Why do restuarant managers make so very little, when the make the most money for the company?

Answer 1

Because in today's society, corporations have factored out the morale element in their workforce.
In the "golden era" of the 1950's, Christmas bonuses, company cars, birthday cards...etc., were the rule of the thumb, not to mention retirement: not 401K and insurance that actually paid for most everything.
Ahh, but until corporations realize that a stable workforce is a happy workforce that increases productivity and quality of their product and/or service, I think we'll continue to see this trend.
Managers often are the middleman. Not quite high up enough on the ladder to garner decent wages and not low enough to be able to go home and not worry about getting the goals accomplished.
Best bet is to go get your degree in something that you like and pursue that instead.
...and why restaurant managers? Because franchises are notorious for the penny-pinching ethics that are devaluing our ability to be comfortable. They figure that with the fierce competition, that people will come to them for the cheaper price instead of for quality, thus lower prices, lower grades of food, and lower pay.

Answer 2

It all depends on which resturant and which management position you are talking about.

Everyone thinks being a manager all of a sudden means big pay.

That's not the case. If you move up the ladder it will pay off.

Example: chain restuarant manager - Usually there are 3. Front of the house, back of the house and bar manager. You work your way through the ranks doing all the positions. Make your way to GM of the restuarant and it pays much better ... like more than double. Move up to Area Director and your making into 6 figures.

Example : Fast food manager - lower pay, work your way up and same thing, an area manager for McDonalds can make over 100K.

Everyone wants it to make money fast and quick, the reality is it will happen over time if your good at what you do and enjoy it.

Answer 3

As someone who ran restaurants, restaurant managers are some of the most overwork and underpaid positions in the workplace. A restaurant manager can work close to 55 hours a week, make anywhere between 23-37K per year depending on the restaurant, and have high turnover ratio.

I believe that they make so little is because restaurant managers are a dime a dozen, any individual who has work in the restaurant (server, bartender, chef...) can learn the basic management skills needed to manager over supervisors. Some corporate restaurants even hire within for their restaurant managers.

If you love the restaurant industry, then stay in it, but be warn that unless you work for a corporate, national chain restaurant, you chance for rising in the company and your salary will not increase, but your work hours will.

Answer 4

The company is going to pay what the market for that job allows. It is based on how little can I pay out to get the service that I want. There is always the hope by the managers for advancement. Good slaves are sometimes rewarded. While that is a bit cynical, I am sure that a lot of managers feel that way. Is this unfair, sure it is, but what are the managers going to do about it?

Answer 5

It really depends on the level of manager, and the restaurant for which he works. General Managers of fine dining facilities make 6 figures most of the time. GM's of nearly any corporate restaurant are going to make at bare minimum 60 a year...and given the low education level required....that's actually a handsome living. Assistant Managers are generally seen as spare parts and extremely replaceable. Again...low education requirements....low requirements in general. The hard part about restaurant management are the hours. I haven't seen many managers who don't work 60-80 hour weeks. And in a restaurant no one is too good to wash dishes. I've seen GM's washing dishes on numerous occasions.

Answer 6

You don't need a formal education to be a manager, i.e. a college degree. Therefore, they are seen as an "unskilled" worker. Although, they should have been with the company for awhile to work there way up. So they should have been getting raises and paid better then anyone else in the restaurant.

Answer 7

Because the company wants less overhead expenses. Paying high salaries to their managers will be a "big bite" from their profits.

Answer 8

Let me guess.....a mgr of Applebee's?

if you want more money, get promoted.

I did food for 10 yrs, from employee to regional director of 52 stores. I got out, too much BS, too little pay, too many hrs.

Answer 9

Because being manager is not such a big job. what do you expect.

Answer 10

thats the way most jobs are