The full-service restaurant planning case includes one paid owner/general manager. It represents an alcohol-free U.S. restaurant with 80 seats, opening in March 2027. The figures below are selected assumptions from its 2027 Base case, in U.S. dollars; they are not recommended pay rates or market averages.
What does the owner’s operating role cost?
The case budgets one full-time owner/general manager at $78,000 a year, starting in January 2027. It adds 10.65% for employer payroll costs, a selected case assumption rather than a universal rate. Dividing annual salary by 12 and applying that load gives the following monthly subtotal.
On a narrow screen, scroll within the table to read both columns.
| Component | Calculation and amount |
|---|---|
| Salary | $78,000 ÷ 12 = $6,500.00 |
| Employer payroll load | $6,500 × 10.65% = $692.25 |
| Salary plus load | $6,500 + $692.25 = $7,192.25 |
That is $86,307 for the full year: $78,000 × 1.1065. This subtotal excludes the employee health benefits budget, which the case carries separately in fixed expenses. Adding the owner’s salary again elsewhere would duplicate a cost already included in payroll.
The $7,192.25 monthly subtotal is a cost to the business, not the owner’s take-home pay. It combines salary with employer costs and does not calculate the owner’s personal after-tax income.
Why does the start date matter before opening?
Owner/manager pay begins two months before guest service. January and February therefore contain $14,384.50 of salary and payroll load: $7,192.25 × 2. This is one component of pre-opening costs, not the complete opening cash requirement.
Starting this cost in March would omit the case’s paid management time before opening. When adapting a plan, connect the role’s start date to the work required before opening and include that timing in the cash review.
The case’s funding inputs are fixed, so changing payroll requires a fresh review of cash needs; it does not automatically increase financing. See the restaurant cash reserve guide.
Is the owner’s salary an investment return?
In this case, salary pays for the management role. The forecast includes zero shareholder distributions throughout January 2027–December 2031. The owner’s paid work and any recovery of invested capital therefore need separate explanations in the business plan.
The model’s project payback calculation measures cumulative project cash recovery. It does not show capital actually returned to the owner, and company cash is not automatically a personal receipt. The break-even and payback guide explains those measures.
What should you check before changing owner pay?
Keep an unchanged source case and document the operating change behind an edited number. A lower salary assumption alone does not explain who will perform the management work or how that person will be paid.
- Record the owner’s duties, working hours, pay, and start date.
- Check employer costs and benefits without counting them twice.
- Review monthly profit and cash after the change, then reassess fixed funding.
For an unpaid-owner scenario, record the work you will do and how you will cover personal living costs. Use the assumptions review guide to keep the revised case traceable.
