How much do you need to sell to break even?
Add your monthly fixed costs and the costs that rise with sales. See the sales and customers you need each day to cover everything, and to hit a profit goal.
These are example numbers for one QSR location. Replace them with yours.
1Fixed costs per month
Costs you pay whether you sell $1 or $100,000.
2Costs that rise with sales
As a % of sales.
3Your restaurant
How it’s calculated
Break-even sales = fixed costs ÷ (1 − variable cost %). Every dollar of sales keeps what’s left after variable costs, and that has to cover your fixed costs first.
Use it before you sign
Opening a second location? Run the new rent and expected sales through this first. If break-even needs more customers than the site can serve, keep looking.
Lower it two ways
Cut fixed costs, or keep more of each sale by bringing food and labour % down. A 3 point drop in prime cost lowers break-even more than most owners expect.