How to Calculate Break-Even for a Restaurant
Restaurant break-even uses the same core formula adapted for food service: Break-Even Covers = Monthly Fixed Costs / (Average Check − Variable Cost per Cover). Fixed costs include rent, salaries, insurance, and utilities — typically $15,000–$50,000/month for a small restaurant. Variable costs per cover include food cost (aim for 28–35% of menu price), disposables, and credit card fees. Example: $25,000 fixed costs, $30 average check, $12 variable cost per cover. BEP = 25,000 / (30 − 12) = 1,389 covers/month or about 47 covers/day.