How much you need to sell each month, and how many bills a day, before the restaurant covers its fixed costs and starts making money.
Fixed costs are what you pay whatever you sell: rent, salaries, utilities, loan instalments, software. Variable costs rise with every bill: ingredients, packaging, card and app fees.
Break-even sales = fixed costs ÷ (1 − variable costs as a % of sales). Bills needed = break-even sales ÷ average bill before tax.
Fixed costs of 3,00,000 a month and variable costs of 40% of sales mean every 100 of sales leaves 60 towards the fixed costs. Break-even sales are 3,00,000 ÷ 0.60 = 5,00,000 a month. With an average bill of 500 before tax, that is 1,000 bills a month, or about 39 a day over 26 days open.
Run it before signing a lease, when rent or salaries change, and when you are deciding on a discount: a 10% discount on every bill raises the number of bills you need by far more than 10%.
EasyBills costs every dish from its recipe, tracks stock as plates are sold, and keeps real books, so food cost, margin and profit are always up to date.
Break-even sales = fixed costs ÷ (1 − variable costs as a percentage of sales). Divide by your average bill before tax for the number of bills you need, and by the days you are open for bills a day.
Fixed: rent, salaries of permanent staff, utilities, loan instalments, insurance, software. Variable: ingredients (your food cost), packaging, card and UPI fees, delivery-app commission, and any staff paid per shift or per order.
A discount comes straight out of the part of each bill that pays for fixed costs, while ingredients cost the same. If 60 of every 100 covers fixed costs, a 10 discount leaves 50, so you need 20% more bills, not 10%.