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This Restaurant Break Even Analysis will help a restaurant determine how much they have to sell during a specific time period to break even. Any amount sold in excess of the break even point is profit. A break even analysis can be conducted for weekly, monthly, quarterly, and yearly periods. The example provided is based on a yearly time period, but can be customized to fit the user’s specific needs. In addition, “Sheet 2” of the excel document contains a filled out example that will help guide users. This break even analysis is ideal for individuals or existing restaurants that want to determine how much they have to sell to break even and eventually turn a profit.
[RESTAURANT NAME] BREAK EVEN ANALYSIS [DATE] TOTAL YEARLY SALES $ - TIP: SHEET 2 BELOW H FIXED COSTS Yearly Cost FILLED OUT EXAMPLE TIP: HOVER OVER EAC Rent/Mortgage Payments - FOR MORE INSTRUCTI Property Taxes - Insurance - Loan Payments - Equipment Payments - Licenses - Employee Salaries - Other Fixed Costs - Total Fixed Costs $ - VARIABLE COSTS Cost of Food Sold - Cost of Alcohol Sold - Advertising and Marketing - Payroll Taxes - Sales Taxes - Utilities - Repairs and Maintenance - Accounting and Legal Costs - Employee Bonuses - Hourly Employee Wages - Operating Expenses - Other Variable Costs - Total Variable Costs $ - Variable Cost Percentage 0% BREAK EVEN POINT $ - GROSS PROFIT $ - TIP: SHEET 2 BELOW HAS A FILLED OUT EXAMPLE TIP: HOVER OVER EACH CELL FOR MORE INSTRUCTIONS 1) A Break Even Analysis can help a restaurant determine how much they have to sell to "break even" will be considered profit. This analysis can help a company determine whether opening a new restaura break even point and how to price items to effectively reach the break even point. 2) A Break Even Analysis can be conducted over a certain time period. For example purposes, this anal restaurant can select the time period they want the Break Even Analysis to cover. It can be weekly, m must ensure that they use the same time period for the entire analysis. They cannot switch back and 3) The example shown is based on a fictional restaurant named "Lucy's Steakhouse" and uses a yearly 4) Lucy's Steakhouse has a yearly sales figure of $150,000, fixed costs of $51,600, and variable costs at 5) The Variable Cost Percentage under cell D56 is the total yearly sales divided by the total variable co better. 6) The break even point is fixed costs divided by one (1) minus the variable cost percentage. 7) The gross profit is the total yearly sales minus the break even point which specifies how much pro Lucy's Steakhouse BREAK EVEN ANALYSIS April 25, 2014 TOTAL YEARLY SALES $ 150,000.00 FIXED COSTS Yearly Cost Rent/Mortgage Payments $ 15,000.00 Property Taxes $ 1,200.00 Insurance $ 2,000.00 Loan Payments $ 4,000.00 Equipment Payments $ 2,000.00 Licenses $ 1,400.00 Employee Salaries $ 25,000.00 Other Fixed Costs $ 1,000.00 Total Fixed Costs $ 51,600.00 VARIABLE COSTS Cost of Food Sold $ 5,500.00 Cost of Alcohol Sold $ 1,200.00 Advertising and Marketing $ 2,000.00 Payroll Taxes $ 800.00 Sales Taxes $ 8,000.00 Utilities $ 3,500.00 Repairs and Maintenance $ 2,400.00 Accounting and Legal Costs $ 1,200.00 Employee Bonuses $ 2,000.00 Hourly Employee Wages $ 20,000.00 Operating Expenses $ 5,000.00 Other Variable Costs $ 2,300.00 Total Variable Costs $ 53,900.00 Variable Cost Percentage 36% BREAK EVEN POINT $ 80,541.10 GROSS PROFIT $ 69,458.90 e to sell to "break even". Any amount sold in excess of the break even point opening a new restaurant is viable or for existing ventures to determine their point. mple purposes, this analysis is conducted over a yearly period. But the ver. It can be weekly, monthly, quarterly or yearly. However, the restaurant cannot switch back and forth between different time periods. ouse" and uses a yearly time period throughout the analysis. 00, and variable costs at $53,900. d by the total variable costs. The lower the variable cost percentage, the ost percentage. specifies how much profit the restaurant will have with the figures provided.
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