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Restaurant Break Even Analysis


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.

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                             BREAK EVEN ANALYSIS

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                      $            -


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                           $            -

  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

  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


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

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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