1. Profit & Loss (6 Months)
Period: 1 March 2025 – 31 August 2025 (Management Accounts)
Revenue
· Sales: R1,890,782
· Guest room income: R98,400
Total Revenue: ➡️ R1,989,182
Cost of Sales
· Opening stock: R110,825
· Purchases (food & drink): R645,257
· Closing stock: (R108,921)
Cost of Sales: ➡️ R647,161
Gross Profit
Gross Profit: ➡️ R1,342,021
Gross Margin: ➡️ 67% (very strong for a restaurant)
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2. Operating Expenses
Total expenses from your statement:
Expense Amount
Bank costs R13,015
Fuel R11,425
Printing R20,555
DSTV R7,194
Gas R35,215
Rent R148,315
Internet R4,794
Municipality & Electricity R89,148
Repairs & Maintenance R12,823
Salaries & Wages R172,279
Security R2,064
Phone R10,973
Entertainment R164,120
Insurance R48,990
Total Expenses: ➡️ R740,914
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3. Net Profit
Profit for the 6-month period:
➡️ R601,107 (R100,184) Ave Pm
Estimated Annual Profit
If similar for the rest of the year:
➡️ R1,202,214 per year (R100,184) Ave Pm
That is a very good profit margin for a restaurant.
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4. Key Ratios
Metric Result
Annual revenue estimate ~R3,978,000
Net profit margin ~30%
Labour cost ~9%
Rent ratio ~7%
Most restaurants target about 10% net profit, so this is exceptionally profitable.
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5. Business Valuation
Restaurants are usually valued at:
·
Value (3×) ➡️ R3,606,642
Most probable selling price:
➡️ ≈ R3.0M NEG
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7. What Can Increase the Value
The price could be higher if:
· Liquor license (already in place)
· Long lease in place
· Equipment included (Already included)
