Pakistani Restaurant Running Costs
Expect monthly running costs for a Pakistani Restaurant to average $21,884 in 2026, driven primarily by payroll and ingredient costs This figure includes $10,833 in wages, $7,326 in variable costs (195% of revenue), and $3,725 in fixed overhead like commissary rent Based on projected average monthly revenue of $37,570, the business reaches break-even in just 3 months (March 2026) The initial capital expenditure (CapEx) for the food truck and equipment totals $169,000, which the business is projected to pay back in 19 months Focusing on maintaining a strong 80% contribution margin (100% Revenue minus 195% Variable Costs) is critical for hitting the Year 1 EBITDA target of $141,000
7 Operational Expenses to Run Pakistani Restaurant
| # | Operating Expense | Expense Category | Description | Min Monthly Amount | Max Monthly Amount |
|---|---|---|---|---|---|
| 1 | Payroll and Wages | Labor | The 2026 monthly payroll is $10,833, covering 35 Full-Time Equivalent (FTE) staff including the Owner Operator and Lead Cook. | $10,833 | $10,833 |
| 2 | Food and Packaging COGS | Variable Cost | Ingredients and packaging represent 140% of revenue in 2026, averaging $5,260 monthly based on $37,570 average revenue. | $5,260 | $5,260 |
| 3 | Commissary Rent | Fixed Overhead | Fixed monthly overhead includes $2,000 for the Commissary Kitchen Rent, essential for food preparation and storage. | $2,000 | $2,000 |
| 4 | Variable Operating Expenses | Variable Cost | Credit card processing (25%) and Propane/Generator Fuel (30%) total 55% of revenue, averaging $2,066 monthly. | $2,066 | $2,066 |
| 5 | Insurance and Maintenance | Fixed Overhead | Fixed costs include $400 monthly for Food Truck Insurance and $300 for the Vehicle Maintenance Fund, totaling $700. | $700 | $700 |
| 6 | Software and POS Subscriptions | Fixed Overhead | Monthly technology fixed costs total $175, covering the POS System ($100) and Website/Software Subscriptions ($75). | $175 | $175 |
| 7 | Compliance and Professional Services | Fixed Overhead | Accounting/Payroll Services ($400) and Annualized Licenses/Permits ($150) require a defintely $550 fixed monthly budget. | $550 | $550 |
| Total | All Operating Expenses | $21,584 | $21,584 |
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What is the total minimum running budget required for the first six months of operation?
The minimum running budget required to sustain the Pakistani Restaurant for the first six months before achieving consistent positive cash flow is $150,000, which is the operating cushion needed above the initial $169,000 capital expenditure (CapEx). Securing this runway is defintely critical, especially when mapping operational spending against early revenue generation, which you can better understand by reviewing how to measure success at What Is The Most Important Metric To Measure The Success Of Pakistani Restaurant?
Estimating Monthly Cash Burn
- Assume average monthly operating loss of $25,000.
- Fixed overhead (rent, utilities) is $18,000/month.
- Initial payroll costs exceed early revenue by $7,000 monthly.
- Six months of this deficit totals $150,000 runway needed.
Working Capital Above CapEx
- This $150k covers the period before sales stabilize.
- It funds initial inventory float for high-quality ingredients.
- It absorbs the lag in accounts payable cycles.
- This cash buffer reduces immediate pressure on profit margins.
- If customer onboarding takes 14+ days longer than planned, churn risk rises.
Which cost categories will consume the largest share of monthly revenue?
The primary cost drain for the Pakistani Restaurant will be variable expenses, driven by a reported 195% variable cost rate, which immediately signals that costs outpace revenue unless this figure represents something other than standard variable expense as a percentage of sales; understanding your pricing power is crucial here, as detailed in How Can You Clearly Define The Unique Value Proposition For Your Pakistani Restaurant Business Plan?. This rate dwarfs typical restaurant industry benchmarks for ingredients and operational fees.
Variable Cost Shock
- Variable costs are projected at 195% of revenue.
- This high rate bundles ingredients, packaging, fuel, and processing fees.
- If this number is accurate, you lose 95 cents per dollar before overhead.
- Labor expense must be analyzed next to see which category is truly dominant.
Cost Structure Check
- Typical restaurant COGS (ingredients) runs 25% to 35%.
- Labor costs usually sit in the 25% to 35% range as well.
- You must cut variable spending or significantly increase your average check size.
- If onboarding takes 14+ days, churn risk rises in your supplier relationships.
How much cash buffer is needed to cover costs if revenue falls 30% below forecast?
You defintely need a cash buffer that covers your operating deficit for at least 3 months, using the $734,000 minimum requirement needed to reach break-even by February 2026 as your absolute floor if revenue drops 30%.
Buffer Calculation Basis
- The baseline cash need is $734,000 for 3 months of coverage.
- A 30% revenue shortfall means your burn rate increases significantly.
- You must fund the gap between projected revenue and actual cash inflow.
- Ensure reserves cover fixed costs until Feb-26, even with reduced sales volume.
Immediate Operational Focus
- Track daily customer covers versus the 70% revenue target.
- Analyze the sales mix impact on average check size.
- Focus on maximizing repeat visits to stabilize income.
- This directly ties to What Is The Most Important Metric To Measure The Success Of Pakistani Restaurant?
What specific actions will cover running costs if the breakeven date is delayed?
If the breakeven date for your Pakistani Restaurant slips, you must immediately execute contingency plans for fixed costs, like the $2,000/month commissary rent, and adjust variable labor spending, which totals $10,833 monthly, based on real customer traffic; understanding the core drivers of success is key, so review What Is The Most Important Metric To Measure The Success Of Pakistani Restaurant?
Cut Fixed Overhead Drag
- Review the commissary lease terms defintely for early exit clauses.
- If you have excess prep space, list it for sublease by October 1, 2024.
- Negotiate a temporary rent abatement tied to sales performance below forecast.
- Calculate the exact sales volume needed just to cover that $2,000 rent.
Right-Size The Payroll
- Implement a two-tier staffing model for kitchen and FOH.
- If covers drop below 35 per day, shift staff to 4-day weeks.
- Cross-train servers to handle basic prep during slow weekday brunch shifts.
- Every $1,000 cut from payroll buys you an extra 10 days runway.
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Key Takeaways
- The projected average monthly running cost for the Pakistani Restaurant in 2026 is $21,884, with payroll ($10,833) representing the single largest component of operational expenses.
- The financial model demonstrates a rapid path to profitability, forecasting that the business will reach its break-even point within just three months of commencing operations.
- Achieving the Year 1 EBITDA target of $141,000 hinges on successfully managing the high variable cost structure, which totals 195% of revenue when accounting for ingredients, fuel, and processing fees.
- The initial capital expenditure of $169,000 for the food truck and equipment is projected to be paid back relatively quickly, requiring a 19-month recovery period.
Running Cost 1 : Payroll and Wages
2026 Payroll Snapshot
Your 2026 payroll projection sets monthly labor costs at $10,833. This covers 35 FTE staff, including the Owner Operator and Lead Cook.
Staffing Cost Detail
This $10,833 monthly figure is your 2026 payroll run rate. It covers wages, taxes, and benefits for 35 FTE positions required for full service. This is a fixed operating cost that must be covered monthly.
- Input: 35 FTE headcount projection.
- Includes: Owner Operator pay.
- Benchmark: Local restaurant wage scales.
Labor Optimization Tactics
Managing 35 FTEs in a restaurant means labor is your biggest controllable expense after COGS. If you overstaff during slow periods, that $10,833 burns fast. Honestly, tracking productivity per labor hour is critical for efficiency.
- Cross-train staff for flexibility.
- Schedule based on covers, not just hours.
- Watch Owner Operator draw vs. salary.
Payroll Viability Check
Since 35 FTEs are budgeted for 2026, check if your projected revenue can support this fixed cost. If sales lag, this $10,833 commitment immediately strains cash flow. You need high-volume weekends to carry the fixed labor load.
Running Cost 2 : Food and Packaging COGS
COGS Crushes Revenue
Your food and packaging costs are mathematically unsustainable right now. Based on 2026 projections, these costs hit 140% of revenue. This means for every dollar earned, you spend $1.40 just on ingredients and packaging materials. That $5,260 monthly cost eats all potential profit before overhead even starts.
Cost Components Defined
Food and Packaging COGS covers all raw ingredients and necessary takeout containers for every sale. To estimate this, you need precise tracking of ingredient usage against your sales mix, multiplied by current supplier unit costs. If 2026 average revenue hits $37,570 monthly, the resulting COGS is $5,260. This is a variable cost tied directly to every single dish leaving the kitchen.
- Track waste daily to find leaks.
- Verify supplier invoices against purchase orders.
- Model ingredient price volatility monthly.
Fixing the 140% Problem
You must immediately focus on supplier negotiation and menu engineering to bring this cost down fast. A 140% ratio is a non-starter for any viable business model. Target reducing ingredient waste and securing better bulk pricing for high-volume staples. You need to get this ratio under 35% to cover other operating expenses.
- Renegotiate packaging contracts now.
- Increase prices on low-COGS items.
- Substitute expensive ingredients where possible.
The Breakeven Reality
Operating at 140% COGS means you are losing 40 cents on every dollar earned before you even pay staff or rent. This financial structure is impossible to sustain past the initial launch phase. Fix procurement or adjust menu pricing before you think about scaling volume up.
Running Cost 3 : Commissary Rent
Fixed Rent Baseline
Commissary rent is a non-negotiable fixed cost of $2,000 monthly, setting a baseline for your minimum operational burn rate before payroll or COGS hit. This space is mandatory for safe food staging and prep. That’s the hard floor for your overhead.
Cost Inputs and Fit
This $2,000 covers your required commercial kitchen access for prep and storage, a fixed overhead component. Since average revenue is projected at $37,570, this rent represents about 5.3% of expected sales volume. You need signed lease terms to lock this down right now.
- Rent is $2,000 fixed overhead.
- It supports all prep work.
- It's smaller than payroll ($10,833).
Managing Space Costs
Since this cost is fixed, you can't easily cut it month-to-month. Focus on maximizing utilization by shifting more prep work into this space or negotiating usage tiers. A common mistake is signing a long lease before confirming volume needs; look for shared-space agreements first, defintely.
- Negotiate shorter initial terms.
- Sublet unused prep hours.
- Verify required square footage now.
Leverage Through Volume
If you scale volume rapidly, this $2,000 cost remains stable, improving your gross margin percentage quickly. However, if initial sales fall below $15,000 monthly, this fixed rent consumes too much revenue, making profitability much harder to achieve.
Running Cost 4 : Variable Operating Expenses
Variable Cost Spike
These two variable costs—processing fees and fuel—create a 55% revenue drain, totaling about $2,066 monthly on average. This high combined rate means every dollar earned is immediately reduced significantly before you cover labor or rent. You need tight control here.
Fee Breakdown
Credit card processing is a 25% slice of revenue, covering transaction gateways and interchange fees. Propane and generator fuel is 30%, necessary for kitchen operations if off-grid or during outages. Estimate these based on projected sales volume and equipment energy needs.
- Processing: 25% of sales.
- Fuel: 30% of sales.
- Total: 55% rate.
Cutting the Drain
Reducing the 55% burden requires strategic shifts away from card reliance. For processing, push for lower tier rates or encourage low-fee payment methods when possible. Fuel costs depend on operational efficiency; ensure generators are sized correctly and not idling unnecessarily.
- Negotiate processor tiers.
- Audit fuel consumption.
- Benchmark against industry norms.
Watch the Rate
If your projected revenue hits the $37,570 mark from the COGS estimate, this 55% variable rate translates to over $20,000 monthly in expenses. If your actual blended rate is higher than 55%, churn risk rises defintely.
Running Cost 5 : Insurance and Maintenance
Insurance and Maintenance Fixed Costs
Insurance and maintenance are fixed overhead, totaling $700 monthly for The Indus Table. This covers $400 for Food Truck Insurance and sets aside $300 for vehicle upkeep, which is critical for operational readiness.
Cost Breakdown
This $700 monthly expense is mandatory fixed overhead. The $400 Food Truck Insurance protects against liability and physical damage, while the $300 Vehicle Maintenance Fund ensures the truck remains operational. You need official quotes for insurance and a realistic reserve schedule for repairs.
- Insurance covers liability risks.
- Maintenance fund builds capital for repairs.
- Total fixed cost is $700/month.
Managing Vehicle Expenses
You can shop insurance annually to find better carrier rates, but don't cut liability coverage for the truck. A common mistake is underfunding the maintenance reserve; you must keep that $300 amount set aside monthly unless used for scheduled service.
- Shop insurance quotes yearly.
- Review maintenance fund usage quarterly.
- Ensure coverage matches vehicle value.
Impact on Break-Even
Since this $700 is fixed, it directly pressures your gross margin dollars needed to cover payroll and COGS before reaching profitability. This amount must be covered by revenue consistently, regardless of whether you serve 10 or 100 customers that day.
Running Cost 6 : Software and POS Subscriptions
Tech Fixed Costs
Your monthly technology overhead for The Indus Table is fixed at $175, covering the POS System and necessary website software. This must be covered every month, so watch out for feature creep in these subscriptions.
Cost Breakdown
This $175 monthly expense is non-negotiable fixed overhead for operations. It bundles the $100 POS System fee and $75 for required website and general software subscriptions. You must budget this $175 every month, even if revenue is low, because these tools run regardless of sales volume.
- POS System cost: $100
- Software/Website cost: $75
- Total fixed tech cost: $175
Managing Tech Spend
Managing these subscriptions means avoiding paying for features you won't use. Paying for an enterprise-level POS when a basic tier works inflates costs unnecessarily. Look for annual billing discounts; prepaying for the year might save you 10% to 15% compared to paying monthly.
- Audit unused software licenses now.
- Negotiate annual POS contracts.
- Consolidate reporting tools if possible.
Watch Variable Fees
Don't confuse this fixed tech cost with variable transaction fees. While the $175 is constant, credit card processing fees scale with every sale; these are 25% of revenue. If you switch POS providers, check if they impose extra per-transaction fees on top of your base subscription.
Running Cost 7 : Compliance and Professional Services
Mandatory Compliance Budget
Compliance costs for The Indus Table are locked in at $550 monthly, covering essential accounting and required permits. This fixed overhead must be covered before any profit is realized. Don't mistake these necessary professional fees for variable operational expenses.
Cost Inputs
These compliance costs are non-negotiable fixed overhead. They include $400 monthly for accounting and payroll services, which handle complex tasks like tax filings. Add $150 monthly for annualized licenses and permits, treating the yearly fees as a monthly accrual to smooth cash flow.
- Accounting/Payroll: $400
- Licenses/Permits: $150
- Total Fixed: $550
Managing Fees
You can’t cut compliance, but you can control the service level. Look for bundled packages offering payroll and bookkeeping together to potentially save 10 percent. Avoid using expensive, ad-hoc consultants for routine filings; stick to a fixed monthly retainer for predictability.
- Bundle services for savings.
- Avoid hourly consultant traps.
- Set fixed monthly accruals.
Budget Reality Check
This $550 fixed cost is small compared to the $10,833 payroll, but it’s mandatory. If revenue only hits the projected $37,570 monthly average, this fixed compliance spend represents only 1.47% of gross revenue, which is a reasonable benchmark for professional services in food service.
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Frequently Asked Questions
The projected Year 1 EBITDA is $141,000, growing to $239,000 by Year 2, reflecting strong operational scaling