GGB CAPEX
One-time capital spent to build and equip the restaurant before it trades. Recovered only through years of profit.
Capital expenditure is the money that leaves before the first guest arrives: fit-out, kitchen equipment, furniture, systems and pre-opening costs. It is recovered slowly, out of operating profit, over the life of the lease. Every dirham of avoidable capex extends the payback period, which is why feasibility work interrogates the build budget as hard as the sales forecast.
Illustrative: fit-out AED 400,000, kitchen equipment AED 250,000, furniture and systems AED 100,000 and pre-opening AED 50,000 make AED 800,000 of capex. Spread across a 48-month lease that is about AED 16,700 a month the operation must earn back before true profit begins.
Pressure-test capex in feasibility