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.
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Frequently asked questions
Should I actually pay myself a salary as the owner?
Paying yourself isn't mandatory, but calculating your time into cost prices is essential. Without this, you can't determine true dish costs, leading to either overpricing or unpaid labor.
What hourly rate should I assign to my own work?
Calculate at least €20-25 per hour, matching what you'd pay an experienced chef. You're performing identical tasks while shouldering ownership responsibilities.
What if including my time makes menu prices too expensive?
Then you need operational improvements - better efficiency, staff training for basic tasks, or hiring help. The alternative is working endless hours for minimum wage.
How can I reduce the hours I spend on each dish?
Focus on smarter prep techniques, better mise-en-place organization, and training staff for routine tasks. Delegate simple work so you can handle complex dishes and actual management duties.
Can I lower my calculated hourly rate to keep prices competitive?
You can reduce hours through efficiency, but never undervalue your time. Always include realistic labor costs or you'll make poor menu and pricing decisions that hurt long-term profitability.
What's the minimum profit margin I need after including my labor?
Aim for 35-40% gross margin after all labor costs, including yours. This leaves room for overhead expenses, equipment replacement, and actual profit that makes ownership worthwhile.
How do I track my time accurately across different dishes?
Use simple time logs or kitchen management software to record prep and cooking time per dish. Track for 2-3 weeks to establish accurate averages for your cost calculations.
⚠️ 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
- 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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