Business Constraints

Why Constraints Matter

Models produce theoretical maximums. Constraints determine what you actually achieve.

Physical Constraints (14 Wa In Fong East)

Constraint	Value	Impact
Floor area	~400 sq ft	Max 12-15 covers (no families, no groups of 6+)
Frontage	12-15 ft	Low visibility from main road
Street	Narrow, historic	No parking, limited delivery access
Building age	Pre-1970s tong lau	Kitchen equipment limitations, ventilation issues
Floor	Ground only	Upper floors lack duct access for F&B

Financial Constraints

Item	Monthly Cost	Notes
Rent	HKD 35,000-45,000	See Property data
Staff (2 FT)	HKD 30,000-40,000	Min for F&B operation
Ingredients	~30% of revenue	Industry standard
Utilities	HKD 5,000-8,000	Electric, gas, water
Breakeven	~HKD 80,000-100,000/mo	= HKD 2,700-3,300/day

At HKD 80 average spend: need 34-41 covers/day just to break even. At 12-15 seats with 2 turns: theoretically possible but zero margin for error.

Operational Constraints

• License lead time: FEHD restaurant licence takes 3-6 months
• Renovation: Old tong lau = surprises. Budget 150% of estimate
• Delivery platforms: 25-35% commission eats into margins
• Staff turnover: F&B in HK averages 30-40% annual turnover

Tip

These constraints directly modify the Agent Simulation results. A restaurant that mathematically works at 30 covers/day might physically not fit them. Always cross-check model outputs against physical reality.

The Key Question

Given these constraints, does your business profile + pricing + target customer produce enough daily revenue? The models give you the demand estimate. The constraints give you the reality check.