Chartered Financial Analyst specializing in food & beverage industry financial models.
Find out how many customers (or checks) your restaurant needs to serve to cover its costs. Enter any three variables—Total Fixed Costs, Average Check Value, Average Variable Cost, or Number of Customers—to solve for the fourth.
Restaurant Breakeven Calculator
Restaurant Breakeven Formula
The breakeven formula for a restaurant finds the number of customers, or checks (Q), required for sales to cover all fixed and variable costs.
Q = F / (P – V)
Solve for Fixed Costs (F):
F = Q * (P – V)
Solve for Average Check Value (P):
P = (F / Q) + V
Solve for Avg. Variable Cost (V):
V = P – (F / Q)
Variables Explained
- Fixed Costs (F): Total monthly costs that do not change with sales volume (e.g., rent, salaries, insurance, utilities).
- Average Check Value (P): The average revenue you receive from one customer’s order (Total Revenue / Total Customers).
- Avg. Variable Cost (V): The average cost of food and beverages for one check (Total COGS / Total Customers).
- Breakeven Customers (Q): The number of checks you must serve per month to reach $0 in operating profit.
Related Calculators
- Food Cost Percentage Calculator
- Restaurant Profit Margin Calculator
- Average Check Calculator
- Menu Pricing Calculator
What is a Restaurant Breakeven Point?
The **Restaurant Breakeven Point** is the number of customers (or checks) a restaurant must serve in a specific period (usually a month) to cover all its costs. This is the point of $0 profit. Every customer served *after* this breakeven point generates pure profit for the restaurant.
This is the most critical metric for any restaurateur. It dictates your staffing, seating, and pricing strategies. **Fixed Costs (F)** are your largest burden and include rent, salaried manager pay, and utilities. **Variable Costs (V)** are primarily your food and beverage costs (Cost of Goods Sold or COGS) associated with each check.
The profit made on each check is the **Contribution Margin** (P – V). This is the money from each sale that goes towards paying the restaurant’s rent and other fixed costs. This calculator helps you determine the exact number of tables you need to turn to become profitable.
How to Calculate Restaurant Breakeven (Example)
Let’s calculate the breakeven point for a new bistro.
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Identify Fixed Costs (F):
The bistro’s total monthly fixed costs (rent, staff salaries, insurance, utilities) are $30,000.
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Identify Average Check Value (P):
The average amount a customer spends is $45.00.
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Identify Avg. Variable Cost (V):
The average cost of food and drinks for that $45 check is $15.00 (a 33.3% food cost).
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Apply the Formula: Q = F / (P – V)
First, calculate the contribution margin per check: $45.00 (P) – $15.00 (V) = $30.00.
Next, divide the fixed costs by this margin:
Q = $30,000 / $30.00 = 1,000 -
Conclusion:
The restaurant must serve 1,000 customers (or checks) each month to cover all costs. The 1,001st customer will generate the first dollar of profit.
Frequently Asked Questions (FAQ)
Fixed Costs are your set monthly expenses: rent/mortgage, salaried employee pay, insurance, software subscriptions, and utility base fees. Moves Variable Costs are per-customer: food ingredients, beverages, and disposable items (napkins, to-go boxes).
To calculate (P), take your total sales revenue from a period (e.g., a week) and divide it by the total number of customer checks you processed in that same period. Do the same for (V) by dividing total food/beverage costs by the same number of checks.
It’s complicated, but for this model, it’s best to include *minimum* required staffing in your Fixed Costs (F). Any *additional* staff you bring on *only* during peak hours could be considered a variable cost, but this model is more accurate when you include all labor in (F).
You can work backward. If you know your Fixed Costs (F), your food cost (V), and how many customers you realistically expect to serve (Q), you can solve for (P) to find the *minimum average check* you need to achieve. You can then adjust your menu prices to hit this target.