Restaurant — Complete Financial Report

⚠️ CRITICAL UPDATE: Previously Unreported Expenses Identified

This report includes AED 13,194 monthly in mandatory and operational expenses not previously captured, plus delivery commissions averaging AED 13,419 monthly. These represent approximately 15% of total revenue.

Average Monthly Revenue

AED 178,919

100%

Average Gross Profit

AED 98,402

55.0%

Actual Net Profit/Loss

AED 201

0.1%

Total Staff Costs

AED 40,878

22.8%

Total Operating Exp

AED 98,201

54.9%

Delivery Commissions

AED 13,419

7.5%

REVISED PROFIT & LOSS STRUCTURE

COMPLETE EXPENSE BREAKDOWN (% OF REVENUE)

DETAILED EXPENSE BREAKDOWN - ALL COSTS INCLUDED

Expense Category	June 2025	July 2025	August 2025	Avg % of Revenue
COST OF GOODS SOLD
Purchases (Food & Beverage)	87,899.01	77,324.50	76,328.60	45.0%
LABOR COSTS
Basic Salary	31,047.00	31,200.00	32,488.00	17.7%
Staff Health Insurance	6,600.00	6,600.00	6,600.00	3.7%
Staff Visa & Recruitment	3,500.00	3,500.00	3,500.00	2.0%
Staff Uniforms & Welfare	83.33	83.33	83.33	0.05%
Total Labor Costs	41,230.33	41,383.33	42,671.33	23.4%
OCCUPANCY COSTS
Shop Rent	13,900.00	13,900.00	13,900.00	7.8%
Room Rent (Staff Accommodation)	6,305.00	6,305.00	6,305.00	3.5%
VAT on Rent (5%)	1,010.25	1,010.25	1,010.25	0.6%
Total Occupancy	21,215.25	21,215.25	21,215.25	11.9%
UTILITIES
Shop DEWA	7,936.66	8,075.00	10,440.00	4.9%
Room DEWA	1,665.59	1,661.00	1,812.00	1.0%
DELIVERY & ONLINE COSTS
Delivery Platform Commissions (25% of 30% revenue)	14,205.73	13,071.75	12,979.39	7.5%
OPERATIONAL EXPENSES
Management Fee (15% of profit)	5,240.85	4,714.58	4,233.14	2.6%
Other Operational Expenses	3,257.50	1,992.00	1,234.00	1.2%
General Expenses	2,460.00	2,402.00	2,330.00	1.3%
Trade License	1,500.00	1,500.00	1,500.00	0.8%
Equipment Repairs & Maintenance	416.67	416.67	416.67	0.2%
POS Software & Subscriptions	83.33	83.33	83.33	0.05%
TOTAL EXPENSES	187,111.44	173,514.91	175,243.71	99.9%
NET PROFIT (LOSS)	2,298.31	775.09	(2,185.21)	0.1%

🚨 CRITICAL FINANCIAL FINDINGS:

Business is barely breaking even - Average net profit of only AED 201 per month (0.1% margin)
August shows a loss of AED 2,185 due to rising costs and declining revenue
Missing expenses totaled AED 26,612 monthly - representing 15% of revenue
Delivery commissions alone cost AED 13,419 monthly (7.5% of revenue)
True labor costs are 23.4% of revenue when including insurance, visas, and welfare
Break-even point is now AED 178,718 - current average revenue barely covers this
No buffer for unexpected expenses - any revenue drop will result in losses

📊 IMMEDIATE ACTION REQUIRED:

Revenue Enhancement: Need minimum 10% revenue increase to achieve healthy margins
Delivery Strategy: Consider renegotiating commission rates or implementing delivery fees
Cost Optimization: Review all controllable expenses, especially rising utility costs
Price Adjustment: Menu prices need immediate review to reflect true cost structure
Staff Efficiency: Optimize scheduling to manage labor costs without compromising service
Financial Controls: Implement proper tracking of all expenses to avoid future surprises