Calculating the Monthly Running Costs for a Wellness Retreat Center

Variable Cost Scaling

• Variable costs are set at 15% of total projected revenue.
• This percentage scales directly with every room night booked or service sold.
• The true operating budget is the fixed cost plus this 15% buffer.
• Break-even analysis requires calculating when revenue offsets the \$164,667 base.

Fixed Cost Anchors

• Core payroll runs $69,167 per month.
• Property lease is a flat $50,000 commitment.
• These two categories total $119,167 monthly.
• This sets a high hurdle rate for revenue generation.

Managing the Runway

• This figure assumes a specific operational ramp-up timeline.
• Defintely track monthly burn rate closely.
• Focus efforts on reducing pre-revenue fixed costs now.
• Ensure financing commitments are finalized well before the target date.

Slash Variable Costs Now

• Immediately freeze all performance marketing spend not showing 3x ROAS.
• Reduce reliance on third-party contractors for fitness or nutrition workshops.
• Scale back temporary staffing for housekeeping and ancillary services by 25%.
• Limit restaurant inventory buys to only cover confirmed bookings plus 10% buffer.

Controlling Fixed Rent Hikes

Since this cost is fixed, optimization centers on contract length, not daily operations. Focus negotiations on capping annual escalation rates below market averages, perhaps aiming for 2% instead of the standard 3% or 4%. Avoid automatic five-year renewals without a performance review clause.

• Negotiate rent abatement periods post-buildout.
• Cap annual escalation clauses tightly.
• Secure options for early termination after year three.

Calculating Core Staff Cost

This $69,167 monthly figure is the core payroll base. It requires careful calculation based on the fully loaded cost—salary plus benefits and payroll taxes—for 85 FTE roles. You must map these FTEs against specific operational needs, like kitchen staff, housekeeping, and program facilitators, to validate the total spend against your projected occupancy.

• Map 85 FTEs to roles.
• Include benefits/taxes fully.
• Validate against 2026 staffing plan.

Controlling Usage

Facility usage directly impacts these expenses, especially during peak retreat seasons. To control utility spikes, focus on energy efficiency upgrades now, like smart thermostats. Maintenance costs rise if preventative schedules slip, so stick to the plan. Honestly, ignoring deferred maintenance costs more later.

• Audit HVAC efficiency.
• Schedule preventative checks.
• Avoid reactive repairs.

Defining Property Overhead

This $18,000 is pure fixed overhead, distinct from the $50,000 lease payment. It bundles $10,000 for property taxes and $8,000 for necessary insurance coverage. These are baseline costs you absorb regardless of guest volume. You need current tax assessment data and insurance quotes to verify these inputs accurately for your initial model.

• Taxes: Use current assessment value.
• Insurance: Get binding quotes now.
• Fixed Cost: $18,000 monthly baseline.

Controlling F&B Spend

Because quality is key, reducing this cost requires smart sourcing, not cheap ingredients. Focus on negotiating bulk pricing with primary local suppliers for staple items used across menus. Avoid menu complexity that drives high inventory holding costs. A 5% reduction is achievable through tighter portion control, which is a common area for waste.

• Negotiate volume discounts.
• Tighten portion control metrics.
• Standardize high-use ingredients.

Calculating Expert Spend

This expense covers contracted experts like visiting nutritionists or specialized therapists necessary for the retreat’s unique value proposition. To size this line item, take your projected monthly revenue and multiply it by 30%. If revenue reaches $400,000 in a month, this single cost requires $120,000. It scales directly with booked service volume.

• Projected monthly revenue input.
• Contract rate per expert session.
• Total sessions scheduled monthly.

Cost Control Levers

Reducing this 60% burden requires shifting volume to owned channels that carry zero commission. Focus on increasing direct bookings via website optimization or building loyalty programs to cut partner fees immediately. If marketing spend is inefficient, audit conversion rates daily; poor landing page performance defintely inflates your effective CPA (Cost Per Acquisition).