What is the break-even point? The break-even point is the point at which the total cost of a restaurant’s operations equals its total revenue. When a restaurant is in this position, it means that it is not making a profit or a loss. To make it simple, the break-even point is the amount of products or services a business needs to sell in order to break even.

       The break-even point is a very important concept in restaurant business analysis. Restaurant owners should have a clear understanding of the restaurant’s costs, including the cost of food, labour costs and rental costs…and so on, and then determine the break-even point through detailed cost analysis and revenue forecasting, so that he can better grasp the operating situation and make adjustments accordingly.

       Below is a video showing how to calculate the break-even point: