Hiring guide
Fractional CFO for restaurants: compare locations before expanding
By CFO Index · Published
Before opening another restaurant, ask for a location-level operating model and an opening cash plan. A profitable existing site is useful evidence, but it does not establish the economics of a different lease, staffing pattern or sales ramp. Treat the new location as a decision with its own assumptions.
Make locations comparable first
Use consistent periods and definitions for net sales, food costs, labour and site expenses. Separate delivery-platform settlements from gross order values so fees are not omitted or counted twice. Identify central costs outside the site result. Ask the CFO to reconcile location totals to the accounts and explain shared-cost allocations before comparing sites with different operating patterns.
Distinguish contribution from complete profit
Hypothetical monthly example: net sales of €90,000 less €28,000 food costs, €27,000 labour and €15,000 other defined site costs leaves €20,000 before central overhead, financing and other excluded items. A location contribution can inform an operating decision without representing company net profit. List every exclusion beside the calculation. Avoid importing a target percentage from a different restaurant format.
Use break-even carefully
The SBA explains break-even using fixed costs and contribution per unit. In a restaurant, a unit might be a cover or an average order, but product mix and labour scheduling make the assumptions important. Ask the CFO to show the effect of a different average spend or delivery mix. A simplified break-even calculation is a planning tool, not evidence that demand will reach that level.
Model opening cash separately
List deposits, fit-out payments, equipment, pre-opening payroll and the expected operating ramp. Distinguish estimates from signed commitments and identify contingency decisions. Check when suppliers and staff must be paid relative to customer receipts. Keep tax treatment and lease interpretation with the appropriate advisers. The CFO should coordinate those inputs, not silently assume they have been resolved.
Examine the downside that changes the decision
Choose scenarios management can act on: slower sales ramp, delayed opening or higher staffing needs. Record the latest point at which the lease, fit-out or hiring commitment can change. A spreadsheet with three coloured scenarios is not enough unless the team knows what it would do in each. Document the assumptions without presenting an optimistic case as the expected outcome.
Hire for multi-site decision support
Ask candidates to explain a sample location bridge and how they would investigate missing stock or inconsistent labour records. Clarify who prepares site data and who meets operations managers. A useful first project can be a comparable review of existing sites plus one expansion case. Ongoing work should have a named owner for refreshing the model as actual opening costs and sales arrive.