Explore 2025 GM salary data by type & region, plus tools to cut turnover costs and boost retention with smarter pay, tech, and work-life balance.
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June 11, 2025
The restaurant industry faces an unprecedented challenge: 20% of restaurant operators report that they are understaffed for General Managers, while turnover costs an average $13,867 per GM replacement. In this high-stakes environment, competitive compensation isn't just about fairness—it's about survival.
Smart operators are discovering that the combination of competitive pay and operational efficiency tools creates the perfect recipe for GM retention and satisfaction.
Today, we’ll dive into a high-level snapshot of GM salaries, broken down by restaurant type, size, and location. With this information, you’ll be able to drive retention and GM satisfaction by ensuring that your management staff is competitively compensated.
The numbers tell a compelling story about the restaurant general manager market:
Source: Bureau of Labor Statistics, 2025
This growth represents opportunity, but also intense competition for top talent. The restaurants that understand how to attract and retain exceptional GMs have a significant competitive advantage.
$65,310 is the national average salary for restaurant general managers in North America, equivalent to $31.40 per hour.
Salary Range:
Additional Compensation:
While $65,310 might seem reasonable, consider this: restaurant GMs work an average of 55-60 hours per week. That brings the effective hourly rate down to approximately $24-26 per hour—barely above what many restaurants pay experienced line cooks.
In a study by TDn2K, it was found that GM pay has remained relatively stable over the past 10 years. When adjusted for inflation, GMs are actively making less than they did a decade ago.
To put this in perspective, GMs at limited-service brands make 6% less and GMs at full-service restaurants make 11% less than they did in 2008.
This compensation gap explains why higher compensation was ranked one of the top three reasons why GMs leave their jobs.
Salary Range: $70,000 - $90,000
Fine dining GMs command the highest salaries for good reason. They're not just managing operations—they're curating experiences. These professionals typically have:
Why Fine Dining Pays More: The complexity of operations, higher check averages, and specialized knowledge requirements justify premium compensation. Plus, the cost of a single bad review or service failure can be exponentially higher.
Salary Range: $50,000 - $65,000
Casual dining represents the sweet spot for many GM careers—complex enough to be challenging, but not as demanding as fine dining. These roles typically require:
Salary Range: $45,000 - $55,000
Don't let the lower salary range fool you—QSR GMs often have the most operationally complex roles. They're managing:
The QSR Challenge: Many QSR GMs are leaving for casual dining roles not just for money, but for work-life balance. The constant pressure and manual tasks create significant burnout.
Chain Restaurants: $55,000 - $75,000
Independent Restaurants: $50,000 - $70,000
Salary Range: $60,000 - $85,000
New York City Spotlight:
Why These Markets Pay More:
Average Salary: $60,000
These cities offer an attractive balance:
Salary Range: $45,000 - $60,000
Regional Examples:
Market Characteristics:
When restaurants try to save money on GM salaries, they often end up spending more in the long run. Here's why:
Operational Impact:
The Burnout Factor: Under-compensated GMs often work 60+ hour weeks trying to manually manage every aspect of operations. This leads to:
The most successful restaurant operators understand that GM compensation is an investment, not an expense. They're focusing on:
Total Compensation Packages:
Work-Life Balance: Modern GMs don't just want more money—they want their time back. Restaurants that invest in automation and efficient systems can offer:
When a GM leaves, the immediate costs include:
The hidden costs are often much higher than direct replacement costs:
Lost Revenue:
Team Disruption:
Operational Setbacks:
Technology Integration: Today's GMs expect tools that help them work smarter, not harder.
Consider implementing tools to help eliminate manual burdens and alleviate burnout, such as automated scheduling systems, AI-powered hiring assistance, and mobile management capabilities.
Professional Development: GMs don’t just want a job–they want a career.
And with a growing number of Gen Z’s being promoted into leadership roles, clear advancement pathways are crucial to driving retention.
Other education opportunities such as industry certification support, leadership training programs, and mentorship opportunities are crucial ways to nurture talent that stays.
Work-Life Balance: With such overwhelming schedules, ensuring that GMs don’t burn out is crucial to a healthy working environment.
Consider implementing the following:
Salt & Straw, the beloved artisanal ice cream chain, faced the same GM retention challenges plaguing the industry. Despite offering competitive compensation, their GMs were burning out from manual hiring processes, spending dozens of hours per week on recruiting tasks alone.
The Challenge:
The Solution: By implementing AI-powered hiring assistance, Salt & Straw's GMs reclaimed an average of 36 hours per month previously spent on manual recruiting tasks.
The Results:
“Before LANDED, our GMs were spending a lot of time reviewing resumes, scheduling interviews, following up. With LANDED, it’s been a complete shift. Candidate flow is stronger. Screenings are handled by our AI, Elaine. Scheduling is so much faster. It’s eliminated the administrative burden our managers have had for so long, so they can focus on leading the team, creating memories in our scoop shop, and building culture.” – Deanna Silva, Director of People Business Partnerships, Salt & Straw
Read the full Salt & Straw case study →
The most successful restaurant operators understand that combining competitive GM salaries with an environment where they can thrive without burning out is the key to success.
The winning formula:
✅ Competitive compensation that reflects market realities
✅ Operational efficiency tools that eliminate time-wasting manual tasks
✅ Clear growth pathways that reward performance and loyalty
✅ Work-life balance that prevents burnout and turnover
Your GMs shouldn't have to choose between competitive pay and reasonable working conditions.
With the right approach to both compensation and operations, you can offer both—and build a sustainable competitive advantage in the process.
Ready to see how leading restaurants are solving the GM retention puzzle?
📖 Read the Salt & Straw Success Story - Real results from a beloved restaurant chain
🚀 Discover AI-Powered Hiring Solutions - See how technology can transform your GM experience