Need chefs advice

IMHO, sit down with him, and make him part of the solution. You can't afford to pay for growth, with the $$$$$ coming in right now. I would offer base wages, with incentives on bakery sales, quality and growth. If growth doesn't happen, then your not stuck with paying a high $$$$ employee. If sales/growth does happen, the business, and the pastry Chef win. This takes the pressure off of you, and puts it on his shoulders, if he produces everyone wins, if not, the business may be at its peek sales/growth potential. This will also make the pastry Chef think of new and inventive/creative ways of building the bakery. He will not only be an employee, but a partner in the success of your business. Every Chef I have been involved with likes a challenge, that's how we got here...........Chef Bill

 

I agree with Chef Billy. There's nothing like an incentive program to motivate productivity.

Using the figures you provided, if the new guy achieves your target of $20K/week, and you offered him 10% of new business, that would represent almost $21K/year in his pocket. So you might use that as a negotiating tool. Offer him a base salary plus the incentive.

Compensation is supposed to be confidential. But realistically, the word spreads. So I would consider renegotiating the chef's salary, offering him an incentive as well on all new non-bakery sales increases.

Granted, all this will increase your bookkeeping burden. But with the two top guys having an equity position in the company they'll both give 110% all the time. Well worth it, in my opinion.

One other negotiating point to consider. Doesn't matter that the pastry chef used to make $60K plus. The reality is that he's been on unemployment long enough for it to almost be running out, and hasn't been able to find a job. Your 20 bucks under the table has looked awfully good to him, and he'd probably jump at a fair salary (fair given your circumstances) along with the incentive.

BTW, I would not have anyone in the kitchen earning more in base salary than the chef.

 

 Great comments from everyone so far. Perhaps I can offer a different perspective for you. A great pastry chef can be worth his or her weight in pure profits! Have you thought about hiring this pastry chef on as a 1099 independent contractor?

Check with your accountant, but this would allow you to pay him a bit more and all of the tax responsibility would fall on him. If he is entrepreneurial in anyway shape or form, he could create an entity to help him save on his own taxes and deduct almost EVERYTHING as a business expense (insurance, clothing, equipment, continuing education, travel, etc)

I like the ideas that the other have mentioned about creating an incentive program on any new business. You must also be prepared to show your books that justify the increased sales. But remember, top line does not equal bottom line. Yes your pastry chef will be a key part of increasing sales, but you as the business owner have all of the other costs associated with doing business that come out of your end of the profit. Rent, licensing, tax responsibility, utilities, insurance, etc.

The economy is tough right now and depending on what part of PA you are in, good help may be hard to find. Your wage is somewhat below what a good pastry chef can make at a hotel, restaurant, or higher end grocery store chain such as Wegmans, Giant, Weis Markets, etc. Remember that these companies can also offer insurance, 401k, benefits and a shorter work week. You don't want to lose someone productive for a couple of dollars more per hour.

Also, look at providing some desserts at wholesale to other accounts that don't have your pastry chefs expertise, Think of all the other places in town having to offer the same frozen desserts you were complaining about before that cost 4 bucks a slice!

Also, make sure that you get your chefs (both of them) to document EVERYTHING! Make it part of their job to document all recipes, procedures, and ingredient lists. This is to make sure that when ( not if) they leave you , you will have no problem in the transition to the new people that you have to hire. 

Yes you too will experience your chef or pastry chef quitting you on Friday morning and leaving you high and dry if you don't have everything documented, documented, and documented! 

Mark

 

 I'm going to sign on with the incentive program.  When you make someone's wage depend partly on their portion of the business's success, you end up with better products, better profits, and an all around better employee.

Slightly lower hourly, on the books, with 10% stake from current numbers to 20K/wk and 11% from 21K+/wk and you will see a pastry chef become a bake shop manager in about a week.  The key is, in part, to tie it to profits with benchmark numbers.

 

All good advice.  Don't forget, if he's that good, he can also attract "side business":  Catering items, restaurant desserts, wholesales etc.  Lot of good money there, and a lot of options on how to make it work for both of you.

 

+1

 

There's a huge amount of money to be made selling fresh sandwich rolls to other restaurants.  There's also good cash flow in agreements with local coffee houses.  Your pastries in their cases, with your logo stands of course.  They get cost plus a small margin and you get paid to advertise. 

 

Pastry Chef vs. Executive Chef Salaries

When I was working hotels in Chicago the Exec.Pastry Chef made quite a bit more than the Exec. Chef.  It depends upon where they are in their continuum.

allculinaryschools.com cites $47k - 71k for exec. pastry and $56k - 88k for exec. chef.

 

I'd side with the incentive program. There's great advice above on marketing your products to other restaurants, caterers, etc. And if the guy is as good as you feel, he won't need much of your oversight, and you can handle marketing and business issues.

The job market is tight, and that gives you leverage.

With his experience he should understand that higher volumes and margins translate into more cash for you to work with, and that can mean more cash in his pocket.

If you are running the bakery and cafe as separate entities, then the salary comparo with the exec chef is a moot point.

BH

 

All of the above is good info in particular Chef Billy. As far as who makes more chef or pastry chef , it is supply and demand. Here in Florida it is almost impossible to find a good pastry chef so they know it and command big bucks. Also here in Florida everyone is a chef, or so they think.Many places have started o purchase upscale desserts even though you could do it for less. You can't do for less if you don;t do the volume of sales. By the time you pay into unenployment, workmans comp, sick days,vacations etc you are cheaper buying it made . If the man was making 60 and you pay a lot less he may take the job but will still be looking around for more$ Give it a lot of thought before you jump. Also ask yourself does what you save merit $60,000.00.

 

Personally I'm a fan of the incentive concept.  I'd recommend a percentage of the business.  Perhaps establish the pastry part of your enterprise as a separate business, of which the pastry chef could have an ownership.  The other suggestion, is to allow and help your pastry chef, make some additional money. 

He may for example, use your kitchen for personal gigs, or producing an item under his own label, that he can then retail in your store and to other stores.

If he is the calibre that you say he is, I'd bust my balls and pay him more than I get, to keep him, if I believe that his presence can add to my business.

 

It sounds to me like you have a successful business that has the potential for growth; however the future depends on the decisions you make today. I can understand your concerns and believe that a salary that has room for growth would be a fair offer. Perhaps a lower salary than he’s asking with an incentive bonus that would protect you and please him. I would also cover myself by hiring a helper or maybe an assistant that you choose who will eventually be capable of holding down the fort in the event that he loses patents and decides to book, at least you would be covered until another qualified pastry chef is hired to fill the gap. Most professionals would understand your concerns and meet you half way or at least be willing to work with some type of time table that is reasonable. This will also prove to you that you have someone who truly cares about your business and interest rather than simply thinking of himself and how much money he can get out of you. He must be willing to meet you half way for it to be a win-win negotiation. Never judge a book by its cover; I’ve hired good people who later developed personal issues that caused them to renege on the terms of our agreement. This should also balance out the issue of him earning a hirer salary than the chef. Which department brings in more revenue? If the pastry or baking area of the business is responsible for more revenues, then that may be something to think about. Neither one should know the others salary anyway, although the truth eventually comes out, especially in a restaurant where employees often spend more time with themselves rather than their families.