The Hub and Spoke of Hospitality: Positioning the General Manager at the Core

In today’s competitive dining landscape, where traffic counts are dwindling, enhancing the guest experience has never been more crucial. Yet, an outstanding guest experience is tethered to the quality of the employee experience. While operators are rightfully focused on sales and profitability, the brands excelling in today’s market also recognize the indispensable value of the general manager. Their role is pivotal in cultivating an environment where employees thrive, thus securing the long-term sustainability of your brand. 

To gain a deeper understanding of this, we collaborated with NRN for an enlightening webinar as part of their Emerging Restaurateur Live Learning Series. This insightful session brought together industry experts: Andrew Smith, managing partner from Savory Restaurant Group, Victor Fernandez, VP of Insights at GuestXM by Black Box Intelligence, and three general managers from leading brands, Madison Burroughs with Jersey Mikes, Sarah Rambert with Shake Shack, and Claire Andrew with McDonald’s. The diverse perspectives shared provide a holistic view of the pivotal role of the GM in the hospitality industry.

The Operator Perspective: Steering from the Top

Often, leadership is perceived from a top-down perspective. While strong upper-level leadership is essential, it’s the frontlines, particularly the general managers and their teams, that truly communicate with and impact the consumer. This positions the general manager as the veritable heart and soul of the organization. 

As Andrew Smith of Savory succinctly puts it, “At the end of the day, your job is to make sure that the GM has the skills, the abilities, the experience, but also the tools, communication, the vision, and the pathway for them to be a success. Because if they’re successful, they are the actual success of the entity.” 

When scouting for exceptional general managers, Savory prioritizes three things: 

  • Individuals who embody the brand ethos in their daily lives, representing it authentically.
  • Managers with integrity, ensuring they operate the business as expected even in the absence of supervision.
  • Strong communicators who can foster a cohesive team culture, promoting collective success.

For Savory, with its roster of 550 GMs, the conversation invariably veers towards ensuring their success. Smith emphasizes the significance of purpose, noting that GMs tend to stay longer when they perceive themselves as part of a larger vision.

A cornerstone of Savory’s success strategy is the understanding that everything revolves around the manager. Aspects like compensation, bonuses, and equity are intrinsically linked to the GM’s success. This not only incentivizes higher-level management to offer robust support but also fosters a sense of ownership and accountability in GMs.

Andrew also highlights the evolving role of GMs. With consumers and employees becoming increasingly demanding and the rapid influx of technology, GMs are now expected to adapt swiftly. Recognizing the amplified challenges, he emphasises the need for better compensation, stating, “We need to offer them more as the role has become more demanding. It’s not the same job it was a decade ago.”

Continuing on the topic of compensation, Victor Fernandez of GuestXM by Black Box Intelligence brought forth a compelling data-driven perspective. Contrasting with Andrew Smith’s assertion on the need for better GM compensation, Black Box’s Workforce Intelligence tool revealed a surprising trend: GM compensation has remained relatively stagnant since 2019. Specifically, compensation for full-service managers saw a modest rise of 5%, while limited service general managers experienced a 6% growth by February 2023. But when adjusted for inflation, this equates to a ten percent decrease.

The implications of GM compensation on staff turnover are even more evident when delving deeper. Black Box Intelligence segmented brands into two categories based on GM compensation: highest versus lowest. The results were telling:

The insights didn’t stop there. A correlation emerged between management turnover and hourly staff turnover. Unsurprisingly, brands with more stable management—signifying lower turnover—also boasted lower hourly staff turnover. The disparity between brands with better versus worse management turnover was a staggering 28 percentage points.

The General Manager Perspective: Leading from the Frontlines

Navigating the vast and complex terrain of the restaurant industry requires more than just strategic skill; it necessitates heart, soul, and an unwavering commitment to the people within. This sentiment echoed profoundly in a conversation with Madison, Claire, and Sarah, the general managers of three leading restaurant brands.

Madison from Jersey Mike’s likened her role to the “quarterback” of the store, highlighting the importance of leading the team towards a shared goal. This sentiment is more than just about operations; it’s about human connections. “It’s important to get to know your employees on a personal level,” she shared, emphasizing that they want to feel they have a purpose.

Echoing this sentiment, Claire from McDonald’s described the GM as the “heart and soul” of a restaurant. Beyond just ensuring profitability and standards, the GM’s role is about setting the tone, mentoring teams, and most importantly, being present. “I love my store, I love my people,” Claire confessed, a testament to her dedication.

Sarah from Shake Shack offered a poignant observation, noting that GMs are the “glue” that holds restaurants together. They wear myriad hats, from operational oversight to personal counselling. For her, success is not just about numbers; it’s about the morale of the team and the experience of guests. “Your business and numbers will come from that,” she wisely noted.

Across their insights, a consistent theme emerged: the value of people-centric leadership. Whether it’s understanding an employee’s personal challenges or ensuring the team feels valued and rewarded, a GM’s role transcends the confines of traditional management. It’s about nurturing, guiding, and leading with authenticity.

Their perspectives reinforce the notion that while strategic decisions may be made at the top, the heart of a restaurant’s success beats strongest at its frontlines.

Drawing from the depth of their experiences and challenges faced day-to-day, Madison, Claire, and Sarah not only shared their perspectives but also provided actionable tips. These aren’t just theoretical best practices; they’re strategies these GMs employ daily to achieve success in their respective establishments.

Actionable Tips from Top GMs: Enhancing Leadership from the Frontlines

Build Genuine Relationships: It is critical to understand your employees on a personal level. When employees feel valued and understood, they’re more likely to invest themselves in their roles and the success of the restaurant.

Prioritize Communication: Ensure that GMs have the tools and training they need to effectively disseminate information, set clear expectations, and cultivate a culture of open dialogue.

Continuous Training & Development: Invest in continuous training programs that provide GMs with the skills and knowledge they need to adapt to the ever-evolving restaurant landscape. This includes everything from technological agility to emotional intelligence.

Recognize and Reward: On-the-spot rewards, employee referral bonuses, and recognizing achievements can foster a positive work environment. Such gestures boost morale and encourage a culture where employees advocate for the brand.

Foster a Culture of Accountability: Create a system where responsibilities are clear, and team members are empowered to take ownership.

Seek Continuous Feedback: All three GMs emphasized the importance of regular check-ins. This platform for feedback ensures GMs remain aligned with the brand’s vision while addressing on-ground challenges.

Empower with Tools & Technology: Embrace technologies that simplify scheduling, communication, and operational tasks, improving overall job satisfaction. As Claire mentioned, platforms like Harri’s intelligent scheduling tool allow for greater flexibility and autonomy for employees, improving overall job satisfaction.

Plan for the Future: Recognize potential in employees and nurture it for the emergence of future leaders within the brand.

Stay Connected with Ground Realities: Before implementing changes, especially in a troubled restaurant, spend time on the floor understanding the issues firsthand.

Value Work-Life Balance: Respecting employees’ time outside of work and understanding their needs cultivates a more committed and satisfied workforce.

Incorporating these insights into your operational strategy will not only amplify the effectiveness of your GMs but also foster a workplace culture that drives growth, satisfaction, and long-term success.

 

The Hub of Hospitality: GMs at the Center

In the bustling landscape of the restaurant industry, amidst technological advancements and ever-shifting consumer expectations, one element remains constant: the pivotal role of the General Manager. As we’ve explored, the GM is more than just a managerial position; they are the heartbeat of the restaurant, intimately connected to every facet of its operation, from staff morale to guest satisfaction.

Our discussions with industry experts and frontline GMs underscored a profound truth: restaurants thrive when their leadership, especially at the ground level, is empowered, supported, and valued. It’s not just about compensation or technology, though these are crucial. It’s about genuine relationships, continuous learning, and a culture of recognition and growth.

For emerging restaurants and established brands alike, prioritizing the GM’s role is not merely a strategy; it’s a necessity. As we move forward in this dynamic industry, let’s remember that while trends come and go, the value of people-centric leadership is timeless.

To all the General Managers out there, your passion and dedication are the cornerstones of the dining experience. Here’s to your unwavering spirit, leading from the frontlines and making a difference every single day.

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