Most restaurant owners operate blindly, hoping their busy nights will somehow translate to profit. But without knowing your exact break-even point, you're essentially gambling with your business every single day.
Most restaurant owners operate blindly, hoping their busy nights will somehow translate to profit. But without knowing your exact break-even point, you're essentially gambling with your business every single day.
Why you need to know your break-even point
Your break-even point tells you the minimum number of dishes required to cover all expenses. Sell fewer than this? You're losing money. Exceed it? Pure profit flows to your bottom line.
⚠️ Watch out:
A packed dining room doesn't guarantee profitability. If your average ticket is too small or costs too high, you'll still lose money despite the crowds.
Gather your fixed costs per month
Fixed costs hit your account every month, regardless of sales volume:
- Rent and service charges
- Salaries (including yourself)
- Insurance
- Gas, water, electricity
- Software subscriptions
- Equipment depreciation
- Accountant, administration
💡 Example:
40-seat bistro operating 5 days weekly:
- Rent: €3,500
- Salaries: €8,200
- Energy: €650
- Insurance: €280
- Other costs: €870
Total monthly fixed costs: €13,500
Calculate your average gross margin per dish
Gross margin represents what remains after subtracting ingredient costs from your selling price. This amount directly contributes to covering fixed expenses.
Formula: Gross margin = Selling price excl. VAT - Ingredient costs
💡 Example:
Three menu favorites:
- Pasta (€16.51 excl. VAT - €4.20 food cost) = €12.31 gross margin
- Steak (€27.52 excl. VAT - €9.80 food cost) = €17.72 gross margin
- Fish (€22.94 excl. VAT - €7.10 food cost) = €15.84 gross margin
Average gross margin: (€12.31 + €17.72 + €15.84) ÷ 3 = €15.29 per dish
Calculate your break-even number of dishes
Now you can determine the minimum dishes needed to cover all fixed expenses. I've seen restaurants miscalculate this figure, and it's a mistake that costs the average restaurant €200-400 per month in unexpected losses.
Formula: Break-even = Fixed costs per month ÷ Average gross margin per dish
💡 Example:
Using our previous numbers:
€13,500 ÷ €15.29 = 883 dishes monthly
Across 22 working days: 883 ÷ 22 = 40 dishes daily
Calculate for your desired profit
Breaking even means zero profit or loss. For actual profitability, you need higher sales volumes. Add your target profit to fixed costs before calculating.
💡 Example:
Targeting €3,000 monthly profit:
(€13,500 + €3,000) ÷ €15.29 = 1,079 dishes monthly
Daily target: 1,079 ÷ 22 = 49 dishes
Check if this is realistic
Compare your calculations against actual capacity constraints:
- How many seats do you have?
- How many times do they turn over per evening?
- How many days are you open?
⚠️ Watch out:
If calculations exceed maximum capacity, you must adjust: raise prices, cut costs, or increase seating. Your current model won't work.
Track your figures with a system
One-time calculations won't sustain long-term success. Supplier prices fluctuate, wages increase, and menus evolve constantly.
Review monthly progress against targets. Food cost calculators help track gross margins automatically and show exactly how many dishes you need for profit goals.
How do you calculate this? (step by step)
Add up all your fixed costs per month
Rent, salaries, energy, insurance, software - everything you pay regardless of your sales. These are the costs you need to cover every month.
Calculate your average gross margin per dish
Subtract the ingredient costs from each selling price (excl. VAT). Take the average of your most popular dishes. This is what each dish contributes to your fixed costs.
Divide fixed costs by gross margin
Fixed costs ÷ average gross margin = number of dishes you need to sell at minimum. For profit, add your desired profit to your fixed costs.
✨ Pro tip
Calculate your break-even for each day of the week separately. Fridays might need 65 covers while Tuesdays only need 28 to hit the same weekly target.
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 drinks in this calculation?
Absolutely, drinks contribute significant gross margin. Calculate the weighted average across your entire menu, including beverages, for the most accurate break-even point.
What if my gross margin per dish varies dramatically?
Use a weighted average based on actual sales volume. A dish sold 100 times carries more weight than one sold 10 times. This reflects your real revenue mix.
How often should I update this calculation?
Review monthly to track progress. Recalculate whenever you adjust prices, face supplier increases, or experience fixed cost changes.
What if I'm above break-even but still have no cash left?
You're likely missing costs from your calculation or your actual food costs exceed estimates. Double-check all expenses and verify ingredient costs against receipts.
Should I account for seasonal fluctuations?
Yes, calculate separate targets for peak and slow seasons. During quiet periods, you might need promotional pricing to maintain break-even volumes.
What happens if my required dishes exceed seating capacity?
You need structural changes: higher menu prices, reduced fixed costs, improved margins, additional seats, or extended operating hours. The current model isn't viable long-term.
📚 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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