Your fixed costs keep running, even when there are no guests. Many hospitality entrepreneurs don't know how much they need to earn per guest minimum to cover these costs. Without this insight, you might be working for nothing, even with a full house.
What are your fixed costs?
Fixed costs are expenses you always have, regardless of how many guests you serve:
- Rent: Building, kitchen, terrace
- Staff: Fixed contracts, minimum staffing
- Energy: Basic consumption for cooling, lighting
- Insurance: Liability, inventory
- Depreciation: Kitchen equipment, furniture
- Other: Phone, internet, accountant
💡 Example:
Restaurant with 50 seats, monthly fixed costs:
- Rent: €4,500
- Fixed staff: €8,000
- Energy (basic): €800
- Insurance: €600
- Depreciation: €1,200
- Other: €900
Total: €16,000 per month
The basic formula
To calculate your minimum per guest, you need two figures:
Minimum per guest = Monthly fixed costs ÷ Number of guests per month
The trickiest part? Estimating a realistic number of guests. Don't use your best month—go with an average month instead.
⚠️ Note:
This is your minimum to cover fixed costs. You also have variable costs (ingredients, extra staff) and want to make a profit.
Practical example calculated
💡 Example:
Restaurant with €16,000 fixed costs per month:
- Open 6 days per week = 26 days per month
- Average 40 guests per day
- Total: 26 × 40 = 1,040 guests per month
Minimum per guest: €16,000 ÷ 1,040 = €15.38
This means: each guest must contribute at least €15.38 to your fixed costs.
From gross revenue to net contribution
Here's where it gets tricky: your guest pays €25, but that doesn't mean €25 goes to your fixed costs. You also have:
- VAT: 9% on food goes to taxes
- Ingredients: Food cost of 28-35%
- Variable staff: Extra hours during busy times
From analyzing actual purchasing data across different restaurant types, the gap between gross revenue and net contribution often surprises owners.
💡 Example:
Guest orders for €30 (incl. VAT):
- Revenue excl. VAT: €30 ÷ 1.09 = €27.52
- Ingredients (30% food cost): €8.26
- Variable staff (15%): €4.13
- Other variable costs (5%): €1.38
Net contribution to fixed costs: €27.52 - €13.77 = €13.75
This is less than the required €15.38. You're losing money on this guest!
What do you do with this information?
If your minimum per guest is higher than your net contribution, you have three options:
- Raise prices: Make sure your net contribution is above your minimum
- More guests: Fill your restaurant better, spread fixed costs over more covers
- Lower fixed costs: Cheaper rent, less fixed staff
Most entrepreneurs choose a combination: slightly higher prices and attracting more guests.
How do you calculate your minimum per guest?
Gather all your fixed costs per month
Make a list of all costs you have, regardless of your number of guests. Think of rent, fixed staff, insurance, depreciation and basic energy consumption. Add everything up for one month.
Calculate your average number of guests per month
Count your covers from the last 3 months and divide by 3. Don't take your best month, but a realistic average. Multiply number of days open per week × 4.3 weeks × average number of guests per day.
Divide fixed costs by number of guests
Use the formula: Monthly fixed costs ÷ Number of guests per month = Minimum per guest. This amount each guest must contribute at minimum (after deducting variable costs) to cover your fixed costs.
✨ Pro tip
Calculate your break-even guest count for the next 30 days by dividing monthly fixed costs by your current average spend per guest. If that number exceeds your realistic capacity, you need immediate price adjustments.
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 calculation?
No, always calculate excluding VAT. The VAT that guests pay goes to taxes, not to your fixed costs. Divide menu prices by 1.09 to get the price excl. VAT.
What if I'm seasonal?
Calculate per season separately. In high season you need to earn enough to also cover the fixed costs of low season. Divide your annual fixed costs over your actual number of working months.
How often should I recalculate this?
Check this every quarter. Fixed costs can change due to rent increases, new contracts or investments. Your average number of guests can also change due to seasonality or growth.
What if my minimum per guest comes out too high?
Then you have three options: raise prices, attract more guests, or lower fixed costs. Often a combination works better: slightly higher prices and better occupancy rate through marketing or longer opening hours.
📚 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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