Looking for a steakhouse business plan? You're in the right place.
A high-end steakhouse asks a lender or investor to believe in a big room, a big check and a lot of fixed cost. How much does the build-out and liquor license really take? What does beef do to margin when its price jumps? How many covers a night does it take to cover California labor costs? A blank template will not show you what a sound answer looks like.
In this article we'll walk through a complete sample business plan for an Encino steakhouse, section by section, so you can see what good looks like and write your own with confidence. We'll cover the executive summary, the SWOT analysis and, in particular, all of the financials.
Here's what you'll take away:
- The executive summary: see how to put a $2 million restaurant on one page, so a reader knows what you are asking for and why within a minute
- The SWOT analysis: learn how to name beef-price and labor risk honestly without putting a reader off
- The start-up budget: find out what a build-out, a cellar and a liquor license cost against the cash reserve, so you don't run short in month four
- The first year, month by month: spot the pre-opening and ramp-up months that lose money before you get there
- The prime-cost test: see the food, beverage and labor percentages a banker will check first, and how they settle over five years
- The five-year profit, cash flow and balance sheet: understand how the raise, the loan and the distributions show up in the numbers
- The downside case: have an answer ready for the "what if covers are 20% short?" question, with the steps the owners take in response
If you're opening a steakhouse, read this before you write your own. The restaurant is fictional, so take what fits your room and change the rest.
In this plan
Looking for a steakhouse restaurant business plan template? The Toolkit builds yours with your own numbers.
The Short Version
Steak Boss is a high-end independent steakhouse in Encino, in the San Fernando Valley of Los Angeles. It serves dry-aged prime beef, a deep wine list and a cocktail bar to business-dinner and celebration guests. The room has 100 seats in the dining room and bar, an 18-seat private dining room and a valet stand. Dinner runs Tuesday through Sunday, with a business lunch on Thursday and Friday.
The partners are Victor Castellanos, who runs the floor and the business, and Anna Brandt, the executive chef. Both are on the payroll from month one. The restaurant needs $2,050,000: $420,000 from the partners, $1,080,000 from six local investors and a $550,000 bank term loan. Of that, $945,000 buys the build-out and equipment, $65,000 stocks the cellar and the walk-in, $213,000 covers legal work, the liquor license, permits and the launch, and $827,000 is held as a cash reserve, sized to carry the room through a two-month opening delay.
| Year 1 | Year 2 | Year 3 | |
|---|---|---|---|
| Revenue | $3,408,528 | $4,885,906 | $5,245,557 |
| Net income after start-up costs | ($429,362) | $294,288 | $282,196 |
| Closing cash | $649,922 | $903,819 | $1,014,216 |
Dinner service starts on March 1, 2027, after two months of final construction, hiring and training. The lease commences, the license is approved and the permits are issued before that first month. Year 1 is a ten-month year and loses money: the room carries 31 people and a $945,000 build-out and equipment package before it reaches its steady level of about 80 dinner covers a night. Monthly operating profit (EBITDA) turns positive in May in the model, and Year 2 is the first profitable year.
Prime cost, which is direct food and drink cost plus payroll, is 77.9% of revenue in Year 1 and between 68.0% and 69.9% from Year 2 on. A steakhouse runs a higher prime cost than most restaurants because beef is expensive and aging loses weight. A downside case is built in. If covers run 20% short in every year, the partners hold back hiring, cut hours and their own pay from month 7, cancel the room refresh and trim distributions. The restaurant never runs out of cash, but it earns little: it loses $33,267 in Year 2, earns $25,696 in Year 3 and covers its loan payments only 1.0x in Year 3, so the partners would ask the bank for covenant relief.
The pitch is narrow. Steak Boss sells a high ticket to fewer guests, and the private room and the business lunch fill the nights and days the main dining room would otherwise leave empty.
Steak Boss at a Glance
Legal name: Steak Boss Encino, LLC, a California limited liability company. Owners: Victor Castellanos and Anna Brandt, with six outside investors. Premises: 4,800 square feet in a leased second-generation restaurant space off Ventura Boulevard, with a private room and a valet drop. Opening: dinner service from March 1, 2027. Stage: the lease is negotiated subject to license approval, the licensing broker is engaged and the construction drawings are in plan check.
Purpose
Give Valley business owners and families a steakhouse worth a reservation: prime beef aged in house, a cellar a sommelier can talk about and a private room that books for the occasions a table for two cannot hold.
What the room sells
| Line | How it earns | Year 3 share of revenue |
|---|---|---|
| Dinner food | About $108 a guest at Year 1 prices, a la carte | 57% |
| Wine | About $30 a guest | 16% |
| Cocktails, spirits and beer | About $21 a guest | 11% |
| Private dining | About 96 events at an average near $5,300 | 10% |
| Business lunch | A fixed lunch menu, Thursday and Friday | 6% |
| Butcher counter | Take-home cuts and holiday orders | 1% |
Wine and cocktails together are just over a quarter of sales, and the private-room events carry a food and drink minimum on top.
Goals for the first two years
- About 18,000 dinner covers in the first ten months of service and 25,000 in Year 2.
- About 62 private events in Year 1 and 90 in Year 2.
- A profit after tax in Year 2, and prime cost near 70% by Year 2.
- Interest-only on the loan for twelve months, then level repayment, with the first investor distribution in Year 2.
License and permits
A restaurant that pours spirits generally needs an on-sale general license from the California Department of Alcoholic Beverage Control (ABC). California limits how many of these licenses exist in each county, so a new restaurant usually buys one on the open market or takes a transfer, and the price varies widely. The City of Los Angeles may also require a conditional-use review for alcohol sales, which can add months. The plan budgets $120,000 for the license and $25,000 for plan check and the health, building and signage permits. Both are planning figures. The partners confirm availability, price and timeline with the ABC, City Planning and a licensing broker before the lease is signed, and the lease is conditional on approval. Food service also needs a county public health permit, and Los Angeles County posts a letter grade from each inspection.
Encino and the Valley Dining Market
Where the room sits
Encino is in the San Fernando Valley, on the Ventura Boulevard commercial corridor. Office towers, medical practices, entertainment-industry offices and law and finance firms sit alongside residential neighborhoods. Westside and Beverly Hills steakhouses are a longer drive for a Valley host. Population and household-income figures are not quoted in this sample; a live plan would cite Census American Community Survey tables for the trade area.
What a night out costs
The plan prices a guest at about $159 for food, wine and cocktails before tax and tip, rising 3% a year. That is the plan's own price point. Published menus for comparable Los Angeles steakhouses are the check on it, and a reader building a live plan would set their own prices against them.
Who else wants the same dinner
| Alternative | What it offers | Why a guest picks it | How Steak Boss differs |
|---|---|---|---|
| National steakhouse chains | Consistent menu, large wine list, loyalty programs | Predictable, often near hotels and malls | Independent kitchen, in-house aging, one owner on the floor |
| Hotel and Westside steakhouses | Prestige locations and celebrity-driven rooms | Occasion dining, expense accounts | Valley location, parking and a private room priced for local companies |
| Independent chophouses and Italian steak rooms | Smaller menus, often cheaper | Neighborhood habit | A larger cellar and a dedicated private dining room |
| Upscale restaurants without a steak focus | Seasonal, chef-led menus | A broader night out | A single clear reason to book: dry-aged beef |
The table describes categories, not named competitors. Names, menus and prices change often, so the plan does not quote any single rival.
The input that moves margin most
Beef is the largest cost on the menu and the least stable. The U.S. Department of Agriculture's Agricultural Marketing Service publishes boxed-beef cutout prices, and the plan treats them as the price signal to watch. Prime-grade cuts also lose weight and trim in the aging room, which is why dinner food is costed at 35.5%. If dinner-food cost rose five points, from 35.5% to 40.5%, the Year 3 cost would be about $149,000 higher before any menu response.
SWOT
| Strengths | Weaknesses |
|---|---|
| Both partners are on the line from day one | A high ticket makes the room sensitive to a soft quarter |
| Private room and lunch fill slower days | Heavy fixed cost: rent, payroll and a leasehold build-out |
| In-house aging and a named sommelier | Year 1 loses money and draws on the reserve |
| Opportunities | Threats |
|---|---|
| Valley companies that book client dinners close to their offices | Beef price spikes the menu cannot pass on in a month |
| Holiday gift orders and private events | Higher wages and a tight market for experienced cooks |
| Wine dinners and tastings that raise the average check | A new steakhouse opening in the same corridor |
Who Books a Table at Steak Boss
The business dinner
A partner at a law, finance or medical practice takes a client or a new hire to dinner and wants a table that is quiet, a wine list that can be trusted and a bill that is handled without fuss. The reservation is made two to seven days ahead and the party is usually four to six.
The celebration
Birthdays, anniversaries and graduations from the surrounding neighborhoods. These guests book Friday and Saturday, order the larger cuts and a bottle, and ask about the private room for the bigger party.
The regular
Neighbors and office workers who come in for the bar, the lunch or a weeknight steak. They are fewer than the occasion guests but they fill Tuesday, Wednesday and Thursday.
The company event
A local firm buys out the private room for a client dinner, a holiday party or a deal closing. The assistant manager, who leads private events, books these, and the average event in the plan is about $5,000 at Year 1 prices for a party of about 18.
What they ask of the restaurant
The cut is cooked as ordered. The table is ready when the booking says. A person answers the phone about the private room. Parking is handled.
Filling the Room
The nightly count
Year 1 averages about 69 dinner covers over roughly 260 service nights, and the ramp starts at about 1,380 covers in the first month. Year 2 averages about 80 over 312 nights, Year 3 about 83 and Year 5 about 87. With 100 seats, that is about 1.3 turns on a Friday or Saturday of around 130 covers and about half a turn on a Tuesday. The room is sized for the busy nights and is not full on most of the rest, which is why private events and lunch are in the model.
| Dinner covers | Year 1 (ten months) | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Covers | 17,954 | 25,000 | 26,000 | 26,700 | 27,100 |
Seasonality
December is the biggest month in Year 1, at $474,932, with corporate and holiday parties and the butcher counter's gift orders. July and August are softer. Monthly seasonality is shown for Year 1 only; the later years are spread evenly.
Private dining
The assistant manager leads private events from month 2 and the room books about 62 events in Year 1, with the quietest months in July and August and the busiest in December ($55,250 of private-room revenue in the month). The partners expect most events to come from repeat corporate hosts, which is why the marketing plan spends on account outreach rather than general advertising.
Reservations and no-shows
Bookings are taken through a reservation platform and a deposit is held on private events. Bad debt and event write-offs are budgeted at $4,500 in Year 1.
Getting the Name Out
Spend and what it buys
Year 1 marketing is $105,000: $40,000 of launch spend paid from start-up capital plus $65,000 of operating spend. That is 3.1% of Year 1 revenue, and operating marketing falls to 1.6% of revenue by Year 5. Over the 17,954 dinner covers in the first ten months it comes to about $5.85 a cover.
| Channel | Year 1 spend | What it is expected to do |
|---|---|---|
| Brand, website and photography (launch) | $12,000 | A site that books tables and private events directly |
| Press and influencer dinners (launch) | $14,000 | Opening-month coverage in Valley and Los Angeles food media |
| Opening-week events and corporate previews (launch) | $14,000 | First visits from the offices within a short drive |
| Paid search and social | $18,000 | "Steakhouse Encino" and "private dining Encino" searches |
| Corporate account and concierge program | $16,000 | Client-dinner tastings, hotel concierge visits, local offices |
| Public relations retainer | $12,000 | Six months of regular placements |
| Email, loyalty and reservation CRM | $5,000 | Repeat bookings and birthday and anniversary reminders |
| Chamber, charity and local sponsorships | $14,000 | Visibility with the people who book events |
Milestones
- January 2027: reservations open, the first tasting dinners for the investors and neighbors.
- March 2027: service starts with about 1,380 covers in the month.
- June 2027: about 20 corporate accounts have booked at least once.
- December 2027: about 2,440 dinner covers and $55,250 of private-room revenue in the month.
How the Kitchen and Floor Run
The space
4,800 square feet leased for ten years with options, at about $4.00 a square foot a month all in ($19,200 a month, $192,000 in Year 1 after two months of abatement during the build-out), which is 5.6% of Year 1 revenue and 4.7% by Year 3. The rent is a planning figure, not a quote from a broker. The space has an 84-seat dining room, a 16-seat bar and lounge, an 18-seat private room, a dry-aging room and a service entrance. The hood and grease trap are in place from the previous tenant. The landlord contributes a $95,000 improvement allowance toward the build-out, so the plan carries $680,000 net of the allowance, from a $775,000 gross cost of about $161 a square foot. That is a planning figure for a second-generation space with the hood and grease trap in place, and a live plan would replace it with contractor bids.
The beef program
Whole primals are bought on a weekly order and aged in a dedicated room. The butcher breaks them down, and trim goes to the burger and the stock. Aging loses weight, so the plan costs dinner food at 35.5% and sells aged cuts at a premium. Take-home cuts through the butcher counter cost 62% and move the same product on slow days.
Prime cost
Direct food and drink cost is 33.1% of revenue in every year. Payroll including on-costs and pay raises is 45% of revenue in Year 1, 37% in Year 2, 36% in Years 3 and 4 and 35% in Year 5. Together they give prime cost of 77.9%, 69.9%, 69.5%, 68.6% and 68.0%. The Year 1 figure is high because two months of payroll come before any revenue and the room is still ramping. Full-service restaurants commonly report prime cost in a band from the mid-60s to the low 70s; that is a general rule of thumb, and a live plan would replace it with a cited benchmark.
Labor in California
California does not let an employer count tips toward the minimum wage, and the Department of Industrial Relations sets the state rate at $16.90 an hour from January 1, 2026. The federal minimum of $7.25 is lower, so the state rate governs. The City of Los Angeles sets its own, higher minimum that adjusts each year, and the plan treats every wage as a planning figure to be checked against the current city rate. Hourly roles work out to roughly $19.70 to $27 an hour: a full-time server at $36,000 scheduled about 1,700 hours is near $21, and a full-time dishwasher at $41,000 over 2,080 hours is near $19.70.
Three managers are salaried: the assistant manager ($76,000), the sous chef ($76,000) and the beverage director ($80,000). California treats a salaried manager as exempt from overtime only when the salary is at least twice the state minimum wage for full-time work, which is $70,304 a year at the 2026 rate. The floor rises each January with the minimum wage, so the plan keeps those three salaries about 8% above the 2026 figure. Everyone else is hourly and eligible for overtime, and Friday and Saturday scheduling is built to avoid it.
The model adds 28% to wages for payroll taxes, paid sick leave and health contributions (20% for part-time staff). Workers' compensation is in the insurance line. Tips are paid through payroll, so the employer owes Social Security and Medicare tax on them: 7.65% of tips estimated at 20% of dinner and lunch revenue, $46,500 in Year 1 and $71,500 in Year 3. Private-event service charges and butcher-counter sales are left out of the tip base.
Staffing against opening hours
The weekly hours below are planning estimates for Year 3, using about 6.5 hours per front-of-house shift and a 40-hour week for each full-time kitchen employee (five eight-hour shifts, since California generally requires overtime after eight hours in a day). Full-time front-of-house staff are scheduled about 33 hours and part-time staff about 19. The two chefs are not counted in the kitchen's staffed hours.
| Function | Hours needed a week | Hours staffed | Read |
|---|---|---|---|
| Servers | About 210 | About 235 | Six full-time servers plus two weekend servers; covers days off |
| Runners and bussers | About 110 | About 105 | Slightly short; servers help on Fridays |
| Bartenders | About 70 | About 71 | Matches, with the beverage director as cover |
| Bar back | About 40 | About 19 | Thin; bartenders and runners share the work on quiet nights |
| Hosts | About 41 | About 38 | Close; the assistant manager seats on busy nights |
| Line, prep and butcher cooks | About 390 | About 299 | Short by about 90 hours; seven full-time cooks and a part-time prep cook, so the executive chef and sous chef work the line to close the gap |
| Dishwashers | About 65 | About 59 | Slightly short; prep cooks wash pots at close |
Year 1 has fewer covers and one fewer line cook, so the gaps are similar. The managing partner and the assistant manager cover eight services a week between them, which leaves little slack in Year 1.
Valet, deliveries and waste
A contracted valet runs Wednesday through Sunday evenings at $52,000 in Year 1 and $66,000 in Year 2. Beef, produce and wine arrive on supplier schedules and are paid on terms of about 16 days.
Systems
A point of sale linked to the reservation platform, a weekly inventory count on beef and wine, and a scheduling tool tied to the reservation book. Software is $26,000 in Year 1 and $31,000 by Year 5.
Insurance and safeguards
General liability, liquor liability, property, workers' compensation and umbrella cover, budgeted at $82,000 in Year 1 as a planning figure. Food-handler training for every cook and a responsible-beverage-service course for every server and bartender are required before the first service.
The Partners and the Crew
Victor Castellanos, managing partner
Victor has eleven years on the floor and in management at independent steakhouses and a large restaurant group. He is paid $105,000 and will hold the liquor license, manage service and accounts and sign the lease. His share of the $420,000 partner contribution is savings and a home-equity loan.
Anna Brandt, executive chef and partner
Anna has sixteen years in professional kitchens, the last six running the broiler station and then the kitchen at a high-volume steakhouse. She is paid $105,000, writes the menu, runs the aging program and signs the beef purchasing.
The team around them
Thirty-one people are on payroll at the end of Year 1: twenty full-time and eleven part-time, or 25.5 full-time equivalents. Twelve roles start in month 2 for a month of training (the assistant manager, sous chef, beverage director, butcher, five cooks, a part-time prep cook and two dishwashers), and seventeen start in month 3 (servers, bar staff, runners and hosts). A sixth server starts in month 13 and a fourth line cook in month 26, making 33 people from Year 3. Payroll including on-costs is $1,526,760 in Year 1 and $1,800,640 in Year 3, before pay raises.
Where the team is thin
Both partners have worked in someone else's restaurant; neither has owned one. The plan covers that with an accountant who keeps weekly prime-cost reports, a hospitality attorney for the lease and license, and a monthly review call with the two investors who have operated or financed restaurants. The model has no separate general manager, so Victor's days are long in Year 1, which is why the assistant manager starts in month 2.
If a partner is out
Anna's sous chef can run the line for a week, and the beverage director and the assistant manager can run service. Key-person life and disability cover is held on both partners, and the investor agreement names a replacement process for either role.
Ownership and the bank
Investors hold 72% of the units by capital contributed ($1,080,000 of $1,500,000) and the partners 28% ($420,000). Distributions are paid in proportion to units after payroll, debt service and a minimum cash balance. The bank takes a personal guarantee from both partners and a lien on equipment, and expects quarterly accounts.
The Money
Everything below comes from one five-year model, monthly for the first year and yearly after that. The funding comes first, then the inputs behind the revenue and cost lines, then the statements, the downside case, the sensitivity runs and the questions a lender would still ask.
Funding the room
| Use of funds | Amount |
|---|---|
| Build-out of a 4,800 square foot second-generation restaurant space (hood and grease trap in place): dining room, bar, private room, dry-age room, finishes and a 10% contingency; $775,000 gross, net of a $95,000 landlord improvement allowance (planning figure) | $680,000 |
| Kitchen: infrared broilers, grill, ranges, walk-in cooler and freezer, dry-aging cabinets | $160,000 |
| Dining room, bar and private room: furniture, banquettes, glassware, china, flatware, wine storage | $75,000 |
| Point of sale, reservations, kitchen displays, audio-visual, music and security | $30,000 |
| Opening wine cellar, beef, food and bar stock | $65,000 |
| Legal and accounting: lease, entity, investor documents, loan and license application | $28,000 |
| Alcoholic beverage license (planning figure: on-sale licenses are quota-controlled and can be costly) | $120,000 |
| Plan check, health, building and signage permits (planning figure) | $25,000 |
| Launch: brand, website, press and influencer dinners, opening-week events, concierge and corporate outreach | $40,000 |
| Cash reserve: pre-opening payroll and rent, the opening ramp, the summer dip and a two-month opening delay | $827,000 |
| Total uses | $2,050,000 |
| Source of funds | Amount |
|---|---|
| Victor Castellanos and Anna Brandt: savings and a home-equity contribution | $420,000 |
| Investor round: six local investors at $100,000 to $300,000 each | $1,080,000 |
| Bank term loan, SBA 7(a) guaranteed (subject to approval; five years, interest only for the first 12 months) | $550,000 |
| Total sources | $2,050,000 |
The raise is $2,050,000. The two partners contribute $420,000 (20% of the total), six local investors put in $1,080,000 (53%) and an SBA 7(a) bank loan supplies $550,000 (27%) at a planning rate of 10.5%, repaid over five years with interest only for the first twelve months. That rate is an illustration, not a quoted lending rate. The bank would ask for personal guarantees from both partners and a lien on the equipment. Build-out and equipment come to $945,000; the build-out line is a $775,000 gross cost (about $161 a square foot, a planning figure) net of a $95,000 landlord allowance. The $827,000 reserve is the largest single use, 40% of the raise, and it is a true cash reserve for pre-opening payroll and rent, the opening ramp and the summer dip. It is sized to a two-month opening delay rather than to the base case: the lowest month-end cash in the base case is about $348,000 (April 2027), and in a two-month slip it is about $44,000 (May 2027). Costs before month 1 (design, plan check, the license application and lease negotiation) sit inside the legal, permit and license lines.
What the numbers rest on
- A dinner guest spends $108 on food, $30 on wine and $21 on cocktails, spirits and beer, $159 in all at Year 1 prices before sales tax and tip. Menu prices step up 3% a year from Year 2. Year 1 has about 17,950 dinner covers in ten months of service, roughly 69 a night, followed by 25,000, 26,000, 26,700 and 27,100 covers in Years 2 to 5. These are the plan's own price points, not a survey of rival menus.
- Dinner is served Tuesday through Sunday, about 312 nights a year once the room is open. With 100 seats in the dining room and bar, Year 3 averages about 83 covers a night, four-fifths of a turn. A Friday or Saturday of about 130 covers is 1.3 turns; a Tuesday of about 50 leaves half the room empty.
- The business lunch runs Thursday and Friday at a blended $68 a guest for food and drink, about 38 covers a service once established. Year 1 has about 2,900 lunch covers, Year 2 has 3,900 and Year 3 has 4,000.
- A private event averages $5,000 at Year 1 prices, about 18 guests at roughly $275 a head with a room minimum, wine pairings and a room fee. The room books about 62 events in Year 1, then 90, 96, 100 and 104. Revenue leaves out sales tax and server gratuities, which belong to the staff.
- Direct cost is 35.5% on dinner food, 31% on wine, 21% on cocktails and spirits, 32% on lunch, 33% on private events and 62% on butcher-counter resale. The engine applies one blended rate of 33.1%, set by the Year 1 mix, to every year, so a line's own percentage holds only in Year 1. Dry aging loses weight and trim, which is why the food line runs high. A five-point rise in dinner food cost would add about $149,000 to Year 3 costs before any menu response.
- Payroll adds 28% to wages for payroll taxes, paid sick leave and health contributions (20% for part-time staff), and workers' compensation sits in the insurance line. California does not let tips count toward minimum wage (Department of Industrial Relations), so servers and bartenders are carried at full hourly pay. Tips still pass through payroll, so the employer pays Social Security and Medicare tax on them: 7.65% of tips estimated at 20% of dinner and lunch revenue, $46,500 in Year 1 and $71,500 in Year 3, as its own line. Hourly pay works out to roughly $19.70 to $27 an hour across the roster and is a planning figure to be checked against the City of Los Angeles minimum, which sits above the state's $16.90 and adjusts each year. Three managers are salaried and treated as exempt, at $76,000 to $80,000, above California's exempt floor of twice the state minimum for full-time work ($70,304 at the 2026 rate). Raises of 3% a year are a separate line from Year 2.
- Rent is 4,800 square feet at about $4.00 a square foot a month all in, $19,200 a month, a planning figure with 3% yearly steps. The lease abates two months of rent during the build-out, so Year 1 carries ten. Replacement glassware, china and small equipment are an expense, and a dining-room refresh reserve runs in Years 3 to 5.
- The alcoholic beverage license is a $120,000 planning figure and plan check and permits are a separate $25,000. California on-sale licenses are limited by county and priced on the open market, and the City of Los Angeles may require a conditional-use review for alcohol that can take many months. The lease is signed subject to license approval, and the model starts when the lease commences.
- Insurance is $82,000 in Year 1, a planning figure that covers general and liquor liability, property, workers' compensation and umbrella cover for a staff of about 31. Card processing runs at 3.1% of revenue, which allows for fees charged on the tax and tip portion of a check. Receivables average 5 days (card settlement and private-event deposits), suppliers are paid in about 16 days and inventory is the $65,000 of opening stock plus 2% of sales, about 3.9% of Year 1 revenue and 3.2% of Year 3, mostly the wine cellar.
- Tax is charged at the 21% federal corporate rate (26 U.S.C. 11(b)) and an 8.84% California rate, a planning figure, since tax rates change. The engine's tax base ignores start-up costs and does not apply the federal 80% limit on loss carryforwards, so Year 2 tax is approximate: leaving out start-up costs shrinks the loss carried forward and pushes tax up, while leaving out the 80% limit pushes it down. The partners would normally elect pass-through treatment, which moves the tax to their personal returns and would need tax distributions to cover it.
- Owner distributions are $140,000 in Year 3, $300,000 in Year 4 and $400,000 in Year 5, none before. Each is below that year's net income, and cumulative distributions stay below cumulative net income after Year 1's loss and start-up costs. The loan runs on its schedule and is repaid by the end of Year 5; the model does not prepay it.
Revenue by line
| Revenue stream | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Dinner food: dry-aged prime cuts, starters, sides and desserts | $1,939,032 | $2,781,000 | $2,979,007 | $3,150,988 | $3,294,139 |
| Wine by the glass and bottle | $538,620 | $772,500 | $827,502 | $875,274 | $915,039 |
| Cocktails, spirits and beer | $377,034 | $540,750 | $579,251 | $612,692 | $640,527 |
| Business lunch (Thursday and Friday) | $198,764 | $273,156 | $288,565 | $300,937 | $313,792 |
| Private dining room | $312,390 | $463,500 | $509,232 | $546,364 | $585,265 |
| Butcher counter: take-home cuts and holiday orders | $42,688 | $55,000 | $62,000 | $67,000 | $71,000 |
| Total revenue | $3,408,528 | $4,885,906 | $5,245,557 | $5,553,255 | $5,819,762 |
| Growth on prior year | – | 43% | 7% | 6% | 5% |
Dinner food is the base, at 57% of revenue in Year 1 and in Year 5. Wine and cocktails together are just over a quarter. The private room and the lunch fill nights and days the main room leaves empty. Year 2 grows 43% because Year 1 holds only ten months of service; later growth is 7%, 6% and 5%, from covers and menu prices.
The first twelve months
| Month | Dinner food: dry-aged prime cuts, starters, sides and desserts | Wine by the glass and bottle | Cocktails, spirits and beer | Business lunch (Thursday and Friday) | Private dining room | Butcher counter: take-home cuts and holiday orders | Total revenue | EBITDA |
|---|---|---|---|---|---|---|---|---|
| Jan 2027 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($194,563) |
| Feb 2027 | $0 | $0 | $0 | $0 | $0 | $0 | $0 | ($194,563) |
| Mar 2027 | $148,608 | $41,280 | $28,896 | $16,184 | $22,230 | $2,304 | $259,502 | ($20,914) |
| Apr 2027 | $163,404 | $45,390 | $31,773 | $17,952 | $26,000 | $2,880 | $287,399 | ($2,246) |
| May 2027 | $180,468 | $50,130 | $35,091 | $18,836 | $30,030 | $3,360 | $317,915 | $18,174 |
| Jun 2027 | $177,876 | $49,410 | $34,587 | $18,768 | $28,600 | $3,520 | $312,761 | $14,725 |
| Jul 2027 | $174,420 | $48,450 | $33,915 | $17,544 | $22,425 | $3,312 | $300,066 | $6,230 |
| Aug 2027 | $180,036 | $50,010 | $35,007 | $18,088 | $23,156 | $3,420 | $309,717 | $12,688 |
| Sep 2027 | $200,232 | $55,620 | $38,934 | $21,760 | $29,949 | $3,492 | $349,987 | $39,635 |
| Oct 2027 | $219,024 | $60,840 | $42,588 | $23,596 | $35,750 | $4,400 | $386,198 | $63,866 |
| Nov 2027 | $231,660 | $64,350 | $45,045 | $23,596 | $39,000 | $6,400 | $410,051 | $79,828 |
| Dec 2027 | $263,304 | $73,140 | $51,198 | $22,440 | $55,250 | $9,600 | $474,932 | $123,244 |
January and February have no revenue and show EBITDA of ($194,563) each, because the model spreads annual operating costs evenly across the twelve months, including card fees, tip payroll tax and valet that start only with service. March is also negative at ($20,914), April at ($2,246), and EBITDA turns positive in May. Real early months would be tighter than this table shows, which is why the reserve is large. Revenue peaks in December at $474,932. The lowest month-end cash balance is April 2027, at about $348,000, after allowing for the five days card and event receipts take to settle. The monthly view carries no Year 2 winter or summer trough; Years 2 to 5 are spread evenly.
Payroll, role by role
| Role | Annual wage | Starts | Year 1 end | Year 2 end | Year 3 end | Year 4 end | Year 5 end |
|---|---|---|---|---|---|---|---|
| Managing partner (Victor Castellanos) | $105,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Executive chef and partner (Anna Brandt) | $105,000 | Month 1 | 1 | 1 | 1 | 1 | 1 |
| Assistant manager and private events lead | $76,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Sous chef | $76,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Beverage director and sommelier | $80,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Butcher and dry-age lead | $56,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Broiler cook A | $56,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Broiler cook B | $52,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Saute and fry cook | $50,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Pantry and prep cook | $44,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Line cook C | $48,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Prep cook (part time) | $26,000 | Month 2 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Dishwasher A | $41,000 | Month 2 | 1 | 1 | 1 | 1 | 1 |
| Dishwasher B (part time) | $24,000 | Month 2 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Server A | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Server B | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Server C | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Server D | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Server E | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Weekend server G (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Weekend server H (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bartender A | $42,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Bartender B (part time) | $28,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bartender C (part time) | $28,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Bar back (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Food runner and busser A | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Food runner and busser B | $36,000 | Month 3 | 1 | 1 | 1 | 1 | 1 |
| Food runner and busser C (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Food runner and busser D (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Host A (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Host B (part time) | $22,000 | Month 3 | 0.5 | 0.5 | 0.5 | 0.5 | 0.5 |
| Server F | $36,000 | Month 13 | – | 1 | 1 | 1 | 1 |
| Line cook D | $48,000 | Month 26 | – | – | 1 | 1 | 1 |
| Total payroll incl. on-costs | $1,526,760 | $1,744,320 | $1,800,640 | $1,805,760 | $1,805,760 |
Both partners are on payroll from month 1. Twelve roles start in month 2 for a month of training (the assistant manager, sous chef, beverage director, butcher, five cooks, a part-time prep cook and two dishwashers), and seventeen start in month 3 (five full-time servers, two weekend servers, three bartenders, a bar back, four runner and busser roles and two hosts). That makes 31 people at the end of Year 1, 20 full-time and 11 part-time. A sixth server starts in month 13 and a fourth line cook in month 26. Part-time roles are shown at half a head. Victor's and Anna's $105,000 salaries are already in the costs, so profit here means what remains after both partners are paid.
Profit and loss
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $3,408,528 | $4,885,906 | $5,245,557 | $5,553,255 | $5,819,762 |
| Direct costs (beef, food, wine, spirits and bar stock) | ($1,127,665) | ($1,616,436) | ($1,735,422) | ($1,837,219) | ($1,925,390) |
| Gross profit | $2,280,863 | $3,269,470 | $3,510,135 | $3,716,036 | $3,894,372 |
| Payroll incl. on-costs | ($1,526,760) | ($1,744,320) | ($1,800,640) | ($1,805,760) | ($1,805,760) |
| Rent | ($192,000) | ($237,300) | ($244,400) | ($251,700) | ($259,300) |
| Utilities | ($58,000) | ($60,000) | ($62,000) | ($64,000) | ($66,000) |
| Marketing | ($65,000) | ($85,000) | ($88,000) | ($91,000) | ($94,000) |
| Insurance | ($82,000) | ($86,000) | ($90,000) | ($94,000) | ($98,000) |
| Professional fees | ($30,000) | ($28,000) | ($30,000) | ($31,000) | ($32,000) |
| Software subscriptions | ($26,000) | ($28,000) | ($29,000) | ($30,000) | ($31,000) |
| Card processing fees | ($105,500) | ($151,500) | ($162,500) | ($172,000) | ($180,500) |
| Employer payroll tax on tips (7.65% of tips estimated at 20% of dinner and lunch checks) | ($46,500) | ($67,000) | ($71,500) | ($75,500) | ($79,000) |
| Reservation platform and gift-card fees | ($12,000) | ($15,000) | ($16,000) | ($16,500) | ($17,000) |
| Valet contract (evenings, Wednesday through Sunday) | ($52,000) | ($66,000) | ($69,000) | ($72,000) | ($75,000) |
| Linen, uniforms, cleaning and paper goods | ($50,000) | ($58,000) | ($61,000) | ($64,000) | ($67,000) |
| Repairs, hood cleaning and equipment service | ($14,000) | ($26,000) | ($31,000) | ($35,000) | ($39,000) |
| Glassware, china breakage and equipment replacement | ($26,000) | ($32,000) | ($34,000) | ($36,000) | ($38,000) |
| License renewals, permits and music licensing | ($18,000) | ($14,000) | ($14,500) | ($15,000) | ($15,500) |
| Waste hauling, grease trap and pest control | ($8,500) | ($9,500) | ($10,000) | ($10,500) | ($11,000) |
| Wine dinners, flowers and dining-room decor | ($18,000) | ($22,000) | ($24,000) | ($26,000) | ($28,000) |
| Dining-room refresh and kitchen equipment replacement (reserve) | $0 | $0 | ($20,000) | ($45,000) | ($35,000) |
| Bad debt and private-event write-offs | ($4,500) | ($6,000) | ($7,000) | ($7,500) | ($8,000) |
| Annual pay raises (3% a year) | $0 | ($52,330) | ($109,659) | ($167,443) | ($226,639) |
| EBITDA | ($53,897) | $481,520 | $535,936 | $606,133 | $688,673 |
| Depreciation | ($104,714) | ($104,714) | ($104,714) | ($104,714) | ($104,714) |
| Interest | ($57,750) | ($52,238) | ($39,372) | ($25,089) | ($9,231) |
| Income tax | $0 | ($30,280) | ($109,654) | ($133,294) | ($160,830) |
| Net income before start-up costs | ($216,362) | $294,288 | $282,196 | $343,036 | $413,899 |
| Start-up costs expensed at opening (legal, licensing, launch marketing) | ($213,000) | $0 | $0 | $0 | $0 |
| Net income after start-up costs | ($429,362) | $294,288 | $282,196 | $343,036 | $413,899 |
Year 1 loses $216,362 before start-up costs and $429,362 after them. Year 2 is the first profitable year, at 6.0% net before start-up costs. Net income in Year 3 ($282,196) is a little below Year 2 ($294,288) because Year 2 tax is only $30,280 after the Year 1 loss is carried forward, against $109,654 in Year 3. EBITDA margin is 9.9% in Year 2, 10.2% in Year 3, 10.9% in Year 4 and 11.8% in Year 5. Payroll including raises is 45% of revenue in Year 1, 37% in Year 2, 36% in Years 3 and 4 and 35% in Year 5. Prime cost, direct cost plus payroll including raises, is 77.9% in Year 1, then 69.9%, 69.5%, 68.6% and 68.0%. The tip payroll tax line is 7.65% of 20% of dinner and lunch revenue, which is $71,517 in Year 3 before rounding.
Cash movements
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Cash from operations | ($455,078) | $370,642 | $380,007 | $441,843 | $513,497 |
| Build-out, kitchen and dining-room equipment | ($945,000) | $0 | $0 | $0 | $0 |
| Funding received | $2,050,000 | $0 | $0 | $0 | $0 |
| Loan principal repaid | $0 | ($116,745) | ($129,610) | ($143,894) | ($159,751) |
| Owner distributions | $0 | $0 | ($140,000) | ($300,000) | ($400,000) |
| Net change in cash | $649,922 | $253,898 | $110,396 | ($2,051) | ($46,254) |
| Closing cash | $649,922 | $903,819 | $1,014,216 | $1,012,165 | $965,911 |
Closing cash is positive at every year end, and the lowest year-end figure is $649,922 in Year 1. Cash rises to $1,014,216 in Year 3 and is $965,911 in Year 5, after $840,000 of distributions in Years 3 to 5 and $550,000 of loan principal. Cash from operations after principal covers distributions in Year 3 but not in Years 4 and 5, which draw down the balance by $2,051 and $46,254. Distributions stay below each year's net income and below cumulative net income after the Year 1 loss: cumulative net income after start-up costs is $147,122 at the end of Year 3, $490,158 at Year 4 and $904,057 at Year 5, against cumulative distributions of $140,000, $440,000 and $840,000. Retained earnings are negative at the end of Years 1 and 2, when nothing is paid out. The balance of about $1 million is more than the restaurant needs once it is open; it is the reserve sized for an opening delay, and the model leaves it in the business rather than distributing it as a return of capital.
Balance sheet
| At year end | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| Cash | $649,922 | $903,819 | $1,014,216 | $1,012,165 | $965,911 |
| Accounts receivable | $46,692 | $66,930 | $71,857 | $76,072 | $79,723 |
| Inventory (wine cellar, dry-aging beef and bar stock) | $133,171 | $162,718 | $169,911 | $176,065 | $181,395 |
| Build-out, kitchen and dining-room equipment (net) | $840,286 | $735,571 | $630,857 | $526,143 | $421,429 |
| Total assets | $1,670,070 | $1,869,039 | $1,886,841 | $1,790,445 | $1,648,457 |
| Accounts payable (beef, produce and wine suppliers) | $49,432 | $70,857 | $76,073 | $80,536 | $84,401 |
| Bank loan | $550,000 | $433,255 | $303,645 | $159,751 | $0 |
| Paid-in capital | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 | $1,500,000 |
| Retained earnings | ($429,362) | ($135,074) | $7,123 | $50,158 | $64,057 |
| Total liabilities and equity | $1,670,070 | $1,869,039 | $1,886,841 | $1,790,445 | $1,648,457 |
Margins, prime cost and break-even
| Measure | Year 1 | Year 2 | Year 3 | Year 4 | Year 5 |
|---|---|---|---|---|---|
| EBITDA margin | -1.6% | 9.9% | 10.2% | 10.9% | 11.8% |
| Net margin (before start-up costs) | -6.3% | 6.0% | 5.4% | 6.2% | 7.1% |
| Payroll incl. pay raises as share of revenue | 45% | 37% | 36% | 36% | 35% |
| Revenue per full-time equivalent at year end | $133,668 | $184,374 | $190,748 | $201,937 | $211,628 |
| Average monthly revenue | $284,044 | $407,159 | $437,130 | $462,771 | $484,980 |
| Monthly revenue needed to cover operating costs | $290,756 | $347,193 | $370,388 | $387,287 | $399,217 |
| Debt service cover (EBITDA / interest + principal) | -0.9x | 2.8x | 3.2x | 3.6x | 4.1x |
The last two rows of the ratios table set average monthly revenue against the revenue needed to cover operating costs. Year 1 averages $284,044 a month against $290,756 needed, so the first year is below the operating line. Year 2 averages $407,159 against $347,193, and Year 3 $437,130 against $370,388. Year 3 revenue per dinner cover, with lunch, events and the butcher counter included, is about $202, so the Year 3 need works out to roughly 1,840 dinner covers a month against 2,170 planned. Debt service cover is not meaningful in Year 1, when EBITDA of ($53,897) does not cover interest-only payments of $57,750, then 2.8x in Year 2, 3.2x in Year 3, 3.6x in Year 4 and 4.1x in Year 5.
If covers run 20% short
| Year 1 | Year 2 | Year 3 | Year 4 | Year 5 | |
|---|---|---|---|---|---|
| Revenue | $2,726,822 | $3,908,725 | $4,196,446 | $4,442,604 | $4,655,810 |
| Net income before start-up costs | ($538,114) | ($33,267) | $25,696 | $71,901 | $135,085 |
| Net income after start-up costs | ($751,114) | ($33,267) | $25,696 | $71,901 | $135,085 |
| Closing cash | $341,255 | $273,270 | $268,547 | $256,543 | $232,498 |
This case cuts covers, events and every other revenue line by 20% in every year. The owners respond from month 7, when the shortfall is visible: every hire from month 13 starts six months later; from month 7 one full-time server, a weekend server, a runner and a bartender are no longer scheduled; both partners take a 20% pay cut; marketing falls 20% and wine dinners and decor 30% from Year 2, with Year 1 annual lines left as in the base case; and the dining-room refresh reserve is canceled. Card fees, tip payroll tax, reservation fees and bad debt move with sales, and linen and glassware at half the sales change. Rent, valet, utilities and insurance do not move. Distributions fall to $40,000 in Year 4 and $100,000 in Year 5, none before, each below that year's downside net income. On those terms Year 1 loses $751,114 after start-up costs, Year 2 loses $33,267, and Years 3 to 5 earn $25,696, $71,901 and $135,085. Cash ends every year positive and below the base case, at no less than $232,498, and the lowest month-end balance in Year 1 is about $231,000 in September 2027. Equity ends Year 1 at $748,886. Debt service cover is 0.7x in Year 2, 1.0x in Year 3, 1.2x in Year 4 and 1.5x in Year 5 (Year 1 is interest only), so the case fails a likely 1.25x covenant in Years 2, 3 and 4. The partners would ask the bank for a covenant holiday through Year 3, a first test at 1.0x in Year 4, a further twelve months of interest only and a $150,000 standby line. With no response and base-case distributions, the same shortfall would leave cash at ($59,009) at the end of Year 2 and falling after that.
Sensitivity cases
Each row changes one input in every year and leaves the rest of the base case as it is, with distributions unchanged. Where revenue falls, card fees, tip payroll tax, reservation fees and bad debt fall in proportion, linen and glassware at half the change (in the private-dining row the tip tax does not move, because private-event service charges are outside the tip base), and rent, payroll, valet, utilities and insurance stay fixed. Ingredient cost per unit does not fall when covers fall. The lowest month-end cash is the Year 1 figure on the same basis as the monthly table (month-end cash less five days of receivables), and it is approximate.
| Case and method | Year 1 net income after start-up costs | Year 3 net income | Year 2 debt service cover | Lowest year-end cash | Year 1 lowest month-end cash |
|---|---|---|---|---|---|
| Base case | ($429,362) | $282,196 | 2.8x | $649,922 | $347,563 (April) |
| Revenue 10% lower in every year, no response | ($636,798) | $71,286 | 1.1x | ($118,782) | $275,735 (August) |
| Direct costs 3 points higher on every line | ($531,618) | $208,219 | 2.0x | $435,321 | $322,789 (August) |
| Dinner food cost 5 points higher, other lines unchanged | ($526,313) | $210,486 | 2.0x | $462,843 | $325,571 (August) |
| Wages 10% higher on every role, tip tax unchanged | ($582,038) | $200,820 | 1.8x | $300,529 | $274,626 (August) |
| Rent 10% higher in every year | ($448,562) | $264,595 | 2.7x | $630,722 | $341,163 (April) |
| Private dining 30% lower in every year | ($487,753) | $223,773 | 2.3x | $593,333 | $340,635 (April) |
| Opening delayed two months (see method below) | ($820,206) | $368,345 | 2.9x | $276,000 | $43,942 (May) |
The opening-delay case moves the whole Year 1 ramp, seasonality included, and every hire from month 2 on, two months later. The two partners stay on payroll, Year 1 operating costs stay as in the base case and two more months of rent ($38,400) are added because the abatement is used up during the delay. Cash stays positive on the same basis, with the low in May 2027. Year 3 net income is higher than the base case because the larger Year 1 loss carries forward and shelters tax in Years 2 and 3, and because the two later hires (a sixth server and a fourth line cook) move back two months with the rest and cost two fewer months of payroll in Years 2 and 3. Three cases are fragile. A 10% revenue shortfall with no response takes Year 5 cash below zero while distributions continue at the base-case level, and Year 2 cover falls to 1.1x. A 10% wage rise cuts Year 3 net income by almost 30%. A 3-point direct-cost rise leaves Year 5 cash about $531,000 lower than the base case.
What a lender would still ask
- Lease and guarantee. Will the landlord sign a ten-year lease conditional on license approval, with the improvement allowance paid in cash, and how much personal guarantee does the bank take beyond the SBA requirement?
- Covenants. The downside case falls below a 1.25x debt service test in Years 2 to 4. Will the bank agree a covenant holiday, a later first test or a standby line?
- Owner track record. Neither partner has owned a restaurant. What management depth, training and reporting stand behind the first year?
- Build-out bids. The $775,000 gross build-out is a planning figure. Written contractor bids and a permit schedule would replace it, and a 15% overrun costs about $116,000 that the reserve would have to absorb.
- License and permit timeline. The $120,000 license and $25,000 permit figures are estimates. What happens to the lease and the reserve if approval takes six months rather than two?
- Reserve against the cash low. The reserve is 40% of the raise. The base-case low is about $348,000 and the two-month delay low about $44,000; a longer delay would need a standby facility or more equity.
- Investor return. Investors put in $1,080,000 and the model returns $840,000 in distributions to all unit holders through Year 5, with about $1 million of cash still in the business and no sale value modeled.
- Equity split. Investors hold 72% of the units and the partners 28%. Is that enough incentive for two operators, or does the operating agreement need a performance allocation?
- Seasonal and Year 2 trough. The model spreads Years 2 to 5 evenly, so a soft July and August in Year 2 is not shown. Cash is high enough to absorb it, but the lender may want to see it.
Sources
- California Department of Alcoholic Beverage Control, license types and applications. The plan relies on it for the existence of the on-sale general license for a restaurant and the limit on license numbers; the price is a planning figure.
- California Department of Tax and Fee Administration, sales and use tax. Sales tax is collected from guests and is not counted in revenue.
- California Franchise Tax Board, business tax rates. The plan uses a corporate rate of 8.84% as a planning figure; the rate may change, and an LLC taxed as a partnership or S corporation pays differently.
- Cornell Law School Legal Information Institute, 26 U.S.C. 11(b). The 21% federal corporate rate used in the model.
- U.S. Department of Agriculture, Agricultural Marketing Service, market news. Boxed-beef cutout reports are the price series to watch; the plan quotes no price from it.
- County of Los Angeles, Department of Public Health, environmental health. Referred to for the permit and letter-grade system; current requirements are confirmed with the department.
- California Department of Industrial Relations, minimum wage frequently asked questions. The $16.90 state minimum from January 1, 2026 and the rule that tips cannot be credited toward it.
- California Department of Industrial Relations, exemptions from the overtime laws. The exempt-salary test of twice the state minimum wage for full-time work.
- Internal Revenue Service, Topic no. 751, Social Security and Medicare withholding rates, and tip recordkeeping and reporting. Employer payroll tax applies to tips; the 7.65% combined rate is a planning figure to confirm against the current IRS page.
- City of Los Angeles Office of Wage Standards, wagestandards.lacity.gov. The city minimum wage and paid sick leave rules; the plan quotes no city rate, and every wage is a planning figure.
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