Sweetgreen is introducing a new compensation plan that will allow its top-performing restaurant managers to earn more than $200,000 annually through higher base salaries, sales-linked bonuses and equity incentives.
The US fast-casual chain seeks to strengthen employee retention and build its leadership pipeline internally through this initiative.
Announced this week, the plan applies to restaurant general managers, known internally as ‘head coaches’, who have at least three years of tenure and manage some of the chain’s highest-volume restaurants.
The new compensation structure will take effect in the first quarter of fiscal 2027.
Pay linked to sales growth and performance
Sweetgreen co-founder Jonathan Neman told Inc. that the revised pay structure is designed to reward managers who remain with the company and grow their restaurants.
He described head coaches as “the single most important person in the company.”
Under the new plan, base salaries will increase in line with a restaurant’s average sales.
Neman said a manager moving from a restaurant generating $3 million in sales to one generating $4 million would receive “a much higher base salary.”
Managers will also receive a new revenue-share bonus based on sales growth above the previous year’s performance.
According to Neman, the share roughly doubles between the first and third years.
In addition, eligible managers can receive equity based on performance, giving them a financial stake in the company’s growth.
“It was very important for us that you felt like a partner,” he said.
Company expands internal career pathways
Alongside the pay changes, Sweetgreen is expanding its internal leadership development programmes to create more opportunities for employees to progress into senior roles.
The company is introducing a regional training manager position that will be filled exclusively by internal candidates.
It is also expanding its restaurateur programme, which is designed for high-performing head coaches nominated by regional general managers and interviewed by the chief executive and chief operating officer.
Restaurateurs receive tailored training, mentorship from senior leaders and a higher base salary.
They can also earn a $10,000 bonus for every team member they develop into a head coach, with no cap on the number of bonuses.
“Your job kind of becomes a talent factory,” Neman said.
More than 60% of Sweetgreen’s head coaches are already promoted from within, according to Neman. The company aims to increase that proportion to 100%.
The initiative also offers a potential career path for people entering the workforce without extensive formal education or prior experience.
“You can come work at Sweetgreen,” he said, “without much education or experience, and within a few years grow to become a head coach.”
At a high-performing restaurant, a head coach could make “north of $200,000 a year.”
Restaurant chains compete on manager compensation
Raising Cane’s general managers can earn up to $174,000 annually, including bonuses, while Taco Bell and Chipotle offered compensation of around $100,000 for comparable roles as of 2024.
Chipotle also introduced a ‘restaurateur’ general manager role in 2021, with an average salary of $100,000.
For Sweetgreen, the strategy extends beyond salary increases.
Neman said Sweetgreen is seeking to build a “generational iconic brand”, adding that employees who contribute to its growth should share in its value.
“If you’re helping us build that brand, we think that it’s important for you to own a piece of that,” he said.
By combining performance-linked rewards, equity participation and internal career progression, the company aims to encourage managers to build long-term careers within the business.