A successful food truck in Amsterdam needs exactly €347 daily revenue just to cover basic operating costs. Break-even represents the minimum sales threshold where your income matches expenses - fall short and you're losing money. Understanding this calculation prevents costly surprises and keeps your mobile business profitable.
What is break-even for a food truck?
Break-even revenue represents your daily sales target to cover every expense without profit or loss. Above this threshold, you generate profit. Below it, you're operating at a loss. Food trucks face unique challenges since daily expenses stay constant (permits, fuel, wages) while sales fluctuate based on weather, events, and foot traffic.
Gather all your fixed costs per day
Start by listing expenses that occur regardless of sales volume:
- Pitch: Daily permit or rent for your location
- Fuel: Back and forth to location
- Gas/electricity: For cooking and lighting
- Insurance: Daily portion of annual premium
- Truck depreciation: Purchase price divided by expected lifespan
- Wages: Yourself + any staff
💡 Example fixed costs:
- Pitch: €80 per day
- Fuel: €25 per day
- Gas: €15 per day
- Insurance: €12 per day (€4,380/year)
- Truck depreciation: €35 per day
- Owner wage: €120 per day
Total fixed costs: €287 per day
Calculate your average margin per sale
You'll need your gross margin percentage - what remains after deducting ingredient costs from each sale. From analyzing actual purchasing data across different restaurant types, food trucks typically maintain 65-75% margins depending on menu complexity.
Formula: Gross margin % = ((Selling price - Ingredient costs) / Selling price) × 100
💡 Example margin calculation:
You sell a pulled pork sandwich for €8.50:
- Ingredient costs: €2.55
- Selling price: €8.50
- Gross margin: €8.50 - €2.55 = €5.95
- Gross margin %: (€5.95 / €8.50) × 100 = 70%
From every euro of revenue you keep €0.70 for fixed costs and profit.
⚠️ Note:
Calculate using your weighted average margin across all menu items. Beverages might hit 85% margins while specialty burgers drop to 60%. Weight by actual sales volume, not equal averages.
Calculate your break-even revenue
Now determine your minimum daily revenue requirement:
Break-even revenue = Fixed costs per day / (Gross margin % / 100)
💡 Break-even calculation:
- Fixed costs: €287 per day
- Average gross margin: 70%
- Break-even revenue: €287 / 0.70 = €410 per day
You need minimum €410 daily turnover to break even.
Translate to number of sales
Convert revenue targets into customer counts by dividing break-even revenue by average transaction value:
💡 Customer count calculation:
- Break-even revenue: €410
- Average transaction value: €12.50
- Number of customers: €410 / €12.50 = 33 customers
Operating 8 hours daily means: 33 / 8 = 4 customers hourly minimum.
Monitor and adjust
Your break-even shifts with cost fluctuations and margin changes. Review calculations monthly to catch rising ingredient prices or permit increases. Food cost tracking tools help monitor margins without manual calculations, but the fundamentals remain the same.
How do you calculate break-even revenue? (step by step)
Add up all your fixed costs per day
Make a list of all costs you have every day: pitch, fuel, gas, insurance, truck depreciation and wages. Add these together for your total fixed costs per day.
Calculate your average gross margin percentage
Take your 5 best-selling products and calculate per product: (selling price - ingredient costs) / selling price × 100. Take the average of these percentages.
Divide fixed costs by gross margin percentage
Use the formula: Break-even revenue = Fixed costs per day / (Gross margin % / 100). This gives you the minimum daily revenue to break even.
✨ Pro tip
Track your break-even performance every Tuesday morning for the previous week's results. If you missed target 3+ days, immediately evaluate whether rising costs or declining margins need menu price adjustments within 48 hours.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include VAT in my break-even calculation?
No, calculate excluding VAT since you'll remit this to tax authorities. Your break-even represents actual retained revenue after VAT obligations.
What if my revenue fluctuates dramatically between days?
Calculate break-even over weekly or monthly periods instead. Some days you'll operate at a loss while others generate profit. Focus on longer-term averages rather than daily volatility.
How often should I recalculate my break-even point?
Review monthly or whenever major cost changes occur. Supplier price increases, permit fee adjustments, or wage changes all shift your break-even threshold.
What if I'm exceeding break-even but still have cash flow problems?
You've likely omitted costs from your calculation. Double-check for missing expenses like equipment maintenance, loan payments, taxes, or unexpected repairs that weren't factored into daily fixed costs.
Does break-even vary seasonally for food trucks?
Yes, seasonal ingredient pricing affects food costs significantly. Winter tomatoes cost more than summer ones, raising your break-even point. Adjust calculations quarterly to reflect seasonal cost variations.
How do I handle break-even calculations when testing new menu items?
Calculate separate margins for test items and blend with existing menu margins based on expected sales mix. Track actual performance for 2-3 weeks before adjusting your overall break-even calculation.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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