Restaurant Manager / Chef Position Quarterly Bonus Structure
Bonuses are measured by a few categories:
1. Overall Gross Profit (Gross Profit “GP” = Profit after Labor, Salary, COGS, & restaurant supplies)
a. Bonus Pool for the restaurant is 1.5% of Gross Profit for the quarter
2. Sanitation
3. Personal Leadership Development
4. Reviews
*Note, to be eligible for bonus, you must be actively employed through the end of the quarter. Further, if you are only in a location for a partial quarter, your bonus is prorated for the time you are in that particular building. New managers must accomplish 63 days training period before being eligible for bonus pay out.
** All Managers must complete Serve Safe Manager Certification during training, or already have a valid ServeSafe or other industry recognized Manager Food Handler Certificate to be Eligible for bonus.
Described below are the ways the 3 different aspects of the bonus plan are weighed Financial:
All restaurants:
There is a bonus “pool” for each restaurant that would then be split by managers and weighted by the position. This pool is based on a percentage of GP (1.5%) then divided amongst the leadership team based on rank.
The department level managers should be managing their costs based on their targets. Senior managers (AGM/GM/EC level) should not only be assisting in helping the department level managers meet the goals, but also pro-actively assisting the team in assuring the goals are met on a daily & shiftly basis.
Therefore if labor, food, alcohol, and supplies are followed by using the budget tool, the result will be a profitable restaurant. To save time, the GP will determine the total bonus payable and then divided by the percent allocated to each position.
Due to the drastic difference in the amount of managers needed to operate large and small buildings, the bonus pools are broken down as follows:
For larger restaurants, $6M+ per year:
Legend:
VP/DO= Vice President/ Director Ops RM= Restaurant Manager SC=Sous Chef MP/GM Managing Partner BM= Beverage Manager SM=Service Manager AMP= Assistant Managing Partner EC= Exec Chef CDC=Chef de Cuisine
For these restaurants, with a smaller structure and hierarchy, there is less division amongst the pool and thus encouraging everyone to pull their weight, or encourage and coach others struggling to step up and take ownership since it is an equal share.
Importance of hitting financial targets-
Hitting your financial targets are crucial to the restaurant’s success as well as your bonus eligibility. Since the bonus is made up of 3 operating months, its important to understand that missed financial targets due to poor GP results are not eligible to be bonused on.
Each month the company sets financial targets based on COGS that the management team works towards implementing these goals through daily operations. There are 2 categories here that make up the financial portion of the bonus. COGS & Labor. Each portion is weighted at 50% of the financial portion. If COGS are missed collectively by 5% or greater or labor is missed by 3% of the target or greater, the financial portion would be reduced by 50% for each miss. If both are missed the financial portion of the bonus would be considered 100% missed for that month.
Example:
Assume in month 1 of the quarter, COGS missed targets by 7%, but labor was over by 2% total for the restaurant. Only 50% of that month’s GP would be accounted for in quarter as being eligible to calculate off of the bonus base.
It is important to note: This pool is based on the financial aspect of the bonus only. Sanitation:
Sanitation & Cleanliness is of utmost importance. We all know why. There are multiple factors that contribute to the Sanitation bonus scoring:
● Health Department Scores
● Eco-Sure Evals
● Systems Director Health Evaluations
Essentially, the entire team of a restaurant must be mindful of the entire restaurant and its level of sanitation and cleanliness at all times.
If the restaurant has good scores for the bonus eligible quarter, each manager will earn an additional $500 on top of their financial bonus aspect. If the scores in all 3 examples are poor, or the restaurant is otherwise consistently/noticeably dirty, the bonus will be eligible for a $500 penalty, coming from the financial performance aspect of the bonus. Succeeding or failing is a $1,000 difference in your quarterly bonus.
Personal Leadership Development:
This is the easiest part of the bonus. The benchmark is a minimum of 2 ea “book reports” per quarter. This can be a physical book, or audio book on leadership development with a thorough report written about what was learned, how it relates to your day to day tasks and how you plan on deploying the ideas learned to your team so that you can continue to be a better leader. This report should be thorough enough that the reader of the report gets a very clear picture of the book, its message, and overarching concepts. Turn into Kyle, Matt, Dave and your immediate supervisor in your location.
This is another $500 addition to your bonus. There is no penalty for not doing this task.
Reviews:
Quarterly, Reviews/Surveys for the restaurant should be at or above 4.5 Stars and the manager will receive a 10% bonus on their entire bonus base (Financial + Sanitation + Leadership= Bonus Base).
If reviews are below 4.5% for the quarter, bonus base will be reduced by 10% accordingly.
Lastly, the bonus is weighted by eligibility based on time. There are 91 days in a bonus quarter (13 each 7 day weeks). The amount of time you are eligible for your bonus is equal to how many days of eligibility you have divided by the 91 days of reporting time. This number is multiplied by the amount eligible for bonus and credited to you.