How to use a Restaurant Break-Even Calculator
Total Fixed Costs: These are costs that do not change with the number of guests or the level of sales. Examples include rent, salaries of permanent staff, insurance, and utilities. These costs remain constant regardless of how many guests the restaurant serves.
Average Revenue Per Guest: This is the average amount of money each guest spends at the restaurant. It includes the total sales revenue divided by the number of guests. For example, if the total sales are $10,000 and 500 guests visited, the average revenue per guest would be $20.
Variable Cost: These are costs that change with the number of guests. Examples include the cost of ingredients, beverages, and other supplies that vary depending on the number of guests served. If these costs total $2,000 for 500 guests, the variable cost per guest would be $4.
When to use a Break-Even Calculator?
Starting up a new restaurant
Adjusting business strategies
Evaluating new menu items
Planning for an expansion
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