Here's something most restaurant owners discover too late: they're bleeding money without even knowing it. Break-even is that critical point where your revenue equals your costs exactly - no profit, no loss. But here's the kicker: most operators can't tell you their break-even number off the top of their head.
What exactly is break-even?
Break-even literally means 'breaking even'. It's the point where your total revenue equals your total costs. You make no profit, but also no loss.
💡 Example:
Restaurant De Smaak has monthly fixed costs of €12,000:
- Rent: €4,500
- Staff: €6,000
- Energy: €800
- Insurance: €400
- Other costs: €300
Average margin per guest: €8.00
Break-even: €12,000 ÷ €8.00 = 1,500 guests per month
Fixed costs vs. variable costs
For an accurate break-even calculation, you need to distinguish between fixed and variable costs:
Fixed costs (remain constant, regardless of guest count):
- Rent of the premises
- Fixed staff (owner, chef, permanent employees)
- Insurance
- Energy (base consumption)
- Software subscriptions
- Depreciation
Variable costs (increase with each additional guest):
- Ingredients (food cost)
- Extra staff during busy times
- Packaging materials
- Credit card fees
The break-even formula
There are two ways to calculate break-even:
Method 1: Per number of guests
Break-even guests = Fixed costs ÷ (Average bill - Variable costs per guest)
💡 Example calculation:
Bistro Het Plein:
- Fixed costs per month: €15,000
- Average bill per guest: €22.00
- Variable costs per guest: €13.50 (food cost + extra service)
Margin per guest: €22.00 - €13.50 = €8.50
Break-even: €15,000 ÷ €8.50 = 1,765 guests per month
That's approximately 59 guests per day (at 30 days open).
Method 2: Per revenue amount
Break-even revenue = Fixed costs ÷ (1 - (Variable costs % ÷ 100))
⚠️ Note:
Always calculate with realistic figures. Many entrepreneurs forget costs like accountant, repairs, or replacements. Also include your own salary as a fixed cost.
Using break-even in practice
Once you know your break-even point, you can steer better. From tracking this across dozens of restaurants, the operators who check their numbers daily consistently outperform those who wait until month-end:
- Daily check: Are you above or below your break-even?
- Seasonal planning: How much buffer do you need for quiet periods?
- Pricing: What happens if you raise prices by €1?
- Cost control: Which fixed costs can you reduce?
💡 Impact of price increase:
Restaurant with break-even of 1,500 guests raises average bill from €22 to €23:
- New margin per guest: €23 - €13.50 = €9.50
- New break-even: €15,000 ÷ €9.50 = 1,579 guests
Difference: 79 fewer guests needed per month!
Different break-even points
Depending on your situation, you can calculate different break-even points:
- Operational break-even: Only operational costs (without depreciation)
- Cash break-even: All outgoing cash flows
- Profitable break-even: Including desired profit
For daily management, operational break-even is most important.
Break-even per day and per week
Convert your monthly break-even to daily figures:
💡 Daily break-even:
At 1,500 guests per month break-even:
- 25 days open: 60 guests per day
- 6 days per week: 58 guests per day
- 7 days per week: 50 guests per day
Note: this is an average. Some days (weekends) do more, others (Mondays) do less.
How do you calculate your break-even point? (step by step)
Gather all your fixed costs per month
Add up all costs you have every month, regardless of how many guests you receive. Think about rent, fixed staff, insurance, energy, software and your own salary. Don't forget small items like accountant or maintenance.
Calculate your margin per guest
Subtract the variable costs from your average bill per guest (mainly food cost and any extra service costs). This is the amount left over to pay your fixed costs.
Divide fixed costs by margin per guest
Use the formula: Fixed costs ÷ Margin per guest = Break-even number of guests. Convert this to guests per day by dividing by the number of days you're open.
✨ Pro tip
Calculate your break-even for the next 6 months including any seasonal variations - summer patios vs. winter indoor dining can shift your numbers by 20-30%. This prevents cash flow surprises during slow periods.
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 fixed costs?
Yes, absolutely. Your own salary is a real cost item, even if you don't take it every month. Calculate with a realistic amount for the time you spend in your business.
What if my daily revenue varies greatly?
Then calculate your break-even per week instead of per day. Make sure you average above your break-even over a whole week, even if you have bad days in between.
How often should I recalculate my break-even?
Check your break-even every 3 months or after major changes like rent increase, new employee, or menu changes. Your costs and prices change continuously.
📚 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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