By Nylia Digital · Educational examples in SAR
Start with one average order
Use the average amount a customer spends per order, rather than the price of a single drink. In this fictional example, the average order brings in SAR 24 and costs SAR 8 to fulfil. The SAR 8 includes ingredients, packaging, expected waste and variable payment costs. Each order therefore contributes SAR 16 towards fixed operating costs.
Keep your inputs consistent. PARALLEL uses amounts excluding VAT and does not calculate tax. Replace the example with your own supplier quotations, menu mix and cost assumptions before using the planner.
Convert monthly costs into daily orders
Suppose rent, staff, utilities, owner pay and other fixed operating costs total SAR 25,000 a month. Divide SAR 25,000 by SAR 16: the café needs 1,562.5 orders to cover those costs. With 26 open days, that becomes about 60.10 orders per open day. Round up to 61 whole orders for this planning target.
At 60 orders per day, the model produces SAR 24,960 of monthly contribution and a SAR 40 operating loss. At 61 orders, it produces SAR 25,376 of contribution and a SAR 376 operating surplus. Rounding down can hide a small loss.
Compare a second location
If a larger location raises fixed costs to SAR 32,000 while contribution per order stays at SAR 16, it needs about 76.93 orders per open day, rounded up to 77. That is 16 more daily orders than the first location. The calculation does not establish that the larger location will attract them.
Enter both options in the planner. Compare low, expected and high sales using assumptions you can explain. Ask what observations, supplier quotations and capacity checks would support each assumption.
Know the limits
Operating break-even does not recover the initial fit-out investment or prove that cash arrives before bills are due. Loan repayments, taxes, inventory timing and unexpected repairs need separate consideration. If contribution per order is zero or negative, extra orders cannot cover fixed costs under this model.
Use the result as a question to investigate: can the café serve and attract this many orders under these assumptions? It is an educational calculation, not a demand forecast or an investment recommendation.
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