A restaurant break-even analysis works out the sales needed to cover fixed costs once variable costs are paid: fixed costs divided by contribution margin. This free Excel template runs it per location and converts the result into covers per day, which is the version a floor manager can actually act on.
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Excel (.xlsx) - works in Excel, Google Sheets and Numbers. No email, no signup.
What's inside
- Fixed cost worksheet - Rent, insurance, salaried labor, utilities and the costs people forget
- Contribution margin - Average check minus variable cost per cover
- Break-even in covers - Translated into covers per day and per shift, not just a revenue figure
- Scenario rows - Test a price change or a rent increase before it happens to you
How to use it
- List every fixed cost, including the ones that feel variable but are not - salaried management, insurance, software.
- Work out variable cost per cover from food cost plus the hourly labor that scales with volume.
- Let the sheet convert break-even revenue into covers per day. That is the number your team can hold in their head.
- Compare it to your actual covers. If you are running close to break-even on a good week, that is your real problem.
- Use the scenario rows before any decision that changes fixed cost - a new hire, a lease, an expansion.
What break-even analysis actually reveals
| Input | Where operators get it wrong | Effect |
|---|---|---|
| Fixed costs | Salaried management left out of the fixed column | Break-even understated, often badly |
| Contribution margin | Using food cost only, ignoring variable labor | Margin looks healthier than it is |
| Covers per day | Never converted from the revenue figure | Team has no number they can act on |
| Seasonality | One annual average across a seasonal business | Slow months quietly run below break-even |
Most operators I have worked with could quote their food cost to the decimal and had never once calculated break-even. It is the number that tells you whether a slow Tuesday is survivable or structural, and it takes about twenty minutes to work out.
Prefer to run the numbers here?
The Break-Even calculator does the same math in your browser - no download, no spreadsheet.
Open the calculatorFrequently asked questions
How do I calculate break-even for a restaurant?
Divide total fixed costs by your contribution margin per cover, where contribution margin is average check minus variable cost per cover. The result is the number of covers you need to cover fixed costs. The template converts that into a daily target.
What counts as a fixed cost in a restaurant?
Rent, insurance, salaried management, software subscriptions, loan payments and base utilities. The one operators most often misfile is salaried management - it feels like labor, but it does not scale with covers, so it belongs in fixed.
Should I run break-even per location?
Yes. Rent and salaried cover differ enough between sites that a blended number is close to meaningless. Per-location break-even often reveals that one site is subsidising another.
Sources
- National Restaurant Association: Restaurant operators kept food-cost ratios in check in 2024 (2025). Full-service food and non-alcohol beverage costs ran a median of 32.0% of sales in 2024.
- Lightspeed: The Complete Guide to Restaurant Profit Margins (2025). Healthy food cost runs 28-35%; full-service net margins typically 2-6%; catering ~7-8%.
The template shows you the number. It won't fix it.
If the number comes back worse than you expected, that is a system problem, not a spreadsheet problem. Book a free Ops Screen and I'll tell you where it is leaking. If I don't find the leak, you owe nothing.
Book the free Ops Screen →Read next
- Why Is My Restaurant Not Making Money? The 5 Places the System Is Lying to You
- Why Do Restaurants Fail? An Operator's Honest List
- What's the Real Cost of Managing Multiple Restaurant Locations?