Financial modeling for restaurants is based on several key assumptions such as the number of seats, the average turnover of seats, food bill per seat or table, drink bill per seat or table, and a combination of fixed and variable costs. The economics of a restaurant comes down to how many seats are turned over each day, the average bill size, the cost of food and beverages, labor, and rent. Most restaurants have very thin margins and capital expenditures on new builds may be challenging to earn a return on.
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