RESEARCH CASES · Partial evidence and planning assumptions
Compare / Base scenarios

Find the difference
that matters.

Hold the restaurant format and sales plan constant. Then inspect what local cost assumptions do to the result.

These are not rankings.

Austin and Orlando rents have different evidence strength. Coffee has a different revenue unit. Numerical precision does not remove those comparison limits.

Check the evidence →
Same engine, disclosed base assumptions · USD
MeasureRestaurant
Austin
Restaurant
Orlando
Coffee Shop
Austin
Footprint1,800 sq ft1,800 sq ft1,000 sq ft
Revenue unitguestguesttransaction
Base demand / day110110170
Planned net check$28.00$28.00$7.50
Base rent + NNN / month$5,250$6,750$3,333
Loaded team / month$37,442$38,796$14,475
Pre-opening payments$241,298$245,786$133,737
Operating cash reserve$87,534$102,603$43,762
Undrawn contingency$21,981$21,981$11,392
Total funding$350,812$370,371$188,892
Normalised mature EBIT$3,089$299$567
Year 1 EBIT-$43,451-$76,980-$26,714
Year 1 project cash-$32,251-$66,848-$19,387
EBIT target / open day104 guests110 guests166 transactions
Sustained paybackNot within 60 monthsNot within 60 monthsNot within 60 months

The matched restaurant comparison

Both restaurants assume 48 seats, 1,800 sq ft, 110 guests/day and a $28 service-included net check in Base. The equipment basket and $65/sq ft narrow renovation allowance are held equal; this controls format, not actual local contractor cost. Orlando's base/NNN allowance, chosen hiring wages and scoped fees differ.

Neither case establishes which city offers better demand. Orlando's price assumption sits above many sampled entrée-plus-drink examples and needs a willingness-to-pay test. A restaurant is not viable because it narrowly clears a modeled cost threshold.

What would improve the decision?

  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.

Financial information disclaimer

Published research and calculations support business planning and education. They are not personalized financial, investment, tax or legal advice, and they do not guarantee costs, revenue, profit or financing. Estimates depend on the stated format, location, source periods and assumptions. Check the requirements and commitments that apply to your circumstances.