Frozen Yogurt Shop Break-Even Analysis: About $62K Monthly Sales

Fixed costs $12.45K/mo Monthly cost base

Contribution margin 80.5% After variable costs

Break-even revenue $15.5K/mo Revenue to cover

Break-even timing Month 3 Launch ramp point

Break-even calculator

Compare monthly revenue, variable expenses, and fixed costs to see when a frozen yogurt shop breaks even.

Lean Base Full

Monthly revenue Revenue sets the margin pool that has to cover fixed costs. $ Low sales High sales Variable expenses Direct costs like supplies, card fees, and promo spend rise with sales. $ Light costs Heavy costs

Money available to cover fixed costs $87,745 $109,000 revenue - $21,255 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base break-even has to clear. $ Low overhead High overhead

Break-even chart Revenue Total costs

Which frozen yogurt shop expenses are fixed, variable, semi-variable, or semi-fixed?

Cost classification

If rent, base labor, and utility minimums are lumped into one bucket, break-even will look cleaner than cash feels. Classify each expense by behavior so the monthly target covers true fixed load and sales-linked costs.

Expense	Cost	Break-Even Treatment	Common Mistake
Rent ($8,000/month)	Fixed	Include the full monthly rent before calculating sales needed to break even.	Spreading rent across orders and hiding the monthly cash hurdle.
Insurance ($800/month)	Fixed	Carry as a stable monthly operating expense in the break-even base.	Dropping it from break-even because it is not tied to daily traffic.
Internet and phone ($200/month)	Fixed	Treat as required store infrastructure that must be covered every month.	Modeling it as a card-processing or per-order charge.
Licenses and permits ($500/month)	Fixed	Include as recurring compliance overhead for the full operating period.	Treating recurring permit expense like a one-time opening item.
Yogurt mix, toppings, cups, and spoons	Variable	Model as rising with orders and sales volume.	Using one flat monthly supply number even when traffic grows.
Payment processing fees	Variable	Apply to card sales; the first-year assumption is 2.5% of revenue.	Forgetting fees when average order value rises.
Utilities ($1,500/month)	Semi-variable	Keep a base utility load, then add usage for machines, refrigeration, and traffic.	Treating the full bill as fixed during busy months.
Base payroll coverage	Semi-fixed	Add coverage in steps as open hours, shifts, or service volume increase.	Treating all labor as variable when the shop still needs minimum coverage during slow hours.

How does break-even change across lean, base, and full frozen yogurt shop formats?

Scenario table

Break-even moves with traffic, ticket size, and payroll. The lean case has the tightest cushion, the base case is the cleanest planning point, and the full case gives the widest profit buffer.

Planning case figures use model inputs, so local demand, staffing, and mix can move break-even up or down.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean shop format	$136.4k	$26.6k	$50.3k	80.5%	$59.5k	Clears break-even, but the cushion is thin.
Base neighborhood format	$231.7k	$40.1k	$57.5k	82.7%	$134.2k	Break-even is covered with room for normal swings.
Full mature format	$344.4k	$52.0k	$66.1k	84.9%	$226.3k	Gives the widest cushion if demand stays strong.

What breaks the break-even plan for a frozen yogurt shop?

Stress test

The base plan clears break-even, but the cushion gets thin fast if weekday traffic softens or costs rise. A 10% sales drop, a 10% overhead jump, or a 5-point margin hit all push the model closer to the edge.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change from the Year 1 plan.	$76,900	$59,500 cushion	The plan clears fixed costs, but the buffer is only moderate.
Revenue shortfall	Revenue falls 10% from the base plan.	$76,900	$48,500 cushion	Weak weekday traffic cuts the cushion fast.
Fixed-cost pressure	Fixed costs rise 10% from rent and payroll.	$68,700	$67,700 cushion	Higher rent or staffing lifts the break-even floor.
Margin pressure	Variable expenses rise 5 points to 24.5%.	$66,600	$69,800 cushion	Dairy, toppings, and card fees can shave margin.
Combined pressure	Revenue falls 20%, variable expenses rise 5 points, and fixed costs rise 10%.	$82,000	$27,100 cushion	This is the tightest case, and cash gets thin.

Can this frozen yogurt shop hit break-even before you sign the lease?

Founder checklist

Treat the lease, staffing plan, and equipment order as one test. If the site cannot support about $62.5K in monthly sales, the $8K rent, the $37.8K payroll base, and the Year 1 19.5% variable load, break-even gets fragile fast.

1Foot Traffic$62.5K/mo

Verify nearby traffic and basket size can support the modeled break-even revenue before you commit to the site.

2Lease Cost$8.0K/mo

Confirm rent stays near $8,000 a month so fixed costs do not outrun the first sales ramp.

3Menu Margin19.5% load

Price yogurt, toppings, cups, spoons, and payment fees together so the Year 1 variable load stays inside plan.

4Utilities$1.5K/mo

Check power, plumbing, and cooling capacity before buildout so utility needs do not push the modeled monthly cost higher.

5Staffing Base$37.8K/mo

Map minimum daily staffing to the payroll base so service stays open without overhiring.

6Cash ReserveMonth 6, $700K

Keep launch cash separate from operating break-even, because the model still needs $700,000 of minimum cash in Month 6.