Include rent or mortgage, staff salaries, utilities, insurance, licenses, and loan payments. These costs remain constant regardless of how many meals you serve and form the baseline you must cover before earning a profit.

Food cost typically runs 28-35% of the menu price, but variable costs also include disposables, credit card processing fees, and any per-order delivery commissions. Tracking these accurately is essential for precise break-even analysis.

You can reduce fixed costs by negotiating lease terms, lower variable costs through better supplier deals, or increase menu prices. Many successful restaurants focus on menu engineering to promote high-margin dishes that bring the break-even point down faster.