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Will Your Restaurant Actually Be Profitable?

Chef Steven Howard | Chef's Blade

So you want to open a restaurant? Make sure you’ll be making enough of the pie!

So, you want to open a restaurant, but don’t want to go into debt. Well, you’re not alone. And I’m here to help.

The key to judging restaurant profitable is the equation of total of expenses divided by average per plate cost, which gives you the amount of plates you need to sell to break even every month. For example, if you have $24,000 of expenses and want to sell (on average) $12.00 entrees, that means you need 78 dishes a day to break even. In a restaurant that seats 40, that’s only two complete turns of the dining room, opening 26 days per month. Not too tough, really. Plus, we haven’t included drinks, appetizers, nor desserts yet, which will just create extra revenues and profits.

But don’t get too excited though, Sparky! In addition to $288,000 in operational expenses ($24K x 12 Mos.), you also have start-up investment costs with lots of zeros!

Let’s Get Started!→


Featured Author: Chef Steven Howard

Chef Steven Howard is the Owner and Directing Executive Chef/Consultant of Consult the Chef, A Restaurant, Bar and Catering Consulting Company. During his 35 year career, he has held virtually every position in the culinary industry.