Break Even Sales Number

Restaurants live and die by their daily break even sales number. This is the number that every restaurant must make in daily dollar sales in order to pay its expenses and break even. What makes the restaurant business so challenging is that there are so many factors out of the operator’s control that can affect being able to meet the daily break even sales number.

Uncontrollable Factors

1. Weather

   Heavy rain, cold weather and snowstorms affect the number of people who come out to dine.

2. Equipment Malfunctions

   Even if you have good equipment and keep it well maintained, problems occur. Air conditioning systems, which have to cool large areas continuously, are notorious for breaking down in very hot weather. Compressors malfunction and coolant leaks. People will not dine in uncomfortable conditions. They’re coming to be entertained and served, and they’re paying with their hard earned money.

3. Unforeseen Circumstances

   Terrorist events and major breaking news stories affect customer numbers. When the O.J. Simpson verdict was announced, our restaurant was empty, even though it was a beautiful, sunny day in Philadelphia.

You’re probably saying to yourself, “Well how often can these things possibly happen? It won’t affect my business much. I’m a pretty lucky person.” Well, think again.

Every time the daily break even sales number is missed, it means that the next day’s break even number must be even higher, and if the number isn’t made during an expected big business period like a Friday or Saturday night, it makes it that much harder to meet your monthly break even.

Remember, there's a set number of weekend nights in a month, and if there’s a bad snowstorm or another unforeseen circumstance during one of those weekends, sales will be behind for the whole month, and it’s almost impossible to generate them any other way.