It's Not the Least Bit Absurd to Gross $1000,000 Busting Your Hump Just to Put 30k in Your Pocket?

Discussion in 'Professional Chefs' started by maxs, Nov 16, 2014.

  1. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    Well, can anyone justify this insanity?
     
  2. cheflayne

    cheflayne

    Messages:
    4,162
    Likes Received:
    530
    Exp:
    Professional Chef
  3. lagom

    lagom

    Messages:
    1,098
    Likes Received:
    143
    Exp:
    Professional Chef
    Taxes are the price we pay for a civilised sociality.
     
  4. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    30K before taxes.

    What are you talking about?
     
  5. lagom

    lagom

    Messages:
    1,098
    Likes Received:
    143
    Exp:
    Professional Chef
    ahh, i thought you were refering to taxes on gross income/ wages
     
  6. spoiledbroth

    spoiledbroth

    Messages:
    467
    Likes Received:
    22
    Exp:
    Line Cook
    yep. being an owner operator is not all it's cracked up to be... welcome to the real world!

    In all seriousness, mileage may vary. Really depends on how the op is set up, location, and your own business acumen (lots of little stupid wasteful decisions, laziness where labour is concerned -- again you can put 20k+ in the bank for every minimum wage employee you chop)
     
  7. allanmcpherson

    allanmcpherson

    Messages:
    805
    Likes Received:
    63
    Exp:
    Owner/Operator
    Well, I guess the other option is to work for the angry stressed out guy who is shelling out 1,000,000 to net 30,000.
     
  8. chefboyog

    chefboyog

    Messages:
    475
    Likes Received:
    21
    Exp:
    Professional Chef
    Who are you quoting in your topic and why?

    Why justify insanity?

    You missed a , in your 1,000,000 I was confused lol

    @SpoiledBroth are you in the real world or a line cook?

    Chopping labor doesnnt necessarily = money in bank by any measure.
     
  9. spoiledbroth

    spoiledbroth

    Messages:
    467
    Likes Received:
    22
    Exp:
    Line Cook
    I owned and operated a business. Past tense. I currently get paid to cook someone else's recipes in someone else's restaurant. :D There's a great big SOB story I don't want to get into. Cheftalk believe it or don't.

    Chopping labour does mean money in the bank, by every measure, there's no two ways about it. I'm not advocating running a skeleton crew on your busiest night to max out your profit, because poor service will quickly scare off what clientele you've established. That being said redundant labour adds up exceptionally quickly. Based on my experience the biggest issue alot of ops face is efficiency and man hours.
     
  10. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    Oops, I did miss a comma.

    I wasn't quoting anyone. More of a frustrated rhetorical question.

    Also, good one McPherson.

    Made me smile.
     
  11. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    And as for labor, that's the most frustrating part: there's either not enough hands in the kitchen or someone's standing around doing nothing (usually the dishwasher, but I get sick of cutting him and getting stuck doing all the end of night dishpit/recycling/garbage stuff).

    And don't get me started on the level of talent available.

    Did I tell you about the time that the kid came in to apply for a job wearing an Insane Clown posse graphic T?
     
  12. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    And even though there are all these culinary programs in my area I can't get any talented kids. Those bloodsuckers that own and operate them won't place those ripped off students at a restaurant.  E.g., a cherry job like working for me (you get a fair wage, treated with respect and learn how to cook everything in our high end kitchen). Even when I beg those schools to send someone to me, they only once ever placed a student  at my place (and never a graduate of their programs. In my opinion they should shut them all down. They'll just take the kids' 30k and never help them find a job. Shame!

    ps: I'm self-taught
     
  13. blueicus

    blueicus

    Messages:
    928
    Likes Received:
    13
    Exp:
    Owner/Operator
    If you're actually filling a role of some sort in the restaurant (be it a chef, sommelier, bar manager, GM, etc.) you should be able to factor into the business a salary for yourself since you're basically replacing a position in your business.  As for labour you're never going to have 100% full labour utilization, people aren't computer processors that you can always just shift around for whatever task's necessary... hell, look at a TV set and look at the number of workers milling around waiting for things to happen.  At least the cooks and servers can clean things.
     
  14. spoiledbroth

    spoiledbroth

    Messages:
    467
    Likes Received:
    22
    Exp:
    Line Cook
    Nobody should ever be milling around waiting for things to happen. That's when your staff are pissing on your feet.
     
  15. panini

    panini

    Messages:
    5,168
    Likes Received:
    283
    Exp:
    Owner/Operator
    @MaxS,

    Wait. You are the owner operator of this business? If you are only realizing 30k from 1mill revenue I feel there is something wrong. I would bag it or try to fix it. Sorry.
     
  16. chefboyog

    chefboyog

    Messages:
    475
    Likes Received:
    21
    Exp:
    Professional Chef
    30-100k should be what is reinvested as " business money" and pull a salary ir two out of that as well.??

    100-200k of income total.

    Or you could go belly up like the other 60% and go -everything.

    Of course this is rhetoric.
     
  17. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    This is a hypothetical restaurant. The figures are projections.

    In this scenario, I gross $1 million and pay myself 60K as chef.

    After that, everyone says I'd be fortunate to pull 30k as profits. 30% net profit just seems small for a million dollar business.

    90K is decent money for 70+hours a week as a restaurant owner (I guess), but what if I get sick or hurt (I'm 52 years old) —

    In this scenario where I couldn't work, I'd be paying a chef 60K and I'd only be making 30K/year. 
     
  18. chefboyog

    chefboyog

    Messages:
    475
    Likes Received:
    21
    Exp:
    Professional Chef
    Whats your hypothetical investment in this?
    3% profits from sales is not the same as profit from investment. Are they?

    Equity funds are lucky to get 7% as a projection in high growth fairly risky. As a sick/ injured investor/ retiree/ disabled things change.

    Change the scenario pay the chef 45 yourself 45. Be active still in the business.

    Open a franchise, safer bet and you dont need a " chef"... Easier to sell and retire off of.
     
  19. maxs

    maxs

    Messages:
    56
    Likes Received:
    11
    Exp:
    Professional Chef
    You can't get much of a chef for 45K here on the east coast.

    Probably a 100K investment.
     
  20. kuan

    kuan Moderator Staff Member

    Messages:
    6,783
    Likes Received:
    376
    Exp:
    Retired Chef
    That's some funny stuff :)