Restaurant feasibility study: the numbers before the lease.
A feasibility study answers one question: can this restaurant, in this location, at this rent, make money? Not a 60-page document for a bank. A working model of sales, costs and break-even that you can argue with, built with you, before you commit.
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Remote, across Saudi Arabia, the UAE and the wider Gulf. Fixed fee agreed before the work starts.
What we do together.
Sales model
We build the revenue line from the room, not from hope: covers, seats, turns, average spend by daypart and by day of the week. Then we test it against what similar rooms nearby actually do. If the number only works at 90 percent occupancy every night, you will know now.
Food and beverage cost model
Every menu item is costed before the menu exists, with a target food cost that fits the concept. A shawarma counter and a steakhouse need different targets, and the study says which one you are building.
Labour model
Roles, rotas and salaries matched to the sales curve, including the quiet shifts most plans forget. In the Gulf, visa, housing and end-of-service costs go into the model, not into a footnote.
Rent, fit-out and pre-opening cash
Rent as a share of projected sales, fit-out and equipment spread over their real life, and the cash you need between signing and the first full month of trading. Most new rooms run out of cash before they run out of customers.
Break-even and sensitivity
The sales level where the room stops losing money, and what happens when rent is 20 percent higher, covers 15 percent lower or food cost two points worse. Three scenarios, not one.
A go, no-go or change answer
The study ends with a plain recommendation: open as planned, open with changes to the concept or the deal, or do not sign. Written in two pages, with the model behind it.
How an engagement works.
Share the plan
Concept, location, lease terms, proposed menu and any numbers you already have. A floor plan helps. If you have nothing but an idea and a site, that is fine too.
Build the model together
Over one to two weeks, remotely, with two or three working calls. You see every assumption and change the ones you disagree with.
Decide
You get the model, a two-page summary and a recommendation. If you go ahead, the same model becomes the opening budget.
What this looks like in practice.
A café concept in Riyadh is offered a 180-square-metre unit at a rent that is 14 percent of the projected first-year sales. The sales model, built on 48 seats, two turns at lunch and a strong evening, supports that rent. The sensitivity test shows that at 1.4 turns the rent rises to 19 percent of sales and the room loses money every month. The recommendation: negotiate a lower base rent with a percentage top-up, or walk away. This is an illustrative example, not a client result.
Experience behind the work.
Denys Chernenko has run restaurant and hotel F&B operations on six continents, including the pre-opening of a Residence Inn and the running of a franchised restaurant. The feasibility model is the same one he uses to open a room, which is why it is built around operating costs rather than a market narrative.
Common questions.
What is in a restaurant feasibility study?
A sales model, a food and beverage cost model, a labour model, rent and pre-opening cash, a break-even calculation with sensitivity tests, and a written recommendation. The DC Group's study is an operating model, not a market-research report.
How long does a feasibility study take?
Usually one to two weeks, remotely, with two or three working calls. It depends on how much of the concept and the lease is already decided.
Can you do a feasibility study for a café or a cloud kitchen?
Yes. The model changes with the concept: a café is built around seats and turns, a cloud kitchen around orders per hour and delivery commission. The method is the same.
Do you work on feasibility studies in Saudi Arabia and the UAE?
Yes. The DC Group works remotely with operators across the Gulf and includes local cost items such as visas, housing and end-of-service benefits in the labour model.
What if the study says no?
Then you have saved the deposit, the fit-out and a year of losses. Most studies end with changes to the concept or the deal rather than a flat no.
Tell Denys about your operation.
A short message is enough. He replies personally, usually the same day.
Pick a time that works for you.
A 30-minute operator call — no slides, no pitch. Free.
Opens the booking calendar in a new tab. No account needed.
Related: What a restaurant consultant costs, and why a fixed fee →