# Restaurant Break Even Analysis

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```									[RESTAURANT NAME]
BREAK EVEN ANALYSIS
[DATE]

TOTAL YEARLY SALES                     \$            -
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FIXED COSTS                           Yearly Cost            FILLED OUT EXAMPLE

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Rent/Mortgage Payments                 -
FOR MORE INSTRUCTI
Property Taxes                         -
Insurance                              -
Loan Payments                          -
Equipment Payments                     -
Employee Salaries                      -
Other Fixed Costs                      -
Total Fixed Costs                      \$            -

VARIABLE COSTS

Cost of Food Sold                      -
Cost of Alcohol Sold                   -
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                           \$            -
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FILLED OUT EXAMPLE

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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
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
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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