Asian Restaurant Break-Even Analysis: $172K Monthly Sales

Fixed costs $14.0K/mo Overhead base

Contribution margin 81% After variable costs

Break-even revenue $17.2K/mo Sales to cover cost

Break-even timing Month 3 Model reaches breakeven

Break-even calculator

Test monthly revenue against variable expenses and fixed monthly costs to see when this restaurant clears break-even.

Lean Base Full

Monthly revenue Revenue is the cash pulled in each month before direct costs. $ Slow month Peak month Variable expenses These are direct costs that rise with sales, like food, packaging, and promotions. $ Tight costs Higher costs

Money available to cover fixed costs $28,000 $35,000 revenue - $7,000 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly costs the restaurant pays even if sales are soft. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

Which restaurant expenses are fixed, and which move with sales?

Cost classification

Break-even gets shaky when fixed bills and sales-linked charges are mixed together. Classify each line first, so monthly sales targets reflect the real pressure from rent, payroll, food usage, packaging, and channel fees.

Expense	Cost	Break-Even Treatment	Common Mistake
Kiosk Rent	Fixed	Include $4,500 per month before calculating required sales.	Treating rent as flexible after lease signing.
Utilities	Semi-variable	Use the $350 monthly base, then watch usage as traffic rises.	Ignoring usage spikes during busier weeks.
POS System Subscription	Fixed	Include $80 per month as a stable operating bill.	Tying the subscription to order volume.
Cleaning & Maintenance	Semi-variable	Start with the $200 monthly base and adjust for higher foot traffic.	Underestimating cleanup needs in peak periods.
Ingredients	Variable	Model at 7% of first-year sales.	Using menu price instead of actual food usage.
Packaging & Beverage Supplies	Variable	Model at 3% of first-year sales.	Missing takeout packaging in margin math.
Revenue Share Fees	Variable	Apply 4% of sales before contribution margin.	Excluding channel fees from break-even math.
Scheduled Payroll	Semi-fixed	Use $8,333 per month in Year 1, then step up with staffing levels.	Hiring ahead of traffic before demand proves out.

How does break-even shift across lean, base, and full restaurant formats?

Scenario table

Lean uses Year 1 traffic and the lowest staffing load, so break-even is easier to hit but the cushion is thinner. Base and full cases add volume faster than overhead, which widens the gap above break-even.

Planning assumptions only: the model mixes in non-restaurant-style categories, so use these figures as inputs, not as a market guarantee.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$35,078	$6,665	$13,963	81%	$14,450	Revenue is about 2x break-even, so launch has room.
Base demand case	$85,605	$14,813	$18,547	82.7%	$52,241	Strong cushion; demand is proven, so keep labor in line.
Full traffic case	$143,303	$22,355	$23,130	84.4%	$97,818	Best cushion; higher traffic can support heavier staffing.

What breaks the break-even plan if sales slip or costs rise?

Stress test

Base case monthly revenue is about $35,078 against $13,963 of fixed costs and a 19% variable load, so the plan has room. A 20% sales drop, a 5-point margin hit, or 15% higher fixed costs can shrink that cushion fast.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$17,239	$17,839 cushion	Healthy base cushion, but not wide.
Revenue shortfall	Revenue falls 20% to about $28,063 per month.	$17,239	$10,825 cushion	Weak weekday traffic starts to matter.
Fixed-cost pressure	Fixed costs rise 15% to about $16,058 per month.	$19,825	$15,253 cushion	Higher rent or staffing cuts into cover.
Margin pressure	Variable expense load rises 5 points, cutting margin to 76%.	$18,373	$16,705 cushion	Ingredient inflation or fees raise the floor.
Combined pressure	Revenue is 20% lower, margin falls to 76%, and fixed costs rise 15%.	$21,129	$6,934 cushion	Small shocks stack fast and narrow the buffer.

What should you verify before you sign the lease, buy equipment, and lock payroll for this Asian restaurant?

Founder checklist

Test the model against the $17,239 monthly break-even revenue before you commit. If real covers, menu margin, and cash reserves do not clear that bar, the Month 3 break-even target gets shaky fast.

1Traffic Proof710/wk

Compare planned covers to the Year 1 total of 710 per week, because weak traffic at $9.50 midweek and $12.50 on weekends will miss break-even.

2Lease Load$13.96K/mo

Keep the fixed-cost base at $13,963 a month, so rent and overhead do not push the required monthly sales above the model’s break-even line.

3Menu Margin81% CM

Hold ingredients near 7% of revenue, supplies near 3%, marketing near 5%, and revenue-share fees at 4% so contribution stays around 81%.

4Staffing Ramp$100K payroll

Build schedules from the 710 weekly covers, not hope, because Year 1 wages run about $100,000 and overstaffing will eat the margin fast.

5Cash Cushion$861K M2

Fund the Month 2 minimum cash point of $861,000, since the model does not reach break-even until Month 3 and the early ramp needs a deep reserve.

6Build-Out Ready$71.5K capex

Confirm the $71,500 build-out, equipment, inventory, signage, display cases, refrigeration, permits, and POS setup are funded before you sign anything.