How Much Does a Head Chef Make Owning Their Own Restaurant?
- According to the Bureau of Labor Statistics (BLS), in 2010, chefs and head cooks working in the metropolitan areas fared better salary-wise than the counterparts in the rest of the country. According to the study, a head chef in the New York metropolitan area earned an annual mean wage of $79,820, or an hourly rate $38.38. The same job in South Carolina's non-metropolitan area earned $35,600, or $17.12 an hour. According to the BLS Occupational Outlook Handbook, 2010-2011 edition, the middle 50 percent of chefs and head cooks earned between $29,050 and $51,540, with the highest 10 percent earning more than $66,680.
- The restaurant business is a tough business. The failure rate is high. However, an entrepreneur goes into business for herself, despite the risks, to make an above-average salary among the other benefits of having a successful business. Figuring out how much a head chef earns at his own restaurant is difficult because, depending on the success of the business, he may pay himself an arbitrary salary that may have nothing to do with how well or poorly the restaurant performs.
- According to SimplyHired.com, the average salary for restaurant owner in New York is $46,000 compared to $43,000 in Chicago and $34,000 in Lancaster, PA. However, because of the tax advantage to business owners, these salaries may not be indicative of a restaurant owner's true earnings. For instance, a head chef who is also an owner may deduct certain business expenses, thereby reducing his adjusted gross income for tax purposes. The use of an accountant can help in maximizing your tax deductions as a business owner.
- Being a head chef of your own restaurant is full of advantages. Because you are the head chef and owner, that's one less salary the business has to pay. However, being the head chef and owner may not suit your needs as the restaurant becomes successful. You may find that the most efficient use of your time and money is to hire a head chef and shift your responsibilities to marketing, promotion and growing your business.