Dim Sum Restaurant Break-Even Analysis: $49K Monthly Sales

Fixed costs $41.4K/mo Core monthly overhead

Contribution margin 83% After variable costs

Break-even revenue $49.9K/mo Monthly target

Break-even timing Month 3 Launch break-even

Break-even calculator

Test whether monthly sales can cover variable costs and the fixed cost base.

Lean Base Full

Monthly revenue Use the monthly top line that funds fixed costs after direct costs. $ Slow month Busy month Variable expenses Direct costs rise with sales, like food, packaging, and fees. $ Tight costs Higher costs

Money available to cover fixed costs $72,210 $87,000 revenue - $14,790 variable expenses

Margin ratio

83%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base the margin must cover. $ Lower base Higher base

Break-even chart Revenue Total costs

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

Cost classification

Break-even is only reliable if rent, staffing, ingredients, packaging, and fees sit in the right buckets. Misclassifying order-linked items as fixed can make Month 3 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Rent	Fixed	Carry $7,500 per month in overhead from Month 1 through Month 60, regardless of covers.	Lowering rent when weekday covers miss plan.
Business Insurance	Fixed	Include $300 per month as required overhead before any contribution margin covers profit.	Leaving small fixed bills out of break-even.
Food & Beverage Costs	Variable	Model as sales-linked; the first-year assumption is 10.0% of revenue and should rise with covers and order value.	Treating ingredients and waste as fixed.
Packaging Supplies	Variable	Model as order-linked; the first-year assumption is 2.5% of revenue, tied mainly to takeout and online orders.	Ignoring packaging when online mix grows.
Online Platform Fees	Variable	Apply as a sales-linked fee; the first-year assumption is 1.5% of revenue, moving with online order volume.	Treating online fees as a flat software bill.
Utilities	Semi-variable	Start with the $1,500 monthly base, then expect usage pressure as steamers, refrigeration, and service hours increase.	Holding utilities flat at higher cover counts.
Cleaning Services	Semi-variable	Use the $800 monthly base, but scale cleaning needs as dining traffic, dish volume, and kitchen prep rise.	Forgetting extra cleaning after busy weekends.
Line Cook Labor	Semi-fixed	Add labor in steps: 2.0 FTE in the first year, rising to 4.0 FTE by the mature year as volume grows.	Treating prep labor as fixed at all volumes.

How does break-even change from a lean launch to a full-service run rate?

Scenario table

As traffic and weekend checks rise, revenue grows faster than costs, so break-even stays well below sales. The base case is the cleanest read on the operating cushion once the dining room is running normally.

Planning view only: these are model assumptions, not guaranteed results.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean case (Year 1)	$106k	$18k	$41k	83.0%	$47k	Sales sit above break-even, but the cushion is still the thinnest here.
Base case (Year 3)	$188k	$27k	$55k	85.8%	$106k	Main operating view: revenue is comfortably above break-even.
Full-service case (Year 5)	$282k	$32k	$63k	88.6%	$187k	Strongest cushion; break-even risk is lowest unless costs jump.

What breaks the break-even plan if traffic, labor, or food costs slip?

Stress test

Base Year 1 revenue of $1.008M clears a $493k break-even point with a $515k cushion. A 10% sales dip or a 5-point margin hit still works, but the combined case cuts operating profit to about $258k.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$493k	$515k cushion	Base plan clears break-even with room to spare.
Revenue shortfall	Revenue falls 10% to about $908k.	$493k	$415k cushion	Slower covers still work, but the buffer shrinks fast.
Fixed-cost pressure	Fixed costs rise 10%.	$542k	$466k cushion	Rent, utilities, or wage creep lift the bar quickly.
Margin pressure	Variable expenses rise 5 points to 22%.	$524k	$484k cushion	Spoilage, overtime, and online fees push break-even up.
Combined pressure	Revenue falls 10%, fixed costs rise 10%, and variable expenses rise to 22%.	$577k	$330k cushion	Still above break-even, but profit drops to about $258k.

What should the founder verify before signing the lease?

Founder checklist

Before you sign the lease, test whether the room, crew, and menu can really support the $492k monthly break-even point. At the current Year 1 cover and ticket assumptions, the base plan is far below that bar, so the site needs stronger demand than the model shows.

1Cover Plan1,110/wk

Year 1 totals about 1,110 covers a week, so verify the $18 weekday and $25 weekend tickets can really build enough revenue to hit the $492k monthly break-even target.

2Fixed Overhead$12.2K/mo

Check that rent and the other fixed costs stay at about $12.2k a month before payroll, because that is the cost floor the room must beat.

3Menu Margin83% CM

Food, packaging, marketing, and online fees total 17% of sales in Year 1, so the menu and channel mix must hold an 83% contribution margin before labor.

4Staff Load$29.2K/mo

Year 1 payroll is about $29.2k a month across 8.0 FTE, so test that batch prep, service, dishwashing, and management can run at that size.

5Cash Floor$718K

The model needs a $718k minimum cash balance in Month 2, so keep opening spend and ramp losses inside that cushion.

6Launch Build$328K

Confirm the kitchen buildout, from steam gear to hood, refrigeration, and prep storage, is ready before you lock the $328k capex, and keep that one-time spend separate from break-even.