December 18, 2014

Everybody gets a raise



I just posted on our pay increases for entry level employees. Those have been in place for a couple of months. Starting 2015 we’re going to be putting in place a new compensation package for our restaurant managers and assistant managers as well. 2015 is going to be a good year to work at Clover. We’re going to be paying significantly more than we’ve ever been able to in the past. If you’re not interested in this stuff skip this post. If you work at Clover or are thinking about joining our team you’re going to want to pay close attention. This is what you will get paid to change the world in 2015.


We’re breaking restaurants into tiers based on sales volumes. Base pay will be set by tier. Managers will then receive a quarterly bonus based on their year over year sales increase for that quarter. And on top of the quarterly bonus there will be an end of year bonus based on performance. The end of year bonus potential will grow the longer you’ve been at Clover. Here’s an outline of the structure:

Tier 1 up to $500,000 sales $40,000/ yr
Tier 2 $500,001 to 1,000,000 sales $45,000/ yr
Tier 3 $1,000,001 to $1,500,000 sales $55,000/ yr
Tier 4 $1,500,001 to $2,500,000 sales $65,000/ yr
Tier 5 Above $2,500,000 sales $75,000/ yr


Ramping restaurant (first 3 years): equal to year over year sales increase
e.g., 18% year over year growth will result in 18% bonus for quarter


Ramped restaurant (older than 3 years): equal to 160% of year over year sales increase
e.g., 10% year over year growth will result in 16% bonus for quarter

Bonus is calculated as a percentage of the pay for the quarter in question.
For new restaurants without previous year sales, budget numbers will be used.


First year as a Clover manager Bonus potential 10%
Second year as Clover manager Bonus potential 15%
Third year as Clover manager Bonus potential 20%
Fourth year as Clover manager Bonus potential 25%
Fifth year as Clover manager Bonus potential 30%



So if you’re running a restaurant at Clover in 2015 that had 2014 total sales of $800,000, and you generate 2015 sales in the first quarter that are 18% higher than the previous year, you would be earning:

Tier 2 Base Salary of $45,000 + Quarterly bonus 18% of your base for that quarter (18% x 45,000/4 = $2,025). At the end of the year if you continue to perform at that level (18%) for the entire year, your total comp would be your base ($45,000) + your quarterly bonuses ($45,000 x 18% = $8,100) + your end of year bonus, which could be as high as 10% your first year as a manager at Clover ($45,000 x 10% = $4,500) up to 30% in your 5th year as a manager at Clover ($45,000 x 30% = $13,500).

Your total compensation for 2015 in this scenario would be $57,600 (if you were a first year manager at Clover) up to $66,600 (if you were a 5+ year manager at Clover). In 2014 the compensation for this same manager with the same performance would have been $47,250 – 51,750. This represents a 22% increase on the low end of the range, and a 29% increase on the high end of the range.

It takes some math to unpack, but compared to other compensation programs I’ve looked at this is something super transparent. And if you take the time to do the math you can see why I’m so excited. I’m going to get to pay some of my managers 20-30% more next year! That’s amazing.

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