Velvet Fig Dining — Appendices

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation — primary operating profitability metric for restaurant valuation.

Section 13 · Business Plan

Appendices

EBITDA: Earnings Before Interest, Tax, Depreciation and Amortisation — primary operating profitability metric for restaurant valuation.

Appendix A: Key Financial Assumptions

Assumption	Year 1	Year 2–5
Opening seating capacity	80 covers	120 covers (from M10)
Table turns per day	1.5x	2.0x (stabilised)
Average spend per cover	ZAR 380	ZAR 420–470 (inflationary increase 2-3% p.a.)
Operating days per year	300 days (excl. public holidays)	330 days
Food cost % of food revenue	45%	45%
Labour cost (% of total revenue)	25%	20% (efficiency gains)
Rent & occupancy (monthly)	ZAR 150,000	ZAR 150,000 (fixed 3-year term)
Marketing spend (% of revenue)	3%	2%
Depreciation — fit-out	8 years straight-line	Consistent
Depreciation — equipment	5 years straight-line	Consistent
Income tax rate	28% (SARS corporate)	28%
Inflation escalation — wages	6% p.a.	6% p.a.
Inflation escalation — supplies	5% p.a.	5% p.a.
Discount rate (WACC proxy)	16%	14% (risk normalisation)

Appendix B: Glossary of Terms

EBITDA: Earnings Before Interest, Tax, Depreciation
and Amortisation — primary operating profitability metric for restaurant
valuation.

COGS: Cost of Goods Sold — direct food and beverage
input costs as a proportion of revenue.

IFRS 16: International Financial Reporting Standard
for Lease Accounting — requires operating leases to be recognised on
balance sheet as right-of-use assets and lease liabilities.

IRR: Internal Rate of Return — the annualised return
rate at which the net present value of all cash flows from an investment
equals zero.

MOIC: Multiple on Invested Capital — total equity
value returned divided by capital invested.

LSM: Living Standards Measure — South African
consumer segmentation framework (1–10 scale; LSM 8–10 represents
upper-income households).

B-BBEE: Broad-Based Black Economic Empowerment —
South African regulatory framework for transformation and empowerment in
business.

WACC: Weighted Average Cost of Capital — blended
cost of debt and equity financing, used as the discount rate for DCF
valuation.

Appendix C: Supporting Regulatory Notes

South African Companies Act 71 of 2008 — Pty Ltd structure with MOI filed
Western Cape Liquor Act 4 of 2008 — Full on-consumption liquor licence required
Businesses Act 71 of 1991 — Business licence for food preparation premises
Foodstuffs, Cosmetics and Disinfectants Act 54 of 1972 — Food safety compliance
Labour Relations Act 66 of 1995 and Basic Conditions of Employment Act 75 of 1997
Income Tax Act 58 of 1962 — 28% corporate income tax rate applicable

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Velvet Fig Dining (Pty) Ltd | Prepared March 2025 | Strictly Confidential

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