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multi-unit management pay

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Attempting to get a fix on market compensation for pizza restaurant managers. Take out/ delivery as well as take out/delivery & around 50 seats with beer & wine. Pay? benefits? bonuses? I would appreciate any comments from the board. Thank you
 
I’m opening 2nd unit have great manager, he gets good pay + health+ira, he’ll run existing store and I’m thinking 1% of gross initially, about 12K per year? Am I in ballpark? I don’t know what industry norms are either.
 
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Ramsey:
I’m opening 2nd unit have great manager, he gets good pay + health+ira, he’ll run existing store and I’m thinking 1% of gross initially, about 12K per year? Am I in ballpark? I don’t know what industry norms are either.
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Is 1% of gross supposed to be a bonus? Or is 12k supposed to be the starting salary (or commission actually) of the manager of the second store? I’m having a really hard time understanding what you’re saying.
 
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Without getting overly complicated, I’d suggest tying that bonus to things you want to motivate him to manage.
Presumably, his skill will impact gross, but perhaps not so directly as will your marketing efforts, etc.
So how about tying the bonus to food and labor cost percentages - things where he can really make a difference for you if he does it well?
 
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What kind of gross sales are you anticipating? What is the scope of your operation? If dine-in, how many seats? Beer & wine? Full menu? I assume delivery and take out. What region of the country?

I believe all of these factors are essential to making a comparison. In some areas of the country a dine-in with delivery/take out operation with this kind of pay would be exceptional whereas in New York, for example, it may be just-getting-by compensation.

I also agree with the previous poster that a bonus needs to be tied to something and that something should be controllable by the manager and determined by his performance in the controllable area.

Are you contributing a certain amount to the IRA? How are you doing that?
 
We are a delco. I pay my manager $500.00 per week + 20% PROFIT. If he keeps cost down and keeps sales up, he makes ALOT of money. At least in my area. Central TX (Ft Hood Area).

Russ
 
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Take-out & Delivery w/about 20-30 seats. No alcohol probably 2/3 delivery on high-traffic corner in Philadelphia neighborhood. Pizza, cheesesteaks, wings, few basic pastas etc., pretty full menu. Expecting 700-1 million plus 1st year consevative depending how hard I push it. No really good close by competition in my opinion. Labor at 27-28 % at 1st store, cost of goods sold(inlc. soda, paper products, linen) at 31-32%.
I’m no genius but I think my numbers are in line, my main concern is quality of product & staying busy. Would like to tie bonus to numbers somehow but don’t want to make it rocket science either. I thought 1% would be nice considering the added responsibilty. Do you know of a popular formula for a bonus tied to labor and/or food?..thanks
 
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Russ,

How many stores do you have? Do you have an assistant manager? if so, any compensation other than pay? Also, 20% of profits. Are you doing total sales-labor + cost of goods=Profit or do you take taxes and insurance into account? Either way I think your guy is happy.That’s more than I’m willing to do, at least initially. I like it though, it seems simple too.
I do a SEP IRA, works out to 5,600 per year for manager and it’s great for me and nice tax benefit.
Ramsey
 
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