How Much Do Texas Roadhouse General Managers Make?
When it comes to steakhouse chains, Texas Roadhouse is truly a cut above. From the fresh-baked dinner rolls to hand-cut steaks that guests can select from the display case, Texas Roadhouse has lots to offer in terms of quality and atmosphere. One might assume that such a successful chain would pay its staff accordingly, so we did some digging into the potential general manager salaries at the restaurant. According to Glassdoor, Texas Roadhouse general manager salaries range from $60,000 to $78,000, and about 8% of that figure is attributed to bonus pay.
Glassdoor calculates pay rates using salary data submitted by users, which means there are lots of variations. For example, a general manager in Odenton, Maryland, listed their yearly income between $46,000 and $54,000, whereas a GM based in Tracy, California, claimed their annual salary ranged between $153,000 and $177,000. Per Indeed, the estimated yearly salary for a Texas Roadhouse general manager in Denver, Colorado, is $65,667. For comparison, the estimated hourly salary for a server at the chain is $18.06, which equals an adjusted yearly salary of $33,953 (not factoring in tips).
Texas Roadhouse's unique buy-in program incentivizes managers
Texas Roadhouse staff are beholden to some weird rules, like mandatory line dances and the use of folksy vernacular, when interacting with guests. General managers (or managing partners, as they're sometimes called) are also subject to an uncommon condition when hired at the chain. Under a five-year employment contract, managing partners can participate in a stock option program requiring an investment of $25,000. This agreement yields a base salary plus 10% of the location's net income.
Company documentation doesn't explicitly characterize the stock option buy-in as integral to employment, but some sources claim that getting hired is contingent on accepting the offer. If the general manager/managing partner candidate doesn't have the funds, they may receive a loan to cover the fee, and this loan is supposedly forgiven once the employment contract is complete. In theory, a general manager with an investment in the restaurant would go above and beyond to ensure success.
However, this doesn't account for factors outside their control, which can make the proposition dicey. Dining out has become increasingly expensive over the years, which has changed consumer habits. While steakhouses have fared a little better than other establishments during financially tumultuous times, betting on a $25,000 loan is an intimidating proposition for many people.