New edition of the employee handbook. We fixed some mistakes you all pointed out. Some of you have very sharp eyes, thanks!
We also made a pretty major change to the way we’re compensating managers. I’m really excited about the change, it brings us closer to the ideal of having managers feeling that they are “running their own little business.” Instead of a bonus that is based on a scorecard that tracks your performance managers are going to earn a share of the profit they generate at their location. Specifically, we’re setting the profit sharing at 20% for trucks, 10% for restaurants. That means that if your restaurant earns a 4-wall profit of $200,000 in a given year the manager would be eligible for a $40,000 bonus! The best thing is that I’d be thrilled to write the check because that person would have done amazing things for us.
It’s simple, easy to communicate, easy for managers to track. I’m really excited to see how this works for us all this coming year.
It’s about time you elevated your compensation levels for managers. Look, I’m only trying to help here. I always felt that the salary was way too low there, so I had a discussion with someone in the Clover inner circle and he assured me that the pay scale for Clover management was inline with all of the major fast food chains. Hello? That’s the problem! If you are basing your compensation on comparable entities such as Boloco and McDonald’s, then you will be drawing from the exact same pool of people that apply to those dead end jobs. People in the know will acknowledge that the most talented restaurant managers aren’t working for fast food chains. And why is that? It’s all based on pay. All of the top end managers are looking for positions that have significantly higher salaries and compensation packages. Logic dictates that if you are only paying 3rd or 4th tier wages, then that is the kind of talent that you can expect to attract. Not exactly the cream of the crop. Clover is a SERVICE oriented restaurant-it’s the foundation of your business. When is the last time you heard someone say that the service at McDonald’s was amazing and they can’t wait to go back? Exactly. You cannot put a price on GREAT leadership.
Michael — Do you know what we pay managers? Do you know what managers make at other joints? We’ve increased our pay over time and feel really proud of the jobs we’re creating and our pay rates. We have 22 year old managers without college degrees making $45-60k/ year. That’s pretty amazing and unheard of in this industry and competitive in many other industries. It’s something we feel awesome about.
Not sure what your reference points are.