Chain Restaurant Industry Pay Trends
This article discusses executive pay trends within the chain restaurant industry
Recently, HVS completed its annual study of industry pay trends within the Chain Restaurant Industry, the 2005 Chain Restaurant Corporate Annual Report©. Listed below is a selection of our findings that I believe chain restaurant executives will find of interest1.
Nationwide Base Salaries and Average Bonuses
Minimum | 50th Percentile | Maximum | Average | |
Base Salary | Base Salary | Base Salary | Bonus | |
Chief Executive Officer | $1.00 | $400,000.00 | $1,400,000.00 | $312,301.41 |
Chief Operating Officer/President | $73,846.00 | $291,747.50 | $950,000.00 | $194,380.64 |
Senior VP Operations | $61,898.00 | $173,891.06 | $449,231.00 | $76,457.26 |
Regional Director Operations | $43,000.00 | $105,951.47 | $230,191.00 | $23,503.48 |
Area Manager | $45,000.00 | $77,567.50 | $131,840.00 | $18,094.44 |
Unit General Manager | $30,680.00 | $51,358.17 | $113,300.00 | $10,109.21 |
Unit Assistant General Manager | $24,961.92 | $37,507.59 | $53,897.00 | $3,502.41 |
Unit Kitchen Manager/Chef | $20,447.11 | $40,022.45 | $63,654.00 | $4,702.51 |
Base Salary and Average Bonus Results by System Sales
Greater Than $500 Million | Minimum | 50th Percentile | Maximum | Average |
Base Salary | Base Salary | Base Salary | Bonus | |
Chief Executive Officer | $273,181.75 | $586,573.58 | $1,300,000.00 | $646,994.22 |
Chief Operating Officer/President | $239,960.00 | $402,546.00 | $789,962.05 | $339,225.51 |
Senior VP Operations | $61,898.00 | $234,717.76 | $449,231.00 | $174,247.29 |
Regional Director Operations | $76,000.00 | $102,907.30 | $148,720.14 | $29,872.60 |
Area Manager | $54,636.35 | $78,556.14 | $131,840.00 | $24,693.11 |
Unit General Manager | $35,500.00 | $51,365.00 | $64,998.16 | $9,739.09 |
Unit Assistant General Manager | $25,500.00 | $40,135.57 | $46,178.64 | $3,009.98 |
Unit Kitchen Manager/Chef | $20,447.11 | $41,493.00 | $51,537.46 | $2,552.15 |
$100 - $500 Million | Minimum | 50th Percentile | Maximum | Average |
Base Salary | Base Salary | Base Salary | Bonus | |
Chief Executive Officer | $61,731.00 | $400,000.00 | $1,400,000.00 | $249,141.89 |
Chief Operating Officer/President | $73,846.00 | $265,225.00 | $950,000.00 | $135,413.97 |
Senior VP Operations | $103,809.07 | $172,000.00 | $297,683.00 | $45,262.90 |
Regional Director Operations | $43,000.00 | $111,100.00 | $230,191.00 | $24,654.00 |
Area Manager | $53,966.92 | $81,954.53 | $115,391.00 | $17,934.33 |
Unit General Manager | $37,894.00 | $51,972.50 | $113,300.00 | $11,441.46 |
Unit Assistant General Manager | $24,961.92 | $37,152.72 | $53,897.00 | $3,771.22 |
Unit Kitchen Manager/Chef | $28,545.00 | $40,022.45 | $63,654.00 | $6,050.14 |
$100 - $500 Million | Minimum | 50th Percentile | Maximum | Average |
Base Salary | Base Salary | Base Salary | Bonus | |
Chief Executive Officer | $1.00 | $231,311.24 | $550,000.00 | $68,590.06 |
Chief Operating Officer/President | $144,200.00 | $214,527.70 | $517,834.58 | $55,024.91 |
Senior VP Operations | $95,000.00 | $129,716.68 | $218,545.40 | $12,186.78 |
Regional Director Operations | $62,280.00 | $104,545.00 | $122,385.42 | $16,243.27 |
Area Manager | $45,000.00 | $70,801.50 | $89,610.00 | $10,638.27 |
Unit General Manager | $30,680.00 | $50,265.44 | $66,950.00 | $7,574.97 |
Unit Assistant General Manager | $27,040.00 | $36,060.30 | $49,000.00 | $3,042.32 |
Unit Kitchen Manager/Chef | $24,760.00 | $38,950.00 | $56,000.00 | $3,710.55 |
Nationwide Long-Term Incentives2
Minimum | 50th Percentile | Maximum | |
Chief Executive Officer | $0.00 | $365,501.00 | $20,039,549.00 |
Chief Operating Officer/President | $0.00 | $290,402.00 | $12,596,308.00 |
Senior VP Operations | $0.00 | $155,000.00 | $1,629,000.00 |
Regional Director Operations | $0.00 | $45,500.00 | $332,238.00 |
Area Manager | $0.00 | $19,500.00 | $51,028.00 |
Unit General Manager | $0.00 | $1,500.00 | $17,334.00 |
Unit Assistant General Manager | $0.00 | $0.00 | $5,103.00 |
Unit Kitchen Manager/Chef | $0.00 | $0.00 | $1,140.00 |
hope you find this information helpful as it is critical when designing an effective compensation program to attract and retain the best and the brightest for your organization.
To learn more about the 2005 Chain Restaurant Corporate Annual Report© please click on this link .
- 1 Data from the 2005 Chain Restaurant Corporate Annual Report has been obtained through written survey as well as public documentation. One hundred and seven companies are included in the report representing all industry segments
- 2 Long- Term Incentives = Value of Restricted Stock Awards + Stock Options (Value of stock options calculated using Black-Scholes Valuation Model). Seventy-six of the one hundred seven companies included in the survey are publicly traded.
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Leora Lanz
HVS Sales & Marketing Services
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