| Ingredient price and supply volatility | Changes in the prices or availability of meat, vegetables, noodles, seasonings, and cooking oil can raise food costs or limit menu availability. | Ingredient cost per serving; purchase prices by item; supplier fill rate; spoilage and waste. | Review invoices across seasons, supplier terms, substitute ingredients, delivery schedules, and cold-storage records. |
| Rent and site selection | High occupancy costs, weak foot traffic, or an unsuitable layout can reduce store-level operating earnings. | Monthly rent and property charges; lease term; customer counts by daypart; sales per usable area. | Check the signed lease, renewal and exit clauses, permitted use, nearby competition, and footfall at different times. |
| Labor availability and productivity | Wage changes, staff turnover, overtime, and understaffing can increase operating costs or affect service speed and food handling. | Labor cost per sales period; hours scheduled; turnover; orders served per labor hour. | Review payroll records, local employment obligations, staffing plans, training materials, and peak-period coverage. |
| Delivery-platform economics | Platform commissions, promotions, packaging, and refunds may make delivery orders less profitable than their sales value suggests. | Net receipts per order; commission and promotion deductions; packaging cost; cancellation and refund rates. | Reconcile platform statements to bank deposits and compare contribution by delivery, takeaway, and dine-in orders. |
| Food safety and temperature control | Unsafe storage, cross-contamination, or poor cooking practices can cause customer harm, enforcement action, closures, and reputational damage. | Temperature logs; cleaning and inspection records; supplier traceability; complaint and incident records. | Inspect the premises and records, verify local food-service permits, and confirm staff food-safety training and recall procedures. |
| Demand, seasonality, and menu fit | Customer traffic and average spending can change with weather, school and office calendars, local tastes, and competing dining options. | Transactions and average ticket by daypart; repeat-customer rate; sales mix; monthly sales pattern. | Review monthly point-of-sale data, local customer feedback, menu pricing, and performance across both peak and quieter periods. |
| Permits, taxes, and local compliance | Requirements can vary by location and business structure. Non-compliance may lead to additional costs, penalties, or interruption of trading. | Permit status and renewal dates; tax filings; inspection findings; documented corrective actions. | Obtain location-specific advice from qualified legal and tax professionals; verify filings and licenses with the relevant authorities. |
| Fit-out, equipment, and maintenance | Upfront construction, ventilation, refrigeration, and repair costs can exceed initial plans or interrupt operations. | Itemized fit-out budget; equipment age and service history; repair costs; downtime. | Get independent condition checks, written contractor quotations, equipment warranties, and a maintenance plan. |
| Foreign-exchange and cross-border payments | For overseas buyers, exchange-rate movements, payment timing, and transfer costs can change the home-currency value of investment and returns. | Currency of investment and distributions; conversion dates; transfer charges; payment delays. | Model currency scenarios and confirm payment, repatriation, and tax treatment with qualified financial and legal advisers. |