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

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

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Lori’s Answer

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.
Thank you comment icon 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! Jordan Rivera, Admin COACH
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Jon’s Answer

There are job search websites, like Glassdoor, out there that have salary information on companies. During my career whether as an employee or business owner, I have found those places to be a great source of information. I agree with the first answer you got. Publicly traded companies 10K statements are a wealth of knowledge and it is great practice to look at those. Another piece of advise I got when I was looking to buy a business 15 years ago and it was an industry I was unfamiliar with was to call other businesses in areas that would not be in direct competition with you and ask what they pay people. You would be amazed how amenable hiring managers at small to mid size companies are to helping others looking to get into the same industry. Best of luck.
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Jim’s Answer

Sean,

A good place to do some research may be with publicly traded restaurant groups. Check out DIN (NYSE) - they own Applebee's and IHOP. There are lots of others as well.

If you look at their 10K statements, you can see the number of employees and calculate this against revenue.

Of course this only works for super-large scale chains and you will probably see a high number for revenue per employee. For data on smaller single location restaurants, you can try to contact trade organizations such as the National Restaurant Association. Tell them you are a student and conducting research...they may have some info from their members that they can share for free.

Good luck!

Jim recommends the following next steps:

Check 10K reports on publicly traded companies
Contact trade associations such as National Restaurant Association
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Summer’s Answer

This really is a very complex questions as business field is very large and wide with many different levels and occupations so no one answer fits all.
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