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Every position in a restaurant matters. Each person, from the dishwasher to the head chef, carries responsibilities that contribute to smooth service and satisfied guests. To keep things running as they should, the General Manager (GM) bridges the gap between back-of-house and front-of-house operations, oversees the staff, and drives profitability. 

Leadership plays a defining role in how well a restaurant operates. That’s why understanding what General Managers earn is more than just about numbers. Instead, it’s about setting realistic budgets and attracting capable leaders who can keep the company on track. 

As of April 2025, ZipRecruiter reports that the average annual salary for a Restaurant General Manager in the U.S. is around $65,600, though that number can vary depending on the state, restaurant type, and operational complexity. This article will review those variables and offer strategies to stay competitive regarding compensation in a demanding industry. 

Understanding the Salary of a General Manager in a Restaurant 

Being a General Manager takes more than just experience. It requires leadership, people skills, human connection, an understanding of accounting in restaurants, and the ability to deliver a consistently great customer experience.  

What Does a Restaurant General Manager Do? 

A GM’s responsibilities span across staff management, financial oversight, customer experience, and day-to-day operations. Think of it like the engine of a car—every part needs to be in sync to keep things moving. It’s not about perfection. It’s about showing up every day, completing tasks, solving issues, and finding ways to improve processes.  

Average Salary of a Restaurant General Manager 

The national average salary for a restaurant GM in the U.S. typically ranges between $54,000 and $74,500 per year, depending on several factors: experience level, region, type of restaurant, and whether the compensation includes bonuses or tips. For example, GMs in full-service restaurants tend to earn more than those in quick-service operations, simply due to the size and complexity of their responsibilities.  

4 Factors That Influence a Restaurant GM’s Salary  

Compensation for a Restaurant General Manager often reflects the market, but there are several key elements that owners and human resources should consider when determining payroll. These include the type of business, location, experience and certifications, and performance-based incentives.  

1. Type of Restaurant and Industry Segment

Fine dining establishments and franchises typically have complex operations, larger teams, and higher service expectations. Therefore, the GM earns a higher salary. Meanwhile, fast food and casual dining businesses often have streamlined operations and lower profit margins. As a result, these business types pay a lower salary for General Mangers.  

Corporate-owned vs. independent restaurants also affect GM pay, with corporate chains often offering more structured salary and benefits packages. While independent organizations may be more flexible, they could offer lower pay. 

2. Geographic Location and Cost of Living

The highest-paying cities and states for restaurant GMs vary widely, but trends are based on the cost of living. States like California, New York, and the District of Columbia often pay higher salaries to compensate for the higher cost of living in those areas. The salary range by region can significantly affect what employers should expect to offer, including hourly rate variations.  

3. Experience and Certifications

A GM’s job description typically includes overseeing operations, managing staff, and ensuring profitability. As with most careers, more experience leads to higher pay, especially in large or multi-unit restaurants. Certifications like ServSafe add value, and many employers prefer candidates with a bachelor’s degree in hospitality, business, or a related field. 

4. Performance and Revenue-Based Bonuses

One of the most significant influences on a GM's total earnings is performance-based incentives, such as profit-sharing and bonuses for reaching restaurant revenue targets. Many businesses offer bonuses tied to restaurant sales or operational performance, which can boost a GM's salary considerably, especially in high-performing establishments.  

How to Set a Competitive General Manager Salary 

As an employer, setting a competitive GM salary involves staying informed about national market trends, salary surveys, and hospitality industry reports. Some companies use applicant tracking systems that assign a unique ray ID to each candidate, simplifying interviews and the creation of a welcome offer.  

Benchmarking Salaries Against Industry Standards 

Before proceeding to attract top-tier managers, it’s important to benchmark GM salaries against local and national market data. Relying on updated salary surveys and verification of successful waiting data from hospitality industry reports helps ensure you offer a competitive salary that will appeal to candidates who fit the unique needs of your restaurant. 

Offering a Competitive Compensation Package 

In today’s competitive world, offering a strong compensation package goes beyond just the base salary. Benefits like health insurance, PTO, and performance-based bonuses are increasingly important. Additionally, profit-sharing, stock options, and retention incentives can help make your offer stand out. 

Balancing Salary Costs with Restaurant Profitability 

Each restaurant operates under unique circumstances, making it crucial to manage salary costs in relation to revenue. Determining a GM’s salary should be based on realistic financial projections, helping to balance offering competitive compensation and ensuring the company remains profitable. 

Developing strategies to maintain financial sustainability while attracting top talent involves flexibility. This can include adjusting the GM's salary to match restaurant performance, offering bonuses tied to key metrics, tracking open business management positions across competitors, or finding cost-saving opportunities in other operational areas. 

3 Extra Perks for Restaurant General Managers 

Benefits like healthcare, paid vacations, bonuses, and career growth opportunities are some of the most valuable perks you can offer to your General Managers. These benefits make employees feel like they’re a part of the business. Plus, generosity when it comes to benefits also contributes to long-term loyalty and success. 

1. Five Benefits That Attract and Best Candidates 

While paid time is important, offering non-monetary benefits, focusing on personal and professional development, can significantly boost retention. Here are five key benefits: 

1. Healthcare and Retirement Plans: Comprehensive healthcare and retirement options show that you value your GM’s well-being and future, ensuring long-term commitment and security. 
2. Paid Vacation: Offering paid vacation allows GMs to recharge without financial worries, improving job satisfaction and reducing burnout. 
3. Tuition Reimbursement: Supporting continued education helps GMs grow their skills, benefiting them and the restaurant in the long run. 
4. Flexible Schedules: Using restaurant staff scheduling software helps managers by giving employees a better work-life balance, making the position more attractive to potential candidates. 
5. Dining Discounts: Menu discounts foster a positive culture while giving GMs a chance to experience the restaurant from a customer’s perspective, like with loyalty programs.  

2. Performance-Based Incentives and Bonuses

Linking performance bonuses to tangible metrics such as sales, labor costs, and guest experience can be a great way to reward GMs for their hard work. Commission-based incentives tied to growth goals motivate GMs to continually push for improvements, benefiting both the manager and the company. 

3. Career Growth and Long-Term Earning Potential

When employees feel there is no room for growth, they may not stay invested in the company. Offering clear promotion opportunities, such as advancing to regional manager, director of operations, or even offering ownership stakes, can keep GMs engaged for the long term. Additionally, continuing education programs that increase earning potential also contribute to a culture of development and upward mobility. 

Frequently Asked Questions About GM Salaries in Restaurants 

Understanding General Manager salaries is key for both restaurant owners and those interested in the industry. Below, we answer some common questions about GM pay. 

What is the highest paid restaurant manager title? 

The highest-paid restaurant manager title is typically the Director of Operations or Regional Manager, especially in large chains or corporate settings. These roles involve overseeing multiple locations and, as such, come with greater responsibility and higher pay.  

Is the General Manager a high position? 

Yes, the General Manager holds a high and essential position in a business. The GM supervises the restaurant staff, drives profitability, manages finances, and ensures excellent customer service. It requires strong leadership, experience, and the ability to manage various responsibilities, making it one of the top roles in the restaurant industry—and one that requires managers to respond to challenges on the floor quickly. 

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, and stock options. Among full-service restaurants, John Peyton, CEO of Applebee’s and IHOP, is also one of the top earners, according to FSR Magazine. 

Setting the Right GM Salary for Success 

Paying restaurant General Managers competitively is key to attracting and retaining top talent, making it a valuable investment for your business. In this article, we've explored strategies for smart hiring, compensation, and incentive structures. Balancing remuneration expenses with operational efficiency and profitability is crucial to long-term success. 

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

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