Break-Even Point Calculator
Calculate how many customers or how much revenue your restaurant needs to generate to break even.
Break-Even Point Calculator
Calculate your restaurant's break-even point in customers and revenue
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Understanding Break-Even Analysis
Break-even analysis helps you determine how many customers you need to serve or how much revenue you need to generate to cover all your costs.
Key Concepts:
- Fixed Costs: Expenses that don't change with sales volume (rent, insurance, salaries, etc.)
- Variable Costs: Expenses that change with sales volume (food, beverages, hourly labor, etc.)
- Contribution Margin: The portion of each sale that contributes to covering fixed costs
Formula: Break-Even Point (Customers) = Fixed Costs ÷ Contribution Margin per Customer
Typical Variable Costs in Restaurants:
- Food Cost: 28-32% of revenue
- Beverage Cost: 18-24% of revenue
- Variable Labor: 15-20% of revenue
- Other Variable Costs: 5-10% of revenue
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