pricing; no tip credit and no customer tips in the cash model.

What is sourced, and what is modeled?

Published items include equipment offers, selected menu prices, May 2025 wage benchmarks and scoped government fees. Daily demand, achieved check, site condition, paid roster and unquoted expenses are assumptions. All three research records remain partial.

Your assumptions / connected results

Test the plan before trusting the headline.

Downside, Base and Upside change conditions of this same format. They are authored scenarios, not measured probabilities or confidence intervals.

Price anchors: S084 · S085 · S086
Asking rent context: S079 · S080 · S081 · S082 · S083
Changing these fields does not transform assumptions into local observations.

Capital incl. all reserves$370,371
Normalised mature EBIT$299
Whole-day EBIT sales target110guests / open day · within stated capacity
Sustained project paybackNot within 60 monthsBefore financing & income taxes

Calculated planning scenario. Full paid team; no tips. Mature results use normalised annual payroll and renewal expenses, with month-12 depreciation. Year 1 below follows the ramp and cash schedule. Monetary headlines round to whole dollars; exports retain cents.

01 / Cash before opening

Fund the launch and the slow months.

Pre-opening payments U₀
Use of fundsUSD
Design, legal and accounting setup allowanceAssumption$8,500
Dining furniture and smallwares allowanceAssumption$12,000
POS, network and hardware setup allowanceAssumption$2,500
Pre-opening manager time and team training allowance, employer costs includedAssumption$26,000
Branding and signage allowance, installed and tax inclusiveAssumption$5,000
Launch marketing allowanceAssumption$3,000
Refundable utility deposits allowanceAssumption$2,500
Insurance during two months of pre-opening worksAssumption$1,000
Utility use during pre-opening worksAssumption$1,000
Required LLC state formation feesPublished input$125
Scoped initial food/local feesPublished input$266
Additional approvals and food-safety training allowanceAssumption$2,500
Renovation and installation allowanceAssumption$117,000
Equipment basket, estimated sales tax and fixtures taxInputs + assumptions$32,395
Refundable lease depositAssumption$13,500
Rent during pre-opening worksAssumption$13,500
Opening ingredients and consumablesAssumption$5,000
Total payments before openingRefundable deposits and opening stock are assets, not operating expenses.$245,786
Scenario funding requirement$370,371

$245,786 pre-opening payments
+ $102,603 operating cash reserve
+ $21,981 undrawn works/equipment contingency

Reserve has a reason.

$102,603 = $77,603 maximum cumulative operating deficit + $25,000 cash floor. The deepest modeled deficit occurs in month 6.

The additional 15% contingency on construction and equipment stays in cash until used; this scenario assumes no draw. Funding includes it, while payback excludes unspent reserves. Two months of pre-opening rent cover works before M1; the deposit is separate.

Rent basis: S079 · S080 · S081 · S082 · S083
Scoped permits: S069 · S070 · S071 · S072 · S073 · S074 · S075 · S076 · S077 · S078

02 / The operating test

Does the paid business support itself?

Normalised mature month · USD
Revenue and expenseAmount
Net revenue110 guests/day × 26 days × $28.00; tax excluded.$80,080
Ingredients, consumables and waste32% of net revenue; recipe cost not measured.-$25,626
Card processing90% card share; 2.6% of tax-inclusive processed sales + $0.15 per payment; 2 guests/payment.-$2,189
Cash wages-$33,525
Employer taxes, benefits and workers compensationBenefits 6% and workers compensation 1.5% are unquoted allowances. Tax uses each employee’s annual wage base.-$5,272
Base rent + NNN$5,250 base + $1,500 additional rent.-$6,750
Other operating expenses-$4,600
Annual renewals, normalised monthly-$57
EBITDABefore depreciation, financing and income taxes.$2,062
Depreciation at month 12Straight-line assets; reinvestment cohorts included.-$1,763
Operating profit (EBIT)Not an owner distribution.$299

Two break-even thresholds.

EBITDA break-even: $76,920 net revenue/month, or 2,748 whole guests.

EBIT break-even: $79,621 net revenue/month, or 2,844 whole guests.

Analytical fixed costs ÷ contribution per unit, before monthly ledger rounding. A whole-day target rounds daily throughput upward. The target fits the stated capacity; customer demand still needs validation.

Owner labor is already paid.

The team includes $5,583/month gross replacement-manager pay. If the owner performs that role, this is labor compensation already included in costs. Normalised EBIT of $299 is the residual project result, not guaranteed spendable owner cash.

Payroll treats the replacement as an employee. An owner’s actual payroll and tax treatment depends on entity/tax status and is outside this project comparison.

Other operating costs, item by item
  • Electricity, gas, water and internet allowance: $1,500/month
  • Business insurance allowance (workers compensation is in payroll): $500/month
  • Ongoing marketing allowance: $700/month
  • Software subscriptions allowance: $250/month
  • Accounting and professional services allowance: $350/month
  • Repairs and maintenance expense allowance: $450/month
  • Waste, pest control and cleaning supplies allowance: $600/month
  • Business property tax and miscellaneous operating allowance: $250/month
03 / First 12 operating months

The first year is not twelve mature months.

Year 1 net revenue$836,836
Year 1 EBIT-$76,980
Year 1 project cash generated-$66,848
Peak operating deficit$77,603

From profit to cash

Year 1 cash bridge
EBIT-$76,980
Add back depreciation$20,717
Add normalised renewal expense$686
Subtract actual renewal cash payments-$686
Subtract change in operating working capitalReceivables plus inventory; positive increases use cash.-$5,784
Subtract equipment reinvestment purchases-$4,800
Project cash generated after reinvestmentBefore financing, income taxes and owner distributions.-$66,848

Opening inventory is paid in U₀, then consumed or carried forward. Purchases = COGS + ending stock − beginning stock. Assumed customer settlement lag is 2 days; target stock is 7 days of cost. No supplier credit. Payroll taxes are set aside when accrued; actual remittance timing is not modeled.

What is deliberately held constant?

Prices, staffing and cost rates stay at the disclosed planning basis for 60 months. Ramp changes demand; it does not silently remove paid staff. No measured seasonality, inflation or future tax forecast is asserted.

Equipment reinvestment is modeled as $400 of paid additions per month, depreciated over 60 months. Repair expenses are separate. An actual replacement plan, asset retirements and terminal value require equipment condition and a longer model.

Inventory is a fungible cost balance; spoilage is within the COGS allowance, not a shelf-life simulation. Sales-tax collections are ring-fenced and never fund the project.

Can the project recover its pre-opening payments?

Not within 60 months. Cumulative cash starts at −$245,786. Positive recovery must remain positive through month 60; neither refundable deposit recovery nor sale value is assumed.

Swipe horizontally on a narrow screen to follow all 60 months. The table below contains the same cash series.

Cash generated versus pre-opening payments-$323k-$162k$0kM0M12M24M36M48M60
Inspect all 60 months and the cash balance
USD · cash balance includes untouched contingency
MonthSalesEBITΔNWCNet cashCash balanceProject recovery
1$36,036-$29,287-$147-$27,793$96,791-$273,580
2$48,048-$21,243$1,618-$21,507$75,284-$295,087
3$57,658-$14,367$1,294-$14,300$60,983-$309,387
4$65,666-$8,887$1,078-$8,861$52,123-$318,248
5$72,072-$4,688$863-$4,316$47,806-$322,564
6$76,877-$1,559$647-$826$46,981-$323,390
7$80,080$525$431$1,481$48,461-$321,909
8$80,080$518$0$1,912$50,373-$319,997
9$80,080$512$0$1,912$52,285-$318,085
10$80,080$505$0$1,627$53,912-$316,458
11$80,080$498$0$1,912$55,824-$314,546
12$80,080$492$0$1,912$57,736-$312,634
13$80,080-$621$0$806$58,542-$311,828
14$80,080-$417$0$1,017$59,559-$310,812
15$80,080$188$0$1,628$61,187-$309,184
16$80,080$441$0$1,626$62,812-$307,558
17$80,080$458$0$1,773$64,586-$305,785
18$80,080$452$0$1,912$66,498-$303,873
19$80,080$445$0$1,912$68,410-$301,961
20$80,080$438$0$1,912$70,322-$300,049
21$80,080$432$0$1,912$72,234-$298,137
22$80,080$425$0$1,627$73,861-$296,510
23$80,080$418$0$1,912$75,773-$294,598
24$80,080$412$0$1,912$77,685-$292,686
25$80,080-$701$0$806$78,490-$291,880
26$80,080-$497$0$1,017$79,507-$290,864
27$80,080$108$0$1,628$81,135-$289,236
28$80,080$361$0$1,626$82,760-$287,610
29$80,080$378$0$1,773$84,534-$285,837
30$80,080$372$0$1,912$86,446-$283,925
31$80,080$365$0$1,912$88,358-$282,013
32$80,080$358$0$1,912$90,270-$280,101
33$80,080$352$0$1,912$92,182-$278,189
34$80,080$345$0$1,627$93,809-$276,562
35$80,080$338$0$1,912$95,721-$274,650
36$80,080$332$0$1,912$97,633-$272,738
37$80,080-$781$0$806$98,438-$271,932
38$80,080-$577$0$1,017$99,455-$270,916
39$80,080$28$0$1,628$101,083-$269,288
40$80,080$281$0$1,626$102,709-$267,662
41$80,080$298$0$1,773$104,482-$265,889
42$80,080$292$0$1,912$106,394-$263,977
43$80,080$285$0$1,912$108,306-$262,065
44$80,080$278$0$1,912$110,218-$260,153
45$80,080$272$0$1,912$112,130-$258,241
46$80,080$265$0$1,627$113,757-$256,614
47$80,080$258$0$1,912$115,669-$254,702
48$80,080$252$0$1,912$117,581-$252,790
49$80,080-$861$0$806$118,386-$251,984
50$80,080-$657$0$1,017$119,403-$250,967
51$80,080-$52$0$1,628$121,031-$249,339
52$80,080$201$0$1,626$122,657-$247,714
53$80,080$218$0$1,773$124,430-$245,941
54$80,080$212$0$1,912$126,342-$244,029
55$80,080$205$0$1,912$128,254-$242,117
56$80,080$198$0$1,912$130,166-$240,205
57$80,080$192$0$1,912$132,078-$238,293
58$80,080$185$0$1,627$133,705-$236,666
59$80,080$178$0$1,912$135,617-$234,754
60$80,080$172$0$1,912$137,529-$232,842
04 / Paid operating team

Every required role has a cost.

Six days/week, eight service hours/day. Paid roster includes preparation, cleaning, management and overlap; no hourly worker exceeds 40 scheduled hours/week. 8.65 paid FTE equivalents; 10 people. Headcount, hours and hiring rates are assumptions.

Chosen roster · base conditions
Role / benchmarkPeopleHours / person / weekCash pay / personLoaded annual role cost
General manager / owner replacementSOC 11-9051 · S009140$67,000/year$77,382
Kitchen leadSOC 35-1012 · S010140$25.00/hour$60,109
Line and prep cooksSOC 35-2014 · S011240$21.00/hour$101,057
ServersSOC 35-3031 · S014332$23.00/hour$132,904
DishwashersSOC 35-9021 · S015230$17.00/hour$61,538
Host / runnerSOC 35-9031 · S016130$18.00/hour$32,565

Wage references are May 2025 metro distributions from BLS via O*NET. BLS wages include tips and exclude employer benefits; no-tip hiring pay remains a planning choice (S095). Chosen hiring rates are September 2026 planning assumptions, not current job offers. Required food-manager coverage must include qualified relief beyond the manager’s own 40 hours. Benefits and workers-compensation percentages need quotes.

05 / Procurement

A priced basket, with the gaps visible.

Quantities are chosen for discussion. The model assumes these movable assets must be bought. Remove any item only after confirming usable equipment is conveyed with the lease.

Merchandise basket · tax, delivery and installation treated separately
Item / configurationChosen qtyUnit priceEvidence
Range and ovenVulcan SX36-6BN. Gas connectors, commissioning and installed suitability not included.1$2,307.00Published input
Manual griddleAtosa ATMG-24. Additional exact natural-gas listing at The Restaurant Warehouse verified. RestaurantSupply unavailable offer is price corroboration only. Stand, connector and commissioning separate.1$839.00Published input
S019 · S020 · S021
FryerPitco 45C+S NAT. Use1472, not stale category1436. Initial oil belongs to inventory/consumables, not fryer purchase.1$1,472.00Published input
Reach-in refrigeratorAtosa MBF8507GR. 1$3,117.00Published input
Reach-in freezerAtosa MBF8501GR. 1$2,612.00Published input
Refrigerated prep tableAtosa MSF8302GR. Do not buy the included12 pans and board twice. Coffee quantity depends on light-food menu.1$2,326.00Published input
DishwasherCMA UC50E. Use final voltage confirmation. Water treatment,drains,electrical,chemical starter and install separate. Built-in booster not an extra purchase.1$6,136.00Published input
Three-compartment sinkAdvance Tabco 9-3-54-18RL. Faucet sold separately. Existing sink conveyed and suitable => new sink quantity0.1$2,457.57Published input
Dry prep work tableRegency600T2448GC. Quantity assumption. Not automatic substitute for heat-rated griddle stand.2$209.99Published input
Batch coffee brewerBunn VP17-1SS13300.0001. Menu-dependent optional. Decanter,filters and batch grinder not priced here.1$472.00Published input
Optional ice machineManitowoc UDP0140A161B. One vendor only. Distinct from olderUDF0140A. Capacity depends on test conditions;size using peak iced drink demand and ambient temperature,not seats alone.1$2,780.00Published input
Handwash sinks, faucets, heat-rated stand, racks and additional small appliancesUnquoted ancillary hardware allowance. Hardware allowance only; connections, delivery and installation are in the renovation allowance. No new hood purchase.1$4,600.00Assumption
What sits outside these merchandise prices?

Renovation allowance: $65/sq ft across 1,800 sq ft. Intended scope: modest finishes, layout adjustments, quoted-item connections, delivery/handling, and inspection/repair of retained infrastructure. No new hood, structural works, major HVAC, utility-capacity upgrade or goodwill purchase. The allowance is unquoted; an incompatible site invalidates it.

Furniture/smallwares and POS are separate allowances. Published furniture sets and a $299 Square Terminal are reference components inside these allowances; they are not added twice. Allowances include additional fixtures, network/order hardware and unpriced accessories. Food, stock and staff training have their own lines.

Equipment sales tax is estimated by item; Florida local surtax cap is applied where relevant. Installation and tax classification still need an actual invoice. The contingency is separate undrawn cash.

06 / Why research is still partial

The address can change this answer.

Lease and premises

$35 base and $10 NNN per SF/year are planning allowances. Disclosed local restaurant asking examples are sparse and imperfect matches; no kitchen-ready 1,800 SF lease or NNN quote is secured. The comparison must not imply a statewide cost premium.

S079 · S080 · S081 · S082 · S083

Scoped permits

Initial scoped cash budget: $136 DBPR half-year license + $50 application + $60 county receipt + $20 city use/admin = $266. January model opening assumes renewal in April. A separate $2,500 allowance includes initial city business tax and address-specific approvals. City recurring $225 is provisional, pending an invoice.

S069 · S070 · S071 · S072 · S073 · S074 · S075 · S076 · S077 · S078

Close the material gaps before using this as your budget.

  1. A site and a signed cost scope

    Lease, NNN reconciliation, equipment ownership, approved seats and contractor quote.

  2. Demand at the planned price

    Daypart observations, conversion, menu mix, price testing and repeat visits. Capacity and traffic counts are not customer demand.

  3. A quoted operating plan

    Supplier recipes, staffed shifts and relief, insurance, utilities, benefits and approval timing.

Idea Score, State Fit and investment confidence: not scored. Source counts measure documentation, not the chance of success.

Turn the test into a site-specific plan.

Replace rent, contractor scope, menu mix and staffing with your own evidence. Then extend the cash schedule to financing, taxes, owner distributions and actual equipment replacement.