How restaurant costs change required sales and orders
Divide the monthly costs you enter by the amount each order leaves after its variable costs. That gives the monthly orders needed to cover those costs under your assumptions.
Work from the part of an order that covers monthly costs
Fictional example: average order $20, food costs 30% of sales, and other variable costs $1 per order.
$20 × (1 − 30%) − $1 = $13 contribution per order.
“Contribution” means the money left from an order toward the monthly costs entered. It is not profit: those monthly costs still need to be covered.
| Step | Calculation | Result |
|---|---|---|
| Monthly orders needed | $26,000 ÷ $13 | 2,000 |
| Monthly sales needed | 2,000 × $20 | $40,000 |
| Average operating days per month | 6 × 52 ÷ 12 | 26 |
| Daily orders needed | 2,000 ÷ 26 | 77, rounded upward |
The monthly fixed-cost input includes $6,000 occupancy, $12,000 staffing, $4,000 owner pay, and $4,000 other operating costs. These amounts are invented, not typical restaurant costs. Keep actual costs in the right category and count each once.
Average order and food costs change the workload
Hold monthly fixed costs at $26,000, other variable costs at $1 per order, and days open at six each week.
| Fictional assumption set | Contribution per order | Required monthly sales | Required daily orders |
|---|---|---|---|
| $20 average order; 30% food costs | $13.00 | $40,000 | 77 |
| $18 average order; 30% food costs | $11.60 | $40,345 | 87 |
| $20 average order; 35% food costs | $12.00 | $43,333 | 84 |
Each row changes one assumption from the main estimate. They are separate alternatives, not a forecast range. Holding everything else constant helps you see the effect, but real costs may change together.
Know when a number cannot be shown
- Positive monthly costs with zero or negative contribution: no finite sales volume covers those costs in this model.
- Zero monthly costs with zero contribution: every modeled volume breaks even; there is no unique threshold.
- Zero monthly costs with negative contribution: only zero orders breaks even; each added order loses money in the model.
- Positive contribution with zero monthly costs: the calculated threshold is zero, with a warning to check omitted costs.
- Missing or invalid inputs: complete or correct the entry. A blank is not zero.
Read the result with its limits
Required orders describe the level the assumptions call for. They do not predict arrivals, demand, profit, permits, or property suitability. Staffing may rise in steps as orders increase. Startup spending and available capital are separate from this monthly threshold. Check costs the model does not include.
Sales use the unrounded monthly-order figure. Daily order thresholds round upward. Do not multiply the rounded daily count back into the monthly sales figure and expect an exact match.
Use the same assumptions to compare sites
Read the two-location worked example, then gather your own numbers with the comparison checklist. The checklist works without signup or payment.
Method and update notes
Prepared by Dandely on October 14, 2026. Fictional calculations use the formulas and rounding explained above. Operating days use 52 ÷ 12 weeks per month. This explanation does not establish that a complete accounting break-even point or achievable sales level has been measured.