Your restaurant's break-even point: a simple example in numbers
The break-even point is the level of sales that covers all your costs: no profit, no loss. Knowing it gives you and your team a clear daily target.
Example: a restaurant with three items (illustrative figures)
1. Cost and price per item (SAR):
| Item | Cost | Price |
|---|---|---|
| Main dish | 20 | 70 |
| Salad | 8 | 22 |
| Drink | 2 | 4 |
2. Daily fixed costs: rent, salaries, fees, advertising and utilities = SAR 1,592 (yearly ÷ 365, monthly ÷ 30).
3. Selling 25 of each item:
- Revenue: 1,750 + 550 + 100 = SAR 2,400.
- Cost of the dishes: 500 + 200 + 50 = SAR 750.
4. Result: 2,400 − (1,592 + 750) = +SAR 58.
So this restaurant breaks even at about SAR 2,400 a day.
Remember
- The SAR 58 is operating profit, not net profit.
- Use Excel to change your assumptions quickly.
- Update the calculation every 6 months; rent and prices change.
- It assumes a fixed cost per dish, which needs a standard recipe the kitchen follows.