Restaurant owners lose thousands annually by undervaluing their kitchen time. You might think "I love cooking anyway," but that mindset keeps you broke. Every unpaid hour you spend prepping, cooking, and cleaning directly cuts into profits you'll never recover.
Why "enjoying it" costs you money
The issue lies in how you view your own labor. You wouldn't let employees work for free, yet you do it yourself daily. Your time carries real value - ignoring it means you're subsidizing every dish from your own pocket.
💡 Example:
You craft all sauces from scratch because you love the process. This takes 8 hours weekly.
- Your hourly rate as an entrepreneur: €25/hour
- 8 hours × €25 = €200 per week
- Per year: €10,400 in 'free' labor
You never see that €10,400 back in your profit.
Calculate what your own time is worth
Your labor belongs in every dish's cost calculation. Just as you price ingredients precisely, you must account for the time investment.
Formula for labor costs per dish:
Labor costs = (Preparation time in hours × Your hourly rate) / Number of portions
💡 Example:
You prepare a stew requiring 2 hours of work, yielding 8 portions.
- Preparation time: 2 hours
- Your hourly rate: €25/hour
- Number of portions: 8
Labor cost per portion: (2 × €25) / 8 = €6.25
What is a fair hourly rate for yourself?
Many entrepreneurs undervalue themselves completely. Base your rate on what you'd pay a skilled chef with your experience level.
- Beginner chef: €15-18 per hour
- Experienced chef: €20-25 per hour
- Sous chef level: €25-30 per hour
- Chef-owner: €30-40 per hour
Note: these are gross rates. Add employer contributions on top (roughly 25% extra).
⚠️ Attention:
Don't just count cooking time - include prep work, cleanup, and planning. Every minute contributes to that dish's true cost.
How to prevent giving away your time for free
The fix is straightforward: treat yourself like any other employee who deserves payment. After managing kitchen operations for nearly a decade, I've seen too many talented chefs work themselves into bankruptcy with this mindset.
Practical approach:
- Set your hourly rate (see guidelines above)
- Time each dish's complete preparation process
- Calculate labor costs per serving
- Add this to ingredient expenses
- Price your menu based on true total costs
💡 Example complete cost price:
Pasta carbonara:
- Ingredients: €4.50
- Preparation time: 15 minutes = €6.25
- Total cost price: €10.75
At 30% food cost: minimum selling price €35.83 excl. VAT = €39.06 incl. VAT
When outsourcing makes more sense
Sometimes buying beats making, especially for time-intensive basics. Run the numbers honestly.
- Stock production: 6 hours of work yields €150 worth of stock. Purchasing costs €180, but saves €150 in labor - you're ahead €120.
- Daily bread baking: 3 hours daily at €30/hour costs €90. A quality baker might charge €60 for the same volume.
- Vegetable prep: Hire temporary help at €18/hour while you focus on €30/hour tasks. Simple math.
The mindset shift
Replace "I do it because I enjoy it" with "I do it because it's profitable." If the numbers don't work, either raise prices or eliminate that task. Your passion should generate income, not drain it. Value your time properly, and you'll finally earn fair compensation for doing what you love.
How do you calculate your own labor costs? (step by step)
Determine your hourly rate
Look at what you would pay a chef with your level of experience. Add 25% employer contributions on top. An experienced chef-owner usually charges €30-40 per hour.
Measure your preparation time
Time how long you spend on each dish. Count everything: prep, cooking, garnishing, cleaning. Divide this by the number of portions you make.
Calculate labor costs per portion
Multiply your hourly rate by the preparation time and divide by number of portions. Add this to your ingredient costs for the total cost price.
✨ Pro tip
Track your time for one full week on your 5 most popular dishes. Most owners discover they're giving away 15-20 hours of unpaid labor weekly - that's €6,000+ annually you're not recovering.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Do I really need to pay myself a salary as owner?
Absolutely. Your time has measurable value that belongs in every cost calculation. If you don't count your labor, you're essentially subsidizing every customer's meal from your own pocket.
What if my prices become too high because of labor costs?
Then you need to streamline operations or delegate tasks to lower-cost workers. You can also focus on dishes requiring less hands-on time. High prices beat working for free.
How do I calculate labor costs for dishes I make in bulk?
Divide total prep time by portions produced. A 4-hour soup batch yielding 40 servings costs far less per bowl than individual preparations.
Should I include my planning and administration time per dish?
Direct cooking and prep time goes into dish costing. General admin gets recovered through overhead calculations and profit margins, not individual menu items.
What about dishes that require overnight marinating or long braising?
Only count active work time, not passive cooking or marinating periods. If you spend 30 minutes prepping a 6-hour braise, charge for the 30 minutes of actual labor.
How do I handle seasonal menu items with varying prep times?
Track prep times for each season's version separately. Summer gazpacho takes different labor than winter's roasted tomato soup - price them accordingly.
What if customers complain about higher prices after I include my labor costs?
Explain the value they receive from scratch cooking and quality ingredients. Customers who only want cheap food aren't your target market anyway.
📚 Sources consulted
- EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
- EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
- EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
- NVWA — Hygiënecode voor de horeca (2024) — Official source
- NVWA — Allergenen in voedsel (2024) — Official source
- Codex Alimentarius — International Food Standards (2024) — Official source
- FSA — Safer food, better business (HACCP) (2024) — Official source
- BVL — Lebensmittelhygiene (HACCP) (2024) — Official source
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (2024) — Official source
Food Standards Agency (FSA) — https://www.food.gov.uk
The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.
Written by
Jeffrey Smit
Founder & CEO of KitchenNmbrs
Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.
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