Picture this: your restaurant's packed every night, but your bank account tells a different story. Fixed costs per cover represents how much each served dish must contribute toward your unavoidable expenses to break even. Most restaurant owners skip this calculation entirely, creating the illusion of success while profits vanish.
What are fixed costs per cover?
Fixed costs per cover shows the contribution each served dish must make toward your unavoidable expenses. These expenses exist regardless if you serve 10 guests or 100:
- Rent and lease
- Fixed staff (chef, waiters)
- Energy (gas, water, electricity)
- Insurance
- Depreciation (kitchen equipment)
- Other fixed costs (phone, internet, accountant)
💡 Example:
Restaurant with 50 seats, open 6 days a week:
- Rent: €4,000/month
- Fixed staff: €8,000/month
- Energy: €1,200/month
- Other fixed costs: €800/month
Total fixed costs: €14,000/month
The formula for fixed costs per cover
Two straightforward steps get you there:
Step 1: Calculate your average number of covers per month
Covers per month = Average occupancy per day × Days open per week × 4.33 weeks
Step 2: Divide your fixed costs by number of covers
Fixed costs per cover = Total fixed costs per month ÷ Number of covers per month
💡 Calculation example:
Using the figures from above:
- Average occupancy: 35 guests per day
- Open: 6 days per week
- Covers per month: 35 × 6 × 4.33 = 908 covers
Fixed costs per cover: €14,000 ÷ 908 = €15.42
From fixed costs to minimum menu price
Now you can determine what each dish needs to generate:
Minimum selling price excl. VAT = Ingredient costs + Fixed costs per cover + Desired profit
⚠️ Note:
Always calculate excl. VAT. For the menu, multiply by 1.09 (at 9% VAT).
💡 Complete example:
Pasta carbonara:
- Ingredient costs: €5.20
- Fixed costs per cover: €15.42
- Desired profit: €4.00
Minimum price excl. VAT: €5.20 + €15.42 + €4.00 = €24.62
Menu price: €24.62 × 1.09 = €26.84
Taking different occupancy levels into account
Your occupancy fluctuates daily. So calculate multiple scenarios:
- Pessimistic scenario: 70% of normal occupancy
- Realistic scenario: Average occupancy
- Optimistic scenario: 130% of normal occupancy
Use the pessimistic scenario for your minimum prices. You'll stay profitable even during slow periods.
Fixed costs per cover in practice
Most restaurants ignore fixed costs per cover completely. They focus solely on food costs and cross their fingers. From analyzing actual purchasing data across different restaurant types, this approach consistently leads to the same problem:
⚠️ Common mistake:
A dish shows 28% food cost (looks great), but can't cover its share of fixed expenses. Result: packed house, empty profits.
That's why smart operators build this calculation directly into their pricing system. And once you've done the math, you'll never price a dish without considering its fixed cost contribution again.
How do you calculate fixed costs per cover? (step by step)
Inventory all your fixed costs per month
Add up all costs you always have: rent, fixed staff, energy, insurance, depreciation, phone, internet, accountant. Use figures from the past 3 months for a realistic average.
Calculate your average number of covers per month
Count how many guests you serve on average per day. Multiply by number of days open per week × 4.33. Use data from at least 4 weeks for a reliable average.
Divide fixed costs by number of covers
Total fixed costs ÷ number of covers = fixed costs per cover. This amount must be contributed by each dish at minimum to your fixed costs to break even.
✨ Pro tip
Cross-check your fixed costs per cover calculation against actual monthly P&L statements from the past 4 months. If your calculated break-even doesn't match reality, your occupancy estimates need adjustment.
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 also include variable costs like extra staff?
No, stick to true fixed costs that exist regardless of volume. Variable costs get calculated separately based on specific situations and peak periods.
What if my occupancy varies greatly by season?
Calculate fixed costs per cover for each season separately. Use your low season numbers for minimum pricing - this ensures you stay profitable year-round.
How often should I update this calculation?
Review every 3 months to verify your fixed costs and occupancy assumptions remain accurate. Recalculate immediately after major changes like rent increases or permanent staff additions.
Can I use different fixed costs per cover for different dishes?
Theoretically possible, but unnecessarily complex for most operations. One average figure across all dishes provides sufficient accuracy while keeping your pricing system manageable.
📚 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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