Catering Service Volume Break-Even
Break-even sales = ceiling(fixed costs / (price − variable cost))
Gather recipe sheets, supplier invoices and stock counts. Include ingredients, staffing, and delivery. The starting figures are examples. Replace them with your own records.
Formula and worked example
Break-even sales = ceiling(fixed costs / (price − variable cost))
| Input | Example |
|---|---|
| Monthly fixed costs | 8,000 |
| Average price per event order | 500 |
| Variable cost per event order | 300 |
| Calculated result | 40 sales per month |
Choose reliable inputs
Track purchased quantities, usable yield, labour and waste before deciding on a selling price. For this catering calculation, use recipe sheets, supplier invoices and stock counts and a consistent definition of one event order.
- Ingredients: include the portion belonging to this event order or reporting period, and record where the value came from.
- Staffing: include the portion belonging to this event order or reporting period, and record where the value came from.
- Delivery: include the portion belonging to this event order or reporting period, and record where the value came from.
Use the same currency for every money input. Do not mix weekly costs with monthly revenue, or count the same expense in both an itemised cost and allocated overhead.
Should I count booked jobs or completed paid sales?
Use the delivery and revenue definition matching your cost period. Bookings can cancel and do not automatically produce cash.
Assumes stable average price and variable cost; multiple service mixes need separate analysis.
What if this input changes?
If monthly fixed costs rises by 10%, this example changes by 4 sales per month. This shows the effect of one change; it does not predict what will happen.
Open the calculator, save your baseline, then change the input supported by the least reliable estimate in your records. Compare both scenarios before committing to a price or capacity promise.