Restaurant Feasibility Study: How to Calculate Costs and Expected Profits with GUIDE FOOD 💼🍽️

What Is a Feasibility Study and Why Do You Need One? 🤔

A feasibility study is your roadmap to determine whether a restaurant project is financially viable.
It outlines setup costs, monthly expenses, potential revenues and expected profits — without it your decisions rely on guesses, not facts.

1️⃣ Define Your Restaurant Type and Size

Start by choosing whether your restaurant is fast food, casual, or fine dining. Size directly affects all costs: location, staffing, décor and equipment.
A small outlet has very different budget items than a high-end restaurant.

2️⃣ Estimate Startup Costs 💰

Startup costs include everything needed before opening, such as:

• 📍 Rent or purchase of the site.
• 🛠️ Décor and fit-out.
• 🍳 Equipment and appliances.
• 📝 Licensing and permits.
• 📦 Initial inventory and supplies.

💡 Rough estimate: opening a medium-size restaurant can range roughly from 300,000 to 600,000 EGP depending on location and concept.

3️⃣ Monthly Operating Costs 🧾

After opening you will face fixed and variable monthly expenses such as:

• 👥 Staff salaries.
• ⚡ Utilities (electricity, water).
• 🍽️ Food purchases.
• 📣 Marketing campaigns.
• 🔧 Routine maintenance.

Add these up to determine the minimum sales needed to cover costs.

4️⃣ Estimate Monthly Revenue 📈

Calculate expected daily customers and average ticket value.
Example: 100 customers/day × average ticket 150 EGP = 15,000 EGP/day → ≈450,000 EGP/month.

5️⃣ Calculate Expected Profits 💵

Profit = Revenue – Operating Expenses.
Example: expenses 350,000 EGP vs revenue 450,000 EGP → net profit ≈ 100,000 EGP (~22% margin).
This is a healthy margin and can be increased by reducing waste and improving efficiency.

6️⃣ Break-Even Analysis ⚖️

The break-even point is when your restaurant covers costs with no loss or profit.
It helps estimate how long before real profitability — typically many restaurants reach break-even within 6–12 months from opening.

7️⃣ Financial Success Factors 🧭

To secure financial success focus on:

• 📌 Choosing a location with steady foot traffic.
• 🔍 Monitoring expenses and cutting waste.
• 🚚 Diversifying income (dine-in + delivery).
• 🍽️ Creating an attractive menu with smart pricing.
• 📊 Consulting a financial expert or restaurant manager at startup.

🏁 Conclusion

Preparing a feasibility study is essential before any investment — it gives you a clear view of costs, revenues and risks.
Start confidently and let the Food Guide team prepare a professional feasibility study that ensures a successful launch and sustainable profits.