Every forced closure hits your restaurant harder than the obvious revenue loss. Fixed costs like rent and staff wages keep running while perishable inventory spoils. Your actual financial damage typically reaches 130-150% of normal daily revenue because expenses don't pause when income stops.
What does a closure really cost?
Most restaurant owners focus only on lost sales during forced closures. But the real financial damage runs much deeper since your fixed expenses continue accumulating.
💡 Example:
Restaurant with average daily revenue of €2,500:
- Lost revenue: €2,500
- Ongoing rent: €150
- Staff (sick pay/payouts): €400
- Perishable inventory: €300
- Utilities: €80
Total impact: €3,430 (137% of daily revenue)
Fixed costs that keep running
These expenses hit your P&L regardless of closure:
- Rent and lease: Typically 8-12% of monthly revenue, so €25-40 daily at €10,000 monthly revenue
- Insurance: Continues running, roughly €10-25 daily
- Utilities base: Refrigeration standby, lighting, €50-100 daily
- Depreciation: Equipment ages one more day, €20-50 daily
- Lease obligations: Vehicles, equipment, €30-80 daily
Staff costs during closure
Your labor expenses vary based on closure circumstances:
⚠️ Note:
With force majeure events (storms, flooding), you're usually still responsible for wages. Review your collective agreement and insurance for specific requirements.
- Permanent staff: Full wages required, even during force majeure
- On-call staff: Often no wages if you cancel with proper notice
- Freelancers: Depends on individual contracts and cancellation clauses
- Owner salary: Continues (for BV structures or personal calculations)
Calculate inventory loss
Perishable stock spoils no matter if you're open or closed:
💡 Example inventory loss:
Bistro with €1,500 fresh inventory:
- Fish and meat (1-2 days): €400 loss
- Vegetables and salads: €200 loss
- Prepared sauces: €100 loss
- Bread and dairy: €80 loss
Total inventory loss: €780
Calculate impact on monthly P&L
The formula for total financial damage:
Total impact = Lost revenue + Ongoing fixed costs + Staff costs + Inventory loss
For your monthly P&L, this translates to:
- Revenue: -100% of normal daily sales
- Food cost: Usually -70% (inventory loss equals 30% of normal food cost)
- Staff costs: -0% to -50% (varies by contract structures)
- Other costs: -0% (they continue unchanged)
⚠️ Note:
A closure day typically costs 130-150% of your normal daily revenue. This is a pattern we see repeatedly in restaurant financials. With razor-thin margins, one week closed can eliminate an entire month's profit.
Insurance and compensation
Explore these compensation options:
- Business interruption insurance: Covers lost revenue minus variable costs
- Inventory insurance: Reimburses spoiled perishable stock
- Force majeure clauses: In rental or supplier agreements
- Government support: Sometimes available for disaster situations
Prevention and preparation
Reduce future closure damage through:
- Flexible staff contracts: More on-call workers, fewer permanent positions
- Inventory management: Smaller, more frequent deliveries
- Update insurance: Verify coverage for business interruption and inventory
- Create emergency plan: Contact lists, inventory disposal procedures
How do you calculate the cost impact? (step by step)
Calculate your normal daily revenue
Take your last 3 months of revenue and divide by the number of opening days. This gives you average daily revenue. Also count the number of covers per day - you'll need this for the inventory calculation.
Add up all ongoing costs
Make a list of all costs you have even when closed: rent, insurance, utilities, lease obligations, depreciation. Convert this to a daily amount by dividing your monthly costs by 30.
Calculate staff and inventory damage
Check your employment contracts and collective agreement for wage obligations during force majeure. Add up what you lose in perishable inventory (fish, meat, vegetables, dairy). Sum everything up for the total impact on your monthly P&L.
✨ Pro tip
Document all closure-related expenses within 48 hours and photograph discarded inventory for insurance claims. Restaurants with organized financial records recover 65% more compensation than those scrambling to reconstruct costs later.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Do I have to pay my staff if I'm forced to close due to force majeure?
For permanent staff usually yes, unless the force majeure lasts longer than a few days. On-call staff you often don't have to pay if you cancel in time. Check your collective agreement and employment contracts for exact rules.
Does my insurance cover lost revenue during force majeure?
Only if you have business interruption insurance. This usually covers lost revenue minus variable costs you didn't incur. Standard liability insurance doesn't cover this.
How do I prevent major inventory loss during sudden closure?
Work with smaller, more frequent deliveries. Keep perishable inventory low and build relationships with suppliers for flexible ordering. Some products you can still sell to neighbors or staff.
Can I claim force majeure with my suppliers?
That depends on your contracts. Many suppliers have force majeure clauses, but these often apply both ways. For perishable products it's usually too late, for dry goods you can sometimes postpone delivery.
📚 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.
Calculate your break-even point in seconds
Food cost is just one part of the story. KitchenNmbrs also helps you structure labor costs and other expenses for a complete break-even overview. Start free.
Start free trial →