A terrace can significantly boost your summer revenue. While many restaurant owners guess at the potential, smart operators calculate exact figures to understand what those extra tables actually deliver. The difference between estimation and precise calculation often surprises even experienced restaurateurs.
The basics: terrace revenue consists of 3 components
To calculate terrace revenue, you need three variables:
- Extra seating - how many chairs are you adding?
- Occupancy rate - how often are those chairs occupied?
- Average bill - what does a guest spend on average?
You multiply these three by the number of summer days your terrace operates.
Step 1: Count your extra seating
Start simple: how many chairs are you adding with the terrace? Only count the places that are extra, not your existing indoor capacity.
💡 Example:
Restaurant with 40 indoor seats gets a terrace with 6 tables:
- 6 tables × 4 chairs = 24 extra seats
- This is 60% more capacity (24/40 = 0.6)
Step 2: Estimate your occupancy rate realistically
A terrace isn't full every day. Rain, wind and cold days matter. A realistic occupancy rate for a summer terrace sits between 40-60%.
⚠️ Note:
Don't calculate with 100% occupancy. Even in summer there are cold days, rain showers and quiet weekdays. Be conservative in your estimate.
Step 3: Determine your average bill per person
Check your POS system: what's your current average bill per person? Terrace guests often order differently than indoor guests. They stay longer (more drinks) but sometimes order lighter food.
💡 Example calculation:
Restaurant with average bill of €28.50 per person:
- 24 extra terrace seats
- 50% occupancy rate = 12 occupied seats on average
- Open 120 days (May through September)
- Average bill: €28.50
Extra revenue: 12 × €28.50 × 120 = €41,040
Calculate with different scenarios
Make three calculations: pessimistic (30% occupancy), realistic (50% occupancy) and optimistic (70% occupancy). This shows you the range of possible extra revenue.
- Pessimistic: 30% occupancy, lower average bill
- Realistic: 50% occupancy, current average bill
- Optimistic: 70% occupancy, slightly higher bill (more drinks)
Don't forget the extra costs
A terrace also brings costs. From tracking this across dozens of restaurants, the initial investment typically pays back within one strong season. Deduct these from your extra revenue to see your net return:
- Terrace furniture (tables, chairs, umbrellas)
- Extra staff during busy summer days
- Terrace heating for cooler evenings
- Possible permit costs
- Maintenance and furniture replacement
💡 Cost example:
Terrace with 24 seats, one-time investment:
- 6 tables: €1,800
- 24 chairs: €2,400
- 6 umbrellas: €1,200
- Permit: €500
Total: €5,900 (recovered in 3-4 months)
Use your terrace data for better planning
Keep track of which days your terrace performs strongest. Weather, temperature and nearby events have a big impact. With this data you can plan staff and purchasing more effectively.
How do you calculate terrace revenue? (step by step)
Count your extra seating
Calculate how many chairs you're adding with the terrace. Only count new capacity, not your existing indoor seats. Multiply number of tables by chairs per table.
Determine realistic occupancy rate
Estimate how often your terrace seats are occupied on average. Calculate with 40-60% for a summer terrace, because weather and season have a big impact. Be conservative in your estimate.
Calculate the extra revenue
Multiply: (extra seats × occupancy rate) × average bill × number of summer days. Create three scenarios (30%, 50%, 70% occupancy) to see the range.
✨ Pro tip
Track your terrace occupancy against daily temperature and weather conditions for the first 8 weeks of operation. You'll discover your minimum viable temperature threshold and can staff accordingly for maximum profitability.
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 occupancy rate should I use for my terrace?
Calculate with 40-60% average occupancy for a summer terrace. This accounts for rainy days, cold periods and quiet weekdays. It's better to be too cautious than too optimistic.
Do terrace guests order differently than indoor guests?
Often they do. Terrace guests usually stay longer and order more drinks, but sometimes lighter food. Monitor your average bill per terrace table to measure this difference.
What costs should I deduct from my terrace revenue?
Include furniture, possibly extra staff, umbrellas, heating and permit costs. These costs are usually recovered within 1-2 seasons with a well-running terrace.
📚 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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