Manager Bonus Programs?

[runforitzach]

Looking for any information on manager bonus/incentive programs pizzerias are currently using in their shops. Any parameters or programs that you are currently using? Food costs? Labor? Utilities? Struggling with where to begin - thanks for any input! Thank you.

 

[wkronberg]

My books are open to my manager. We do a weekly operations analysis to give us a snapshot of profitability for the the week. Every month I put the profit in to a profit account. At the end of every quarter I with draw 1/2 of the profit for that quarter. I give the manager 25% of that profit to the manager and I keep 75% for myself. The other half of the profit I leave in the account to accrue for debt reduction or for growth, as need be.

The weekly analysis is a tool I use to guide the manager with cause and effect. If the controlables are out of line, he has time to correct it. That way there are no suprises and it is a good teaching tool.

 

[JMSchaeffer]

We use a manager bonus program based on meeting the monthly percentage goals set for our prime costs (food, beer, liquor and labor). They earn points for each goal met (labor is weighted with more points) and are then paid a set dollar amount per point based on their positions (GM, Assistant, Etc.); this is based on the principle of higher responsibility = higher reward.

We tried several iterations before fine tuning the bonus program we use now. Those experiences led us to focus on prime costs as the managers have the ability to control and improve them in the course of their daily duties. This leads to better buy-in from the team. The goals require some extra effort but are still attainable and transparent.

A solid weekly or monthly P&L statement is critical and as mentioned by @wkronberg, make sure they are open to your management team, or at least the General Manager, and you review them together every time.