Chipotle incentive program aims to keep, promote GMs

Nation's Restaurant News, Nov 5, 2007 by Dina Berta

LAKEWOOD. COLO. -- Saul Muniz smiles pretty easily, and why not? He loves his job as a general manager of a Chipotle Mexican Grill here, and he belongs to an exclusive group of the chain's GMs who participate in an incentive program that gives them the potential to earn a six-figure salary.

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The 640-plus-unit fast-casual chain launched its Restaurateur Program last year to encourage high-performing general managers to stay with their restaurants, rather than seek greater earning potential and responsibilities as area managers or with other companies.

In addition to regular bonuses tied to meeting personal and restaurant-level performance goals, GMs in the program are eligible for a $10,000 bonus for developing hourly workers into managers, and a 10-percent bonus on revenue gains above a unit's sales projections. For example, if a Chipotle branch has a target of $1.6 million in sales for the year, but makes $2 million, the Restaurateur Program manager earns an additional $40,000 - 10 percent of the extra $400,000.

Denver-based Chipotle did not state an average salary for all GMs, but using federal labor statistics that place a restaurant general manager's salary at roughly $47,000, Restaurateur Program participants like Muniz might earn around $100,000 annually.

The chain so far has enrolled 60 GMs in the program. They must be recommended by area directors and interviewed by Steve EIs, Chipotle's founder and chief executive, or Montgomery "Monty" Moran, its president and chief operating officer.

The program is not only boosting managers' salaries, but also elevating stores' performance, manager retention and morale, said Chipotle spokesman Chris Arnold.

"We looked at our numbers and found that our restaurants that are run by managers who come from within run better," Arnold said. "Turnover of managers who come from within is much lower. We made a commitment to promote as many managers from within as possible."

The percentage of general managers who have been promoted has increased from 30 percent to 60 percent in the past year, he said.

Muniz won't say how much he is making now, other than that he is pleased with his salary.

"Something more important than money is being happy," Muniz said. "I'm extremely happy with Chipotle. Everyday I wake up, I can't wait to be here, be with my staff. The money will come by itself. If they are happy, if the store is running well, if you are happy and not asking for anything, it will come by itself."