The Indian restaurant P&L stack
| Line | % of revenue (casual dining) | % of revenue (cloud kitchen) |
|---|---|---|
| Revenue | 100% | 100% |
| Food cost (COGS) | 28-34% | 26-32% |
| Packaging + delivery | 1-3% | 5-8% |
| Aggregator commission | 5-12% (blended) | 18-26% |
| Variable labour | 3-6% | 4-7% |
| = Contribution margin | 48-58% | 30-42% |
| Rent + occupancy | 8-14% | 6-10% |
| Fixed labour | 12-18% | 10-14% |
| Utilities | 3-5% | 3-5% |
| Marketing | 2-5% | 3-7% |
| R&M, software, other | 3-5% | 3-5% |
| = EBITDA (operating) | 10-16% | 14-22% |
| Depreciation | 3-5% | 2-4% |
| Interest | 1-3% | 0-2% |
| = PBT | 5-10% | 10-18% |
Prime cost; the most important line
Prime cost = food cost + total labour. It's the single most predictive number for whether a restaurant survives year one. Target ranges:
- QSR; 50-55% (lower labour, higher food cost ratio)
- Casual dining; 55-60%
- Fine dining; 58-65% (higher labour per cover; food cost slightly higher with premium proteins)
- Cloud kitchen; 42-50% (lower labour but commission load is brutal)
- Cafe; 48-55% (great food cost ratios on coffee, food cost averages bring it back up)
Contribution margin and channel mix
Contribution margin = revenue minus all variable costs. This is what's left to cover fixed costs and produce profit. Channel mix swings it dramatically: dine in revenue at 50% contribution vs Zomato/Swiggy at 28-35% means a 70% aggregator share restaurant has a fundamentally different P&L than a 30%-aggregator restaurant at the same revenue.
Run the math: the break-even calculator ships a channel mix slider that shows how aggregator dependence pushes daily break even up. A 30→50% aggregator share shift typically lifts required break even revenue by 14-18%.
Fixed costs; the floor that doesn't move
Rent is the headline fixed cost (8-14% of revenue when stabilised), but the killer is fixed labour. A 1,200 sqft casual dining needs 14-18 staff regardless of whether you do 80 or 180 covers a night. That structural minimum is what determines your floor.
Marketing; the line most owners underspend
Indian restaurants chronically under spend on marketing. Healthy ranges: 2-3% of revenue for stable dine in, 4-6% for QSR + aggregator, 5-7% for cloud kitchens (where Zomato/Swiggy ads + on platform discounts are non optional). Spending less doesn't save money; it shortens runway.
R&M; the line that grows
Repairs and maintenance starts at 1-2% of revenue in year 1 and grows to 3-4% by year 3 as equipment ages. Most owners budget for year 1 levels and get blindsided. Plan an annual deep service for tandoors, ranges, chillers, dishwashers, and HVAC. Budget ₹50k-1.5L/year for a casual dining.
EBITDA targets by format
| Format | Year 1 EBITDA | Stabilised EBITDA |
|---|---|---|
| QSR | 5-10% | 12-18% |
| Casual dining | 3-8% | 10-16% |
| Cloud kitchen | 8-14% | 14-22% |
| Cafe | 8-15% | 18-28% |
| Fine dining | 0-6% | 8-14% |
Year 1 EBITDA is almost always thin or negative. Cafes and cloud kitchens stabilise fastest (3-6 months); fine dining can take 12-24 months to reach steady state margins.
Capacity utilisation; the silent multiplier
Two restaurants with identical menus, prices, and costs can have completely different P&Ls if one runs at 65% capacity utilisation and the other at 35%. Every additional cover on a Friday night drops 50-55% to the bottom line (just food and variable labour, no incremental rent or fixed labour). This is why filling shoulder periods (3-5pm, late lunch / early dinner crossover) is more important than ‘peak’ optimisation.
Building the operating dashboard
Track these 8 numbers daily/weekly: covers + average ticket; food cost % (running 7 day); labour cost % (weekly); aggregator commission paid (weekly); marketing spend ÷ incremental revenue; days above daily break even (count this month); cohort retention 30 day; R&M YTD vs budget. Forkcast's operating brief computes all 8 from POS + bank + supplier data.
Run your unit economics in the break-even calculator →