I am looking for a creative way to pay managers so as they have a lot of incentive to run the business the way it should be ran. Right now There is little to no incentive to portion, send out fast deliveries and minimize mistakes. I am thinking some sort of a low hourly pay and back tht up with the ability to make high bonuses.
What have others done with there managment?
I have done similar things in the past and it seems to work pretty well. I would offer a bonus for meeting the percentage that you set for your food cost, labor cost, and if you have them taking care of the store marketing then you could even throw one in there for increases in sales. Then after you set the system up explain it to them, and then show them what they need to do in order to meet the goals. Good luck!
The old Domino’s system was $450 a week, and 20% of the profits. Many managers got a bonus check bigger than their salary. That kind of incentive system works great for everyone. The more they make for you, the more they make for themselves. It also makes managers think twice before grabbing a soda, because they are paying for 20% of that soda out of their bonus check.
I hear what you’re saying. I just (today) had meetings with the management of my location and rolled out a bonus incentive program. First time since I opened 7 years ago. It’s never too late. The first question is what controls you have in place to use in quantifying performance. If you have a pos definitely pizzamango’s recommendation in tracking labor and inventory. What I did (I have a pos) is a program where the GM gets 5% bottom line profit and the Am gets 2.5% BL profit per period as long as labor and inventory is within 1% up or down of goal. The inv goal is ideal usage as compiled by the item sales by the pos. Labor is a number I determine. usually between 25% and 23% based on volume. The reason I choose bottom line profit is because if you use quicken or peachtree etc. to track monthly cost, you can directly draw incentive as a product of overall cost. ( hey manager, turn off that oven right at close to save utility cost.) If you don’t track these costs, base it as a percentage of total sales as long as labor and inventory is hit. Another bonus I offer is $100 to the GM and $50 to the AM additional per period if 80% of deliveries are dispatched in less that 30min. This specifically targets the goal of a number that is important to me. Pick an activity you can track with a number and create a simple bonus incentive that directly targets the success of that goal. I think the greatest effectiveness of a bonus program using the info created by a pos is the managements ability to have real time analysis and understanding of how to interpret information to aid in their success. Who doesn’t want to be part of a winning team? Rock your shop man! Way to take it on!
Joe, may I ask what POS are you using?
Hmm. 20% of the soda out of their check, or 100% of the soda out of their pocket. Doesn’t seem like much thinking is needed there… :lol:
I will second PizzaMagoo’s suggestion. We project food and labor costs based on historical store data and give the manager a certain bonus based on how much they clear those figures by. If they don’t even meet the figures then they get no bonus and we talk about why they were unable to hit their target.
I’m using a firefly Phoenix point of sale. It is the newest incarnation of the Rapidfire system. Put it in Aug 07. It was a toss up between that and a Revention system.
Joeroyal,
Just curious as to why you chose Firefly instead onf Revention. We are about to replace our old POS. So Im comparing systems. I really like Revention but would like to hear your opinion.
Thanks
I stopped considering Revention when they quoted me 25% more than the next most expensive system. Speedline, Selbysoft, Prism, Assal, PDQ, Diamondtouch and probably a couple others I can’t think of now weren’t even close to the price.
joe royle how much do you pay your manger /A manger a week?and what is your weekly sale? if yo do not mind .
TY
The whole issue of manager pay becomes moot if your manager is a thief.
Each manager is responsible for cash handling, product quality and service on thier shift and for cleaning and making sure the kitchen is ready (prep) for the next shift.
In addition to that, my GM writes the schedule and buys food to be ready for the sales forecast that I produce.
One Asst is responsible for the delivery vehicles: inspections, oil changes, cleaning etc.
2nd Asst is responsible for kitchen equipment: maintainance, periodic cleaning, repairs etc
3rd Asst is responsible for major weekly cleaning projects like the walk-in, dish area, upstairs storage, light covers, windows etc.
All of them make $12 an hour to start with. If the manager runs the schedule, food buy general smoothness of operations well he gets a $4 per hour bonus on straight time (not on OT). If the Assistant managers get their extra responsibilitites handled smoothly without having to be chased they get $2 per hour on straight time.
On top of that, I pay ~10% of profit in bonuses distributed roughly 40% to the GM and 20% each to the asstistants based on my perception of how they contributed. I figure it hourly though, so an assistant might get another $0-4 per hour according to the season. During the holidays they made $18 per hour and the Manager made about $22. During the off season, they will only get the special responsibility money as we make no profit during the slow time.
When it is all said and done my manager will cost me about 7-8% of sales.