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Break Even Point Analysis

This document outlines formulas for calculating break even point and profitability for a restaurant. It provides equations to determine: 1) the average food and beverage revenue per guest needed to break even, 2) the average guest revenue needed to make a targeted profit percentage, and 3) the average guest revenue or number of guests needed to break even while achieving profit goals and planned food purchase levels. The document uses variables like guest count, food purchases, other income/expenses, and service charges in the equations.

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orientalhospitality
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298 views2 pages

Break Even Point Analysis

This document outlines formulas for calculating break even point and profitability for a restaurant. It provides equations to determine: 1) the average food and beverage revenue per guest needed to break even, 2) the average guest revenue needed to make a targeted profit percentage, and 3) the average guest revenue or number of guests needed to break even while achieving profit goals and planned food purchase levels. The document uses variables like guest count, food purchases, other income/expenses, and service charges in the equations.

Uploaded by

orientalhospitality
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC or read online on Scribd
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Break Even Point Analysis

G = Guest
P = Total F&B Purchase ( 32 % )
I = Other Income
PA = Payroll
SC = Service Charge
OE = Other Expense
PR = Profit ( Baht )
NP = Profit % ( 30%)

1. In order to break even, how much is the average


F&B Revenue per guest

P – I + PA + OE
PR =
G + ( SC % x G )

2. In order to make profit ( % ), how much average


guest revenue do we need?

P – I + PA + OE
PR =
G ( 1 + SC % - NP 30% )

3. In order to make profit % and keep planned F&B purchase,


how much average guest revenue do we need?

PA + OE - I
PR =
G ( 1 + SC % - 30 % - 32 % )
4. In order to break even ( break-even point ) including profit and
Covering all F&B expense, how many guests do we need ?

PP = Planned profit: 600.- Baht

P – I + PA + OE
G=
PP + ( SC % x NP )

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