Tools you might need next
Calculate restaurant food cost percentage from ingredient cost and menu price. Free food cost percentage calculator for menu engineering and kitchen budgeting.
Calculate table turnover rate, seat utilization, and daily cover capacity. Free table turnover calculator for restaurant seating plans and revenue forecasting.
Calculate profit from revenue and cost. Get profit amount and margin percentage. Simple business profit calculator. Free online calculator with instant
Break-even revenue equals fixed costs divided by one minus the variable cost ratio. Fixed costs include rent, salaried management, and insurance; variable costs include food, beverage, and hourly labor tied to sales volume.
Break-Even Revenue = Fixed Costs / (1 − Variable Cost Ratio)Divide break-even revenue by average check size to get the number of guests needed. For full-service restaurants, also factor in seat turnover rate to convert covers into required operating days.
Break-Even Covers = Break-Even Revenue / Average CheckEach cover contributes its check amount minus variable costs toward covering fixed overhead. Higher contribution margin (typically 60–70% for full-service) means fewer covers needed to break even.
Contribution Margin = Average Check × (1 − Variable Cost Ratio)Updated: July 2026
Full-service bistro open 6 days/week, dinner only, with $45 average check and 65% variable cost ratio.
→ Break-even: ~$80,000/month revenue or ~62 covers/day
Counter-service café with lower fixed costs but thinner margins and $14 average ticket.
→ Break-even: ~$53,600/month or ~147 transactions/day
Upscale restaurant with $95 average check but elevated labor and occupancy costs.
→ Break-even: ~$203,000/month or ~89 covers/day
Only salaried management and baseline prep staff are fixed. Hourly FOH and BOH labor scales with covers — typically 25–35% of revenue as a variable cost. Misclassifying labor understates break-even covers.
Variable costs include food, beverage, hourly labor, credit card fees, and paper goods — typically 60–75% combined. Food cost alone (28–35%) dramatically understates true variable expenses.
Break-even covers per day assumes uniform traffic. Build seasonal buffers — summer patios may exceed break-even while January may run 30% below. Cash reserves should cover 2–3 months of below-break-even periods.
Determine how many covers or how much daily revenue your restaurant needs to cover fixed and variable costs. Break-even analysis is the foundation of restaurant financial planning, used by operators to set sales targets, evaluate menu pricing, and decide whether to extend hours or add a daypart.