Restaurant P&L in the UAE: A Line-by-Line Example (2026)
A restaurant P&L in the UAE starts from revenue net of 5% VAT, not the total on the till, and then deducts food cost, staff, rent, delivery commission and the smaller running costs to reach net profit. On a typical mid-range Dubai restaurant, the four big lines are food and beverage (around 28–32% of net revenue), staff (25–30%), rent (15–25%) and, for delivery-heavy concepts, app commission. As an industry estimate, what is left for the owner is usually 3–10% of revenue.
This guide lays out a UAE restaurant P&L line by line with a worked AED example, and flags the lines owners most often get wrong.
Note: Percentages here are industry estimates and illustrative figures built from the ranges in our other guides, not audited averages. Use them to test your own numbers.
What Does a Restaurant P&L Look Like in the UAE?
Here is a mid-range Dubai restaurant taking AED 300,000 a month at the till, VAT included:
| Line | Share of net revenue | AED / month |
|---|---|---|
| Revenue net of VAT (300,000 ÷ 1.05) | 100% | 285,714 |
| Food and beverage cost | 30% | 85,714 |
| Staff (salaries, visas, accommodation, gratuity provision) | 27% | 77,143 |
| Rent and service charges | 17% | 48,571 |
| Delivery commission and card fees | 8% | 22,857 |
| Utilities | 4% | 11,429 |
| Marketing | 4% | 11,429 |
| Licences, insurance, maintenance, other | 4% | 11,429 |
| Net profit before tax | 6% | 17,143 |
Illustrative only — built from industry ranges, not a specific restaurant.
The owner in this example sees AED 300,000 go through the POS and keeps about AED 17,000. That gap is why reading a restaurant P&L properly matters more than reading the sales report.
Why Must Revenue Be Net of VAT?
UAE rules require prices shown to consumers, menus included, to include VAT (Federal Tax Authority). That 5% is collected on the government's behalf; it is not your revenue.
The mistake is common and expensive in a quiet way. Book AED 300,000 of VAT-inclusive sales as revenue and you overstate revenue by AED 14,286 a month. Every percentage you calculate afterwards (food cost, staff cost, rent ratio) then looks about 5% better than it really is. We walk through the same error in our food cost percentage guide.
For the VAT rules themselves, see VAT, service charge and fees on Dubai restaurant bills.
Which Lines Do Owners Get Wrong?
Food cost booked as purchases
Purchases are not food cost. Food cost is opening stock plus purchases minus closing stock. A month where you stock up for Ramadan will show a terrible food cost on a purchases basis and a normal one on a stock-counted basis. Count stock monthly, at minimum.
Staff cost booked as salaries only
In the UAE, the cost of a worker is well above the salary: visa and Emirates ID costs, medical insurance, accommodation, transport, annual air tickets where the contract provides them, and end-of-service gratuity. Our restaurant staff salary guide covers the per-role numbers.
Gratuity is the one most restaurants leave off until someone resigns. Under UAE labour law, a worker with a year or more of service earns 21 days of basic wage for each of the first five years and 30 days for each year after that, on basic salary only, capped at two years' wages (UAE Government portal). That is roughly 5.75% of annual basic salary per year for the first five years, rising to about 8.2% after. Accrue it monthly. A chef on AED 3,000 basic who leaves after six years is owed about AED 13,300; if you never provided for it, that lands in a single month.
Annual costs booked when they are paid
The DET trade licence, the food permit renewal, insurance and fit-out all cover a year or more. Booked when paid, they make one month look like a disaster and the other eleven look better than they are. Spread them across twelve months, and depreciate fit-out and kitchen equipment over their useful life.
Delivery revenue treated like dine-in revenue
An order through a delivery app carries a commission that typically runs 25–35% (Khaleej Times, 2020). Lumping app sales in with dine-in hides the fact that the delivery channel may be far less profitable. Split revenue by channel and put commission on its own line. Our guide to surviving Talabat's commission shows what to do if the split looks bad.
What Is Prime Cost and Why Watch It?
Prime cost is food and beverage cost plus staff cost, the two lines you can move week to week. On the ranges above it sits at roughly 55–60% of net revenue. Rent is fixed once you sign the lease; prime cost is where monthly management happens.
If prime cost creeps up two points, rent does not move to compensate. On AED 285,714 of net revenue, two points is AED 5,714 a month straight off the bottom line.
Where Does Corporate Tax Sit?
Below net profit. UAE corporate tax is 0% on taxable income up to AED 375,000 and 9% above that (UAE Government portal). Smaller businesses may be able to elect Small Business Relief based on revenue; check eligibility with the Federal Tax Authority. We cover the obligations in restaurant accounting in Dubai.
How Should You Read the P&L Each Month?
- Net revenue by channel. Is delivery growing faster than dine-in? If so, check whether margin is falling with it.
- Food cost %. Within 28–32%? If not, check waste, portioning and supplier prices before touching menu prices.
- Staff cost %. Compare scheduled hours against covers, not just total payroll.
- Rent ratio. Fixed in AED, so it rises as a percentage whenever sales fall. Above 25% is a warning.
- Net profit against the same month last year. Month-on-month comparisons mislead in a market with Ramadan, summer and peak season in it.
If the numbers point to a structural problem, not a bad month, start with whether the concept is profitable at all and how many covers you need to break even.