I have spent A LOT of time driving in my car over the last six months...resulting in a lot of time for my thoughts to wander. I have also spent A LOT of time talking to other chefs, general managers, and owners of hospitality industry businesses. Something that was a recurring theme was the pay for chefs; in most cases chefs' guaranteed salaries have been reduced, with business owners and general managers "making up" for this reduction by increasing the available bonus potential for chefs; incredibly tempting, and in some cases VERY lucrative.
After much pondering, I developed the following opinion over the course of several hours behind the wheel:
Incentivizing chefs is A BAD IDEA.
Some bonuses are good ones: the "Boss-is-a-great-guy-and-thinks-you-deserve-a-bonus" bonus, (also called the "just because..." bonus), percentage of sales bonuses, (these are great because the chef knows that the busier s/he is the more money s/he makes...usually 1% of sales or less), and profitability based bonuses.
The ones that I think are just dumb, are also those that are the most commonly deployed: incentives based on cost of goods sold, (i.e., dollar amount of all food purchased), and cost of labor, (i.e., dollar amount spent preparing the food).
And why, pray tell have I arrived at this conclusion?
The simple answer is human nature.
Most chefs will take a position and be prepared to live on the offered salary...the incentive bonus is just that: a bonus. Found money. An unexpected windfall. Then there are others who will believe that they are entitled to that incentive money; that bonus money is part of their salary.
Everyone will swear up and down that they are honest people, (and most are), but when confronted with the possibility of making or losing thousands of dollars, just how honest will they really be?
Honestly?
The problem here is that despite one's honesty, there are just too many ways a chef can manipulate his "food cost", and qualify for his bonus. "No one will ever know..." The most disturbing, and outright dangerous, way to make your numbers is to use food that is borderline bad/should have been thrown out two days ago. Less waste is money in the incentivized chef's pockets. Less dangerous, but still outright poor judgement, is the temptation to use lesser quality foodstuffs; the guests suffer but the chef is winning.
An unexpected bill, anniversary, or the impending holiday shopping season will often lead the chef to find other ways they can manipulate the numbers: "finding" a few thousand dollars worth of inventory, overcharging guests on the menu/selling you a "14-ounce, select, wet-aged" steak for the price of a "16-ounce, prime, dry-aged" steak, overvaluing an item on inventory reports.
Chef's will often take similar shortcuts when it comes to keeping labor costs in line for their own personal gain. I have known chefs who will underpay their staff, pass over very talented cooks so that they can hire less expensive, (and less talented), cooks, and who will purposely understaff their kitchens to keep labor expenditures down.
The result of all of this "scrimping and saving" is a significantly inferior dining experience for the guest, (lesser quality food, slower service because there are not enough cooks to actually cook the meal, potentially dangerous food), and a business that has been jeopardized in both the short, and long term. Ultimately it is the greed of the chef that leads him/her to violate the trust of his/her boss that they will do the right thing, AND to disappoint, and potentially make their guests ill.
If business owners and their proxies have done their job correctly, they have hired a chef that they feel confident in. Someone whom they believe will operate their kitchen with the same entrepreneurial spirit that they themselves have as business owners. If they have hired the right person, they should compensate that person as well as they can up front; in return the chef should not violate that trust, and run the kitchen like it was their name on the door.