Owner Math
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Free checklist · Before you sign

Seven lines to fill in before you sign a restaurant lease

A lease locks in your biggest cost for years. Before you sign it, you need seven numbers. For each one, here is what it is, why a blank there fools you, and where it goes in Owner Math.

A blank in a spreadsheet counts as zero. A zero for rent or for staff makes any restaurant look great. That is the trap.

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Planning estimate. Not tax advice. The typical figures below describe the industry, not your restaurant.

The seven lines

From the free checklist at ownermath.app/before-you-sign. Planning estimate. Not tax advice.

  1. Line 1

    Plate cost and food cost %

    What it is
    Plate cost is what the food on one plate costs you. Food cost % is that cost divided by the menu price.
    Why a blank misleads you
    Without a plate cost, your menu price is a guess. A blank food cost reads as zero, so every sale looks like pure profit.
    Where it goes in Owner Math
    Menu & recipes. Build each dish from its ingredients. You get the plate cost, the food cost % and a suggested price.
    The typical restaurant
    The typical restaurant spends 28% to 35% of sales on food. Food and labor together (prime cost) run 55% to 65% of sales.Source: LevelCFO, secondary (B2, B1).

  2. Line 2

    Staff, after payroll taxes

    What it is
    What each hour of work really costs you. That is the pay, plus the taxes the law adds on top: Social Security, Medicare, FUTA and state unemployment. Then workers' comp and benefits.
    Why a blank misleads you
    Most plans cost staff at the hourly wage alone. The taxes are missing, so labor looks cheaper than it is. And each new hire who replaces someone starts a new $7,000 tax base for FUTA and state unemployment.
    Where it goes in Owner Math
    Staff & payroll. Pick each role, the pay and the hours. You see what one hour of each person really costs. Florida rates are filled in. For one worker, try the true hourly cost page.
    What the law adds (2026)
    • Social Security: 6.2% of pay, up to $184,500 per worker (T1).
    • Medicare: 1.45% of pay, with no cap (T2).
    • FUTA: 0.6% net on the first $7,000 per worker (T3).
    • Florida reemployment tax (RT-6): 2.7% for a new employer on the first $7,000 (T8).
    • Florida minimum wage: $15.00 an hour from 2026-09-30. The tipped cash wage is $11.98 (T13).
    The typical restaurant
    The typical full-service restaurant spends 36.5% of sales on labor. For limited service it is 31.7% (2024).Source: National Restaurant Association (NRA), secondary (B3).

  3. Line 3

    Rent: base rent + NNN/CAM + percentage rent

    What it is
    Rent has up to three parts. Base rent is the fixed amount. NNN or CAM is your share of the building's taxes, insurance and upkeep. Percentage rent is a share of your sales once yearly sales pass a set level, called the breakpoint.
    Why a blank misleads you
    A rent of zero makes any restaurant look great. Even with base rent in, a blank NNN line hides part of the bill. And percentage rent takes a share of every extra dollar once you pass the breakpoint.
    Where it goes in Owner Math
    Rent or mortgage. Enter base rent, NNN or CAM per square foot, and percentage rent with its breakpoint. Tick "I don't have a rent quote yet" and the profit turns into a dash until you do.
    The typical restaurant
    We do not give a typical rent. Use the landlord's own quote, in writing.

  4. Line 4

    Other building costs and insurance

    What it is
    The bills that come with the space: utilities, repairs and licenses. Then insurance: general liability, liquor, property, umbrella and workers' comp.
    Why a blank misleads you
    These lines are easy to leave for later. Each blank one reads as zero, and together they add up. Workers' comp moves with your payroll, so it grows as you hire.
    Where it goes in Owner Math
    Insurance & costs. Each bill is its own line. In Florida, the liquor license fee is filled in from the statute by license and county size.
    The typical restaurant
    We do not give a typical figure here. Get an insurer's quote for each policy, workers' comp included.

  5. Line 5

    Break-even guests per day

    What it is
    The sales you need to cover every cost, turned into guests a day. It is the one number you can picture on a slow Tuesday.
    Why a blank misleads you
    Break-even is only as good as the costs under it. Leave rent or staff blank, and break-even comes out too low. You plan for fewer guests than you need.
    Where it goes in Owner Math
    Results. You see the sales you need a month and a day, and about how many guests a day. The math is shown under it.
    The typical restaurant
    The typical full-service restaurant keeps 2.8% of sales as pre-tax profit. For limited service it is 4.0% (2025). That is a thin cushion over break-even.Source: Toast / NRA, secondary (B4).

  6. Line 6

    Cash runway: will the cash last?

    What it is
    Your bank balance, month by month, from opening day. It starts with the cash you open with. Each month adds what the business makes and takes out what you draw to live on.
    Why a blank misleads you
    A plan can show a profit and still run out of cash in the slow first months. With no cash reserve entered, the runway is unknown. It is not a reserve of zero, and it is not fine.
    Where it goes in Owner Math
    Results → Will the cash last? It shows the balance for the first 36 months. It names the first month the balance would drop below zero, and how much more opening cash it would take to get through.
    The typical restaurant
    The typical small business holds 27 days of cash. The typical restaurant holds 16, the fewest of any industry.Source: JPMorgan Chase Institute, Cash Flows, Balances, and Buffer Days (2015 data).

  7. Line 7

    Startup cash and the loan payment

    What it is
    Everything you spend before the first guest sits down: build-out, equipment, deposits, the first stock of food, pay for staff before you open, and cash to keep on hand. Then the monthly payment on any loan you take to cover it.
    Why a blank misleads you
    Leave startup blank and you do not know how much to raise. Leave the loan payment out and the month looks better than your bank account will.
    Where it goes in Owner Math
    Startup & loans. Each startup cost is its own line. A loan shows its payment, and the payment flows into the cash plan.
    The typical restaurant
    We do not give a typical startup cost. If you borrow through the SBA, the lender checks one ratio. What the business earns after your pay should be at least 1.15 times a year of loan payments.Source: SBA SOP 50 10.

Planning estimate. Not tax advice. The typical figures describe the industry, not your restaurant.

Run the numbers tonight, before anyone asks you to sign.

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