1 answer

Can someone explain how much each person in a business earns?

Asked La Mirada, California

I'm a new college student and unfamiliar with the business world. I'm curious about how much money a business would need to generate in order to have x amount of employees. I'm also wondering about what percentage each person of the hierarchy would earn. For businesses such as restaurants, I want to know about the workers to the managers to the co-owners to the owners to the investors. If someone with expertise is willing explain I'd very much appreciate it.

#business #restaurants #management

1 answer

Lori’s Answer

Updated

Sean,

The question you pose is complex and has many variables. If looking just at staff payroll requirements, you need to determine the size and scope of the restaurant to know your staffing needs. If you are looking for information on the cost of investing in a restaurant, this article might be a nice place to begin...https://money.usnews.com/investing/articles/2016-06-29/6-facts-to-know-before-investing-in-a-restaurant.

In my earlier years, I worked in quite a few restaurants and the amount of staff needed to keep them running was staggering . There are many people behind the scenes that patrons never observe but nonetheless are important and necessary to the success of the business.

Although you may be new to the business world, through observation, I am sure you know more than you think. A great place to begin would be going to restaurants and observing the operation. Next would be research on the internet. There is a massive amount of information, if you know where to look and how to weed through the information as it pertains to your research.

Breakdown your research into segments so the task is less daunting. I've suggested some next steps below to get you started. I hope this helps.


Good luck with your research!

Lori recommends the following next steps:

  • Start with observation...Go to a few restaurants, sit down and write a list of all the people you see that are employed by the restaurant- From Manager, host, wait staff, cooks, kitchen staff, etc. Start looking at size and scale of the restaurant to determine the amount of staff needed. Try interviewing restaurant managers (not on a busy night), and see if they can provide some insight.
  • Do some research on the internet. I just typed "staff needed for restaurant" and this article was one of the first hits... https://www.entrepreneur.com/article/282438
  • Once you know what size staff is needed you can then start researching salaries. Utilize the internet to research salaries by region. There are sites that provide average salaries by job title by region. https://www.payscale.com/research/US/Employer=Glassdoor/Salary or https://www.glassdoor.com/index.htm are 2 great sites to query.
  • Read articles on investing and entrepreneurship - https://money.usnews.com/investing/articles/2016-06-29/6-facts-to-know-before-investing-in-a-restaurant.
Updated
Your answer is great Lori, thanks so much for sharing your expertise! At this moment there are more than 800 unanswered questions so I wanted to encourage you to keep going! So many students will benefit tremendously from hearing from you. Keep up the great work!