How to Calculate Breakeven Point for Your Restaurant in India
Your restaurant breakeven point is where total revenue equals total costs—no profit, no loss. Knowing this number helps you set realistic sales targets and pricing strategies. The formula is simple: divide your fixed costs by your contribution margin percentage.
Understanding Your Costs
Fixed costs include rent (₹40,000-₹1,50,000/month depending on location), salaries, licenses, and utilities. Variable costs change with sales—ingredients, packaging, delivery charges. If your dish costs ₹120 to make and sells for ₹300, your contribution margin is ₹180 (60%).
Quick Calculation Example
Say your monthly fixed costs are ₹2,00,000 and average contribution margin is 60%. Your breakeven = ₹2,00,000 ÷ 0.60 = ₹3,33,333 in monthly sales. That's roughly ₹11,111 daily or 37 orders at ₹300 average bill value.
Review your breakeven point every quarter. Rising ingredient costs or rent can shift this number. Small efficiencies—like switching to QR menus with DineCard (dinecard.in) at ₹99/month—help reduce fixed costs and improve profitability.
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