Restaurant Hood Cleaning Break-Even Point: ~$45K/Month

Fixed costs $30.5K/mo Year 1 base

Contribution margin 71% After variable costs

Break-even revenue $42.9K/mo Monthly target

Break-even timing Month 29 Model crossover

Break-even calculator

Test how monthly revenue, direct costs, and overhead shape break-even for a restaurant hood-cleaning service.

Lean Base Full

Monthly revenue Higher monthly revenue gives you more margin to cover fixed overhead. $ Low sales High sales Variable expenses Use direct costs that move with each job, like chemicals, fuel, and commissions. $ Low costs High costs

Money available to cover fixed costs $33,000 $48,000 revenue - $15,000 variable expenses

Margin ratio

69%

Covers fixed costs

Yes

Fixed monthly costs These are the monthly overhead items you pay even before the next job starts. $ Lean overhead Heavy overhead

Break-even chart Revenue Total costs

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

Cost classification

Break-even is reliable only when salaried payroll and rent stay fixed while job-linked items move with revenue. Misclassifying fuel or chemicals as fixed can make Month 29 break-even look safer than it is.

Expense	Cost	Break-Even Treatment	Common Mistake
Salaried field and management payroll	Fixed	Use as monthly overhead; first-year salaried payroll is about $25.4k/month from $305k annual payroll.	Treating technician wages as variable when this model pays salaries.
Cleaning Chemicals & Consumables	Variable	Apply at 8.0% of revenue in the first year.	Budgeting a flat monthly amount and hiding margin pressure on busy months.
Equipment Maintenance & Small Tool Replacement	Variable	Apply at 5.0% of revenue in the first year.	Ignoring wear from more jobs and overstating contribution margin.
Vehicle Fuel & Maintenance per service trip	Variable	Apply at 4.0% of revenue in the first year.	Treating every vehicle item as fixed even though fuel moves with trips.
Sales Commissions	Variable	Apply at 6.0% of revenue in the first year.	Putting commissions in fixed payroll and understating revenue-linked expense.
Digital Advertising Spend	Variable	Apply at 4.0% of revenue in the first year for operating break-even.	Using only the annual marketing budget and missing sales-volume behavior.
Office Rent	Fixed	Use $1,500/month from Month 1 through Month 60.	Spreading rent per job and making low-volume months look too profitable.
General Liability Insurance	Fixed	Use $800/month from Month 1 through Month 60.	Moving insurance with revenue when the modeled premium is stable monthly.

How does break-even move from a lean ramp to a full route-dense month?

Scenario table

Here’s the quick math: variable costs stay near 29% of revenue, so the main swing is fixed overhead. At about $447k in monthly revenue, the model is at break-even; below that, the gap widens, and above it, cushion starts to build.

Planning assumptions only; actual results will move with route mix, pricing, and labor use.

Scenario	Monthly Revenue	Variable Costs	Fixed Costs	CM Ratio	Operating Profit	Break-Even Signal
Lean ramp month	$420k	$122k	$317k	71%	-$19k	Still below break-even, so overhead is not covered.
Base break-even month	$447k	$130k	$317k	71%	$0	Right on the break-even line, with little room for error.
Full route-dense month	$570k	$165k	$317k	71%	$88k	Above break-even, so tighter routes create real cushion.

What pushes restaurant hood cleaning off break-even first?

Stress test

The base plan breaks even around $447,000 of annual revenue, so there isn’t much room for slower route fill or weak upsell. If recurring work slips, cash can move toward the $409,000 minimum near Month 30.

Stress Case	Changed Assumption	Break-Even Revenue	Revenue Gap	Risk Signal
Current plan	No change.	$447,000	$0 gap	Breakeven only clears around Month 29, so cash stays tight.
Revenue shortfall	Annual revenue runs 10% below plan.	$447,000	$45,000 gap	A 10% sales miss leaves no cushion and pushes cash risk up.
Fixed-cost pressure	Fixed overhead rises 10% above the $317k base.	$491,000	$44,000 gap	Higher payroll, rent, insurance, and software raise the revenue bar fast.
Margin pressure	Variable expenses rise from 29% to 34% of revenue.	$480,000	$34,000 gap	Weaker upsell and longer trips lift variable cost above the 29% base.
Combined pressure	Revenue drops 10%, fixed overhead rises 10%, and variable expenses rise to 34%.	$528,000	$126,000 gap	Lower route density and full payroll can drain cash before demand stabilizes.

What should you verify before you lease the first van and hire the first hood-cleaning crew?

Founder checklist

Before you lock in vans and hires, make sure the route book can carry break-even demand. This model needs about $44.7k a month in revenue, and it does not reach break-even until Month 29.

1Route DensityMonth 29

Confirm each route has enough nearby accounts to stay dense before you lease a second van, because thin routes add miles and push break-even out.

2Price Test$250-$800

Test whether restaurants buy Basic at $250, Plus at $400, Premium at $650, One-Time Deep Clean at $800, and Add-On Maintenance at $75 before you scale spend.

3Fixed Load$31.7k/mo

Keep fixed overhead near $31.7k a month before taxes and debt, or the business needs a lot more booked work just to stand still.

4Margin Check71% CM

Verify direct costs stay at 29% of revenue, which leaves a 71% contribution margin to cover overhead and protect cash.

5Crew Ramp3 tech FTE

Do not add more technicians until booked routes can keep the current 3-tech base busy, since Year 1 payroll already runs about $25.4k a month.

6Cash Buffer$409k min

Hold at least the modeled $409k cash cushion and clear insurance, certifications, and local compliance before launch so the Month 29 break-even gap does not run you out of money.