Sweetgreen managers could earn more than $200,000 next year under new compensation plan

Ramsess Salazar started with Sweetgreen at the restaurant manager level in 2018.

He moved into a head coach position, which is what Sweetgreen calls general managers. He also serves as a restaurateur, which he describes as “a head coach plus.” That means, in addition to running a busy restaurant in Chicago’s Fulton Market neighborhood, his job now involves training future leaders to become head coaches.

And next year, Salazar is getting a big increase in compensation — likely about 20%, he said.

New compensation plan

Sweetgreen in 2027 is rolling out a new compensation structure that will bring total pay for head coaches to more than $200,000 per year through a combination of increased salary, bonuses based on restaurant performance, and equity in the company.

Dubbed the Head Coach Incentive Plan, the move is an investment in the key GM position, which has become a linchpin for operational success across the restaurant industry. But Sweetgreen said the chain, in tandem, is also rebuilding training, accelerating leadership development, creating paths from restaurants into support center roles, and introducing merit pay for eligible team members.

“The restaurant industry has always been one of the great engines of opportunity, and we want to make that real for thousands of people,” said Jonathan Neman, Sweetgreen’s co-founder and CEO, in a statement. “At Sweetgreen, a Team Member can grow into a Head Coach running a multi-million-dollar business, earning a six-figure income and owning equity in a public company. Great leaders build great teams, and great teams build a great business. As we approach 300 restaurants, we’re betting big on our Head Coaches.”

Across the chain restaurant industry, six-figure salaries for GMs are not uncommon. According to the U.S. Bureau of Labor Statistics, the median annual salary for foodservice and restaurant managers nationwide is about $69,390, or $33.36 per hour. But the top 10% earn more than $107,640.

Sweetgreen joins a growing number of restaurant chains that are offering serious money to grow and recruit leaders as brands scale.

In-N-Out Burger recently made headlines after confirming that store managers can now earn more than $200,000 on average, which has kept manager turnover low.

Texas Roadhouse uses a “managing partner” model in which they can invest $25,000 in exchange for 10% of profits, plus a salary, which can drive compensation above the $200,000 mark.

Chili’s earlier this year announced a plan to shift to a new incentive model in the next few years that will compensate GMs based on their restaurant’s performance, in addition to the regular salary.

Incentive plan details

At Sweetgreen, the new incentive plan is a key factor in the fast-casual brand’s transformation plan, said COO Jason Cochran.

The incentives are based on three factors: the size of the restaurant a head coach runs, how much it grows, and how long they’ve been with Sweetgreen.

Head coaches are eligible for the incentives once they have worked for the brand for three years. Their salary increases in tiers as their restaurant volume increases. They become eligible for revenue-share bonuses when their restaurant outperforms sales goals. And they are eligible for equity based on performance, giving them a direct stake in the company’s growth.

Restaurateurs, a term also used by Chipotle and other brands, are top head coaches who are nominated by regional general managers and interviewed by the CEO and COO. They get custom training and year-round mentorship from senior leaders, and they earn a higher base salary.

They are also eligible for a $10,000 bonus for every team member they develop into a head coach, with no cap.

Salazar, for example, said a restaurateur who works hard can promote two to three people a year.

Last year, as Sweetgreen struggled with double-digit sales declines, Neman said up to 60% of the chain’s restaurants were not performing up to par. More recently, he said that ratio had improved, with about 60% exceeding standards, but there was still more work to be done.

On top of those operational challenges, the brand has been busy trying to turn things around.

Brand transformation

Sweetgreen earlier this year rolled out wrap sandwiches as a menu category, for example. The brand has amped up digital marketing, and is in the process of reworking its pricing architecture. The 289-unit chain is also trying to recapture its earlier positioning as a lifestyle brand, even as it moves toward the goal of reaching 1,000 units by the end of the decade.

Cochran said tying compensation directly to performance gives head coaches a direct stake in the results they drive.

It also helps Sweetgreen recruit, as the battle for talent intensifies.

“The head coach is where the rubber meets the road on delivering on great food and great service,” said Cochran. “At the end of the day, show me a great restaurant and there will be a great head coach or general manager behind that restaurant.”

Though the program doesn’t go into effect until next year, Cochran said the brand is announcing it now to give staff members a target for achieving the goals that will increase their pay.

Salazar said the incentive plan will be motivating, and will help ambitious future leaders focus more on what needs to be done. It also rewards those who work in busier, high-volume restaurants, which he contends requires a higher level of performance.

Salazar came to the U.S. from Venezuela, originally, and went to culinary school to become a chef. He moved quickly into managerial roles, first in a previous job at Chipotle, and continued climbing the ladder. Now he hopes to move into a corporate position in time, perhaps in training.

He has found he has a passion for helping others grow in their careers, he said.

“I feel joy in seeing people move forward,” he said.

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Lisa Jennings is a veteran restaurant industry reporter and editor who covers the fast-casual sector, independent restaurants and emerging chain concepts.