GGB Break-even point
The revenue at which the operation stops losing money: fixed costs divided by contribution margin ratio.
Break-even is the monthly revenue where contribution from sales exactly covers fixed costs, so profit is zero. Every dirham above it earns at the contribution margin ratio; every dirham below it burns cash. Knowing break-even in covers per day turns an abstract finance number into a service target the whole team can see.
Break-even revenue = fixed costs ÷ contribution margin ratio
CM ratio = (revenue - variable costs) ÷ revenue; fixed costs are rent, salaries and everything else that does not move with sales.
Illustrative: fixed costs of AED 90,000 a month with variable costs at 40% of revenue gives a 60% contribution margin ratio. Break-even revenue is 90,000 ÷ 0.6 = AED 150,000. At an AED 75 average check that is 2,000 covers a month, roughly 67 a day over a 30-day month.
Run your break-even