Comment by HWR_14

20 days ago

1 year seems aggressive. Successful restaurants have around the first year as the average break even timeline, with the vast majority between 6 and 18 months.

They are making a profit on each sale, but there are fixed costs to running a business.

1 year isn't aggressive because of the modifier "successful". Most businesses that aren't profitable 12 months in go out of business not long after, having remained unsuccessful throughout their lifespan.

Restaurants have comparatively high start up costs and ramp up time. Compare to e.g. a store selling clothes. If for successful restaurants the average time is already a year, then in general for successful businesses it's going to be less.