Greek Restaurant Running Costs
Expect monthly operating expenses (OpEx) for a Greek Restaurant to start around $23,800 to $24,500 in 2026, excluding inventory costs Your largest fixed commitment is payroll, estimated at $14,750 per month, followed by rent at $4,500 Inventory (Cost of Goods Sold, or COGS) adds another 12% of revenue, meaning total cash outflow is closer to $29,200 based on projected $44,720 monthly sales Achieving the projected $106,000 EBITDA in the first year requires disciplined cost control and hitting an average of 101 covers daily The business is projected to reach break-even quickly, in March 2026, just three months after launch, but you must maintain a strong cash buffer against unexpected supply chain or staffing issues
7 Operational Expenses to Run Greek Restaurant
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Staff Wages | Fixed Labor | Payroll is the largest fixed cost, covering 5 FTE staff, including a Store Manager and Counter Staff. | $14,750 | $14,750 |
| 2 | Retail Rent | Fixed Overhead | The fixed monthly rent for the retail location is $4,500, a non-negotiable expense. | $4,500 | $4,500 |
| 3 | COGS | Variable Cost | Cost of Goods Sold (COGS) covers ingredients and packaging, projected at 120% of revenue. | $0 | $0 |
| 4 | Utilities | Fixed Overhead | Monthly utilities are budgeted at a fixed $750, covering electricity, gas, and water for kitchen equipment. | $750 | $750 |
| 5 | Marketing/Fees | Variable Cost | Variable marketing and online delivery commissions total 50% of revenue, split between promotions and platform fees. | $0 | $0 |
| 6 | Admin Fees | Fixed Overhead | Fixed monthly costs for Accounting & Legal Fees are set at $400, ensuring compliance. | $400 | $400 |
| 7 | Tech & Maint | Fixed Overhead | Fixed costs for POS System, Equipment Maintenance, and Internet/Phone total $570 per month. | $570 | $570 |
| Total | All Operating Expenses | $20,970 | $20,970 |
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What is the total monthly running cost budget needed for the first 12 months?
Determining the total 12-month operating budget for the Greek Restaurant hinges on quantifying the fixed monthly overhead, the variable cost percentage (like food cost), and the time it takes to reach positive cash flow. To get a baseline understanding of initial capital needs, you should review benchmarks on How Much Does It Cost To Open A Greek Restaurant?, but without the specific fixed expense schedule, we can only define the calculation structure. Honestly, the cash required is simply (Monthly Fixed Costs + Monthly Variable Costs at Target Sales) multiplied by the required runway months before you hit breakeven.
Fixed Costs & Breakeven
- Calculate total monthly fixed overhead, including rent, salaries, and utilities.
- Determine the required monthly revenue to cover these fixed costs exactly.
- If fixed costs are $25,000 per month, you need to know your contribution margin.
- We must defintely establish the sales volume needed to hit $0 profit.
Variable Costs & Cash Runway
- Variable costs usually run between 35% and 45% of sales for restaurants.
- If your target food cost is 30%, that's a major lever to watch daily.
- Cash runway equals (Starting Cash Balance / Net Monthly Burn Rate).
- Budget for at least 6 months of negative cash flow coverage.
Which recurring cost category represents the largest percentage of monthly revenue?
For the Greek Restaurant concept, Cost of Goods Sold (COGS) typically represents the largest recurring expense category, often consuming over 30% of monthly revenue, making ingredient cost control the primary driver of gross margin. Managing this requires tight inventory control and precise menu engineering, which is crucial before diving deep into setup costs, like understanding How Much Does It Cost To Open A Greek Restaurant?
COGS vs. Payroll Dollar Impact
- Assuming $150,000 in monthly revenue, COGS at 32% hits $48,000.
- Payroll, often benchmarked near 30%, costs $45,000 monthly at this scale.
- Rent (Occupancy) is usually the smallest of these three, averaging around 8% or $12,000.
- Because COGS is the largest line item, a small 1% reduction saves $1,500 in cash flow immediately.
Labor Efficiency Levers
- Payroll is the second biggest cost, so labor efficiency ratios matter defintely.
- If you cut labor costs from 30% to 28%, you free up $3,000 monthly.
- Focus on sales per labor hour; aim for $45 in sales for every hour worked.
- If your average check size is $35, you need about 1.3 covers per labor hour to hit that target.
How much working capital is required to cover costs until the break-even date?
The working capital needed for the Greek Restaurant to cover initial losses until March 2026 (Month 3) is the cumulative net loss plus the required $820k minimum cash buffer needed by February 2026. To understand the path to profitability, review how similar concepts fare; Is Greek Restaurant Profitable?
Cumulative Cash Burn
- Secure funding covering losses through Month 3 (March 2026).
- You must have $820,000 cash on hand by February 2026.
- This buffer manages initial negative cash flow projections.
- Total working capital equals this buffer plus the cumulative loss figure.
Managing Initial Cash Drain
- Initial fixed costs must be aggressively managed pre-launch.
- Ramp-up speed defintely impacts how quickly you hit positive cash flow.
- If vendor onboarding takes longer than planned, cash burn accelerates.
- Watch inventory levels closely; spoilage eats cash fast.
How will we cover fixed costs if sales are 25% below forecast for six months?
If sales for the Greek Restaurant are 25% below forecast for six months, you must immediately slash variable costs while formalizing a plan to bridge the cash gap using reserves or short-term financing. Before diving into the cost structure, understanding the initial investment is key, so review How Much Does It Cost To Open A Greek Restaurant? to benchmark your capital position.
Immediate Cost Control
- Cut non-essential part-time labor hours defintely; target a 10% reduction in total hourly wages.
- Challenge all ingredient costs; aim to renegotiate 5% lower Cost of Goods Sold (COGS) within 30 days.
- Pause all non-essential marketing spend and delay any planned equipment upgrades.
- Review utility contracts and vendor service agreements for immediate, temporary reductions.
Runway and Debt Timeline
- Calculate the precise monthly cash burn based on the 25% revenue shortfall against fixed overhead.
- Map out the exact cash reserve drawdown schedule month-by-month for the next six months.
- Set a hard deadline, like Day 90, to secure a short-term working capital line of credit if needed.
- Determine the minimum required cash buffer needed to sustain operations through the trough period.
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Key Takeaways
- The baseline monthly operating expenses (OpEx) for the Greek restaurant are projected to start near $23,856 in 2026, dominated by a $14,750 payroll commitment.
- Despite high fixed costs, the financial model anticipates achieving the critical break-even point rapidly, within just three months of launch in March 2026.
- Achieving projected profitability requires disciplined cost control and hitting an average of 101 covers daily to sustain the business model.
- Successfully navigating the initial negative cash flow period requires robust startup capital, evidenced by a minimum cash requirement of $820,000 needed in February 2026.
Running Cost 1 : Staff Wages & Benefits
Payroll Dominance
Payroll is your biggest fixed drain, hitting $14,750 monthly in 2026. This covers 5 FTE employees who run the floor, including management and counter service. Know this number, because everything else flows from managing this core team.
Staffing Costs Breakdown
This $14,750 estimate covers the full loaded cost for 5 FTEs needed to operate the all-day Greek restaurant. You need quotes for the Store Manager salary and the Counter Staff wages, plus employer taxes and benefits (the 'benefits' part). This cost anchors your baseline operating expenses before rent.
- FTE count: 5
- Key Roles: Manager, Counter Staff
- Cost Type: Fixed Monthly
Managing Fixed Headcount
Reducing this fixed cost means adjusting staffing levels or scope, which is tough in a full-service model. Avoid over-staffing during slow dayparts, especially brunch or weekday afternoons. If onboarding takes 14+ days, churn risk rises, costing you more in training time. You need to schedule tightly.
- Schedule tightly to demand.
- Cross-train staff for flexibility.
- Review benefits packages for savings.
Fixed Cost Weight
At $14,750, payroll represents the single largest fixed liability you carry monthly in 2026. This figure dictates your minimum revenue threshold before you even cover the $4,500 rent payment. You need strong volume to absorb this base, so watch your hiring defintely.
Running Cost 2 : Retail Rent
Rent Floor
Your retail lease sets a firm floor for monthly operational costs. This $4,500 fixed rent is a non-negotiable expense that immediately anchors your overhead base before you even open the doors. You must cover this amount regardless of sales volume for the restaurant location.
Cost Input
This $4,500 covers the physical space lease. It is a critical input for calculating your monthly break-even point. We need this number when summing all fixed costs, which total $20,850 monthly, excluding variable COGS and marketing fees.
- Fixed monthly lease payment.
- Anchors total fixed overhead.
- Needed for break-even analysis.
Density Focus
Since this rent is non-negotiable, optimization focuses on maximizing revenue density per square foot. Avoid signing long leases without tenant improvement allowances. If you can drive 20% more daily covers than projected, this fixed cost becomes a smaller percentage of total revenue.
- Negotiate tenant improvement funds.
- Maximize seating capacity legally.
- Focus on high-margin dinner service.
Profit Flow
Because this cost is fixed, every dollar of revenue above the break-even threshold flows directly to profit. If your total fixed costs are $20,850, every sale after covering that amount is pure contribution margin. This is defintely why location efficiency matters so much.
Running Cost 3 : Ingredients & Packaging (COGS)
COGS Over 100%
Your Cost of Goods Sold (COGS) starts dangerously high at 120% of revenue in 2026. This means for every dollar you bring in, you spend $1.20 just on making the product. This initial structure is not sustainable for profitability right out of the gate. You need immediate cost correction.
Ingredient Cost Build
This 120% COGS figure is driven by two main buckets. Waffle and Topping Ingredients alone consume 100% of revenue, which is extremely high for a full-service restaurant concept. Packaging adds another 20%. You need tight supplier quotes for raw goods and packaging volumes to validate these initial estimates.
- Ingredient costs must track projected unit sales volume.
- Packaging cost must track projected units sold.
- This cost varies directly with every single sale.
Cutting Ingredient Spend
A 120% COGS means you can’t cover overhead; you must drive this down immediately. Focus on negotiating bulk pricing for high-volume items like specialty toppings or core ingredients. Reviewing your menu mix to aggressively push higher-margin items is crucial. Defintely audit waste tracking daily to spot leakage.
- Negotiate better supplier terms now.
- Reduce portion sizes slightly if possible.
- Shift sales mix to higher margin items.
Profitability Hurdle
Until COGS drops below 35% to 40%, which is standard for full-service dining, this business cannot cover its fixed costs of about $24,850 monthly. Your primary operational focus must be ingredient sourcing efficiency and minimizing the 100% ingredient allocation.
Running Cost 4 : Utilities & Services
Fixed Utility Overhead
Utilities are a fixed overhead cost of $750 monthly. This covers essential services—electricity, gas, and water—needed to power your commercial kitchen equipment daily. This cost remains constant regardless of how many covers you serve.
Utility Budget Input
This $750 utility budget is fixed overhead, not variable with sales volume. It directly supports the operation of all commercial kitchen gear. Compare this to the $14,750 staff wages to see its relative weight in your initial fixed base.
- Fixed monthly cost for kitchen power
- Includes electricity, gas, and water
- Essential for pre-service setup
Managing Consumption
Since this is fixed, efficiency matters most. Look at the energy draw of specific equipment, like ovens or refrigeration units. Poorly maintained gear uses more power. Defintely track usage spikes against service schedules.
- Audit refrigeration seals seasonally
- Use timers on non-essential lighting
- Benchmark against similar square footage
Break-Even Impact
This $750 utility expense adds directly to your total fixed costs, which currently stand near $20,050 monthly before COGS and marketing adjustments. Every dollar saved here improves your margin dollar-for-dollar.
Running Cost 5 : Marketing & Commissions
Variable Cost Sink
For Aegean Table in 2026, marketing spend and third-party delivery fees combine to eat up half of every dollar earned. This 50% variable drain comes from 20% allocated to promotions and 30% paid out as platform commisions. This is a massive drag on contribution margin.
Cost Breakdown
This cost covers customer acquisition via promotions and the fees charged by online ordering services. To estimate it, use your projected revenue multiplied by 50%. This cost directly reduces the gross profit margin before fixed overhead kicks in. It's crucial for understanding true unit economics.
- Promotions account for 20% of revenue.
- Platform fees are 30% of revenue.
- Total variable marketing is 50%.
Cutting the Fees
Reducing this 50% burden requires building your own direct ordering channel. Every order shifted from a 30% platform fee to your own system saves significant margin. Focus on capturing customer data now to drive repeat business via email or SMS offers, cutting down reliance on paid promotions.
- Incentivize direct ordering signup.
- Negotiate better commission tiers.
- Track Cost Per Acquisition (CPA).
Margin Reality Check
When Cost of Goods Sold (COGS) is already high at 120% of revenue, absorbing another 50% in commissions means the restaurant starts with a negative gross margin before paying rent or staff. This structure demands high Average Order Value (AOV) just to cover variable costs.
Running Cost 6 : Professional & Admin Fees
Fixed Admin Cost
Your baseline compliance cost for professional services is fixed at $400 monthly. This covers essential accounting and legal support needed for accurate financial reporting and regulatory adherence. This is a non-negotiable cost of doing business.
Cost Inputs
This $400 expense is purely fixed overhead, covering monthly bookkeeping and legal compliance checks. It’s required every single month, unlike variable COGS (120% of revenue). You need quotes from local providers to lock this rate in for 2026.
- Covers accounting and legal fees.
- Fixed at $400 per month.
- Essential for compliance.
Manage Admin Spend
Cheap legal help often costs more down the road when compliance fails. Look for accountants familiar with restaurant tax structures. Bundling services might save you 10%, but never sacrifice accuracy for a few dollars here. You should defintely check references.
- Bundle accounting and legal services.
- Use specialized restaurant CPAs.
- Avoid cutting compliance checks.
Fixed Overhead Role
This $400 fee anchors your administrative fixed costs against the much larger $14,750 payroll. It ensures that when you hit break-even, you aren't blindsided by unexpected compliance fees or penalties that could wipe out small margins.
Running Cost 7 : Technology & Maintenance
Tech & Maintenance Baseline
Your core technology and maintenance overhead runs $570 monthly, combining essential software access, upkeep for kitchen gear, and connectivity. This fixed spend is small compared to payroll but requires careful monitoring as you scale operations.
Cost Calculation Inputs
This $570 monthly spend covers critical infrastructure for processing orders and keeping lines open. The $150 POS fee covers software access, while $300 is for preventative equipment upkeep. The final $120 secures your phone and internet connectivity. You need quotes for maintenance contracts and subscription terms to lock this figure in.
- POS Subscription: $150/month
- Equipment Maintenance: $300/month
- Connectivity: $120/month
Managing Tech Overhead
Don't overbuy point-of-sale (POS) features you won't use early on; many platforms offer tiered pricing structures. Negotiate maintenance contracts annually, focusing on service level agreements (SLAs) rather than just time-and-materials service. If onboarding takes 14+ days, churn risk rises, so streamline setup.
- Audit unused POS features annually
- Bundle connectivity services if possible
- Prioritize uptime over premium features
Fixed Cost Relativity
Compared to your $14,750 staff wages and $4,500 rent, this $570 technology overhead is manageable, representing only about 3% of your total major fixed expenses. However, if your revenue projections are low, this fixed cost eats into contribution margin faster than variable costs do. It's defintely a baseline you must cover.
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Frequently Asked Questions
Total monthly operating expenses (OpEx) start around $23,856 in 2026, excluding inventory Payroll ($14,750) and Rent ($4,500) are the largest fixed components