Restaurant Operations
Restaurant Break-Even Points Explained Simply
Learn how much revenue your venue needs to generate before it begins making a profit.
July 2, 20256 min readRuben Ashworth · Ex-restaurant operations director
Break-even is the point at which the revenue coming through the door exactly matches the money going out. Below it: you're funding the business. Above it: it starts funding you.
The formula
Break-even revenue = Fixed costs ÷ Gross profit %.
A worked example
Monthly fixed costs (rent, wages, energy, insurance, subscriptions): £42,000. Blended GP: 65%. Break-even = 42,000 ÷ 0.65 = £64,615 per month, or roughly £2,150 a day.
Why operators love this number
It reframes the daily service. Instead of "was it busy?", you can ask "did we clear break-even by 3pm?". Small teams behave differently when they see the target.