You’re thinking about buying or starting a restaurant. There are dozens of things to research, from vendors to labor costs, rent, location, startup fees, insurance, etc. But, the most important question is, how much will you get paid? How much a restaurant owner makes varies by location and type of restaurant, but by understanding the business and trends, you can get an idea of what to expect.
Restaurant Owner Salary by Restaurant Type
As of July 2024, the median pay for a restaurant owner in the United States is $97,173. This is averaged between earnings as low as $19,500 and as high as $333,000. Many things factor into the wages of restaurant owners and profits from location, types of food and profit margins, how busy your storefront is, who the chef is, employee hours, vendors, inventory, and rent. The owner’s salary is tied to the profit and success of the restaurant they own.
Restaurant Owner Salaries by Various Restaurant Types
| Restaurant Type | Yearly | Monthly | Weekly | Hourly |
|---|---|---|---|---|
| Fine Dining | $120,000 | $10,000 | $2,307 | $57 |
| Food Truck | $114,472 | $9,539 | $2,201 | $55 |
| General/Full Service Restaurant | $97,173 | $8,097 | $1868 | $47 |
| Bar | $74,791 | $6,232 | $1,438 | $35 |
| Fast Food | $60,000 | $5,000 | $1,153 | $29 |
| Coffee Shop | $44,347 | $3,695 | $852 | $21 |
| Catering | $39,459 | $3,288 | $758 | $19 |
Restaurants with the Highest Owner Salaries
Why are fine dining and food trucks at the top of the list when it comes to owner salaries? Expand the sections below for more details.
Restaurants with the Lowest Owner Salaries
On the lower end, fast food, catering, and coffee shop owners tend to have the lowest incomes in the food and beverage industry. Does that mean that these businesses are a bad bet? Not at all. There are just some unique wrinkles that make these business types lower-earners.
Restaurant Owner Income by State
Location has a big impact on how much an owner makes. According to Ziprecruiter the states topping the chart for highest owner pay are Washington, Maryland, New York, and Virginia. The lowest-paying states are Florida, Georgia, and Louisiana, and at the bottom of the list is North Carolina. Data from Indeed.com has different data, with the top four states with the highest restaurant owners salaries in Washington, New York, New Jersey, and California.
The Top 10 Cities with the Highest Restaurant Owner Salaries
| City | Annual Salary | Monthly Pay | Weekly Pay | Hourly Wage |
|---|---|---|---|---|
| Green River, WY | $120,816 | $10,068 | $2,323 | $58.08 |
| Richmond, CA | $116,691 | $9,724 | $2,244 | $56.10 |
| Stamford, CT | $115,279 | $9,606 | $2,216 | $55.42 |
| Bellevue, WA | $113,927 | $9,493 | $2,190 | $54.77 |
| Belgrade, MT | $113,562 | $9,463 | $2,183 | $54.60 |
| Santa Clara, CA | $111,844 | $9,320 | $2,150 | $53.77 |
| San Francisco, CA | $109,523 | $9,126 | $2,106 | $52.66 |
| Elk Grove, CA | $109,328 | $9,110 | $2,102 | $52.56 |
| Hartford, CT | $109,193 | $9,099 | $2,099 | $52.50 |
| Pasadena, CA | $108,232 | $9,019 | $2,081 | $52.03 |
How Should Restaurant Owners Pay Themselves?
The way you choose to pay yourself can be another factor that influences how much you earn as a restaurant owner.
Restaurant owners have a few ways of paying themselves:
- They can take a set salary.
- They can take earnings out of profits once the establishment has gained profitability status (which can take a year or more).
- Another option is to create a pay scale that raises as the company matures and profits escalate.
- Owners may receive other forms of compensation from bonuses or profit sharing for the business.
Many owners choose to earn a regular salary with bonuses dependent on dividends from profits.
How Much Should a Restaurant Owner Pay Themselves?
Owners should not pay their own salaries with more than 50% of profits over an average of two to three years. Keeping extra profits aside for unexpected downturns in business, marketing, and miscellaneous costs is essential. The restaurant’s profit margin is the main deciding factor on how much to compensate the restaurant owner.
If you don’t know how to calculate your net profit margin, you just subtract your total expenses from your total revenue.
Net profit = Total Revenue – Total Expenses
Analyze the profitability to average a sustainable salary.
You should also determine the owner’s overall role in the business. Are they on the ground working daily? Are they the chef or primary manager? If they take an active role in the restaurant, eliminating an employee’s position, the owner can raise their own salary.
The most important factor affecting the owner’s salary is the business’s profitability. The timeline to expect a profit is variable depending on startup costs, expenses, marketing, and beginning sales. The period where a restaurant becomes profitable is the breakeven point. This is the golden hour when monthly sales surpass expenses and restaurants turn a profit.
Learn more about net profit and other key performance indicators by reading our guide to restaurant metrics.
How to Increase the Owner’s Income
The best way to increase an owner’s salary is to increase profits. Easier said than done, right? There are a few strategies you can employ to increase your restaurant profits. Expand the sections below for more information.
Last Bite
Owning a restaurant can provide you with an incredibly rewarding career and salary. The key is to do the proper research and have a complete understanding of the type of salary to expect before you open your business.
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