Salary vs. Hourly: How to Pay Your Pizzeria's Managers

Members of PMQ's Think Tank swap tips for managers' salaries and hours they should work.




Should your pizzeria manager be paid an hourly rate or salary?

WPI: How many hours should a salaried pizza store manager be expected to work? At what point do you start paying them for working extra hours? And how do you structure bonuses?

pizzapiratespp: I believe in paying them an hourly rate. When I paid a salary, I always had a bit of tension with the managers. If they worked a little less, I was peeved, and if they worked an hour more, they were peeved. I try to keep managers in the 38-to-40-hour range. I find that our operation is just too physically demanding to work more than that on a regular basis. Our GMs make $20 to $22 per hour, plus a bonus of 2% to 4% of the sales.

Our entry-level managers, some of whom work part-time, make between $14.50 and $18 per hour. Some of them receive bonuses, but those max out at around $50 a week. Assistant GMs make $18 to $20 per hour, plus a bonus of 2% to 4% of the sales. They also get paid vacation and sick leave, health care and so on. But don’t try this at home! These are California pay rates for longtime employees!

314: I still pay a salary, which is based on an average week for my general managers. Typically, 45 to 47 hours is all they ever work. At my busy shop, which does more than $40,000 a week in sales, my current GM works about 47 hours a week, and his salary is $950 a week plus bonuses, health insurance, a fuel card and two weeks paid vacation. He has three assistant managers under him.

d9phoenix: I haven’t had a full-time manager in years. I just have part-timers—this is not what I want, it’s all that I can find. As for bonuses, I base them on meeting goals for three items: labor, food usage and sales. From time to time, I will change the goals, depending on what I think is more important. Unfortunately, everything here [in Boulder, Colorado] has been thrown into chaos over the last year or so. The minimum wage goes up 90 cents every year until 2020, and now we have a soda tax that’s higher than anywhere else in the country!

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