Restaurant Financial Analysis Report: Category-wise Performance
This comprehensive analysis examines your restaurant's financial performance across all menu categories. We've analyzed revenue, expenses, and profitability metrics to provide actionable insights for optimizing your menu and operations. The report highlights which categories are generating profits versus losses, breaking down direct and indirect costs to identify areas for improvement.
Understanding Restaurant Profitability
5%
Typical Net Profit
For a dine-in Kerala restaurant in Bengaluru, this is the realistic net profit margin after all operating expenses (pre-tax)
9%
Well-Run Outlets
Maximum profit potential for efficiently managed restaurants with strong beverage sales, low rent, and controlled food costs
32%
Food Cost
Percentage of sales typically allocated to food costs (higher for seafood-heavy menus)
20%
Labour Cost
Percentage of sales typically allocated to labor expenses
For delivery-heavy or cloud-kitchen operations, net profit margins of 10-15% are achievable at strong volumes, even after platform commissions of 17-25%+. Rent should target 5-8% of sales, though prime Bengaluru locations may command higher rates.
Net Margin % = (Sales − COGS − Labour − Rent − Utilities − Marketing − Delivery fees − Other Opex) ÷ Sales. If your net is <3%, review seafood COGS, aggregator commissions, and rent above 8%. If consistently >8–10%, you're outperforming local averages.
Revenue Analysis
Daily revenue increased from ₹2,89,918 in April-June to ₹3,42,168 in July, showing positive momentum and strong performance growth.
Revenue Performance Overview
Our analysis covers April to July 2025, revealing strong financial performance with total revenue of ₹3.7 Cr across the 122-day period. The daily average revenue was ₹3.03 L, with July showing significant growth of 18.0% compared to the April-June quarter.
Revenue Channel Mix
Dine-in remains the primary revenue driver at 95.8% (₹3.55 crores), while delivery is growing in significance at 4.1% (₹15.3 lakhs). Notably, the delivery channel doubled its share from 3.1% in April-June to 6.7% in July, indicating a strong growth trajectory.
Revenue Analysis by Menu Category
Understanding your revenue distribution across menu categories is essential for strategic decision-making. The data reveals significant variations in revenue generation among different categories.
Seafood emerges as your highest revenue generator at ₹2,503,587, followed closely by Chicken items at ₹2,232,410. These two categories alone account for approximately 47% of your total revenue of ₹10,021,662.
The top three categories (Seafood, Chicken, and Beef) generate approximately 61% of total revenue, indicating these should remain core menu offerings while potentially optimizing lower-performing categories.
Profitability Analysis by Category
46%
Rice Profit Margin
Highest performing category with exceptional profitability
15%
Chicken Profit Margin
Second most profitable category with good margin control
-24%
Seafood Profit Margin
Largest loss-making category despite highest revenue
2%
Overall Profit Margin
Below industry average of 3-5%, indicating improvement opportunities
Rice dishes are your star performers with a profit of ₹578,164.18 and a 46% margin. Chicken items generate the second-highest profit (₹329,650.77), showing good margin control despite high volume.
However, Seafood operates at a significant loss of ₹598,133.68 despite generating the highest revenue, indicating serious cost management issues. Vegetarian dishes also show concerning performance with a loss of ₹266,674.78 despite their typically lower ingredient costs.
The overall restaurant profitability stands at just ₹204,807.35, representing a slim 2.04% profit margin on total revenue of ₹10,021,662, which is below the industry benchmark of 3-5%.
Profitability Analysis
Complete Menu Category Analysis - Clustered Column Chart
This clustered column chart provides a comprehensive financial overview of each menu category, detailing revenue, direct costs, indirect costs, non-food expenses, and net profit or loss. This granular view helps identify categories that are driving profitability versus those incurring losses.
The chart clearly highlights the stark contrast between profitable and loss-making categories. Rice and Chicken dishes stand out as significant profit drivers, demonstrating efficient cost management relative to their revenue generation. In contrast, Seafood, Vegetarian, and Beef categories are incurring substantial losses. This detailed breakdown by direct costs, indirect costs, and non-food expenses for each category provides actionable insights for menu optimization and strategic pricing decisions.
Overall Profitability
Cash expenses are not yet fully accounted for. While the records show a cash balance of ₹28 lakhs, only ₹50,000 is physically available.
Additionally, there are approximately ₹7 lakhs in UPI transactions marked as 'suspense,' which require clarification for proper accounting.
Expenses not Considered
Proprietor Salaries
Owner salaries were not factored into the expense calculations.
Building Depreciation
An additional ₹10 lakhs in building depreciation was not included.
Low Table Turnover
Current order volume (160-200 weekdays, 340-400 weekends) is below the target 3x table turnover.
Unaccounted Capital Interest
Interest on the invested capital was not included in the financial analysis.
No Wastage Tracking
A system for monitoring and tracking food wastage is currently absent.
Unspecified Utility Costs
Specific utility expenses were not fully considered in the financial breakdown.
Delivery Commission Losses
Delivery items are priced 15-20% higher, but a 30% Swiggy commission significantly impacts revenue.
Captain Performance Analysis
Top Performers
The top three captains (Nirmal, Jobins, and Mithesh) contributed approximately 48% of total revenue for July 2025, highlighting their critical financial role. Nirmal leads with ₹1.29 million, followed by Jobins and Mithesh (each over ₹1 million).
Key Financial Insights
  • High sales concentration with top 3 captains generating almost 48% of revenue
  • Top captains processed the highest KOT volumes, showing strong throughput
  • Only three captains achieved 'Excellent' ratings, suggesting performance disparities
  • Captains like Nevish, Manjesh, and Atone contributed less than 5% of total KOTs
Retention & Reward
Implement incentives for top performers to maintain high morale and performance.
Performance Spread
Set clear targets for mid/low performers with weekly monitoring and feedback.
Rotation & Cross-Training
Introduce rotational shifts or pairings to prevent burnout and reduce over-reliance on a few.
Analytics Dashboard
Implement a real-time dashboard for continuous monitoring and timely intervention.
Key Operational Issues & Risks
Undocumented Cash Expenses
Lack of proper documentation creates transparency issues, hindering accurate tracking, reconciliation, and budgeting.
Absence of Transaction Bills
Poses serious challenges for financial verification and compliance, making it difficult to confirm purchases or respond to tax audits.
High Food Costs
Elevated costs exceeding industry benchmarks directly erode profit margins due to potential inefficiencies in procurement and portion control.
High Employee Attrition
Incurs substantial hidden costs from increased recruitment and training, affecting service quality and team cohesion.
Significant losses in Seafood (-₹5.98 lakhs) and Beef (-₹1.84 lakhs) categories may erode overall profitability if unchecked. High fixed costs such as rent, salary, and electricity (₹4.16 lakhs) may squeeze net margins if revenue growth slows. Large outstanding balances towards suppliers could impact relationships or prompt supply chain disruptions, while dependence on a few high-cost products exposes the business to demand shocks.
Top 15 Vendors
A visualization of the top 7 vendors by their debit amounts:
Below is the complete list of top 15 vendors and their debit amounts:
Menu Pricing Comparisions

Yumm Keralam Costings
Portion cost (per fish / one plate)
variable cost ≤35% of price (good for seafood volatility).
  • Required ex-GST price = 228 ÷ 0.35 = ₹651.43
  • Menu (GST-inclusive @5%) ≈ ₹651.43 × 1.05 = ₹684.0
Strategic Recommendations
Menu Engineering
  • Redesign seafood pricing to address the ₹598,133 loss – consider 15-20% price increase and portion control
  • Review vegetarian recipes to reduce direct costs while maintaining quality
  • Create combo meals pairing high-margin items (rice) with medium-margin items (chicken)
Cost Management
  • Renegotiate with seafood suppliers to reduce direct costs by at least 15%
  • Implement standardized recipes to control portions, especially for high-cost ingredients
  • Identify and reduce food waste in vegetarian and seafood preparations
Operational Improvements
  • Train staff on proper handling of expensive seafood items to reduce wastage
  • Review kitchen workflows to optimize labor costs in preparation of loss-making categories
The most immediate opportunity lies in rebalancing your menu to highlight profitable categories while strategically adjusting pricing and costs for loss-making items. Your rice dishes demonstrate exceptional profitability that can serve as a model for other categories.
By implementing these strategic recommendations, your restaurant can potentially improve its overall profit margin from the current 2.04% to the industry benchmark of 3-5%. We recommend conducting a quarterly review of your category performance using this analysis framework to track improvements and identify emerging trends.
Strategic Recommendations & Marketing Techniques
Cost Optimization
  • Reduce losses in Seafood and Beef categories by optimizing procurement, portion control, and pricing
  • Promote higher-margin categories such as Chicken (+₹3.29 lakhs) and Rice (+₹5.78 lakhs)
  • Improve efficiency in non-food expenses—notably in rent, salaries, and utilities
  • Monitor and audit kitchen supplies and food wastage to tighten inventory management
Revenue Diversification
  • Expand delivery and online ordering channels, reducing commission leakages
  • Develop packaged offers/combo meals emphasizing profitable items
  • Invest in marketing to grow footfall and delivery sales
  • Explore price adjustments on underperforming or loss-making categories
Menu Re-Engineering
Weekday Happy Hours
Introduce discounts during off-peak hours to boost foot traffic and maximize capacity utilization.
Online Delivery Presence
Strengthen partnerships with Swiggy and Zomato through targeted offers and promotions.
B2B Partnerships
Forge alliances with local businesses to offer catering and corporate dining solutions.
Social Media Marketing
Engage with customers on platforms like Instagram and collaborate with local food bloggers.
By implementing these strategic recommendations and marketing techniques, your restaurant can improve its overall profit margin from the current 2.04% to the industry benchmark of 3-5%. Focus initially on addressing the significant losses in the seafood category, which alone could transform your bottom line by nearly ₹600,000 annually.