I'll admit it - I spent my first six months guessing daily sales targets until a brutal week of losses forced me to learn the real math. Your break-even point shows exactly how many portions you must sell daily to cover every expense. Those fixed costs like pitch rental and fuel don't care if you're having a slow Tuesday.
What is the break-even point?
The break-even point is the exact number of portions you need to sell to cover all expenses. Hit that number and your revenue matches your costs perfectly. Sell more, you profit. Sell less, you're bleeding money.
Food trucks face unique challenges because your costs shift with every location - fuel varies, pitch rentals change, and permits differ between cities.
The break-even formula
Break-even portions per day = Total daily costs / Margin per portion
Where margin per portion = Selling price - Ingredient costs
💡 Example:
Food truck with burgers at €8.50:
- Selling price: €8.50
- Ingredient costs: €3.00
- Margin per burger: €5.50
- Total daily costs: €220
Break-even: €220 / €5.50 = 40 burgers per day
Calculate your total daily costs
Your daily costs split into fixed and variable expenses. Food trucks typically deal with:
- Fixed costs per day: truck depreciation, insurance, permits
- Variable costs per day: fuel, pitch rental, staff wages
- Ingredient costs: don't add these to daily costs - subtract them from your selling price instead
💡 Example daily costs:
- Truck depreciation: €80/day
- Insurance: €15/day
- Permit/pitch: €50/day
- Fuel: €35/day
- Staff (yourself): €40/day
Total: €220/day
Calculate your margin per portion
Your margin is what's left after ingredient costs eat into your selling price. Always work with prices excluding VAT - something most kitchen managers discover too late when their accountant corrects their entire first year of calculations.
⚠️ Attention:
Calculate with selling price excluding VAT. At €8.50 incl. 9% VAT that's €7.80 excluding VAT.
Margin calculation:
- Selling price excl. VAT: €8.50 / 1.09 = €7.80
- Ingredient costs: €3.00
- Margin per portion: €7.80 - €3.00 = €4.80
You can track these numbers manually in a spreadsheet or use specialized software to update margins automatically as ingredient prices fluctuate.
Factors that influence your break-even
Several variables can push your break-even number up or down:
- Location: Premium pitches cost more but might bring better foot traffic
- Season: Winter doubles fuel costs while cutting customer volume
- Menu pricing: A €1 price increase typically reduces required portions by 10-15%
- Food costs: Smart purchasing directly improves your margins
💡 Impact of price increase:
Burger from €8.50 to €9.50:
- New margin: €8.72 - €3.00 = €5.72
- New break-even: €220 / €5.72 = 38 burgers
- 2 fewer portions needed per day!
Compare break-even per location
Since you're moving between locations regularly, calculate separate break-evens for each pitch. This shows you which spots actually make financial sense.
- Location A: €30 pitch rental, quiet crowd → break-even 35 portions
- Location B: €80 pitch rental, busy area → break-even 44 portions
- Location C: €15 pitch rental, moderate traffic → break-even 32 portions
Don't automatically choose the lowest break-even. Location B costs more but might have the customer volume to deliver your highest daily profits.
How do you calculate break-even portions? (step by step)
Gather all daily costs
Add up all fixed costs (depreciation, insurance, permits) and variable costs (fuel, pitch rental, staff). Do NOT add ingredient costs here.
Calculate margin per portion
Subtract ingredient costs from your selling price (excluding VAT). This is what you keep per sold portion to cover your daily costs.
Divide daily costs by margin
Divide your total daily costs by the margin per portion. The result is the number of portions you need to sell at minimum to break even.
✨ Pro tip
Calculate your break-even achievement rate over 45 operating days, then map which locations consistently help you hit those numbers. If you're missing break-even more than 30% of the time, your current strategy needs immediate changes.
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 my own salary in the daily costs?
Yes, factor in at least €30-50 per day for your time. Even as the owner, you need to value your labor - otherwise you're essentially working for free while your truck depreciates.
What if I sell multiple dishes?
Calculate a weighted average margin based on your actual sales mix. If you sell 60% burgers and 40% fries, weight their margins accordingly. Update this monthly as your mix changes.
How often should I recalculate my break-even?
Recalculate whenever ingredient prices shift significantly or you change locations. I recommend a monthly review to catch trends early. Fuel price changes alone can swing your numbers by 10%.
What if I consistently miss my break-even?
You've got three moves: raise prices, cut costs, or find better locations. Sometimes you need to abandon a location entirely, even if it seemed promising initially.
Should I include VAT in break-even calculations?
Never include VAT in your revenue calculations. That money goes straight to tax authorities - it's not yours to keep. Always work with pre-VAT figures.
How do seasonal variations affect my break-even?
Winter typically increases fuel costs by 20-30% while reducing foot traffic. Calculate separate break-evens for peak and off-seasons so you can plan cash flow accordingly.
Can break-even analysis help me choose between gas and electric equipment?
Absolutely. Calculate daily energy costs for both options and see how they affect your break-even point. Electric equipment often wins in urban areas with cheaper electricity rates, reducing your required daily sales.
📚 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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