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Direct answers
- What is the break-even point for a restaurant?
- The break-even point is the minimum number of covers (paying customers) needed per period to cover all fixed costs — rent, staff, utilities, insurance — without making a profit or loss. Below this number you lose money; above it you generate profit.
- How do I calculate restaurant break-even covers?
- Break-even covers = Fixed Costs / (Average Check − Variable Cost per Cover). Variable cost = Average Check × (Food Cost % + variable labor %). Example: €8,000 fixed costs / (€22 average check × 0.65 contribution margin) = 559 covers/month.
- What counts as a fixed cost for a restaurant?
- Fixed costs: rent/mortgage, permanent staff salaries, utilities (estimated), insurance, accounting fees, licenses, loan repayments, leasing equipment. These don't change with the number of customers in a given month.
- What is the contribution margin per cover?
- Contribution margin = Average Check × (1 − food cost % − variable cost %). It's the amount each cover contributes to covering fixed costs. Example: €25 average check with 35% food + variable cost → contribution margin = €25 × 0.65 = €16.25.
- How many covers per day does a restaurant typically need?
- It depends on the break-even covers per month divided by opening days. A restaurant with 500 break-even covers/month and 25 opening days needs 20 covers/day minimum. Italian trattorias typically do 30–80 covers/service.
- What is a realistic average check for an Italian restaurant?
- Typical ranges in Italy: bar breakfast €1.5–3, bar lunch (quick) €8–14, trattoria €18–30, mid-level restaurant €28–45, fine dining €60–120+. Your average check should reflect local competition and the full spend including drinks.
Quick answers
Frequently Asked Questions
What is the break-even point for a restaurant?
The break-even point is the minimum number of covers (paying customers) needed per period to cover all fixed costs — rent, staff, utilities, insurance — without making a profit or loss. Below this number you lose money; above it you generate profit.
How do I calculate restaurant break-even covers?
Break-even covers = Fixed Costs / (Average Check − Variable Cost per Cover). Variable cost = Average Check × (Food Cost % + variable labor %). Example: €8,000 fixed costs / (€22 average check × 0.65 contribution margin) = 559 covers/month.
What counts as a fixed cost for a restaurant?
Fixed costs: rent/mortgage, permanent staff salaries, utilities (estimated), insurance, accounting fees, licenses, loan repayments, leasing equipment. These don't change with the number of customers in a given month.
What is the contribution margin per cover?
Contribution margin = Average Check × (1 − food cost % − variable cost %). It's the amount each cover contributes to covering fixed costs. Example: €25 average check with 35% food + variable cost → contribution margin = €25 × 0.65 = €16.25.
How many covers per day does a restaurant typically need?
It depends on the break-even covers per month divided by opening days. A restaurant with 500 break-even covers/month and 25 opening days needs 20 covers/day minimum. Italian trattorias typically do 30–80 covers/service.
What is a realistic average check for an Italian restaurant?
Typical ranges in Italy: bar breakfast €1.5–3, bar lunch (quick) €8–14, trattoria €18–30, mid-level restaurant €28–45, fine dining €60–120+. Your average check should reflect local competition and the full spend including drinks.