Pakistani Restaurant Break-Even Analysis: About $18K Monthly Sales

Fixed costs $14.6K Monthly overhead

Contribution margin 81% After variable costs

Break-even revenue $18.1K Monthly sales target

Break-even timing Month 3 Launch ramp point

Break-even calculator

Use this calculator to test monthly revenue, variable expenses, and fixed costs against break-even for a Pakistani restaurant.

Lean Base Full

Monthly revenue Revenue sets the pool that has to cover direct costs and then fixed overhead. $ Low sales High sales Variable expenses These are direct costs that move with sales, like food, packaging, card fees, and fuel. $ Low direct cost High direct cost

Money available to cover fixed costs $26,500 $33,000 revenue - $6,500 variable expenses

Margin ratio

80%

Covers fixed costs

Yes

Fixed monthly costs This is the monthly cost base your contribution margin has to cover. $ Light overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even only works when monthly overhead is split from per-sale pressure. In the first year, every $1 of sales carries 19.5% in listed variable costs before fixed overhead is covered.

Expense	Cost	Break-Even Treatment	Common Mistake
Commissary Kitchen Rent	Fixed	Include $2,000 per month in fixed overhead.	Don’t treat rent as per-order spend.
Food Ingredients	Variable	Apply as 12.0% of revenue in the first year.	Don’t use a flat monthly amount.
Packaging & Supplies	Variable	Apply as 2.0% of revenue in the first year.	Don’t ignore takeout volume.
Credit Card Processing	Variable	Apply as 2.5% of revenue in the first year.	Don’t bury it in software subscriptions.
Propane & Generator Fuel	Variable	Apply as 3.0% of revenue in the first year.	Don’t treat all fuel as fixed.
POS System Subscription	Fixed	Include $100 per month in fixed overhead.	Don’t mix it with processing fees.
Marketing Base Budget	Semi-fixed	Include the $300 monthly base; test campaigns separately.	Don’t assume every campaign is recurring.
Vehicle Maintenance Fund	Semi-variable	Start with the $300 monthly base; add repair lift as volume rises.	Don’t assume repairs stay flat forever.

How does break-even shift from a lean launch to a full Pakistani restaurant format?

Scenario table

Break-even moves with sales volume and the cost base. As revenue rises, rent, payroll, and kitchen overhead get spread over more sales, so the same setup can go from no cushion to a solid buffer.

Planning cases only; taxes, debt service, and one-time capex are excluded.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean launch case	$181K	$35K	$146K	80.5%	-$0.3K	No cushion; one weak week can slip below break-even.
Base first-year plan	$376K	$73K	$146K	80.5%	$156.7K	Break-even is covered, with room for normal swings.
Full-scale year 5 plan	$927K	$148K	$189K	84.0%	$589.7K	Fixed costs are spread over a much bigger sales base.

What breaks the break-even plan if traffic slows or costs jump?

Stress test

The plan clears break-even now, but the cushion shrinks fast if lunch traffic softens, overtime rises, or ingredient and fuel costs jump. A 20% sales dip, a 5-point margin hit, or both can move the business much closer to the line.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	Revenue stays about $376K, with 19.5% variable expenses and $146K fixed costs.	$181K	$157K cushion	Healthy base case, but it still depends on steady lunch traffic and catering.
Revenue shortfall	Monthly revenue falls 20% to about $301K, with costs unchanged.	$181K	$96K cushion	Traffic weakness quickly eats the cushion.
Fixed-cost increase	Fixed costs rise 10% to about $160K, with revenue and margin unchanged.	$199K	$143K cushion	Overtime or rent creep pushes break-even up fast.
Margin pressure	Variable expenses rise 5 points, so margin falls from 80.5% to 75.5%.	$193K	$138K cushion	Ingredient and fuel inflation thin the margin.
Combined pressure	Revenue falls 20%, fixed costs rise 10% to about $160K, and margin falls to 75.5%.	$212K	$67K cushion	This is the tight case where volume and cost shocks hit at once.

What should you verify before buying the truck and hiring the core crew for a Pakistani restaurant?

Founder checklist

If you can’t hold 655 weekly covers at $12 midweek and $15 weekends, the plan won’t clear break-even on time. The core operating load is about $14.6K a month, and the cash trough hits $734K in Month 2, so this is a traffic and cash question, not a menu question.

1Demand path655 covers/wk

Here’s the quick math: 285 midweek covers at $12 and 370 weekend covers at $15 equal about $8.97K a week, so verify the traffic plan can really hold that pace before you count break-even as real.

2Fixed load$14.6K/mo

Verify rent, overhead, and the $130K first-year payroll stay near forecast, because the monthly fixed load is about $14.6K before food or fuel.

3Margin mix80.5% CM

Check that ingredients, packaging, card fees, and propane stay at 19.5% of sales, or the 80.5% contribution margin that makes the model work shrinks fast.

4Crew rampMonth 13

Confirm the owner operator, lead cook, service staff, and part-time event staff can cover opening volume, and only add the assistant cook in Month 13 when the line actually needs it.

5Cash trough$734K

Build cash for the Month 2 trough of $734K, because the $120K truck and other early capex hit before steady revenue does.

6Launch stack$169K capex

Lock halal and core ingredient suppliers before launch, keep packaging and supplies near 2% of sales, and hold the $300 monthly marketing base, because the $169K build only works if service starts clean and stays stocked.