Results for Hypothetical Restaurant — verified demand demonstration

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Recommendation: conditional

Score: Not calculated — methodology pending approval.

INSUFFICIENT_DEMAND_EVIDENCE: not present

Investor readiness: conditional

Human review status: pending

human_review_approved: false

Demand evidence provenance:

revenue_trailing_12m: placeholder
demand_evidence: verified

Engine 0.1-pilot. Service tier on this file: explore. Authoritative financial numbers below come only from the 0.1 engine.

Analyst

Demonstration Analyst. No external AI service is connected.

Optional explanation. The analyst cannot alter authoritative results, clear flags, set human_review_approved, or change investor readiness.

Demonstration Analyst. No external AI service is connected.
This analyst can explain the current assessment. It cannot change engine results, clear a recommend-against flag, approve review, or mark a recommendation final.
demand_evidence was not answered.
operator_capacity_adequate was not answered.
unresolved_regulatory_or_liability was not answered.
extraction_without_reinvestment was not answered.
The deterministic draft recommendation is conditional. It is not final.
INSUFFICIENT_DEMAND_EVIDENCE is not present. Demand evidence status is cleared.
Human review status is pending.
Demand provenance revenue_trailing_12m: placeholder.
Demand provenance demand_evidence: verified.
Evidence gap still open: FINANCIAL_INPUTS_NOT_MEASURED. The analyst cannot close it.
Evidence gap still open: UNEVALUATED_OPERATOR_CAPACITY. The analyst cannot close it.
Evidence gap still open: UNEVALUATED_REGULATORY_OR_LIABILITY. The analyst cannot close it.
Evidence gap still open: UNEVALUATED_STEWARDSHIP. The analyst cannot close it.
Monthly base cash flow from the engine is 6360.0.
Monthly downside cash flow from the engine is -3384.0.
Sources and uses from the engine: total project cost is 187000.0. Debt is 130900.0. Equity is 56100.0.
Base case from the engine: revenue 218649.6, cash flow before debt service -163472.64, DSCR -12.442.
Downside case from the engine: revenue 131189.76, cash flow before debt service -194083.58, DSCR -14.7718.
Investor readiness is conditional. The analyst cannot change the Investor Readiness Gate.
Open evidence gaps remain. A silent or incomplete intake cannot become a go recommendation.
human_review_approved remains false. This explanation is not evidence and is not final.

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Limitations

This is a prototype. Demonstration data is not real market research. Reviewer authentication remains prototype-grade.

Demand evidence

Status: cleared

Verified support met the documented rule. INSUFFICIENT_DEMAND_EVIDENCE is not active.

Verified demand support: demand_evidence is true with source verified.

Clearing or leaving this flag does not mark the result investor-ready.

Recommend-against flags

None

Evidence gaps

FINANCIAL_INPUTS_NOT_MEASURED
UNEVALUATED_OPERATOR_CAPACITY
UNEVALUATED_REGULATORY_OR_LIABILITY
UNEVALUATED_STEWARDSHIP

Missing information

demand_evidence was not answered.
operator_capacity_adequate was not answered.
unresolved_regulatory_or_liability was not answered.
extraction_without_reinvestment was not answered.

Durable Value guidance

Educational guidance — not a DVT evaluation.

No score is calculated. These prompts do not change the recommendation, flags, readiness, or human_review_approved.

Introductory questions

Market & Demand Reality. Introductory question: What observable evidence would show that customers will buy, and which statements are still assumptions?
Competitive Position & Differentiation. Introductory question: Who else can the customer choose, and what is different about this offer?
Financial Feasibility & Capital Requirements. Introductory question: Which capital and monthly figures are measured, and which are still blank?
Operational Readiness & Capacity. Introductory question: Who will do the work, and is that capacity enough for the scope being considered?
Risk Profile (market, execution, financial, regulatory). Introductory question: What regulatory, liability, or execution question is still unresolved?
Stewardship Indicators (reinvestment capacity, resilience, continuity potential). Introductory question: If the business produces cash, what would be reinvested, and what would be taken out?
Implementation Feasibility (for AI or operational improvements). Introductory question: What would have to be true before an operational change is attempted?

Educational notes

Optional notes stored on the assessment. Non-authoritative. They are not engine inputs.

No educational note is stored.

Saving a note does not run the engine. It does not change the recommendation, flags, readiness, or human_review_approved.

Research depth

Explore lists the engine flags and missing fields above. Analyze adds Evidence Gaps, Key Assumptions, Risk Summary, and Suggested Next Research Steps. This note does not change a flag and it does not set human_review_approved.

Monthly base and downside

base_monthly_contribution	24360.0
base_monthly_cash_flow	6360.0
downside_monthly_cash_flow	-3384.0
break_even_monthly_revenue	31034.48
months_to_break_even_base	28.3

Sources and uses, scenarios, and DSCR

Sources and uses

Use	Amount
construction_cost	100000.0 (user-supplied assumption)
equipment	35000.0 (user-supplied assumption)
soft_costs	15000.0 (user-supplied assumption)
preopening_working_capital	20000.0 (user-supplied assumption)
contingency	17000.0 (calculated by the deterministic engine)
total_project_cost	187000.0 (calculated by the deterministic engine)

Source	Amount
debt	130900.0 (calculated by the deterministic engine)
equity	56100.0 (calculated by the deterministic engine)
total_sources	187000.0 (calculated by the deterministic engine)
annual_debt_service	13138.8

Base and downside

Scenario	Revenue	Cash flow before debt service	DSCR
Base	218649.6	-163472.64	-12.442
Downside	131189.76	-194083.58	-14.7718

Break-even revenue from the engine: 723253.71

Base revenue and downside revenue from the engine.

Base 218649.6

Downside 131189.76

Engine text

Methodology § Core Principles — deterministic calculations, and human approval before a final recommendation.
Methodology § Investor Readiness Gate — this path does not mark the assessment investor-ready.
human_review_approved: false
is_final: false
investor_ready: false

### Sources and uses
Uses
- construction_cost: 100000.00 (user-supplied assumption)
- equipment: 35000.00 (user-supplied assumption)
- soft_costs: 15000.00 (user-supplied assumption)
- preopening_working_capital: 20000.00 (user-supplied assumption)
- contingency: 17000.00 (calculated by the deterministic engine)
- total_project_cost: 187000.00 (calculated by the deterministic engine)
Sources
- debt: 130900.00 (calculated by the deterministic engine)
- equity: 56100.00 (calculated by the deterministic engine)
- total_sources: 187000.00 (calculated by the deterministic engine)
- annual_debt_service: 13138.80

### Assumption list
- construction_cost = 100000.0 (user-supplied assumption)
- equipment = 35000.0 (user-supplied assumption)
- soft_costs = 15000.0 (user-supplied assumption)
- preopening_working_capital = 20000.0 (user-supplied assumption)
- contingency_pct = 0.1 (user-supplied assumption)
- debt_share = 0.7 (user-supplied assumption)
- annual_interest_rate = 0.08 (user-supplied assumption)
- amortization_years = 20.0 (user-supplied assumption)
- seats = 48.0 (user-supplied assumption)
- average_ticket = 28.0 (user-supplied assumption)
- weekday_occupancy = 0.45 (user-supplied assumption)
- weekend_occupancy = 0.7 (user-supplied assumption)
- operating_days = 312.0 (user-supplied assumption)
- annual_fixed_costs = 240000.0 (user-supplied assumption)
- contribution_margin = 0.35 (user-supplied assumption)
- downside_multiplier = 0.6 (user-supplied assumption)
- Contingency equals contingency_pct times (construction + equipment + soft costs + pre-opening working capital). = None (model assumption)
- Total project cost equals that subtotal plus contingency. = None (model assumption)
- Debt equals debt_share times total project cost. Equity is the residual after debt is rounded to cents. = None (model assumption)
- Annual debt service is twelve monthly level payments. Each monthly payment is rounded half-even to cents, then multiplied by 12. A zero interest rate sets the monthly payment to debt divided by the number of months. = None (model assumption)
- Base revenue is seats × occupancy × average ticket × operating days, from engine.financial.seat_occupancy_revenue. = None (model assumption)
- The downside view multiplies weekday occupancy and weekend occupancy by downside_multiplier, then recomputes that revenue. The default multiplier is 0.6. = None (model assumption)
- Cash flow before debt service equals revenue × contribution_margin − annual fixed costs. = None (model assumption)
- Break-even revenue equals (annual fixed costs + annual debt service) / contribution_margin when the margin is positive. = None (model assumption)
- DSCR equals cash flow before debt service divided by annual debt service. DSCR is undefined when rounded annual debt service is zero. = None (model assumption)
- Debt share 0.70, interest 0.08, and 20-year amortization are the coded terms already used by the startup calculator. They are not a market study. = None (model assumption)

### Base case
- Revenue: 218649.60
- Cash flow before debt service: -163472.64
- DSCR: -12.4420

### Downside case
- downside_multiplier 0.6 applied to occupancy.
- Revenue: 131189.76
- Cash flow before debt service: -194083.58
- DSCR: -14.7718

### Break-even
- Revenue needed to cover fixed costs plus debt service: 723253.71

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