Extending restaurant hours is like stretching a rubber band - it can expand your reach, but stretch too far and it snaps back to hurt you financially. Too many owners jump into longer hours without crunching the real numbers first. They discover later that those extra hours actually drain their profits instead of boosting them.
The cost side: what will it cost extra?
Before you dream about extra revenue, you've got to face the hard truth about additional costs. These expenses pile up faster than most owners expect.
💡 Example: 2 hours longer open per day
Restaurant with 2 staff members, currently open until 22:00, wants to stay open until 24:00:
- Extra staff: 2 × 2 hours × €15 = €60/day
- Extra energy (lighting, cooling): €8/day
- Extra fixed costs (insurance): €3/day
Total extra costs: €71/day × 25 working days = €1,775/month
Staff costs
This'll be your biggest expense increase. Don't just think about the hourly wage - there's more lurking beneath:
- Employer contributions: 25-30% on top of gross salary
- Overtime: possibly 25-50% surcharge after 8 hours
- Evening/night surcharges: often 15-25% extra after 22:00
- Travel allowance: €0.23/km or public transport costs
Energy costs
Keeping those lights on, fridges running, and ventilation humming adds up. You're looking at €3-12 per extra opening hour, depending on your setup and local energy rates.
Food costs
More customers means more ingredients. But the reality - your food cost percentage stays consistent, so this expense grows in lockstep with your extra revenue.
The revenue side: how much will you earn?
Now comes the challenging part: figuring out realistic revenue projections. Many owners get overly optimistic here.
⚠️ Watch out:
Most entrepreneurs overestimate extra revenue. Check your current occupancy during that final hour before closing. If it's already slow, expect even quieter periods afterward.
Realistic revenue estimate
Ground your projections in actual data, not wishful thinking:
- Current occupancy per hour: count covers in your last opening hours
- Average bill: what does a guest spend on average?
- Seasonal pattern: are there periods that'll be busy or dead?
- Competition: are others in the area also open longer?
💡 Example: revenue estimate
Current last hour (21:00-22:00): average 8 guests, €28 average bill
- 22:00-23:00: estimate 5 guests × €28 = €140
- 23:00-24:00: estimate 3 guests × €28 = €84
Extra revenue per day: €224 × 25 days = €5,600/month
Break-even calculation
Time to crunch the numbers and see if this makes financial sense. You'll need your marginal profit margin - that's revenue minus variable costs like food and extra labor.
Break-even formula for extended opening hours:
Required extra revenue = Extra fixed costs / (1 - Food cost % - Extra variable costs %)
💡 Example: break-even calculation
Extra fixed costs: €1,775/month
Food cost: 32%
Marginal profit margin: 68%
Break-even revenue: €1,775 / 0.68 = €2,610/month
With estimated €5,600 extra revenue: €5,600 - €2,610 = €2,990 extra profit/month
Impact on your P&L
Here's how extending hours will show up across your profit and loss statement - a pattern we see repeatedly in restaurant financials that attempt this expansion:
Positive impact
- Higher revenue: more covers and orders
- Better utilization of fixed costs: rent, depreciation spread over more revenue
- Higher average spending: guests sometimes order more in the evening
Negative impact
- Higher staff costs: including surcharges
- Higher energy costs: lighting, cooling, equipment
- Higher food cost: proportional to extra revenue
- More wear and tear: equipment, furniture wear out faster
Test it out: phased approach
Rather than diving headfirst into permanent extended hours, smart owners test the waters first:
- Start with weekends: Friday and Saturday usually have more potential
- Seasonal test: try it first during a busy period
- Temporary action: announce that it's a trial for 1-2 months
- Measure everything: keep track of how many guests come and what they spend
⚠️ Watch out:
Account for a ramp-up period. The first few weeks can be disappointing because guests don't yet know you're open longer. Give it at least 4-6 weeks to get a fair picture.
How do you calculate the financial impact? (step by step)
Calculate all extra costs per month
Add up: extra staff costs (including surcharges and employer contributions), extra energy costs, and any other fixed costs. Don't forget to include employer contributions (25-30%) and possible evening surcharges.
Estimate realistic extra revenue
Look at your current occupancy in the last opening hour and carefully estimate how many guests will come during the extra hours. Multiply by your average bill value per guest.
Calculate the break-even point
Divide your extra fixed costs by your marginal profit margin (100% minus food cost percentage). This gives you the minimum extra revenue you need to break even.
✨ Pro tip
Track your current guest count during the final 30 minutes before closing for 2 weeks straight. If you're averaging fewer than 4 tables during this period, extended hours will likely lose money rather than generate profit.
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 do I realistically estimate the number of extra guests?
Look at your occupancy during the current final opening hour. If you've got 10 guests then, expect maybe 6-8 guests in your first extra hour, and even fewer in the second. Always err on the conservative side with these projections.
Should I account for seasons while extending opening hours?
Absolutely. Winter evenings often see fewer late-night diners than summer months. Calculate each season separately, or create a weighted average across the entire year for more accurate planning.
What if I don't want to hire extra staff for the longer hours?
Then you'll need existing team members willing to work extended shifts at overtime rates. Remember: after 8 hours daily you're often paying 25-50% surcharges, which significantly bumps up your labor costs.
How long should I wait before assessing the results?
Give it at least 6-8 weeks minimum. Those first few weeks usually disappoint because customers haven't learned about your extended hours yet. Plan some marketing to spread the word about your new schedule.
What's the biggest mistake owners make with extended hours?
Overestimating late-night demand while underestimating the true cost of overtime wages and evening surcharges. They focus on the revenue potential but ignore how quickly those extra labor costs can eat into profits.
Can I calculate this without complex accounting software?
Yes, you just need your average check size, food cost percentage, and hourly labor costs. Tools like a food cost calculator can help track these metrics and automatically compute the financial impact.
📚 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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