Every line item in a Thai restaurant P&L. Real 2026 numbers for a typical 40-cover independent restaurant — from food costs to the hidden expenses that catch first-time operators off guard.
Typical 40-cover Thai restaurant, £12,000/week turnover (modest for London, solid for regional). Location: Midlands city. Staff: 1 head chef, 2 kitchen assistants, 2 FOH, 1 KP (part-time).
| Cost Category | Weekly (£) | Monthly (£) | Annual (£) | % of Revenue |
|---|---|---|---|---|
| Food & drink costs | £3,300 | £14,300 | £171,600 | 27.5% |
| Staff wages (incl. NI, pension) | £4,200 | £18,200 | £218,400 | 35.0% |
| Rent | £1,150 | £5,000 | £60,000 | 9.6% |
| Energy (gas + electric) | £460 | £2,000 | £24,000 | 3.8% |
| Business rates | £230 | £1,000 | £12,000 | 1.9% |
| Insurance | £115 | £500 | £6,000 | 1.0% |
| Delivery commissions | £350 | £1,520 | £18,240 | 2.9% |
| Marketing | £150 | £650 | £7,800 | 1.3% |
| Consumables & maintenance | £200 | £870 | £10,440 | 1.7% |
| Licensing & professional fees | £80 | £350 | £4,200 | 0.7% |
| Bank & card charges | £100 | £435 | £5,220 | 0.8% |
| TOTAL COSTS | £10,335 | £44,825 | £537,900 | 86.1% |
| NET PROFIT (before tax) | £1,665 | £7,215 | £86,580 | 13.9% |
Food cost is the single largest controllable expense. A 27.5% food cost is achievable for Thai cuisine — well below the 30–35% common in Italian or British restaurants — because Thai curries, stir-fries, and rice dishes have inherently high GP margins.
The top three: (1) over-portioning protein — adding 20g extra chicken per portion costs £100/week. (2) Buying coconut milk at retail (£2.50/tin) rather than wholesale (£1.35/tin) — £50/week. (3) Wastage on fresh herbs not used within 3 days — order twice weekly, not once. Tighten these three and you'll find 3–5% margin immediately.
Labour is now the largest cost line for most Thai restaurants. The April 2026 NLW rise to £12.71/hr pushed staffing from ~32% to ~35% of revenue for a typical operator.
| Role | Hours/wk | Rate | Weekly Cost | Annual Cost |
|---|---|---|---|---|
| Head Chef | 48 | £16.00/hr | £768 | £39,936 |
| Kitchen Asst 1 | 40 | £12.71/hr | £508 | £26,437 |
| Kitchen Asst 2 | 35 | £12.71/hr | £445 | £23,132 |
| FOH Manager | 40 | £13.50/hr | £540 | £28,080 |
| FOH Staff | 30 | £12.71/hr | £381 | £19,826 |
| KP (part-time) | 20 | £12.71/hr | £254 | £13,218 |
| NI + Pension | — | — | £1,304 | £67,771 |
| TOTAL | 213 hrs | £4,200 | £218,400 |
Rent varies more than any other cost. The rule of thumb: rent should not exceed 10% of revenue. A £12,000/week restaurant can afford £5,000/month.
| Location Type | Monthly Rent | Sq Ft (approx) | Rate/sq ft | Notes |
|---|---|---|---|---|
| London zone 1–2 | £6,000–£12,000 | 800–1,200 | £75–100/yr | Premium. Only viable at £15k+/week revenue. |
| London zone 3–4 | £3,500–£6,000 | 1,000–1,500 | £35–50/yr | Sweet spot for London independents. |
| Major city centre | £3,000–£5,500 | 1,200–1,800 | £25–35/yr | Manchester, Birmingham, Leeds, Bristol. |
| Large town / suburb | £1,800–£3,500 | 1,500–2,500 | £12–20/yr | Best margin. More space, lower rent. |
| Small town / rural | £1,200–£2,500 | 1,500–3,000 | £8–15/yr | Lowest rent but need strong reputation to pull customers. |
Ask for a turnover rent clause — base rent + 5–8% of revenue above an agreed threshold. This protects you in slow months and rewards the landlord when you're busy. Also: always negotiate a 3–6 month rent-free period for fit-out. If the unit has been empty for 6+ months, push for 6 months.