Updated: Jun 20, 2020
What is your hourly rate as a restaurant owner?
If you think that you don't have an hourly rate, you are mistaken! Because yes, you do have an hourly rate, and it is very important for you to identify it.
Most people believe that when you have a restaurant business, you are rich. So what's the truth about this?
The reality is, yes, we do make a lot of money. However, another reality is, we also do spend a lot on our overhead and operations.
It will blow your mind if you find out how much we spend on staff, on food costs, on our rent, bills and a lot more. If we could keep all the money that we make, then we would be really rich!
As a restaurant owner, what are the tasks you do in your restaurant?
Let's say, for instance, you do the dishwashing and pizza making. So if you will be paid for these tasks, how much will your salary be?
For dishwashing = $7.25/hr
For pizza-making = $10-$11/hr
For cleaning = $7.25/hr
Based on the activities that you make all day long, what is your hourly rate?
You know that whatever task you do, you can always hire someone to do it for you. For example, cleaning, if it is a $7.25/hr job (which is the minimum wage in Texas), that will be equivalent to an average of $1100 a month or $14,000 yearly.
However, you are thinking that it is better to keep the $14,000 than to give it to somebody else, right?
But that is the wrong approach, and that is why you are stuck in your operations.
Or if you pay $10/hr for a job you are doing, it is about $19,000 a year.
Seriously, is this what you want to make?
Because it is much easier to go get a different job.
You will certainly be making more money and have much less stress if you work somewhere else, $19,000 a year is no money to be handling a business.
Even if you are to delegate a task that is worth $25/hr, which is $48,000 annually, that is still no money to run a business.
If you are making $100,000 a year as a restaurant owner ideally, why not right? You deserve it, it is high-risk and high-reward. The average value of your hour that you spend should be $50-$55 per hour.
What money-generating activities are worth $50-$55 per hour?
Activities that generate more money. Washing dishes? Cleaning? These are not going to make you money.
These are important tasks in the restaurant but evidently, you can not make any money out of those. You need to be making more money.
And you'll even be making more money if you can leave that task that will give somebody else $14,000 a year so that you can make $100,000. That would be very nice, right?
For instance, you are stuck working in the operations, like running food deliveries all the time, dishwashing, cleaning, all that kind of stuff.
And you can't just stop doing those things because obviously, you don't have the people for it.
If you have it, you wouldn't be doing it, right? If you have the pieces of training in place, you don't have to do it. So think about your week.
Can you start with 5 hours a week working on tasks that are worth $50/hr?
For example, you create a training video for a task in your business to be used by the trainee to learn.
You do that task (creating a training video) once and then the staff will just watch it over and over.
That is a task, you simply are even making more money out of the hours you spent because you don't have to be spending more hours.
Can you spend 5 hours a week creating some training videos so you can free up some of your time to focus on money-generating activities?
You may need to start 2 hours a week, or 5 hours a week, or 10 hours a week. And before you knew it, you are out of the operations.
You thought it was impossible and literally believed that it is hopeless for you not to be involved in the operations.
Now, you can focus more on activities that will generate more money into your restaurant rather than doing some tasks that are apparently, not making you money.
Again ask yourself, what are the tasks you are doing throughout the day? If you would delegate them to somebody else, how much would you have to pay?
That would determine your average hourly rate. And based on that, how much will you make per year? Is it worth it?
Running a restaurant business isn't as easy as pie. As a restaurant owner, your main job is to always make wise decisions and execute valuable strategies for you to make more money and keep your company growing.
Listen to the podcast:
Download for free!
52 Ideas for 52 weeks of the year to market your restaurant!
The Ultimate Restaurant Marketing Guide
Tune in and Subscribe to the Show