Restaurant owners waste an average of 12 hours per week on manual calculations. That's time you could spend developing dishes that actually make money. So how do you figure out what those saved hours are really worth?
Why your time is money
As a restaurant owner, you don't just earn from business revenue. Your time also has value - you can spend it creating new dishes, coaching staff, or hunched over Excel calculating food costs.
⚠️ Note:
Many entrepreneurs value their own time at €0. That's a mistake. Every minute you save can be used for activities that actually generate money.
Calculate your own hourly rate
To calculate the value of time savings, you first need to know what your time is worth. Do this by dividing your net income by your working hours.
? Example:
Say you make €60,000 net from your business per year:
- Net income: €60,000
- Working hours per week: 60 hours
- Working weeks per year: 50 (2 weeks vacation)
- Total working hours: 60 × 50 = 3,000 hours
Your hourly rate: €60,000 ÷ 3,000 = €20 per hour
Calculate the value of time savings
Now that you know what your time's worth, you can calculate how much time savings you gain. Add up how much time you currently spend on manual calculations and compare it to an automated system.
? Example time savings:
Manual calculations per week:
- Calculating food costs: 3 hours
- Checking food cost: 2 hours
- Valuing inventory: 1 hour
- Filling in HACCP lists: 1 hour
Total: 7 hours per week × €20 = €140 per week
Per year: €140 × 50 weeks = €7,000
What do you do with that freed-up time?
Time savings only has value if you use that time productively. Think about activities that directly generate money or improve your business - the kind of thing you only learn after closing your first month at a loss:
- Menu development: Create new dishes that generate more revenue
- Optimize purchasing: Negotiate better deals with suppliers
- Coach staff: Less waste, better service
- Marketing: Social media, customer loyalty
- Rest: Also important - you work more effectively when well-rested
ROI calculation for automation
With your hourly rate and time savings, you can calculate if an investment in automation pays for itself.
? ROI example:
App costs €30 per month, saves 7 hours per week:
- Monthly costs: €30
- Time savings per month: 7 × 4.3 = 30 hours
- Value of time savings: 30 × €20 = €600
- Net benefit: €600 - €30 = €570 per month
ROI: 1,900% (the app pays for itself 19 times over)
Hidden costs of manual work
Beyond your time, there are more costs to manual calculations:
- Errors: Wrong food costs cost money
- Delays: Late decisions due to missing figures
- Stress: Administrative hassle drains energy
- Missed opportunities: No time for strategic decisions
⚠️ Note:
A calculation error of 2% on your food cost can cost €6,000 per year at €300,000 revenue. Then that time savings is just a bonus.
How do you calculate the value of time savings? (step by step)
Calculate your own hourly rate
Divide your net annual income by your working hours per year. For example: €60,000 ÷ 3,000 hours = €20 per hour. Also factor in vacation days and time off - you don't work 365 days a year.
Measure your current time spending
Write down for one week how much time you spend calculating food costs, checking inventory, and doing admin. Add up everything a system could do for you - it's often more than you think.
Calculate the annual value
Multiply your weekly time savings by your hourly rate and by 50 working weeks. For example: 7 hours × €20 × 50 weeks = €7,000 per year in freed-up time.
✨ Pro tip
Track your calculation time for exactly 14 days, then multiply by 26 to get your annual hours spent. At €25/hour, those 182 hours cost you €4,550 yearly.
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
Should I really value my time if I'm in the business anyway?
How do I know if an investment in automation pays for itself?
What if I don't use that freed-up time productively?
Are there other benefits besides time savings?
How do I calculate my hourly rate if my income varies?
What if I'm already profitable - does time savings still matter?
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
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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