What break-even means here
The number of covers (or the sales) at which contribution margin exactly covers fixed costs. Fixed costs ÷ contribution margin per cover = break-even covers. Contribution margin per cover is the average check minus everything that scales with each sale: food and beverage cost, and hourly labor if you flex schedules with volume.
Which costs are fixed
Rent, insurance, management salaries, loan payments, the base part of utilities, software and fees. Treat hourly labor as fixed if you keep the same schedule whatever the volume, and as variable if you cut shifts on slow days — pick one and stay consistent.
Margin of safety
How far current sales are above break-even, as a share of sales. Below 10–15% a bad month puts you in the red; a lender will read it the same way. The Toolkit computes it per service and per seat, with loan payments included, and shows the sensitivity of break-even to average check and to food cost.
Read the guide: How to Calculate Restaurant Break-Even Point (Formula + Example).