Profitability Simulator

A restaurant is profitable when monthly revenue exceeds fixed costs (rent, payroll, insurance) plus variable costs (food cost, packaging, commissions). A healthy net margin is 8-12%. Below 3%, any small setback can push the business into losses.

In Spain, average net margin sits between 5% and 15%. Well-managed restaurants with strict cost control operate between 10% and 15%. Fine dining often runs lower margins but offsets with higher average ticket; fast casual tends to hit higher margins thanks to lower labor cost.

Costs that scale with revenue: raw materials (food cost, usually 25-35%), delivery packaging, platform commissions (Glovo 30%, UberEats 30%, JustEat 25%), product waste, and temporary staff. Together they usually represent 30-45% of total revenue.

It depends on your average ticket and cost structure. The simulator computes your exact break-even point. As a reference: a Madrid restaurant with 12,000 EUR fixed costs and a 25 EUR average ticket at 35% variable cost needs at least 738 covers/month (around 28/day over 26 operating days) just to cover costs.

Three main levers: (1) grow revenue — raise average ticket via menu engineering, attract more guests, open a new service. (2) cut variable costs — renegotiate with suppliers, reduce waste, lower food cost. (3) optimize fixed costs — renegotiate rent, tighten staff scheduling. A professional diagnosis pinpoints which lever is most effective for your restaurant.