Break-Even Point

The level of sales at which total revenue exactly covers total costs, so the restaurant makes neither a profit nor a loss.

Your break-even point is the sales level where you cover every cost and profit is exactly zero. Below it you lose money; above it you make it.

• Break-even sales = fixed costs ÷ (gross margin %)

Knowing your weekly break-even tells you the sales floor you need, which is essential for cash flow forecasting and planning through quiet seasons.