Restaurant Chart of Accounts Template (5-Level, ZATCA-Compliant)

Your restaurant sells meals, but behind the scenes it is a small factory: fresh inventory that spoils within days, a kitchen burning gas and electricity by the minute, staff on rotating shifts, deliveries through apps that take a commission, and revenue arriving from at least three channels (dine-in tables, takeaway, delivery). If you try to measure the profitability of this operation with a generic chart of accounts that only carries “Sales Revenue” and “Cost of Goods Sold,” you will end up with a net profit number at month-end without knowing where it came from or where it went.

The difference between a profitable restaurant and a losing one does not show up on the final income statement. It shows up in the detail of the accounts: what is the Food Cost percentage on grills versus appetizers, what is labor cost as a percentage of delivery revenue, how much do the three branches consume in dry goods. These details do not fall from the sky. They come from a chart of accounts designed specifically for a restaurant.

This template gives you a ready-made chart of accounts for a Saudi restaurant, with clear numeric coding, levels that support reporting, and detail that covers the real revenues and expenses of the restaurant sector, while accounting for VAT, Phase 2 of e-invoicing, the Saudi Labor Law, and General Organization for Social Insurance (GOSI) requirements.

What is a Chart of Accounts and why a generic one does not fit restaurants

A Chart of Accounts is the organized list of every accounting account your business uses to record transactions. Every journal entry posted to the system must reference an account that exists in the chart. If the chart is too thin, you will be forced to lump different operations into one account and lose the ability to analyze performance later. If the chart is overly detailed, the accountant spends time picking the right account instead of analyzing the numbers.

The generic chart that any accounting software ships with (a standard trading and services chart) does not know the difference between a dine-in table sale and a delivery order, does not know that food cost behaves completely differently from beverage cost in terms of margin, and does not know that restaurant rent should be separated from warehouse rent because the first is a direct operating expense and the second is a logistics expense. The result is that you print an income statement at month-end and only know your net profit, without knowing what to improve next month.

When you need a chart customized for the restaurant sector

• When you open more than one branch: you need to separate revenues and expenses for each branch to measure branch-level profitability, not just company-wide.
• When you work with delivery apps: commissions from HungerStation, Jahez, and Careem Now differ from dine-in revenue, and each channel needs its own account.
• When you offer Catering services: event catering has a different margin, different collection risk, and usually a B2B invoice with special tax treatment.
• When preparing for funding or investment: an investor wants to see Food Cost and labor percentage clearly, and this only comes from a well-structured chart.

The five levels of the chart (Major to Sub to GL to Subledger)

A good restaurant chart is built on five hierarchical levels. This hierarchy is what later allows you to print a one-page summary report for the manager and a ten-page detailed report for the accountant, all from the same chart without any extra entries.

Level 1: Major group (1000 to 5000)

Only five groups: Assets (1000), Liabilities (2000), Equity (3000), Revenue (4000), Expenses (5000). This split is fixed and internationally recognized, and aligns with the International Financial Reporting Standards (IFRS) adopted in Saudi Arabia.

Level 2: Sub-classification

Within each group, a sub-classification: inside Assets, for example (1100 Current Assets, 1200 Inventory, 1500 Fixed Assets). Inside Expenses (5100 Cost of Sales, 5200 Salaries and Wages, 5300 Rent and Utilities, 5400 Marketing).

Level 3: General Ledger (GL) account

This is where the accounts the accountant uses daily appear. For example, inside (5100 Cost of Sales) you find (5110 Fresh Materials Cost, 5120 Dry Goods Cost, 5130 Beverages Cost, 5140 Packaging Materials Cost). Each GL has one accounting nature and consistent behavior.

Level 4: Subledger accounts

If you need a detailed report, drop to a fourth level. For example, inside (5110 Fresh Materials Cost) you open subledger accounts for each type: meat, poultry, vegetables, fish, dairy. This level is optional and depends on the size of the restaurant.

Level 5: Dimensional analysis (branches, departments)

Instead of opening an account for each branch inside the chart (which explodes it into hundreds of accounts), we use an analytical dimension: one account (5110 Fresh Materials Cost) is split analytically by branch (Riyadh, Jeddah, Dammam) and by department (hot kitchen, cold kitchen, pastry). This capability exists in Qoyod under the name Cost Centers.

Complete restaurant chart of accounts + full HTML table

This is the proposed chart for a mid-sized Saudi restaurant (one or two branches, capacity of 40 to 120 seats, serving dine-in, takeaway, delivery, and possibly Catering). The numeric coding is 5-digit so there is room to expand later without re-structuring.

Revenue accounts (dine-in, takeaway, delivery, Catering)

The biggest mistake restaurants make is merging all revenue into a single account called “Sales Revenue.” Sales channels in a restaurant have very different cost structures, margins, and collection risks. Merging them into one account hides where the profit actually comes from.

4100 Dine-in Revenue

Usually the highest margin, because you sell at the full menu price, collect in cash or by card immediately, and pay no third-party commission. It is tied to dining-room capacity and peak hours. Recorded entirely in 4100 with a branch dimension assigned.

4200 Takeaway Revenue

Good margin since it sells at menu price with no commission, but it consumes packaging materials (bags, boxes, spoons) that eat into the profit. Important to separate this revenue so you can calculate the breakeven for Takeaway as a standalone service.

4300 and 4310 Delivery App Revenue and Commissions

The most important accounting point in modern restaurants. Apps take a commission of 18% to 30% of the invoice value. The correct accounting method is to record the full invoice value in 4300 (gross revenue) and the commission separately in 4310 (contra account). This gives you two reports: gross revenue (for tax purposes) and net revenue (for profitability analysis).

• Full invoice of SAR 100: SAR 100 is recorded as revenue in 4300.
• App commission of SAR 25: SAR 25 is recorded in 4310 (debit against revenue).
• Net bank payout of SAR 75: deposited to bank 1122, with output VAT booked on the full SAR 100.

4400 Catering and Events Revenue

Catering orders and event hospitality. Usually a B2B customer, large invoice, sometimes deferred payment, requires a contract. You separate this here so you can see the profitability of this line on its own. Often requires a full Phase 2 tax invoice (Phase 2 of e-invoicing) with QR code and a direct link to the Zakat, Tax and Customs Authority (ZATCA).

Cost of sales accounts: Food Cost and Beverage Cost (with separation)

Cost of sales in restaurants splits into two main types: Food Cost and Beverage Cost. Merging them is a common mistake because the margins differ dramatically. The margin on sodas and water can reach 70%, while the margin on a main dish can drop to 25 to 35%.

Methodology for calculating consumed cost

Monthly consumed cost = Opening Inventory + Purchases during the month, less Closing Inventory. This formula applies to each inventory account (1210, 1220, 1230, 1240) and produces a monthly entry:

• Debit 5110 Fresh Materials Consumed: by the calculated amount.
• Credit 1210 Fresh Materials Inventory: by the same amount.

Standard Food Cost ratios in the Saudi market

Exceeding these percentages means either mispricing, kitchen waste, or unrecorded spoilage. A well-structured chart surfaces this within a week, not at year-end.

5150 Waste and Spoilage

A separate Wastage account is critical. It covers expired items, damaged goods, breakage, and preparation mistakes. Separating it from materials consumed gives you a clean measure of kitchen efficiency. Normal waste in a well-run restaurant is 2 to 4% of food cost. Above 5% indicates an operational problem.

Labor accounts (salaries, GOSI, allowances, end of service)

Labor is the second largest expense after materials, typically ranging from 25% to 35% of revenue in Saudi restaurants. A good chart separates labor cost by function, not by employee name, so you can measure the productivity of each department.

5210 Kitchen Staff Salaries

Head chef, assistant cooks, prep cook, dishwasher. This group is the operational core, and its share is measured against food cost: in a typical restaurant, kitchen labor cost should not exceed 30% of materials consumed.

5220 Floor Staff Salaries

Waiter, cashier, host, service staff. This group scales with the number of tables, not with revenue size. A 60-seat restaurant needs 4 to 6 waiters for the dinner shift.

5250 GOSI Contributions

The employer share in GOSI differs between Saudi and non-Saudi employees:

• Saudi employee: 11.75% employer share (9% pension, 2% Saned, 0.75% occupational hazard).
• Non-Saudi employee: 2% only (occupational hazard insurance).

Booked in 5250 as an expense, offset by 2130 (accrued liability payable to GOSI).

5270 End-of-Service Benefits (EOSB)

Under the Saudi Labor Law, half a month for each of the first five years, then a full month for each subsequent year. The correct accounting method is a monthly provision: debit 5270 against credit 2170 (EOSB provision), rather than waiting to pay a lump sum upon resignation. Monthly accrual protects the income statement from sudden shocks.

Fixed cost accounts (rent, utilities, maintenance, insurance)

Fixed costs are what you pay whether you sell or not. Controlling them is critical because the restaurant breathes from the margin left after covering these commitments. A well-structured chart separates each item so you can negotiate at renewal time.

5310 and 5320 Rents

Separating premises rent from warehouse rent matters. The first is an operating expense linked to sales, while the second is a logistics expense whose ratio may be measured against inventory rather than revenue. Premises rent is usually paid annually in advance, so it first goes into 1150 (prepaid expenses) and is amortized monthly.

5330 Electricity (the most important account after rent)

In Saudi restaurants, the electricity bill can make up 3 to 6% of revenue, and rises sharply in summer due to air conditioning and refrigeration. Isolating it in a standalone account allows monthly comparison and quickly flags unexplained spikes (power leakage, refrigerator failure).

5360 Maintenance

Routine maintenance of ovens, grills, and industrial fridges. Cutting corners here results in damaged equipment. Allocating an annual line of 2 to 3% of equipment value (1510) as preventive maintenance is sound practice.

Inventory accounts (fresh, dry, beverages, packaging)

Inventory in a restaurant is not finished goods ready for sale like a retail store, it is raw materials that are transformed in the kitchen. So the correct account in the chart is “Materials Inventory” not “Goods Inventory,” and it splits into four categories, each with different behavior:

Physical stock counts should be performed at least monthly, ideally weekly for fresh materials. Variances between book and physical counts are posted to 5150 (Waste).

VAT accounts in the chart + e-invoicing

VAT at 15% applies to most restaurant sales (dine-in meals and beverages, delivery, Catering). Accounting-wise, the chart needs two main accounts:

• 1160 Input VAT: the tax you paid to suppliers on your purchases (deductible).
• 2140 Output VAT: the tax you collected from customers on your sales (a liability to remit).

The net difference is what gets remitted to ZATCA in the periodic return (monthly or quarterly depending on the size of the establishment).

Phase 2 of e-invoicing and its impact on the chart

Phase 2 of e-invoicing requires issuing tax invoices in XML format linked in real time to ZATCA, with a QR code on every invoice. This does not change the chart fundamentally, but it requires that:

• Each sales channel: has its own independent invoice numbering sequence (4100, 4200, 4300, 4400) tied to a licensed POS system.
• B2B invoices (such as Catering): require a full tax invoice, not a simplified one.
• Cancellation and refund notes: have a clear accounting treatment in 4500 or as a direct deduction against the original channel.

Qoyod handles these requirements with a direct connection through the accounting system and ZATCA, issuing the required invoices without manual intervention.

How to tailor the chart by restaurant type (QSR, fine dining, cafe, cloud kitchen)

The base chart is fixed, but the emphasis shifts by activity type:

Quick Service Restaurants (QSR)

The bulk of revenue comes from Takeaway and delivery, so accounts 4200 and 4300 dominate 4100. Packaging expense 5140 is very high (it can reach 4 to 6% of revenue). No need for 4400 (Catering).

Fine dining

Dine-in revenue 4100 dominates. Labor expense 5210 and 5220 is much higher (skilled crew, one waiter per 4 to 6 tables). 4400 (Catering) may matter. Rent 5310 in a premium location is significantly higher.

Specialty cafe

Focus on 4100 (dine-in) and 4200 (Takeaway). Beverage Cost (5130) is higher than Food Cost because the main product is coffee and beverages. Coffee bean inventory may justify its own subledger account under 1230. The owner may benefit from connecting the activity to the Restaurants sector page inside Qoyod.

Cloud kitchen

No dining room, so 4100 disappears entirely. 4300 (apps) dominates, and 4310 commissions are large. There are no floor staff salaries 5220. Rent 5310 is low (kitchen only, no premium commercial location).

The most common mistakes when building the chart

• Merging all revenue into one account: hides the differences between channels and prevents profitability analysis.
• Not separating app commissions: recording only the net payout creates an incorrect VAT calculation because the gross revenue is the taxable base.
• Ignoring packaging inventory: some treat it as an immediate expense, but it is real inventory that turns over within weeks.
• Not provisioning EOSB monthly: shocks the income statement on any collective resignation.
• Merging premises rent with warehouse rent: prevents measuring logistics cost separately.
• No waste account: hides spoilage inside materials consumed.
• Using a pure trading-company chart: lacks separate Food Cost and Beverage Cost accounts.
• Not using cost centers for branches: forces you to duplicate accounts for each branch, blowing up the chart.

How Qoyod builds the chart automatically for the restaurant sector

Qoyod ships a ready-made chart designed specifically for the restaurant sector, with the numeric coding adopted in this template. When you open a restaurant account in Qoyod, the 80+ accounts listed above appear ready, with a direct link between:

• Point of Sale (POS) system: cashier sales flow automatically to the correct channels (4100, 4200) with Output VAT (2140) recorded without manual entries.
• Delivery apps: gross revenue 4300 and commission 4310 are split automatically.
• Monthly stock count: the count result posts the cost of sales entry (5110, 5120, 5130, 5140) with no manual calculation.
• Payroll run: automatic posting to 5210 through 5280 with GOSI calculation and EOSB provision booked monthly.
• E-invoicing (Phase 2): direct link to ZATCA, issuing XML and QR code on every invoice.

If you operate multiple branches, analytical dimensions (cost centers) let you measure profitability for each branch independently without duplicating chart accounts. Plans suited to your business size are available on the pricing page.

FAQ

Do I have to keep the suggested numeric coding (1000, 4000, 5000)?

The coding is not legally mandatory, but it is an internationally accepted practice. What matters is consistency: do not change an account code after starting, because it will break comparative reports across years. Start with this coding and keep it stable.

Do I need a separate account for each menu item?

No. The accounting chart does not need an account for each dish. The cost of each item is managed in the restaurant management system (Recipe management) inside the POS or accounting system. The chart only keeps one account for fresh materials, another for dry goods, and so on.

How do I separate branches without duplicating the chart for each branch?

Use cost centers or analytical dimensions. The account stays the same (5310 Premises Rent), and the branch becomes an analytical dimension. This keeps the chart clean and gives you reports for each branch independently.

Is packaging cost (delivery bags) a cost of sales or a marketing expense?

It is cost of sales, falling under 5140. It is directly tied to producing a sales unit, and without it you cannot deliver the meal. Classifying it as a marketing expense is a common mistake that distorts the Food Cost ratio.

Do I need to record VAT on delivery app commissions (4310)?

Yes. The apps issue a tax invoice for the commission, and you can deduct 15% of the commission as input VAT in 1160. Ignoring this item costs you a meaningful amount in recoverable taxes every year.

When should I revise the chart of accounts?

When you add a new activity (Catering, a new branch, a new service) or when you discover that a single account contains divergent transactions. Do not modify the chart in the middle of the fiscal year except to add. Structural changes should happen at the start of the new year.

Does a small restaurant (4 to 6 employees) need all these accounts?

Not at the same level of detail. You can merge 5210, 5220, and 5230 into a single “5200 Salaries and Wages,” and merge 5330, 5340, and 5350 into “5300 Utilities.” But separating revenues (4100, 4200, 4300) is necessary even for the smallest operation, because it drives important operational decisions.

How do I know that my current chart needs to be rebuilt?

Three signs: you cannot print a profitability report for each sales channel, you cannot determine Food Cost per branch, or you see conflicting expenses inside a single account (such as merging warehouse rent, premises rent, and electricity). Any one of these signs calls for a rebuild.