Are you working 70-hour weeks for less than minimum wage? Most hospitality owners never calculate their actual hourly earnings—and the results are shocking. Here's how to determine your true minimum hourly wage so you stop working for free.
Why you need to know this
Too many hospitality entrepreneurs work 12 hours a day, 6 days a week, and have €500 left at the end of the month. That's €2.40 per hour. Less than minimum wage.
By calculating your minimum hourly wage, you'll know:
- If your business is profitable enough
- What your minimum daily revenue needs to be
- How many covers you need to pay yourself
- If expansion or closure makes more sense
Gather your fixed costs per month
Start with all the costs you have, even when the business is closed:
💡 Example fixed costs bistro:
- Rent: €3.200
- Energy: €800
- Insurance: €400
- Depreciation: €600
- Accountant: €150
- Software/licenses: €200
- Other: €300
Total fixed costs: €5.650 per month
Determine your desired salary
What would you earn if you worked for someone else? Calculate gross salary plus employer contributions.
💡 Example salary:
An experienced head chef earns about €3.500 gross. A manager €4.000 gross. You do both jobs.
- Desired gross salary: €4.500
- Employer contributions (30%): €1.350
- Pension accrual: €300
Total desired salary: €6.150 per month
Calculate your minimum profit
Your business needs to generate more than just your salary. You need a buffer for:
- Unexpected costs
- Investments in the business
- Covering slow months
- Potential profit for growth
Calculate at least 20% of your revenue as profit margin.
Calculate your working hours realistically
Count all the hours you spend in the business. This is the kind of thing you only learn after closing your first month at a loss—those "invisible" hours add up fast.
⚠️ Attention:
Don't forget the hours for purchasing, administration, cleaning and prep. You often don't count them, but you're still working.
💡 Example working hours:
- Service: 6 days × 10 hours = 60 hours
- Prep: 6 days × 2 hours = 12 hours
- Purchasing/administration: 1 day × 6 hours = 6 hours
Total: 78 hours per week = 338 hours per month
The formula for minimum hourly wage
Now you can calculate what you need to earn per hour minimum:
Minimum hourly wage = (Fixed costs + Desired salary) ÷ Working hours per month
💡 Example calculation:
(€5.650 fixed costs + €6.150 salary) ÷ 338 hours = €34.91 per hour
This is your minimum hourly wage to cover all costs and pay yourself reasonably.
What this means for your revenue
If you need to earn €34.91 per hour and work 338 hours per month, your business needs to generate at least €11.800 per month (after deducting food cost and variable costs).
With an average margin of 65% (after food cost) you need a revenue of €18.150 per month.
⚠️ Attention:
This is your absolute minimum. With these numbers you end up with €0 profit. For a healthy business you want 15-25% more revenue to have a buffer.
If your hourly wage comes out too low
Does your calculation come out lower than €15 per hour? Then there are three options:
- Increase revenue: More guests, higher prices, or more days open
- Lower costs: Lower rent, work more efficiently, less waste
- Work fewer hours: Hire staff for routine tasks
Some entrepreneurs accept a low hourly wage temporarily during the startup phase, but this should be a conscious choice with a plan to improve it.
How do you calculate your minimum hourly wage? (step by step)
Add up all fixed costs
Make a list of rent, energy, insurance, depreciation, software and other fixed costs per month. These are costs you have, even when the business is closed.
Determine your desired salary
Calculate what you would earn as an employee (gross + employer contributions). Add pension accrual and buffer to this. This becomes your monthly salary requirement.
Count your working hours per month
Calculate all hours: service, prep, purchasing, administration and cleaning. Don't forget a single hour you spend on the business.
Apply the formula
Divide (fixed costs + desired salary) by your working hours per month. This gives you the minimum hourly wage to break even.
✨ Pro tip
Track your actual hourly wage for the next 30 days by logging every hour worked and dividing your month-end profit by those hours. Most owners discover they're earning €8-12 per hour less than they calculated.
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
What if my calculated hourly wage is lower than minimum wage?
Then your business isn't profitable enough at the moment. You have three options: increase revenue, lower costs, or work fewer hours by hiring staff for routine tasks.
Should I include taxes in my salary calculation?
No, calculate with gross amounts. The taxes you pay as an entrepreneur depend on your total profit and are a separate calculation after your salary.
How often should I recalculate this?
At least quarterly, or if your costs or working hours change significantly. With rent increases, new investments or changed opening hours you should recalculate immediately.
What is a realistic hourly wage for a restaurant owner?
This varies greatly by region and type of business, but €25-40 per hour is common for an experienced entrepreneur. Below €20 per hour you're essentially working for less than you're worth.
📚 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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