Restaurant Managers are top-tier employees at the restaurant and food service industry. They are responsible for hiring, training and supervising staff members, as well as overall financial oversight of the company. Most restaurant managers have a four-year degree in business or hospitality management
The Starting Salary For Restaurant Manager is $40,000. A restaurant manager is in charge of managing all the employees and efficiency of a given restaurant. The responsibilities of a manager may include hiring and firing other workers, handling accounting matters, dealing with customers and overseeing the service provided by the establishment
Starting Salary For Restaurant Manager Overview
A restaurant manager is responsible for managing the daily operations of a restaurant, including hiring and supervising employees, planning and organizing the menu, and meeting with customers. A restaurant manager may also be responsible for accounting and budgeting, ordering supplies, and developing marketing strategies.
Salaries for restaurant managers vary by industry and location. According to the Bureau of Labor Statistics (BLS), the median annual wage for restaurant managers was $43,490 in May 2019. The lowest 10 percent earned less than $27,540 and the highest 10 percent earned more than $76,050.
working as a Restaurant Manager
Running a restaurant is not easy, which is why it usually takes a lot of skill and experience to become a restaurant manager. In all aspects of restaurant operations, the restaurant manager is responsible for overseeing, managing, and directing the activities of both kitchen and service staff. The typical workweek of a restaurant manager revolves around monitoring inventory, creating work schedules, supervising subordinate staff, generating work reports, and addressing guest concerns when needed. Also, they usually work with an assistant manager who helps them with administrative duties to ensure that the restaurant always runs smoothly.
Like many roles in the foodservice industry, a college degree is not a common requirement for the role of a restaurant manager, although it is a great advantage. Many restaurant managers have worked their way up from being regular staff members, while some enter the job directly after graduating with a management or hospitality degree. On average, the salary of a restaurant manager is around $23 per hour or roughly $48,000 a year. Depending on their employer, they may also make extra income through shared tips.
There is more than meets the eye when it comes to being a restaurant manager. For example, did you know that they make an average of $25.1 an hour? That’s $52,202 a year!
What Is The Salary Range For A Restaurant Manager?
The restaurant manager is responsible for the operation of the food service department of the business. This means overseeing the tasks of the kitchen and wait staff. The pay scales vary by size, location, and type of restaurant. Salary is also based upon the experience and responsibilities of the manager.
Experience.The salary of a restaurant manager is based on the experience the person has as a manager in the food service industry. An experienced manager of a large-scale facility can expect a minimum of $50,000 per year. The national average pay scale is based on four or more years of experience in large-scale businesses. The fast-food restaurant chains offer salary ranges of $20,000 to $35,000 for assistant managers and managers.Location.
Generally, larger cities offer higher pay for the restaurant manager. Salary Experts (listed in the Resources section) report average salaries for Missouri, and Montana being only $100,00 while Manhattan, New York offers an average salary of over $150,000. Resort hotels and restaurants located in tourist areas boast quality and service as part of the draw for their clients. The more sophisticated or discerning the clientele, the higher the pay scale of the staff.
Types.
Restaurants vary in styles, cuisine, and types. The typical fast-food restaurant offers an excellent pay and benefits package for many people. The average salary of a restaurant manager in the fast food industry ranges between $30,000 to $40,000 for someone with experience. The manager just starting out can expect $20,000 to $25,000 for the first few years. Another factor in the fast-food industry is whether the facility is a corporate or franchise business. The franchise can offer a far different pay scale and benefit package than the corporate office generates for its employees because the franchise is privately owned.
Misconceptions.Restaurant managers are not just persons involved in overseeing the local steakhouse. Cruise lines, corporate hotel chains, and even casinos need restaurant managers to make the food service end of the business run smoothly. These employees can obtain a salary and benefits package in excess of $100,000 a year. The larger the operation, the more responsibility. With that responsibility comes a higher pay scale.
Potential.
The hospitality industry has a reputation of standards to uphold. The restaurant manager is able to gain skills in these standards and practices by enrolling in one of the many schools throughout the country offering such courses. There are accredited programs where the student can earn a degree in hotel and restaurant management. With a degree and experience, the restaurant manager has the potential to obtain a career globally, which offers a high-quality pay scale and benefits package.
Gender Discrepancy in Restaurant Manager Salary
Something applicants distinctly recognize in the overall job market — and specifically the restaurant industry — in 2018 is the perceived gender gap in pay. And, as we saw in the Gecko Hospitality survey results, there is a reported 5-15% gap in pay between men and women for the same general manager roles. While this discrepancy in restaurant manager salary may be difficult to discern as an independent operator with only one restaurant manager salary to compare at a time, even seasoned vets are surprised by the results.
In reviewing the survey results, Robert Krzak, President of Geck Hospitality, observed, “We ran the numbers four times to make sure. [Women] are widely sought after for these positions, but when you look at how they are compensated you ask ‘what’s going on here? Are you kidding me?’ It’s really jaw dropping.”
Across almost every geographic location and segment of the restaurant industry, female managers report making less than their male colleagues. And your applicants know it. It’s more important than ever to take extra care to deliberately establish your restaurant manager salary agnostic of the gender of your candidates.
Federal Wage Regulations
While there aren’t specific federal wage regulations for management positions in the restaurant industry or any other, there are a few considerations to keep top of mind when setting your restaurant manager salary to save you hassle and money in the long run.
The restaurant manager’s job is tough, no bones about it. It often requires long hours, and most certainly more than a 40 hour work week. It’s important to establish your manager as exempt from federal requirement for overtime pay from the very start so that your actual restaurant manager salary doesn’t end up ballooning right before your eyes.
Currently, federal law sets the annual salary level for exemption from overtime pay at $23,660. Rules set in place in 2016 by President Obama’s administration, and since prevented from taking effect, raised that minimum annual salary for exemption to $47,476. It is expected now that when the Department of Labor issues its new recommendations for regulation, that number will fall somewhere in-between, likely in the low $30,000 range.
In terms of the salary averages presented above, its very unlikely any new federal regulations will be a problem in 2018, but it’s worth considering, particularly if hiring for assistant manager positions at your establishment.
Benefits Beyond the Restaurant Manager Salary
Ultimately, the biggest factor beyond local competition that may determine if your restaurant manager salary is indeed attractive is all the things that come with it that aren’t actually the salary itself. The benefits and considerations your restaurant offers its employees — manager included — could tip the scales for an applicant who is looking at the full picture in terms of compensation.
Health insurance is obviously a critical matter for restaurant employees going into 2018, but so is paid sick and personal time. Both of these benefits may seem like huge expenses, but their careful application can end up benefitting your bottom line just as much as your individual employee’s. Having to pay overtime for hourly employees covering shifts is unavoidable no matter what benefits you provide, but the number of days a sick employee is out — not to mention the number of people they can spread their illness to when resistant to calling in for unpaid time — is a huge factor in driving up unnecessary overtime and emergency call-outs.
Work-life balance generally is a big consideration for many managers, particularly for Millennials having worked in the industry now for upwards of 10 to 15 years. Making sure your candidates understand the full package of compensation — and not just the one number attached to a restaurant manager salary — could make the difference between an enthusiastic yes on offer and a reluctant no.
