Ever wonder why you're exhausted, working double the hours of your sous chef, yet taking home less money? The culprit isn't your pricing strategy or food costs. You're simply not accounting for your own labor in dish calculations, creating an illusion of profitability while you work for free.
The hidden costs of your own time
Chef-owners wear every hat imaginable. You're ordering ingredients at 6 AM, prepping mise-en-place, expediting during service, and managing staff conflicts. Each minute carries a cost, regardless of if you cut yourself a paycheck.
? Example:
You log 70 hours weekly in the kitchen. Your sous chef clocks 40 hours at €18/hour.
- Your time: 70 hours × €20/hour = €1,400/week
- Sous chef: 40 hours × €18/hour = €720/week
You should earn €680 more, but you don't.
Why you don't notice this
The issue lies in how you calculate costs. Food expenses get tracked to the penny. Labor appears on payroll statements. But your hours? They disappear completely.
- Food cost: Tracked religiously (30%)
- Labor costs: Documented on payroll
- Your time: Treated as "pure profit" (it's not)
This creates false confidence. You see 15% profit margins while actually operating at a loss once your labor gets factored in. From tracking this across dozens of restaurants, the pattern repeats everywhere - owners think they're profitable while working for free.
⚠️ Watch out:
Many owners rationalize: "I don't need salary payments since I own the business." But time holds value. Working 70 hours for €0 means earning less per hour than your dishwasher.
The real cost price of your dishes
Add your labor to calculations and watch dish costs skyrocket. Suddenly, those healthy margins disappear completely.
? Example: Pasta carbonara
Selling price: €18.50 (€16.97 excl. VAT)
- Ingredients: €5.10 (30% food cost)
- Sous chef (10 min): €3.00
- Your time (15 min prep + service): €5.00
Total costs: €13.10 = 77% of selling price
That €16.97 leaves just €3.87 for rent, utilities, equipment depreciation and actual profit. That's 23%. Restaurants need higher margins to survive long-term.
How this escalates
Success amplifies the problem. More customers mean longer hours for you, but identical compensation. You're trapped in a cycle of diminishing returns.
- At 100 covers/week: You work 50 hours
- At 200 covers/week: You work 70 hours
- At 300 covers/week: You work 85 hours
Your effective hourly wage plummets from €20 to €15 to €12. Meanwhile, your sous chef maintains steady €18/hour earnings.
The solution: Factor in your own time
Include your labor in cost calculations. This reveals true dish expenses and enables realistic pricing decisions.
? New calculation:
Pasta carbonara with your time included:
- Total costs: €13.10
- Desired margin: 35%
- Minimum price: €13.10 / 0.65 = €20.15 excl. VAT
Menu price: €22.00 instead of €18.50
Time-tracking systems help monitor your hours per dish and incorporate them into cost calculations. You'll instantly see your real earnings per hour worked.
How do you calculate your real hourly wage? (step by step)
Count your total work hours per week
Write down for a week how many hours you spend in the kitchen. Ordering, prep, service, cleaning - everything. Be honest, those late nights and early mornings count too.
Calculate what you really take home
Subtract all costs from your monthly profit, except labor costs. What's left is for your salary and real profit. Divide by 4.33 to get your weekly amount.
Divide by your work hours
Divide your weekly amount by your work hours. This is your real hourly wage. Compare it to what your staff earns. Shocked? Now you know why there's nothing left.
✨ Pro tip
Calculate your effective hourly wage over the next 4 weeks by dividing your actual take-home by total kitchen hours worked. If you're earning under €15/hour while your line cooks make €16, you're subsidizing your own restaurant.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Calculate it yourself?
Our free food cost calculator does it in seconds.
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Frequently asked questions
Should I actually pay myself a salary as the owner?
What hourly rate should I assign to my own work?
What if including my time makes menu prices too expensive?
How can I reduce the hours I spend on each dish?
Can I lower my calculated hourly rate to keep prices competitive?
What's the minimum profit margin I need after including my labor?
How do I track my time accurately across different dishes?
⚠️ EU Regulation 1169/2011 — Allergen Information — https://eur-lex.europa.eu/eli/reg/2011/1169/oj
The allergen information on this page is based on EU Regulation 1169/2011. Recipes and ingredients may vary by supplier. Always verify current allergen information with your supplier and communicate this correctly to your guests. KitchenNmbrs is not liable for allergic reactions.
In the UK, the FSA enforces allergen regulations under the Food Information Regulations 2014.
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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