Break-even
Example: A Silver Spring taqueria works backward from its fixed costs and finds it needs 95 covers a day to break even, so any Tuesday under that count isn't just slow, it's a day where every plate served still lost money.
where revenue equals costs
The sales volume at which revenue equals total costs. Below break-even, every cover loses money. Above break-even, every cover is profit. Expressed variously as "break-even sales," "break-even covers," or "break-even days."
Why it matters
Knowing the number below which you're losing money is the difference between "it was a slow week" and "it was a losing week." The Break-Even Covers calculator works backward from your fixed costs to show the covers/day floor.
Frequently asked
What is break-even?
Break-even is the sales volume at which revenue equals total costs. Below break-even, every cover loses money. Above break-even, every cover is profit. Expressed variously as "break-even sales," "break-even covers," or "break-even days."
Why does break-even matter for a restaurant?
Knowing the number below which you're losing money is the difference between "it was a slow week" and "it was a losing week." The Break-Even Covers calculator works backward from your fixed costs to show the covers/day floor.
Browse all
149 terms.
Plain-English definitions for every term in your audit, organized by category.