When to use this
Refresh any time fixed costs, variable %, or your average check changes. Most operators re-run monthly and after price or labor changes.
Inputs — what goes where
- Fixed Costs / Week — rent, insurance, base salaries, software, etc.
- Variable % — COGS + hourly labor + delivery commissions + comps as % of sales.
- Average Check — blended ticket including beverages.
- Target Weekly Profit — optional, sets a goal beyond break-even.
- Days / Hours — converts sales into covers/day and covers/hour.
- Seats & Turns — optional capacity check (seats × turns/hour).
Formulas — exactly what the sheet does
- Contribution Margin = 1 − Variable %
- Break-Even Sales (weekly) = Fixed Costs ÷ Contribution Margin
- Target Sales (with profit) = (Fixed Costs + Target Profit) ÷ Contribution Margin
- Covers/Week = Sales ÷ Average Check
- Covers/Day = Covers/Week ÷ Days Open
- Covers/Hour = Covers/Day ÷ Operating Hours/Day
- Capacity/Hour = Seats × Turns/Hour → compare to Covers/Hour (goal)
Tip: If Covers/Hour (goal) exceeds Capacity/Hour, adjust price, margin, seats, or hours.
Walk-through example
Fixed Costs: $8,500 • Variable %: 62% • Average Check: $22 • Days: 7 • Hours: 10
- Contribution Margin = 38%
- Break-Even Sales = $8,500 ÷ 0.38 = $22,368
- Covers/Week = $22,368 ÷ $22 ≈ 1,017
- Covers/Day = 1,017 ÷ 7 ≈ 145
- Covers/Hour = 145 ÷ 10 ≈ 14.5
If your dining room is 60 seats at 1.0 turns/hr (capacity 60), a 14.5 covers/hr goal is within capacity.
Common pitfalls
- Leaving delivery commissions and promos out of Variable %.
- Using peak-hour average check for all dayparts.
- Not updating fixed costs after lease/insurance changes.
- Ignoring capacity — seats × turns sets the ceiling.