Dim Sum Cooking Classes Break Even: $355K Monthly Target

Fixed costs $21.5K/mo Core monthly base

Contribution margin 81% After variable costs

Break-even revenue $26.5K/mo Monthly revenue target

Break-even timing Month 14 Model break-even point

Break-even calculator

Test whether monthly class sales cover ingredient, marketing, and studio overhead.

Lean Base Full

Monthly revenue Revenue is the cash you have to cover fixed costs after direct spending. $ Low sales High sales Variable expenses Use direct costs that rise with each class, like food, ads, and card fees. $ Light costs Heavy costs

Money available to cover fixed costs $103,902 $124,583 revenue - $20,681 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly overhead your margin must cover. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which dim sum class expenses are fixed, and which move with seats and bookings?

Cost classification

Break-even is only useful if each expense behaves the right way in the model. In the first year, revenue-linked costs total 19% of sales, while rent, chef salary, and core overhead must be covered even on slow class days.

Expense	Cost	Break-Even Treatment	Common Mistake
Studio Rent	Fixed	Treat the $6,500 monthly rent as overhead that must be covered before profit.	Spreading rent only across sold-out classes.
Cleaning Services	Semi-fixed	Use the $1,200 monthly base, then add capacity steps if extra sessions require more cleaning.	Assuming cleaning stays flat at higher class volume.
Food Ingredients	Variable	Apply 8% of first-year revenue because ingredient use rises with seats sold.	Treating ingredients like a fixed kitchen budget.
Kitchen Supplies and Disposables	Variable	Apply 2% of first-year revenue for items used per student and session.	Ignoring small per-seat items that add up.
Marketing and Social Media Ads	Variable	Model at 6% of first-year revenue as sales activity scales with bookings.	Locking ads at one monthly amount during growth.
Payment Processing Fees	Variable	Apply 3% of revenue because fees move with paid bookings.	Leaving card fees out of contribution margin.
Head Dim Sum Chef	Fixed	Treat the $85,000 annual salary as monthly labor overhead across the planning range.	Allocating chef pay only to completed classes.
Assistant Instructor Staffing	Semi-fixed	Step staffing up when capacity rises, moving from 1.0 FTE to 2.0 FTE in the third year.	Modeling labor as perfectly variable per booking.

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

Scenario table

Lean Year 1 is still below break-even because fixed labor and studio overhead outpace the lower monthly revenue. Base Year 2 clears break-even by Month 14, and full Year 3 gives the best cushion.

Planning assumptions only; actual results can move with fill, pricing, and fixed-cost control.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$31.8k	$6.0k	$28.7k	81.0%	-$3.0k	Still below break-even; the opening mix needs more fill.
Base weekly schedule case	$60.1k	$10.7k	$30.2k	82.2%	$19.2k	Break-even clears in Month 14, so the weekly schedule is repeatable.
Full mixed-program case	$124.6k	$20.7k	$36.0k	83.4%	$67.9k	This has the best cushion; higher fill and pricing cover the fixed base.

What pushes this dim sum cooking class business below break-even?

Stress test

The base case still runs close to the line, so small drops in occupancy or bigger cost spikes can widen the gap fast. If attendance slips below 45% or payroll and food costs rise, the studio can fall back into monthly loss.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the base case.	$355k	$37k gap	Thin cushion, so one soft month matters.
Revenue shortfall	Monthly revenue falls 10% to about $286k.	$355k	$69k gap	Weak corporate bookings and low turnout hit fast.
Fixed-cost pressure	Monthly fixed costs rise 10% to about $316k.	$390k	$72k gap	Rent, payroll, and cleaning can push it over.
Margin pressure	Variable expenses rise from 19% to 24% of revenue.	$378k	$60k gap	Food input spikes and ad waste raise the bar.
Combined pressure	Revenue falls to about $286k, variable expenses rise to 24%, and fixed costs rise to about $316k.	$385k	$99k gap	Low occupancy plus higher costs can create a cash drain.

Can this dim sum studio clear break-even before you sign the lease?

Founder checklist

Before you sign the lease or buy bulk stock, prove the class mix can cover the current cost base. Here’s the quick math: about $35.5K in monthly revenue covers the model, so demand, space, and staffing need to work together from day one.

1Demand Proof$35.5K/mo

Verify 22 billable days and 45% launch occupancy can support public workshops at $120, corporate events at $180, and masterclasses at $250 before you commit.

2Fixed Load$9.4K/mo

Check that rent, utilities, software, insurance, cleaning, and admin stay near this level before payroll, because a bigger base pushes break-even out.

3Margin Mix81% CM

Price ingredients against the 8% food assumption and 2% disposables, plus 6% marketing and 3% payment fees, so you keep the contribution margin the model needs.

4Staffing Ramp$232K Y1

Keep Year 1 staffing at one chef, one manager, one assistant instructor, and one kitchen porter, and delay extra FTE until occupancy is strong enough to cover the load.

5Reserve Runway$646K

Hold enough cash to reach Month 13, because the model bottoms there and only reaches break-even in Month 14.

6Launch GatePrepaid only

Require prepaid bookings, insurance, and cancellation rules before paid ads scale, so launch demand does not turn into refund risk and wasted ad spend.