Burger Buzz
–
Manchester Burger Joint
(Real-world small business scenario – Break-Even Analysis)
Background
Burger Buzz is a small independent burger restaurant on a side street in
Manchester’s Northern Quarter. It opened two years ago when footfall
was strong, and customers loved the premium beef burgers, hand-cut
chips and milkshakes. Since early 2025 the UK economy has become
very tough:
• Customers have less disposable income → fewer people eating out
• Ingredient costs have risen sharply
• Energy bills and rent have increased
The owner, Aisha, has calculated her current break-even point and
sees that on many days she is selling far fewer meals than needed just
to cover costs. The business is losing money most weeks. Aisha’s goal is to lower the break-even point so the
business can survive — and hopefully still make a profit — even with lower customer numbers. Current Situation
(2025 monthly figures)
Item
Amount (£)
Rent & business rates
4,000
Staff wages (3 full-time)
7,500
Electricity, gas & water
1,200
Insurance & other fixed costs
800
Total Fixed Costs
13,500
Variable cost per burger meal (burger + chips + drink)
£5.50
Current selling price per meal
£12.00
Contribution per meal (£12.00 – £5.50)
£6.50
Current monthly sales = 2,400 meals
(roughly 80 meals per day if open 30 days)
