The F&B Break-Even Checklist
Every cost and assumption to validate before you sign the lease. Print it, walk the numbers, and don’t open until each box is honestly checked.
1. One-time start-up costs
The capital you burn before you sell a single item. Underestimating this is the #1 way founders run out of cash in month 3.
- Lease deposit + first/last month rent (often 3–6 months upfront)
- Fit-out / renovation (kitchen, seating, plumbing, electrical)
- Kitchen equipment (espresso machine, ovens, fridges, POS)
- Furniture, signage, and branding
- Licenses, permits, and health inspections
- Initial inventory + opening-week stock
- Pre-opening payroll + training
- Working-capital buffer (3–6 months of fixed costs)
2. Fixed monthly costs
These hit whether you sell $0 or $50k. Your break-even is mostly decided here.
- Rent + service charge / CAM fees
- Base payroll (salaried staff + your own draw)
- Utilities (power is brutal for kitchens — model it high)
- Insurance (liability, property, workers’ comp)
- Software / POS / delivery-platform subscriptions
- Loan or equipment-financing repayments
- Accounting, marketing retainer, waste collection
3. Variable (per-sale) costs
Scale with revenue. Small percentage errors here compound fast — 3 points on food cost can flip a profitable month into a loss.
- Cost of goods sold (food + beverage) — target % by model
- Hourly / shift labor that flexes with covers
- Payment-processing + delivery-platform commissions (15–30%)
- Packaging + disposables (heavy for takeaway/ghost kitchens)
- Loyalty discounts, promos, and comps
4. Revenue assumptions to pressure-test
Optimism lives here. Validate every number against the real space and location, not a hope.
- Average check / ticket size (realistic, not best-case)
- Covers per day × seats × turns — does the room physically fit it?
- Day-part split (weekday vs weekend, AM vs PM)
- Realistic ramp: most F&B takes 3–6 months to hit steady-state
- Seasonality dips (and can you survive the low months?)
5. The break-even questions
If you can’t answer these from memory, you’re not ready to sign.
- What monthly revenue covers all fixed + variable costs? (break-even)
- How many covers/day does that require?
- How many months of runway until break-even — and is it funded?
- What’s your contribution margin per sale?
- At what point does this concept simply not work, and what’s plan B?
Don’t want to run all this by hand?
Validator does every calculation above in about 5 minutes — free.
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