Cocktail Making Classes Break Even At About $338k Monthly Revenue

Fixed costs $29.9K/mo Run-rate base cost

Contribution margin 80% After variable costs

Break-even revenue $37.4K/mo Monthly target

Break-even timing Month 13 Launch-year break-even

Break-even calculator

Use this to test whether monthly class revenue covers variable costs and fixed overhead.

Lean Base Full

Monthly revenue Revenue is the cash coming in each month from classes and add-ons. $ Slow month Peak month Variable expenses These rise with sales, like ingredients, ads, and booking fees. $ Lean cost High cost

Money available to cover fixed costs $58,700 $72,000 revenue - $13,300 variable expenses

Margin ratio

82%

Covers fixed costs

Yes

Fixed monthly costs These are monthly costs you pay even if bookings slow. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

Which cocktail class expenses are fixed, and which move with bookings?

Cost classification

If rent and salaried coverage get treated like ticket-driven costs, break-even looks safer than it is. Classify costs by behavior so soft booking months don’t hide real overhead.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio Rent	Fixed	Monthly overhead of $5,500 from Month 1 through Month 60.	Treating empty seats as lower rent.
Utilities and High Speed Internet	Semi-variable	Base service runs monthly, with usage pressure from busy class and event nights.	Ignoring high-usage event nights.
Maintenance and Cleaning Services	Semi-fixed	Baseline monthly spend is $1,200, but cleaning may step up as attendance grows.	Assuming it scales one-for-one with guests.
General Manager payroll	Fixed	Salary coverage stays at 1.0 FTE across the forecast.	Calling it variable because the month feels busy.
Lead Mixologist payroll	Semi-fixed	Staffing steps from 1.0 FTE in the first year to 3.0 FTE by Year 5.	Adding staff before booked demand supports it.
Spirit and Ingredient Supplies	Variable	Moves with class revenue, starting at 8.0% in the first year.	Pricing tickets without pour cost.
Digital Marketing and Social Ads	Variable	Tracks revenue, starting at 6.0% in the first year and falling as demand improves.	Assuming paid demand is free.
Booking Platform Commissions	Variable	Moves with sales volume, starting at 3.0% of revenue in the first year.	Pricing seats without ticket fees.

How does break-even change across lean, base, and full cocktail class formats?

Scenario table

Break-even shifts fast as billable days and occupancy rise. The lean case stays under the monthly break-even line, the base case is only slightly ahead, and the full case builds a much wider cushion.

Planning figures only; class mix across public workshops, corporate events, and masterclasses still needs a live model.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$30.0k	$6.0k	$27.0k	80.0%	-$3.0k	Still under break-even; fixed costs feel heavy.
Base Year 1 plan	$37.3k	$7.5k	$27.0k	80.0%	$2.8k	Small cushion; Month 13 is the pivot point.
Full Year 5 scale	$336.0k	$47.7k	$51.4k	85.8%	$236.9k	Clear cushion; fixed-cost dilution improves as classes fill.

What breaks the break-even plan for cocktail making classes?

Stress test

Break-even holds only if occupancy stays strong and costs do not creep. A 10% revenue dip, a 5-point margin hit, or 10% higher fixed costs each get close to the line; together, they create a real cash gap.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change; base case assumes $270k fixed costs and 80% contribution margin.	$338k	$35,000 cushion	The cushion is there, but occupancy still has to hold.
Revenue shortfall	Revenue falls 10% from $373k to about $336k.	$338k	$2,000 gap	A small demand drop wipes out the cushion.
Fixed-cost increase	Fixed costs rise 10% to $297k.	$372k	$1,000 gap	Rent or staffing creep can push break-even above plan revenue.
Margin pressure	Variable expenses rise 5 points, cutting contribution margin to 75%.	$360k	$13,000 cushion	Higher pour cost or paid ads above 6% squeeze the margin fast.
Combined pressure	Revenue drops 10%, variable expenses rise 5 points, and fixed costs rise 10%.	$396k	$60,000 gap	Low occupancy plus cost creep creates a real funding gap.

Can the first-year class mix clear break-even before you lock the studio lease and hire up?

Founder checklist

Check the class mix against the fixed cost stack before you sign anything recurring. If bookings, staffing, and cash don’t hold up in the opening months, the lease and payroll will outrun the launch.

1Demand proof45% occupancy

Verify pre-sold public, corporate, and masterclass seats can reach the Year 1 fill rate, because low occupancy makes the studio expensive fast.

2Fixed load$27.0K/mo

Test whether rent, utilities, insurance, software, cleaning, accounting, and salaried staff stay inside a monthly cost base the booking pace can carry.

3Margin guard80% CM

Lock supplier pricing for spirits, ingredients, consumables, garnishes, ads, and booking fees so contribution margin stays near 80% and break-even does not drift up.

4Staff coverage3.5 FTE

Confirm the general manager, lead mixologist, event coordinator, and studio assistant can cover the planned class mix before you add headcount.

5Cash floor$832K

Do not start buildout unless runway can absorb the Month 2 cash trough, because the fit-out lands before revenue is stable.

6Launch price$95/$150/$180

Pre-sell at the Year 1 seat prices for public workshops, corporate events, and masterclasses, and set refund and reschedule rules before launch.