The Menu Tools Breakeven Analysis area provides you with a functional tool to determine your necessary minimum daily revenue and maximum expenses.
Every successful business needs to know what these basic "breakeven" figures are to successfully manage their bottom line. Menu Tools also provides you with valuable definitions, benchmarks and Canadian Operating Ratios for your information.
The Menu Tools Breakeven Analysis tool is a quick and simple way to determine minimum sales and maximum expenses to reach your financial breakeven. By benchmarking expenses as compared to revenues, the breakeven analysis will calculate for you the necessary sales, the necessary average check amount and number of customers required per day to pay your bills. This is important information that every business needs to know but few take the time to understand. Menu Tools has made it easy for you with this Breakeven Analysis template and offers ideas on how to adjust and improve your bottom line
The Breakeven Analysis takes into account Prime costs (food, labour & beverage), Occupancy Costs (rent, utilities etc.) along with fixed and variable Miscellaneous costs and compares them to your revenues.
| Use this tool to: | Analyze an existing business |
| Help decide on the feasibility of a new business |
TopUsing a dollar revenue as the example, the dollar revenue would diminish quickly given the following example:
| Budget | |||
| Food service dollar sale | $1.00 | or | 100 % |
| Minus the food cost | .30 | or | 30 % |
| Sub total balance | .70 | or | 70 % |
| Minus the labour cost | .29 | or | 29 % |
| Sub total balance | .41 | or | 41 % |
| Minus occupancy cost | .10 | or | 10% |
| Sub total balance | .31 | or | 31 % |
| And so on | |||
See CFRA operating ratio as a national average to benchmark against.
The Canadian Foodservices and Restaurant association (CRFA) have provided our site with their most recent national average operating ratios. The information reflected in the Canadian Operating Ratio Charts represents an average mix of operations (Fast Food & Full Service). For further detailed information on your specific region and service type of operation, click on the CRFA logo for more answers.
Menu Tools’ is a proud member of the CRFA and is extremely appreciative for the credible information supplied for our site visitors. The benchmarking information provided by CRFA allows our subscribers to compare their data to the Breakeven Template provided on Menu Tools’ site for your comparison use.
