What is a break-even point?

The break-even point is when total revenue equals total costs — you are not making a profit or a loss. Every cover above break-even contributes to profit.

What counts as a fixed cost?

Costs that don't change with the number of customers: rent, insurance, loan repayments, salaried staff, and subscriptions.

What is variable cost per cover?

The direct cost of serving one customer: food cost, disposables, and credit card fees. Typically $6–15 depending on your menu.

How do I use this to set sales targets?

Divide break-even covers per month by your operating days to get a daily target. Compare to your current average daily covers.

Free Tool

Restaurant Break-Even Calculator

Enter your fixed costs, variable cost per cover, and average ticket to find your break-even point.

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Frequently Asked Questions

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