How much can you actually afford to pay yourself without sinking your new restaurant? Your salary is a cost item, just like ingredients and rent. Here's the step-by-step breakdown for calculating what realistically remains for your own income.
Why your salary is a cost item
Most starting entrepreneurs think: "Whatever's left over is mine." That's dangerous thinking. You need to plan your salary upfront, or you'll risk working months for absolutely nothing.
⚠️ Note:
Your salary doesn't come from profit, but is part of your costs. Just like you pay your rent and ingredients first, you need to pay yourself first too.
The formula for your maximum salary
Calculate your maximum monthly salary this way:
Max salary = (Revenue - All costs except your salary) × 0.8
That 0.8 (80%) is crucial. You're keeping 20% as a buffer for unexpected expenses and slow months.
💡 Example calculation:
Restaurant with €35,000 monthly revenue:
- Food cost (30%): €10,500
- Rent and utilities: €4,500
- Staff (excl. yourself): €8,000
- Other costs: €2,000
Total costs: €25,000
Remaining: €35,000 - €25,000 = €10,000
Max salary: €10,000 × 0.8 = €8,000/month
Realistic salary guidelines
As a starting restaurant entrepreneur, here are typical salaries:
- First year: €2,000-€3,500/month (often less than your previous job)
- Second year: €3,500-€5,000/month (if the business is performing well)
- Established business: €4,000-€8,000/month (depending on revenue)
From years of working in professional kitchens, I've seen owners work for less than minimum wage in year one. That's normal - you're investing in your future.
💡 Comparison by revenue:
- €20,000/month revenue → €1,500-€2,500 salary
- €30,000/month revenue → €3,000-€5,000 salary
- €50,000/month revenue → €6,000-€10,000 salary
These are guidelines with healthy margins (15-20% net profit).
Timing your salary increases
Only increase your salary if:
- You have 3 months buffer in the bank
- Your net profit is at least 15% after your salary
- The trend is 3 months stable upward
⚠️ Note:
Never increase your salary after one good month. Hospitality is unpredictable - what goes up can also go down.
What if there's too little left over?
If less than €2,000/month remains for yourself, you've got three options:
- Increase revenue: More guests or higher prices
- Lower costs: Address food cost, staff, or rent
- Take less temporarily: With a clear plan for improvement
Option 3 can't last longer than 12 months. After that, entrepreneurship becomes an expensive hobby.
💡 Break-even calculation:
For €4,000/month salary you need:
- At least €5,000 extra revenue (after all costs)
- At 20% net margin: €25,000 extra revenue
- At 15% net margin: €33,000 extra revenue
Taxes and administration
Don't forget that you'll pay taxes on your salary:
- Income tax: 37% up to €73,031, then 49.5%
- Social security: Not mandatory for entrepreneurs
- Healthcare costs: You arrange yourself via health insurance
So calculate with net income, not gross. €4,000 gross becomes approximately €2,800 net.
How do you calculate your maximum salary? (step by step)
Calculate your total monthly costs
Add up all fixed costs: food cost, rent, utilities, staff (excl. yourself), insurance, depreciation. Use figures from the past 3 months for a realistic picture.
Subtract costs from revenue
Take your average monthly revenue and subtract all costs. The amount remaining is available for your salary and profit.
Keep a 20% buffer
Multiply the remaining amount by 0.8. You need that 20% buffer for slow months, unexpected expenses, and taxes.
✨ Pro tip
Start with €2,500/month maximum in your first 6 months, even if calculations suggest you can afford more. It's easier to increase your salary than to lower it when reality hits.
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
Can I pay myself a normal salary in the first year?
Usually not. Most starting restaurant entrepreneurs earn €2,000-€3,500 per month in the first year, often less than their previous job. You're investing in your future, not getting immediate returns.
What if there's nothing left over some months?
That's normal in the startup phase. Just make sure you can bridge a maximum of 12 months with savings. Longer than that becomes too expensive and unsustainable.
Should I take a percentage of daily sales as my pay?
No, that's too unpredictable for personal budgeting. Set a fixed monthly amount based on your calculations. You can review and adjust it quarterly, but daily fluctuations will stress your finances.
How do I handle seasonal revenue drops?
Build your salary calculation on your lowest revenue months, not your peak season. If summer brings €50k but winter only €25k, base your salary on the €25k figure.
When can I increase my salary?
Only if you have 3 months buffer, make at least 15% net profit, and see 3 months of stable growth. Never increase after one good month - hospitality is too volatile.
What percentage of revenue should go to my salary?
As a guideline: 10-15% of revenue for the owner is healthy. At €30,000 revenue that's a maximum of €3,000-€4,500 for yourself.
Do I need to employ myself as an employee?
No, as owner you're usually a DGA (director-major shareholder). You pay yourself a management fee, not a wage. Discuss this structure with your accountant for tax optimization.
📚 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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