Restaurant Accounting Template (Food Cost, Prime Cost, Delivery Apps)

If you run a restaurant in Riyadh, Jeddah, Dammam, or Khobar, you already know restaurants are not an ordinary business from an accounting standpoint. Numbers move fast, costs shift daily, and sales channels are inherently fragmented. Every day thousands of riyals flow in as cash, through Mada, and through delivery apps, and every day a slice of that flows out as raw ingredient costs, wages, rent, electricity, gas, water bills, and supplies. Any small slip in recording a delivery order, calculating a commission rate, or counting inventory compounds quickly and turns into a profitability gap nobody can explain.

The real problem is that most restaurant owners measure success by the total sales figure on the point-of-sale (POS) screen at the end of the day, while the number that actually decides whether the restaurant survives is the profit left after deducting food cost, labor, commissions, and the 15% VAT. A restaurant with SAR 300,000 in monthly sales can be losing money, while one with SAR 180,000 can be doing very well. The whole difference lives in the numbers that never appear on the front screen.

This template is built specifically for Saudi restaurants across sizes, from the small family spot to the multi-branch chain. It accounts for the three revenue streams (dine-in, takeaway, delivery apps), separates Food Cost from Prime Cost, covers commission accounting, wastage, perishables, Phase 2 e-invoicing requirements, prime cost of operations, and everything you need to know your real profit at the end of each day rather than the end of each year. With it, your books shift from a record of past events to a live decision tool.

Why Restaurant Accounting Is One of the Hardest Types

A restaurant is not a store selling a single product at a fixed price. It is a small factory producing dozens of items every day from ingredients whose prices keep changing, selling through multiple channels with different commission rates, paying hourly, daily, and monthly wages, and losing part of its inventory every day to expiry, breakage, or waste. This structure makes its accounting far harder than that of an ordinary trading business.

Take a real example: a restaurant in Al Yasmin district of Riyadh issues roughly 65 to 70 orders per day, averaging 2,000 orders per month. These orders are spread across three channels, each with a different cost structure. Commissions on Jahez, HungerStation, Mrsool, and Toshil can eat between 18% and 30% of the order value, while a dine-in order pays no commission but does carry the cost of service staff and rented floor space. How do you know which channel is the most profitable? Not by looking at gross sales, but by computing the net contribution per order.

Multiple Cost Layers in a Single Dish

A single plate of mandi may contain rice, meat, spices, vegetables, charcoal, a napkin, and a takeout container. Each component has a fluctuating purchase price, and each is part of a standardized recipe card. If you ignore the cost of the napkin, container, and packaging, you are pricing your dish at as much as 4% or 5% below its real cost. That percentage quietly eats your profit margin.

Worse, ingredient prices do not stay still. A box of tomatoes in Al Azizia market in Riyadh changes price weekly with the season and imports, chicken prices respond to decisions by the Ministry of Environment, Water and Agriculture, and meat prices shift with imports from Brazil, India, or Australia. Any restaurant that does not refresh recipe card costs every month is operating on stale data and gets blindsided by a profit gap at the end of the quarter.

There are also hidden costs many owners forget: cooking oil that gets consumed and replaced regularly, charcoal for grills with a meaningful cost, gas for ovens, electricity for refrigeration running 24 hours. All of these need to be allocated into the dish cost if you want a true Food Cost number rather than an approximation.

Cash Pressure and Daily Volatility

A restaurant handles large amounts of cash every day, especially through cash payments and cash on delivery. This opens a wide door for cash count discrepancies, cashier errors, mismatches between the Z-Report and the drawer contents, and delayed revenue recording. Without a strict daily close, variances accumulate and surface suddenly at month end with no explanation.

Wastage as a Hidden Cost

Food has a short shelf life. Salad does not last two days, bread spoils within 12 hours, meats need precise refrigeration. Any failure in inventory management turns into wastage. In Saudi restaurants the realistic wastage rate sits between 3% and 7% of daily inventory. If you do not record this wastage, you are hiding a real loss and lying to yourself in the profit calculation.

The Three Revenue Streams in a Saudi Restaurant

Every restaurant operating in Saudi Arabia today receives income from at least three main channels, and you cannot manage the books unless you separate these channels in the chart of accounts and in the daily sales reports. Separation is not just an organizational nicety, it is a requirement for knowing where profit comes from and where it bleeds away.

Channel One: Dine-in

This channel delivers the highest margin because it carries no third-party commission, but it does carry rent, floor space, and service labor. The average order value is usually higher here because the customer adds drinks and desserts. The Al Yasmin restaurant in our example generates about 35% of its sales from dine-in at an average ticket of SAR 85.

Channel Two: Direct Takeaway

The customer comes in and picks up the order. This channel is excellent because there is no commission, no delivery cost, and no seating space required. But it needs cashier discipline so the order is recorded under the correct channel and not mixed with dine-in. The average ticket here is lower, around SAR 55 to 65.

Channel Three: Delivery Apps

This is the most complex channel from an accounting standpoint. Apps like Jahez, HungerStation, Mrsool, and Toshil take commissions between 18% and 30%, and sometimes add marketing fees and partially funded promotions. Each app transfers weekly or semi-monthly settlements after deducting commission and the VAT on commission. Each app must have its own dedicated account in the chart of accounts so you can track the net amount that actually lands in your bank.

The difference between restaurants that grow and restaurants that bleed profit on apps is whether the operator knows the “threshold” number: the minimum order value the restaurant will accept on a delivery app and still keep the order profitable after commission. If the minimum order is SAR 30 on an app with a 25% commission, you are essentially losing money on every order at that size. Many restaurants raise the minimum order to SAR 45 or 50 to lock in a reasonable margin.

• Jahez: typical commission between 22% and 28%, depending on category and agreement.
• HungerStation: commission between 20% and 27%, with optional marketing fees.
• Mrsool: a flexible commission model that can reach 30% in higher categories.
• Toshil: commission usually between 18% and 25%, with scheduled settlements.

The Difference Between Food Cost and Prime Cost, and When to Use Each

These two ratios are the backbone of restaurant accounting everywhere in the world, and applying them precisely is what separates a profitable restaurant from one bleeding its capital. Many owners confuse the two or use only one, and that mistake costs a lot.

Food Cost: Food Cost as a Percentage of Sales

Formula: (cost of food consumed in the period divided by net food sales) times 100. A healthy ratio in Saudi restaurants typically sits between 28% and 35% depending on the type. A fast-food spot targets 28% to 32%, a casual restaurant 30% to 35%, and a meat or high-protein restaurant can reach 38% or 40%. Our Al Yasmin example runs Food Cost at 32%, which is a solid number.

Prime Cost: The Full Primary Cost

Formula: food cost plus labor cost (including salaries, GOSI, and allowances). A healthy Prime Cost in Saudi restaurants sits between 55% and 65% of sales. Above 70% the restaurant is in the danger zone, and below 50% you are usually saving in ways that hurt quality or the customer experience.

When to Use Each

Food Cost is used to monitor purchasing, inventory, recipes, and pricing. If it spikes suddenly, the problem is in purchasing, wastage, or an ingredient price change. Prime Cost is used to monitor the overall profitability of operations. If it spikes, the problem may be in labor (overstaffing, overtime, inefficient shift scheduling). Both indicators should be reviewed weekly, not just monthly.

A worked example on Al Yasmin: monthly sales SAR 280,000, food cost SAR 89,600 (Food Cost 32%), full labor cost SAR 78,400 (Labor Cost 28%), giving a Prime Cost of 60% or SAR 168,000. That leaves SAR 112,000 to cover rent, utilities, commissions, depreciation, and profit. If Food Cost rises to just 36%, the restaurant immediately loses SAR 11,200 per month from net profit, roughly SAR 134,400 per year.

Tracking the Ratios Weekly, Not Monthly

Many owners wait for the monthly report to discover a Food Cost spike. That is far too late. If on day 28 of the month you find your ratio jumped from 32% to 38%, the damage is already done in full. Weekly tracking catches drift early and allows intervention: review the supplier, check the kitchen, verify the recipe cards, count inventory.

Ready-to-Use Chart of Accounts for a Restaurant

The chart of accounts is the backbone of any accounting system. For a restaurant specifically, the chart must separate revenue channels and the operational cost categories. The table below offers a reference structure you can plug into Qoyod or any other accounting system.

Account Code	Account Name	Classification
4101	Dine-in Sales	Revenue
4102	Takeaway Sales	Revenue
4103	Jahez App Sales	Revenue
4104	HungerStation App Sales	Revenue
4105	Mrsool App Sales	Revenue
4106	Toshil App Sales	Revenue
5101	Cost of Meat, Poultry, and Fish	Cost of Sales
5102	Cost of Vegetables and Fruits	Cost of Sales
5103	Cost of Rice, Grains, and Pasta	Cost of Sales
5104	Cost of Dairy, Cheese, and Eggs	Cost of Sales
5105	Cost of Spices and Sauces	Cost of Sales
5106	Cost of Beverages and Juices	Cost of Sales
5107	Packaging Cost	Cost of Sales
5108	Wastage	Cost of Sales
5201	Jahez Commissions	Selling Expenses
5202	HungerStation Commissions	Selling Expenses
5203	Mrsool Commissions	Selling Expenses
5204	Toshil Commissions	Selling Expenses
6101	Chef and Kitchen Staff Salaries	Labor Expenses
6102	Cashier and Service Salaries	Labor Expenses
6103	Social Insurance (GOSI)	Labor Expenses
6104	Allowances and Bonuses	Labor Expenses
6201	Branch Rent	Operating Expenses
6202	Electricity, Gas, and Water	Operating Expenses
6203	Kitchen Equipment Maintenance	Operating Expenses
6204	Cleaning and Consumables	Operating Expenses
2301	VAT Payable	Liabilities

This structure gives you full flexibility to extract profitability reports per channel, per cost category, and to file VAT returns efficiently. Sub-accounts can be added based on each restaurant’s needs (for example, splitting meat into beef, chicken, and fish, or separating rent between the central kitchen and branches). Integrating this chart with inventory management inside Qoyod gives you an instant picture of daily inventory cost.

The Daily Close for a Restaurant

The daily close is not a luxury in restaurants, it is a necessity. Every day that passes without a close is a day where variances pile up and become impossible for the accountant to track down later. The daily close ensures POS sales numbers match the actual cash collected, the Mada transfers, and the card receipts, and that any variance, if it exists, is caught and resolved immediately.

Practical Daily Close Steps

Start by closing the last cashier shift, then pull the Z-Report from the POS, count the cash in the drawer, reconcile Mada and credit card receipts against the expected bank report, and record any variance (Cash Over or Cash Short) in a dedicated account. Any variance above SAR 20 in a day needs an investigation before the day is closed.

The Z-Report and Its Role

The Z-Report is the final report from the POS that zeroes the day’s sales and gives you total sales by payment method and by item. This report is your primary supporting document for booking daily revenue in the accounting system. It must be retained both in print and electronically for no less than 6 years per Zakat, Tax and Customs Authority (ZATCA) requirements.

A Sample Daily Sales Entry

For Al Yasmin with assumed daily sales of SAR 22,000 spread across channels, the daily entry debits cash, bank, and the delivery app receivable accounts, credits sales by channel, and credits VAT payable at 15%. Without this daily entry, profitability reports become unreliable.

• Before the close: ensure all open orders on the POS are closed.
• During the close: count the cash twice with two different people to minimize counting errors.
• After the close: send the day’s summary to the owner or general manager in a standard report.

Daily Inventory Management, Wastage, and Perishables

Inventory in a restaurant is fundamentally different from inventory in any other business. The goods have short shelf lives, are temperature sensitive, and feed into multiple recipes. Strong inventory management lowers Food Cost quickly and shows up directly in net profit.

Daily Counts for High-Sensitivity Items

Some items demand a daily count: meats, poultry, fish, leafy greens, dairy. These are the highest-cost and shortest-life items. Counting them daily prevents surprises and exposes wastage the moment it happens. Dry goods (rice, spices, packaging) can be counted weekly.

Recording Wastage as a Separate Account

Wastage must be recorded in a separate account (5108 in the chart above), not mixed into normal cost of sales. Recording it separately exposes the size of the problem and opens the door to fixing it. If wastage exceeds 4% of daily inventory, there is a purchasing, storage, or portion size problem.

The FIFO Rule in Inventory Rotation

Applying first-in, first-out (FIFO) in a restaurant is non-negotiable. Every item entering the storeroom must carry a receipt date and sit behind older batches. Failure to apply FIFO is the number one cause of wastage in Saudi restaurants.

A Daily Count Schedule and a Named Owner

There must be one named person responsible for the daily count, usually a second chef or kitchen manager. The count starts 30 minutes before opening, is recorded on a standard sheet, is signed, and a copy is sent to the owner or manager. The absence of named accountability turns the count into a task nobody owns.

Item	Opening Balance	Received	Used	Wastage	Actual Balance
Beef (kg)	18	25	32	1.5	9.5
Chicken breast (kg)	22	30	40	2	10
Basmati rice (kg)	45	50	38	0	57
Tomatoes (kg)	15	20	18	3	14
Frying oil (liters)	40	20	15	0	45

Recalculating Recipe Card Cost

Every menu item has a standardized recipe card that defines ingredient quantities in grams and liters. Costs must be recalculated every month based on the latest purchase prices. Any change in a key ingredient price (for example, meat) above 8% calls for a sale price review. This is a routine exercise that should run on schedule, not in response to a crisis.

Accounting for Delivery Platforms Accurately

Delivery platforms are important revenue channels but the most complex from an accounting standpoint. Each platform issues a weekly or semi-monthly report with sales value, commission, VAT on commission, and net transfer. Your job is to reconcile these reports against your internal records and surface any variance immediately.

Booking the App Commission Entry

When you sell a SAR 100 order (VAT included) via a delivery app at a 25% commission, the entry is: sales are recorded at the full pre-commission value, the commission is booked as a separate selling expense, and the VAT on the commission is booked as a deductible input VAT. The common mistake is booking only the net transferred amount as revenue, which hides the true volume of operations and distorts the VAT return.

Periodic Reconciliation With Each App

Open a suspense account in the balance sheet for each app. When the app’s report is issued, book the revenue and the commission. When the transfer hits your bank account, clear the suspense account. Any residual balance in the suspense account needs investigation: it might be a cancelled order that was not settled, undisclosed fees, or an error in the app’s report itself.

Average Restaurant Margin After Commission

If average Food Cost is 32% and the app commission is 25%, only 43% is left to cover labor, rent, utilities, and profit. This means delivery app orders carry a far lower margin than dine-in orders, and you must factor that in when pricing the menu on apps (many restaurants raise app menu prices by 10% to 15% to offset the commission).

Channel	Monthly Sales	Commission	Net Transferred	Food Cost	Remaining Contribution
Dine-in	98,000	0	98,000	31,360	66,640
Takeaway	56,000	0	56,000	17,920	38,080
Jahez	52,000	13,000 (25%)	39,000	16,640	22,360
HungerStation	38,000	9,120 (24%)	28,880	12,160	16,720
Mrsool	22,000	5,940 (27%)	16,060	7,040	9,020
Toshil	14,000	3,080 (22%)	10,920	4,480	6,440

Weekly Transfer Reconciliation

Each app issues a weekly settlement report covering orders, commissions, refunds, additional fees, and net transfer. This report must match your internal records. Common variances: cancelled orders not deducted from the first transfer that get deducted from the second, marketing fees from campaigns you forgot, customer refunds for order errors. Any unexplained variance above SAR 200 needs a support ticket opened with the app immediately before it compounds.

15% VAT and E-Invoicing

Restaurants in Saudi Arabia are required to charge 15% VAT on all sales and to comply with the e-invoicing schedule published by ZATCA. Applying these requirements correctly is not optional, and penalties for violations start at SAR 5,000 and can reach a percentage of the avoided tax.

Phase 2 E-Invoicing

Phase 2 of e-invoicing requires linking the invoicing system to the Fatoora platform run by ZATCA, and issuing invoices in XML format with a QR code, a digital signature, and a cryptographic sequence (UUID). All restaurants operating in Saudi Arabia should already be linked or on their way to being linked according to their assigned rollout wave.

The Difference Between a Simplified Tax Invoice and a Full Tax Invoice

The simplified invoice is used for individual customer orders (B2C) inside the restaurant and through apps. The full tax invoice is used in B2B cases such as corporate catering for companies or institutions. Each type has different mandatory field requirements.

Monthly or Quarterly VAT Return

A restaurant with annual sales above SAR 40 million files a monthly return. A restaurant below that threshold files quarterly. The return includes total taxable sales, output VAT, deductible input VAT (including VAT on app commissions), and net VAT payable. A late return triggers a 5% monthly penalty on the VAT due.

Common Mistakes in a Restaurant VAT Return

First mistake: forgetting to claim input VAT on delivery app commissions. Every commission paid to an app includes 15% VAT that is deductible. A restaurant with SAR 30,000 in monthly app sales pays around SAR 7,500 in commission, of which SAR 977 is deductible input VAT. Ignoring it costs you SAR 11,724 per year in tax paid for no reason.

Second mistake: booking the invoice value inclusive of VAT as revenue. The real revenue is the value before VAT, and the VAT is a liability owed to ZATCA. This mistake inflates revenue and shows a profit that is not real, then the VAT is deducted later and a gap appears.

Third mistake: not keeping original supplier invoices. Input VAT can only be deducted with a full tax invoice from the supplier. Every invoice for food, services, or rent must be a compliant tax invoice, otherwise you lose your right to deduct.

Item-Level Profitability Reports (Menu Engineering)

Menu items are not equal. Some items deliver high profit but no one orders them, and some get ordered constantly but at a thin margin. Menu Engineering is classifying every item by popularity and profitability, and making a decision: promote it more, raise its price, lower its cost, or remove it.

The Four-Cell Menu Matrix

Each item falls into one of four cells: Star (popular and profitable, focus here), Workhorse (popular but mid-margin, needs margin improvement), Puzzle (profitable but unpopular, needs marketing), Dog (unpopular and unprofitable, should be removed or redesigned).

Calculating Contribution Margin per Item

Contribution margin equals selling price minus direct ingredient cost. This figure in riyals is what each dish contributes toward covering fixed costs and generating profit. Al Yasmin may find that mandi delivers a contribution margin of SAR 45, while kabsa delivers only SAR 28, even though their menu prices are close. This kind of analysis changes pricing and marketing decisions.

Decisions Driven by Menu Engineering Data

When the menu is analyzed quarterly, clear decisions emerge: promote Stars to the top of the menu so they are the first thing the customer sees, redesign Workhorse recipes to lift their margin, market Puzzles via targeted offers or cashier recommendations, and cut Dogs without hesitation. These decisions are not based on personal taste but on real numbers from actual sales records.

For example, if a particular menu item is ordered by only 3 customers per month and carries a weak margin, it should be cut immediately. Keeping it on the menu adds cost to the recipe card, takes up fridge space, and increases wastage of ingredients used only in that dish.

Labor Costs and the Impact of GOSI and Mudad

Labor in restaurants typically represents 25% to 32% of sales and is the second-largest cost line after food. Managing this cost precisely is the difference between a profitable and a loss-making restaurant at the same level of sales.

Basic Wage, Allowances, and Insurance

Every Saudi employee is subject to General Organization for Social Insurance (GOSI) at 22% (9.75% on the employee and 12.25% on the employer for Saudi employees, with a lower rate for non-Saudi employees). Allowances (housing, transportation, commute) are treated differently for GOSI depending on the type of allowance and the Saudi Labor Law. Calculating the true cost of an employee must include base salary plus GOSI plus allowances plus bonuses plus paid annual leave plus end-of-service gratuity.

The Mudad Platform for Payroll

Paying salaries through the Mudad platform is mandatory for any establishment employing 5 or more workers. Mudad provides an official payroll record that protects the employer from labor disputes and connects directly with banks for salary deposits. Any delay in salary disbursement through Mudad appears in the Ministry of Human Resources reports and affects the establishment’s Nitaqat classification.

Shift Scheduling to Improve Labor Cost

A restaurant needs smart shift scheduling aligned with peak hours. The number of staff during lunch (12 to 3 pm) and dinner (7 to 11 pm) should be larger than during quiet hours. Staff cost during a quiet hour without sales bleeds Prime Cost fast.

Rule of thumb: Labor Cost per hour should not exceed 30%. If sales between 2 and 4 pm at Al Yasmin are SAR 600, labor cost in that hour must not exceed SAR 180, roughly 4 staff at an average hourly wage of SAR 45. Adding staff with no revenue justification turns profit into loss.

The Full Cost of an Employee, Not Just the Salary

Restaurant owners sometimes calculate employee cost based on net salary alone. That is a big mistake. The real cost includes gross salary, GOSI (employer share), housing or housing allowance, annual flight tickets for expatriates, paid annual leave (21 or 30 days), accrued end-of-service gratuity, and health insurance. These items add 25% to 40% on top of the base salary. Any calculation that omits them hides the real cost of labor.

The Most Common Mistakes in Saudi Restaurant Accounting

Over years of working with restaurants in Riyadh, Jeddah, and Khobar, a set of mistakes keeps repeating that costs owners significant profit. Avoiding these mistakes alone can lift net profit by 5% to 10% immediately.

Recording the Net App Transfer as Revenue

Many bookkeepers record only the amount transferred from the app to the bank as revenue and ignore commission and VAT. This shrinks the gross sales figure and loses deductible input VAT. The correct approach: book the full revenue, the commission as an expense, and VAT on the commission as input VAT.

Not Recording Wastage

Wastage exists in every restaurant. Hiding it does not make it go away. Recording it correctly exposes the size of the problem and opens the path to solving it. A restaurant that never records wastage either lies or does not know the truth.

Mixing Personal and Restaurant Expenses

The owner takes cash for personal expenses without a journal entry, or pays personal bills from the restaurant account. This mixing destroys the credibility of the financial statements and complicates the VAT return. Every personal withdrawal must be recorded in the owner’s drawings account.

Not Booking Depreciation on Kitchen Equipment

Ovens, refrigerators, major kitchen tools, furniture, and fittings. All of these are fixed assets with a useful life that need annual depreciation. Ignoring depreciation inflates reported profit and shows owners a profit that is not real.

Delaying the Daily Close

A daily close delayed by 3 or 4 days loses its value. Variances vanish, memory fades, receipts disappear. The close must happen on the same day, or in the morning of the next day at the latest.

Relying Entirely on the POS Without Accounting Reconciliation

The POS sales report is not an income statement. It is a gross sales figure only. Relying on it without a double-entry journal in the accounting system robs you of knowing profits, expenses, and liabilities. Do not confuse the sales report with financial statements. Each system has its role: the POS records the sale, the accounting system converts the sale into a double-entry journal and links it to all your obligations.

Skipping the End-of-Service Gratuity Reserve

Every employee is entitled to end-of-service gratuity on departure (half a month for each year in the first 5 years, a full month for each year beyond that, per the Saudi Labor Law). This is a liability that must be accrued monthly in the financial statements as an outstanding reserve. Ignoring it surprises you with a large amount when an employee leaves and shows an unreal profit in the annual statements.

• Ignoring wastage: an undisclosed wastage rate hidden inside cost of sales.
• Not separating revenue channels: it becomes impossible to know which channel is most profitable.
• Delayed delivery app reconciliation: unexplained variances pile up in the suspense accounts.
• Not updating ingredient prices in recipe cards: dish cost is calculated on stale prices.

How Qoyod Helps You Manage Restaurant Accounting

Qoyod is not just a generic accounting software. It offers an integrated system that fits the operational nature of a Saudi restaurant, from daily inventory management, to ZATCA-approved e-invoicing, to profitability reports by channel and item, to connecting the POS and delivery apps via ready integrations.

A Ready-to-Use Chart of Accounts for Restaurants

You can load the restaurant chart of accounts in one click, including separated revenue channels, ingredient cost categories, commission accounts per delivery app, and detailed labor accounts. You do not need to build it from scratch.

Phase 2 E-Invoicing

Qoyod is ZATCA-approved and issues Phase 2 invoices in XML format with a QR code and a UUID sequence. Every order issued in the restaurant generates a compliant invoice instantly.

Daily Inventory Management With Alerts

Inventory updates in real time with every order that leaves the kitchen. Low-stock items surface as alerts, wastage is recorded in a separate account, and count reports are available at any time. More on inventory management inside Qoyod.

Multi-Angle Profitability Reports

You can pull a profitability report by channel (dine-in, takeaway, each delivery app separately), by item, by time of day, and by branch if you operate more than one location. These reports let you make strategic decisions based on real data.

24 Hours a Day, 7 Days a Week Support

The Qoyod support team is available 24 hours a day, 7 days a week, and helps you set up the chart of accounts, connect e-invoicing, integrate the POS, and answer any accounting question you may have. For more on plans, see the pricing page, and to see how Qoyod serves restaurants specifically, visit Qoyod for restaurants.

Integration With POS and Delivery Apps

Qoyod integrates with the POS systems commonly used in Saudi restaurants, moving orders and sales instantly from the cashier screen into the accounting ledger with no manual entry. This removes hours of daily work and cuts the recording errors that typically appear when data is moved by hand at end of day. Every order carries its inventory cost with it, plus its commission if it came via a delivery app, plus its VAT.

One-Click Reports

Daily profitability report, weekly Food Cost report, monthly Prime Cost report, profitability per menu item, net sales per delivery app after commission, wastage report, current inventory report with balances and cost. All of these reports are available instantly and help you make real decisions based on accurate data.

One-Click VAT Return

At the end of every tax period, Qoyod generates a return summary ready to upload to ZATCA’s Fatoora platform, covering total taxable sales, output VAT, deductible input VAT, and net VAT payable. This turns the return from exhausting days of work into minutes.

Frequently Asked Questions

What is the difference between Food Cost and Prime Cost in restaurant accounting?

Food Cost is the ratio of food ingredient cost to sales, typically targeting 28% to 35% in Saudi restaurants. Prime Cost is broader and includes food cost plus labor cost (salaries, GOSI, and allowances), targeting 55% to 65%. Food Cost is used to monitor purchasing and inventory, Prime Cost is used to monitor full operational profitability. Using both weekly surfaces problems before they escalate.

How do I account for delivery app commissions correctly?

If you sell a SAR 100 order via an app at 25% commission, book the full SAR 100 as revenue, record the SAR 25 commission in a separate selling expense account per app (Jahez, HungerStation, Mrsool, Toshil), and book the 15% VAT on the commission (SAR 3.75) as deductible input VAT. Do not book only the net SAR 75 as revenue, because that hides the real volume of operations and forfeits input VAT.

Is a restaurant required to comply with Phase 2 e-invoicing?

Yes. All VAT-registered establishments in Saudi Arabia are subject to e-invoicing, and the integration stage (Phase 2) is rolled out in waves based on annual revenue. ZATCA notifies each establishment of its wave at least 6 months in advance. Any restaurant that has not integrated its invoicing system with the Fatoora platform in its wave faces penalties starting from SAR 5,000.

What is a normal wastage rate in a Saudi restaurant?

The normal rate sits between 3% and 5% of daily inventory. Anything below 3% raises doubts about the accuracy of recording, and anything above 6% points to a purchasing problem (over-ordering), a storage problem (incorrect temperatures), or a kitchen problem (waste in preparation and portion sizes). Recording wastage in a separate account and reviewing it weekly is the only path to controlling it.

How do I separate personal cash from restaurant cash?

Open a dedicated bank account for the restaurant and never mix it with your personal account. Every personal cash withdrawal is recorded in the owner’s drawings account, and every personal deposit is recorded in capital or owner’s loans. The daily close must reconcile the Z-Report against cash in the drawer, and any shortage or excess is investigated immediately before approving the day.

Do I need a full-time accountant for the restaurant or is accounting software enough?

The answer depends on the size of operations. A restaurant with monthly sales below SAR 200,000 can be managed with a strong accounting platform like Qoyod plus a monthly review from an external accountant. A larger restaurant or one with multiple branches needs a full-time accountant or an accounting firm. In all cases, reliable accounting software is the foundation, because the accountant also needs a tool that organizes the data.

When do I know my Prime Cost is too high?

If Prime Cost stays above 65% of sales continuously for more than a month, you are in the danger zone. Common causes: overstaffing, high overtime, high purchase prices from uncompetitive suppliers, high wastage, or outdated recipe cards. Start by analyzing labor cost hour by hour and comparing it to revenue in the same hour. Then review the prices of main ingredients against the wholesale market.

What is the best inventory count frequency for a restaurant?

A multi-level count: daily for high-sensitivity items (meat, poultry, fish, leafy greens, dairy), weekly for dry goods (rice, spices, packaging), and a monthly full count to reconcile book balances against actual. The daily count only takes 20 to 30 minutes but exposes wastage as it happens. Any variance between book and actual is investigated immediately before the error repeats. A standardized count sheet signed by the responsible person is the basis of any effective kitchen control system. Applying FIFO with visible receipt dates reduces wastage and keeps quality consistent for customers, and shows up directly in a better monthly Food Cost ratio.

On top of that, we recommend a surprise quarterly count without advance notice to the team. This count exposes any laxity in daily recording and ensures the system is actually applied rather than only on paper. The gap between a surprise count and a scheduled count reveals whether the team is following the standards or inflating numbers right before announced dates. This kind of oversight protects the restaurant’s capital over the long term and becomes a culture rather than a one-time event. Every restaurant that commits to this cycle discovers within 3 months variances sometimes equal to 2% to 4% of inventory value, numbers that flow directly to net profit.