Which shifts are actually costing you money instead of making it? Many restaurants lose money on quiet shifts but don't realize which ones. You can calculate exactly which opening hours are profitable and which you should cut.
Why margin per shift matters
Every shift where you earn less than your costs means you lose money. Even if your restaurant's packed on Friday, losses on Monday eat into your profit.
⚠️ Watch out:
Many entrepreneurs think: "If I'm open, I always make something." That's not true. If your revenue is lower than your costs, you lose money by being open.
Calculate your fixed costs per shift
Before you can decide, you need to know what each shift costs at minimum. These are your fixed costs that keep running, regardless of how many guests you have.
- Personnel costs (chef, service, minimum staffing)
- Energy costs (lighting, cooling, kitchen)
- Equipment depreciation (per hour)
- Rent (if you were to calculate per hour)
💡 Example:
Tuesday lunch shift (4 hours):
- Chef: 4 hours × €18 = €72
- Service: 4 hours × €15 = €60
- Energy: €25
- Other costs: €23
Total: €180 fixed costs
Measure your actual revenue per shift
Get your cash register data from the past 8 weeks. Calculate the average revenue per shift type - not just one day, but the average.
Split this by:
- Monday lunch vs. Monday dinner
- Tuesday lunch vs. Tuesday dinner
- Weekend lunch vs. weekend dinner
Calculate your break-even per shift
Now you can calculate what you need to sell at minimum to break even:
Break-even revenue = Fixed costs / (1 - Food cost % - Variable costs %)
💡 Example calculation:
Fixed costs Tuesday lunch: €180
- Food cost: 30%
- Variable costs (dishwashing, napkins): 5%
- Total variable: 35%
Break-even: €180 / (1 - 0.35) = €277 revenue
You need to sell at least €277 to break even.
Analyze your current performance
Compare your actual revenue with your break-even point. Create an overview per shift:
- Green: Revenue > Break-even + 20% (profitable)
- Orange: Revenue between break-even and +20% (marginal)
- Red: Revenue < Break-even (loss-making)
💡 Example analysis:
Restaurant "The Table" - average revenue per shift:
- Tuesday lunch: €165 (Break-even: €277) = RED
- Tuesday dinner: €420 (Break-even: €310) = GREEN
- Wednesday lunch: €195 (Break-even: €277) = RED
- Sunday dinner: €680 (Break-even: €350) = GREEN
Conclusion: Close lunch on Tue/Wed, keep dinner open.
Make the decision
For red shifts you have three options:
- Close: Save the fixed costs, use time for prep or rest
- Lower costs: Less staff, different menu
- Increase revenue: Marketing, special promotions, different target audience
⚠️ Watch out:
Don't close too quickly. First see if you can lower costs or increase revenue. Sometimes a shift is loss-making on its own, but attracts customers for other shifts.
Monitor and adjust
Check every month if your decision is paying off. Circumstances change - and this is a pattern we see repeatedly in restaurant financials.
- Seasons affect busy times
- Competition opens/closes
- Your team becomes more efficient
- Fixed costs increase
With proper cost analysis tools you can run this analysis automatically, so you always have current figures for your decisions.
How do you calculate margin per shift? (step by step)
Calculate fixed costs per shift
Add up: staff (minimum staffing), energy, equipment depreciation. These are costs that keep running regardless of how many guests you have. Example: chef €72 + service €60 + energy €25 = €157 per shift.
Measure average revenue per shift type
Get 8 weeks of cash register data and calculate the average per day/time. Not just one day, but a structural pattern. Split by Monday-lunch, Monday-dinner, Tuesday-lunch, etc.
Calculate break-even point
Formula: Fixed costs / (1 - Food cost% - Variable costs%). With €157 fixed costs and 35% total variable: €157 / 0.65 = €242 break-even revenue per shift.
✨ Pro tip
Track your actual profit per hour worked across 6 weeks of data. A Tuesday lunch earning €40 profit in 3 hours (€13/hour) might beat a Sunday brunch making €65 profit in 5 hours (€13/hour) - but just barely.
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
What if a shift breaks even exactly?
Keep marginal shifts around break-even if they attract customers for profitable shifts. Otherwise you're better off closing and using the time for prep or rest.
Should I include seasons in the calculation?
Yes, calculate separate break-even points for summer and winter if your busy times differ significantly. Many terraces are loss-making in winter but very profitable in summer.
How often should I recalculate my break-even points?
Recalculate monthly or whenever you change menu prices, staff wages, or operating hours. Food costs and labor rates fluctuate enough to impact your calculations significantly.
📚 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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