Late-night opening can boost revenue but adds significant costs. Most restaurant owners underestimate the true financial impact of extended hours. Here's how to calculate whether staying open late will actually profit your business.
What does late-night opening cost?
Before extending your hours, map out all additional expenses. These break down into fixed costs (same regardless of guest count) and variable costs (tied to revenue).
⚠️ Heads up:
Most operators focus only on extra staff but overlook energy, security, and equipment wear. These 'hidden' costs can represent 30-40% of your additional expenses.
Fixed costs per night
These expenses hit you every night you stay open longer, no matter how many customers show up:
- Extra staff: Minimum 1 chef + 1 server (4-6 hours)
- Energy: Lighting, kitchen equipment, heating/cooling
- Security: Potential additional costs for late closing
- Taxi/staff transport: Public transit often stops running
💡 Example fixed costs per night:
60-seat restaurant, open until 02:00 (4 extra hours):
- Chef (4 hours × €18): €72
- Server (4 hours × €15): €60
- Energy (kitchen + dining area): €25
- Staff taxi: €30
Total fixed costs: €187 per night
Calculate your break-even point
To turn a profit, your post-22:00 revenue must exceed your extra costs. You need the break-even point for this.
Break-even revenue formula:
Break-even revenue = Fixed costs / (1 - Variable costs %)
Variable costs typically include:
- Food cost: 28-35% of revenue
- Extra VAT payment: 9% of revenue
- Credit card fees: 1-2% of revenue
💡 Break-even calculation:
With €187 fixed costs and 40% variable costs:
Break-even = €187 / (1 - 0.40) = €187 / 0.60 = €312
You need at least €312 in revenue between 22:00-02:00 to break even.
Realistic revenue expectations
Late-night revenue often disappoints. Based on real restaurant P&L data, many businesses see their post-22:00 revenue drop to just 15-25% of peak hours.
Factors affecting your revenue:
- Location: Entertainment district vs. residential area
- Day of the week: Friday/Saturday vs. weekdays
- Season: Summer vs. winter
- Competition: How many other places stay open late?
💡 Estimating revenue:
Average evening between 18:00-22:00: €800
- Expected late-night revenue (20%): €160
- Break-even needed: €312
- Shortfall: €152 per night
Conclusion: Not profitable with current numbers
Alternatives to become profitable
If your break-even exceeds expected revenue, you can adjust several factors:
Lower costs
- Minimal staffing: 1 person handling both kitchen and service
- Limited menu: Only quick, inexpensive dishes
- Group packages: Fixed menu price per person
Increase revenue
- Happy hour: Special pricing between 22:00-24:00
- Late night menu: Higher margins on simple dishes
- Delivery service: Extra revenue stream without additional seating
⚠️ Heads up:
Test a few weekends first before committing to regular extended hours. Late-night revenue is unpredictable and seasonal.
Monitoring and adjustments
If you decide to test late-night opening, track:
- Revenue per hour between 22:00-02:00
- Number of covers per night
- Average check size at night vs. during the day
- Actual costs (including unexpected expenses)
Food cost management tools can automatically track these figures and compare them with your break-even point. This way you'll immediately see if late-night opening is profitable.
How do you calculate the feasibility of late-night opening?
Calculate your fixed costs per night
Add up all costs you incur regardless of the number of guests: extra staff (hours × wage), energy (lighting + kitchen), security, and staff transport. These are your minimum costs per night.
Determine your break-even revenue
Divide your fixed costs by (1 - variable costs percentage). Variable costs are typically 35-45% (food cost + VAT + credit card fees). This gives you the minimum revenue you need.
Estimate your realistic late-night revenue
Late-night revenue is often 15-25% of your peak hours. Compare this with your break-even point. Is your expected revenue higher? Then it could be profitable. Lower? Then you need to lower costs or increase revenue.
✨ Pro tip
Track your hourly revenue patterns for 3 weeks before deciding on late-night hours. Most restaurants see 60-70% revenue drops after 10 PM, making extended hours unprofitable without major cost 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
How much extra revenue do I need at minimum for late-night opening?
That depends on your costs. On average you need €250-400 extra revenue per night to break even. Calculate this by dividing your fixed costs by (1 - variable costs percentage).
Which days are most profitable for late opening?
Friday and Saturday typically perform best. Weekdays often lack sufficient late-night traffic to cover extra costs. Test weekends first before extending hours daily.
How long should I test before I know if it works?
Test at least 6-8 weekends for reliable data. Late-night revenue fluctuates dramatically with season and weather. Track revenue per hour, guest count, and actual expenses.
Can I be profitable with delivery only at night?
Yes, delivery has lower costs since you don't need servers or full dining room energy. You'll still need a delivery driver though, and platforms charge 15-30% commission. Calculate whether delivery revenue exceeds chef + driver + platform fees.
📚 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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