Q: What is a good salary to pay your general manager on a club that does 40-50k a week in gross sales?
A: This question has many factors to the answer(s) as it will depend on the market along with the demand and the GM’s skill-set and experience. First, any prospected operator should know what the market and his respective competition is paying. I am against a “set” salary for any GM. A set salary limits motivation and hinders performance. Why hit numbers for your owner if you are set or fixed at a salary? Although there are many ways to figure a base salary, I find it best to compare it to a comparable venue and what the market is paying and of course adjust it to your GM’s performance. However, there is always the rule of thumb formula for management pay, is to keep all combined management salaries (including GMs, assistants, bar managers, etc.), including their taxes and benefits, under 10% of your gross sales. Remember this is a guideline, so know what you’re paying for and if he or she is worth it.
Robert Casillas, President, Monsoon Group Las Vegas