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How to read your feasibility report

Score, investment budget, revenue model, P&L, cash flow, break-even and sensitivity: what each number means.

9 min read · Updated 2026-09-05

What the score says, and what it doesn't

The 0-100 feasibility score is a weighted sum of eight components: payback (20%), return vs hurdle (15%), break-even safety margin (15%), rent-to-revenue (10%), prime cost (10%), funding adequacy (10%), downside resilience (15%) and structural risk (5%). 80+ is strong, 65-79 conditional, 50-64 marginal, below 50 not feasible as designed. The score does not say "this will work"; it says "is the model consistent under these assumptions". If payback exceeds 48 months the score is capped at 49 regardless.

Investment budget

Fit-out, equipment, furniture and IT are "hard" investment; licences, signage and key money are "soft"; pre-opening payroll, rent and stock, deposit, working capital, input VAT and contingency complete the table. Compare investment per seat with the industry band: if it is far below, you have under-budgeted.

Revenue model: seats × turns × occupancy × ticket

Capacity uses theoretical turns (a cafe seat turns 4.5 times a day, a restaurant seat 2.8), then occupancy (55-70%) and the opening ramp (month 1 at 55%, month 12 at 100%) are applied. Takeaway and delivery are derived from dine-in demand. Covers are a daily average, not "full at peak".

P&L for non-accountants

  • Net revenue: sales excluding VAT. Of the ₺100 a customer pays, ₺90.9 is yours.
  • Gross profit: net revenue minus ingredients.
  • EBITDA: gross profit minus staff, rent and other costs. The venue's cash-generating power.
  • Net profit: EBITDA minus depreciation, interest and tax.

Year-1 margin is low (ramp); year 2 is the "mature" year; make comparisons on year 2.

Cash flow and the cash trough

Profit and cash are not the same. The cumulative cash curve starts with working capital, falls with early losses and rises after break-even. Its lowest point is the "cash trough"; if it goes below zero your reserve is insufficient. The ask must cover this trough.

Break-even and payback

Break-even covers = monthly fixed costs ÷ (contribution per cover × days open). The safety margin against planned covers should exceed 30%. Payback is the month when cash in the business equals the money invested; 18-30 months is typical for cafes, 24-36 for restaurants.

Scenarios and the tornado

The pessimistic case includes ticket −10%, occupancy −15%, food cost +3 pts, rent +10%, higher inflation and a mid-year wage hike. The tornado chart shows which variable moves year-1 profit most; in most plans it is ticket and occupancy, sometimes rent. Negotiate the widest bar hardest.

Assumptions table and confidence

Every input is tagged "User", "Industry average" or "Derived". A high share of assumptions lowers confidence; update with a real rent offer and supplier quotes.

What to verify before signing anything

Rent and title deed, licence eligibility, equipment quotes, three competitor menu prices, the local wage market, meal-card and platform commission offers.

Add this step to your feasibility.

Answer the questions; get your 36-month projection and investor deck.

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