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Key Takeaways
- The initial monthly running budget for the All-Day Restaurant is projected to start around $27,000 to $30,000, driven heavily by labor and inventory costs.
- Payroll is the single largest expense category, consuming nearly half (approximately 48%) of projected monthly revenue at around $17,250.
- Achieving the targeted March 2026 breakeven point requires rigorous control over the 12% Cost of Goods Sold (COGS) and maximizing early sales volume.
- Operators must secure a minimum working capital buffer of $839,000 to sustain operations through the initial three-month ramp-up phase before reaching profitability.
Running Cost 1 : Wages and Staffing
Payroll Headcount Reality
Payroll drives your initial cost structure, representing the single biggest monthly outlay. In 2026, staffing 45 FTEs requires $17,251 per month just to cover wages plus the employer burden. This number sets your immediate operational floor.
Staffing Cost Inputs
This $17,251 estimate covers the total cost of employment, not just base salary. You need the blended rate for salary plus the employer burden (taxes, insurance, benefits) applied to the 45 FTEs. This is the baseline for your 2026 P&L.
- Total FTEs needed: 45
- Cost includes burden: Yes
- Yearly baseline: 2026
Managing Labor Spend
Since labor is fixed at this scale, focus on utilization and scheduling efficiency. High turnover will quickly inflate this baseline due to constant retraining costs. Avoid over-hiring early, especially for back-of-house roles that don't directly drive immediate sales volume.
- Watch turnover rates.
- Schedule precisely for covers.
- Maintain high utilization.
Staffing Risk Check
If your 2026 revenue projections don't comfortably support $17.2k in fixed payroll, you must reduce the 45 FTE target or increase average check size immediately. Defintely delay hiring until demand is proven.
Running Cost 2 : Food and Packaging
COGS Overload
Your Cost of Goods Sold (COGS) hits 120% of revenue in 2026, meaning you spend $1.20 for every $1.00 earned before accounting for labor or rent. This structure, where 100% covers food and 20% covers packaging, signals a fundamental pricing or sourcing problem right out of the gate.
Inputs for 120% COGS
This 120% COGS requires tracking every ingredient purchase against realized sales price to ensure accuracy. You need precise unit costs multiplied by expected usage per menu item, plus the cost per takeout container or napkin. If projected revenue is $100k, COGS is immediately $120k.
- Track ingredient cost per plate.
- Measure packaging cost per order.
- Use 100% for food, 20% for packaging.
Cutting the Cost Drag
A 100% food cost is unsustainable; you must radically redesign the menu to feature high-margin items or find massive sourcing discounts. Also, review if the 20% packaging cost reflects too much reliance on off-premise dining, which you may need to curb for profitability. Realize these changes now.
- Target 30% food cost maximum.
- Renegotiate supplier contracts today.
- Reduce reliance on high-cost packaging.
The Profit Squeeze
With COGS absorbing 120% of revenue, you cannot cover the $17,251 in monthly wages or the $2,500 stall rent. This model guarantees negative gross profit before any operating expense hits the books. You need revenue to be at least 120% higher than projected just to cover the cost of the food and boxes.
Running Cost 3 : Stall Rent
Fixed Stall Cost
This fixed monthly stall rent of $2,500 is due every month, no matter how many meals you sell. It acts as a baseline overhead that must be covered before you see profit. This cost is absolute and doesn't scale down if sales drop off suddenly.
Cost Calculation
This $2,500 covers the physical space lease for the restaurant location. It sits firmly in the fixed overhead category alongside utilities ($400/month) and software ($80/month). You must budget for this payment even if revenue is zero. Here’s the quick math: this equals $30,000 annually.
- Fixed monthly charge
- Due regardless of covers
- Part of total fixed overhead
Managing Rent Pressure
Since this rent is non-negotiable, management focuses on maximizing sales density within that fixed space. Avoid common mistakes like signing long leases without renewal options. The key lever isn't cutting the rent itself, but ensuring sales volume pushes you past fixed costs quickly.
- Maximize utilization time
- Negotiate lease terms early
- Focus on high-margin items
Actionable Insight
Because this $2,500 is sunk cost, every dollar of contribution margin generated above this threshold directly boosts operating profit. You defintely need to know your break-even point in revenue terms to manage this pressure effectively.
Running Cost 4 : Utilities
Fixed Utility Baseline
Your baseline utility expense for electricity, gas, and water is set at a fixed $400 per month, forming a small but predictable part of your fixed overhead structure.
Estimating Utility Spend
This fixed cost of $400 covers electricity, gas, and water needed for the all-day restaurant operations. You need zero variable inputs for modeling since it's treated as static overhead, unlike COGS which is 120% of revenue. Honestly, this cost is defintely small.
- Covers: Electricity, gas, water.
- Modeling Input: Fixed $400/month.
- Context: Less than 2.3% of projected wages.
Controlling Utility Spikes
Because this is fixed overhead, management focuses on preventing unexpected spikes rather than cutting the base rate. Avoid running high-energy equipment during off-peak hours if possible. If you see usage creep above $450, investigate HVAC settings immediately.
- Watch HVAC efficiency closely.
- Don't let usage exceed $400 baseline.
- Compare quotes annually for service providers.
Overhead Coverage Check
This $400 must be covered monthly alongside your $2,880 in other fixed costs (Rent, POS, Admin). If your contribution margin is tight, this small cost still needs immediate sales volume to clear before hitting profit.
Running Cost 5 : Marketing and Advertising
Marketing as Variable Spend
Marketing costs are tied directly to how much you sell, not just fixed overhead. For this restaurant concept, expect advertising spend to start at 30% of sales. Based on 2026 projections, this means budgeting about $1,068 monthly for customer acquisition. This is a critical lever you control.
Inputs for Marketing Budget
This variable line item covers customer acquisition, like local ads or promotions. To estimate this cost accurately, you need your projected monthly sales volume multiplied by the 30% rate. If sales jump in December, this marketing budget must scale instantly to support it. Honestly, it's pure growth fuel.
- Inputs: Sales forecast, 30% rate.
- Impact: Scales with revenue.
- Budget: ~$1,068 minimum in 2026.
Controlling Acquisition Cost
Since marketing is 30% of sales, efficiency is paramount. You must track Customer Acquisition Cost (CAC) versus Customer Lifetime Value (CLV) daily. A high initial spend is normal, but if CAC exceeds $15, you’re probably overpaying for traffic. Focus on local, high-intent channels first.
- Track CAC vs. CLV.
- Avoid broad, untargeted ads.
- Test small, measure fast.
Profitability Hurdle
Marketing at 30% is high, especially when Food and Packaging costs are already at 120% of revenue. This high variable spend means achieving profitability depends entirely on maximizing average check size and driving repeat visits to dilute the initial acquisition cost. You defintely need better unit economics fast.
Running Cost 6 : POS and Software
Fixed Tech Cost
Your Point of Sale (POS) system subscription is a fixed technology cost of $80 per month for operational efficiency. This fee covers the software needed to process orders and manage sales across your all-day restaurant operations.
Cost Breakdown
This $80 monthly fee covers the software platform managing sales, inventory tracking, and order routing for The Daily Table. It sits within your fixed overhead, separate from variable costs like packaging (estimated at 20% of revenue). You need the vendor quote to lock this number down.
- Covers software access.
- Fixed monthly charge.
- Supports sales processing.
Managing Software Spend
Managing this cost means avoiding feature creep; only pay for what you actually use. Moving from a monthly to an annual plan might save you 10% to 15%, though this ties up cash upfront. Don't cut corners on reliability, as downtime defintely stops revenue.
- Review features yearly.
- Avoid paying for unused modules.
- Annual prepayment saves money.
Efficiency Ratio
Because the POS cost is fixed at $80/month, its impact on profitability decreases as sales volume grows. If you hit $50,000 in monthly revenue, this software represents only 0.16% of sales, making it highly efficient overhead.
Running Cost 7 : Accounting and Admin
Fixed Admin Costs
Your monthly accounting and bookkeeping fees are fixed at $300. This predictable overhead supports compliance and financial hygiene for The Daily Table. Keep this number locked in your budget planning to avoid surprises when scaling operations.
Cost Breakdown
This $300 covers essential professional services like bookkeeping and tax prep. It’s a small, fixed overhead component compared to the $17,251 monthly payroll projection for 2026. You need these services to manage sales data correctly, especially given the high 120% Cost of Goods Sold (COGS) ratio.
- Covers compliance needs.
- Fixed monthly spend.
- Essential for tracking COGS.
Managing Admin Spend
Don't try to cut this cost too close; cheap accounting leads to costly errors later. If you hire an internal bookkeeper later, ensure their salary plus benefits doesn't exceed $300 multiplied by 12 months, or $3,600 annually. That’s a low bar to clear. Defintely keep this outsourced until volume demands otherwise.
- Avoid DIY errors.
- Benchmark against internal hiring.
- Ensure proper sales tax filing.
Break-Even Impact
Since this is a fixed cost, it must be covered by minimum daily sales volume, just like your $2,500 stall rent. If your average check is $25, you need 12 transactions per month just to cover this $300 fee, which is easily achievable.
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Frequently Asked Questions
Total running costs start around $27,000 monthly in 2026 This includes $17,251 for payroll and $4,272 for COGS (12% of revenue) Fixed overhead is low at $3,730, so growth must focus on minimizing food waste and maximizing labor efficiency;