What You Should Pay General Managers? 4 Facts to Know

Every position in a restaurant matters. Each person has responsibilities that contribute to smooth service and happy guests. The General Manager (GM):

• Bridges the gap between back-of-house and front-of-house 

• Oversees staff

• Drives profitability

Leadership Plays a Role in How Well a Restaurant Operates 

Understanding what General Managers do helps set realistic budgets and attract strong leaders. 

ZipRecruiter says the average salary for a Restaurant General Manager is $65,600. But, that varies depending on the state, restaurant type, and operational issues.

This article provides ideas to remain competitive on pay in a demanding industry.  

Understanding the General Manager Salary 

Being a General Manager requires:

• Leadership

• People skills 

• Human connection

• Understanding of accounting in restaurants

• Ability to deliver a great customer experience

What Does a Restaurant General Manager Do? 

A GM’s responsibilities include:

• Staff management 

• Financial oversight

• Customer experience

• Daily operations

Every part needs to be working together by:

• Showing up every day

• Completing tasks

• Solving issues 

• Finding ways to improve

   

Average Salary of a Restaurant General Manager 

The national average salary for a restaurant GM in the U.S. ranges between $54,000 and $74,500 per year. But, it depends on several factors, including:

• Experience  

• Region

• Restaurant type  

• Whether the pay includes bonuses or tips

GMs in full-service restaurants tend to earn more than those in quick-service operations. That is due to the size and complexity of their job duties. 

4 Factors That Influence a Restaurant GM’s Salary  

Pay for a Restaurant General Manager varies by market. There are several things owners and human resources should consider when making payroll. These include:  

• Type of business

• Location

• Experience 

• Certifications

• Performance-based incentives

1. Type of Restaurant

Fine dining and franchises have:

• Complex operations

• Larger teams

• Higher service goals

So, the GM earns a higher salary.

Fast food and casual dining often have streamlined operations and lower profit margins. As a result, these businesses pay a lower salary for General Managers.

Corporate vs. independent restaurants also affect GM pay. Corporate chains often offering more structured salaries and benefits. While independent restaurants may be more flexible, they could offer lower pay.

2. Location and Cost of Living

The highest-paying cities and states for restaurant GMs are:

• California 

• New York

• The District of Columbia  

Salary by region affects what employers should expect to offer.  

3. Experience and Certifications

A GM’s job description includes:

• Overseeing operations 

• Managing staff

• Ensuring profitability 

Like most careers, more experience means higher pay, especially in large restaurants. Certifications like ServSafe add value. Many employers like candidates with a bachelor’s degree in:

• Hospitality

• Business

• A related field

4. Performance and Revenue-Based Bonuses

A GM's total earnings are often based on performance-based goals. These include profit-sharing and bonuses for reaching restaurant revenue targets. Many businesses offer bonuses tied to restaurant sales or operational performance. This can boost a GM's salary, especially in high-performing restaurants.  

How to Set a Competitive General Manager Salary 

Setting a competitive GM salary involves staying informed about:

• National market trends

• Salary surveys

• Hospitality industry reports 

Some companies use applicant tracking systems to simplify interviews and creating welcome offers. 

Creating Salaries Based On Industry Standards 

Before trying to attract top managers, check GM salaries against market data. Use updated salary surveys and hospitality industry reports. These help you make a good offer that appeals to the right GM candidates.

Offering a Competitive Compensation Package 

Offering a strong compensation package goes beyond base salary. Health insurance, PTO, and performance-based bonuses are also important. To help you stand out, consider: 

• Profit-sharing

• Stock options

• Retention incentives 

Balancing Salary Costs with Restaurant Profits 

Each restaurant is unique. That's why salary costs should be in relation to revenue. A GM’s salary should be based on financial projections. This helps balance competitive compensation with making sure the company is profitable.  

Having strategies that maintain financial sustainability while attracting top talent involves flexibility. This can include:

• Changing the GM's salary to match restaurant performance

• Offering bonuses based on key stats 

• Tracking open business management positions across competitors 

• Finding cost-saving opportunities  

Extra Perks for Restaurant General Managers 

Good benefits include:

• Healthcare 

• Paid vacations 

• Bonuses

• Career growth  

These make GMs feel like they’re a part of the business. Plus, generosity with benefits contributes to long-term loyalty and success. 

1. Benefits That Attract and Best Candidates 

Paid time off is important. But offering benefits beyond money can boost retention. Here are five benefits:

1. Healthcare and Retirement Plans: These show that you value your GM’s well-being and future. 
2. Paid Vacation: Offering paid vacation allows GMs to recharge without money worries. It also improves job satisfaction and reduces burnout. 
3. Tuition Help: This helps GMs grow their skills, benefiting them and the restaurant. 
4. Flexible Schedules: Using restaurant staff scheduling software helps managers improve staff's work-life balance.
5. Dining Discounts: Menu discounts create a positive culture while giving GMs a chance to experience the restaurant from a customer’s perspective. 

2. Performance Incentives and Bonuses

Linking performance bonuses to sales, labor costs, and guest experience rewards GMs for their hard work. Commission incentives tied to growth goals motivate GMs to push for improvements.

3. Career Growth and More Earning Potential

When there is no room for growth, workers won't stay invested in the company. Offering promotion opportunities, such as:

• Advancing to regional manager

• Becoming director of operations

• Offering ownership stakes

These can keep GMs engaged. Additionally, education programs that increase earning potential also create more buy-in. 

Frequently Asked Questions About GM Salaries in Restaurants 

 Below, we answer questions about GM pay. 

What is the highest-paid restaurant manager title? 

The highest-paid restaurant manager title is Director of Operations or Regional Manager. This is especially true in large chains or corporate settings. These roles involve looking over multiple locations and come with greater responsibility and higher pay.  

Is the General Manager a high position? 

Yes, the General Manager holds a high position in a business. The GM:

• Supervises the restaurant staff

• Drives profits 

• Manages money 

• Ensures excellent customer service 

It requires leadership, experience, responding to challenges and managing various responsibilities. Therefore, it is a top role in the restaurant industry.

Who is the highest-paid restaurant CEO in the world? 

As of 2025, according to QSR Magazine, the highest-paid restaurant CEO is Brian Niccol, the CEO of Chipotle Mexican Grill. He has earned millions in total compensation, including his:

• Base salary

• Bonuses 

• Stock options 

Among full-service restaurants, it's John Peyton, according to FSR Magazine. He is the CEO of Applebee’s and IHOP.

Setting the Right GM Salary for Success 

Paying restaurant General Managers competitively attracts and keeps top talent. Think of it as an investment in your business.

In this article, we've explored strategies for:

• Smart hiring

• Compensation

• Incentive options 

Balancing expenses with operations and profits is key to success. 

Check out our Loyalty Guide to learn why retaining customers is as important as keeping great workers.  

Ready to streamline operations and boost profitability? Request a demo to learn how Paytronix can support your success.