Key Takeaways

• Restaurant General Managers significantly impact employee retention, with each GM turnover costing approximately $13,867
• GMs dedicate 40% of their time to employee management, 30% to safety protocols, and 30% to revenue operations
• Satisfied GMs provide essential mentorship to Gen Z employees, who make up 49% of food service workers
• GM retention directly correlates with hourly employee retention, significantly reducing overall turnover costs
• Technology solutions can reduce GM administrative burden by up to 85%, improving satisfaction and performance

Understanding the Critical Role of Restaurant General Managers

General Managers (GMs) are the backbone of the restaurant industry. 

Hiring new employees? They’re handling it. 

Ordering new inventory? That too. 

Ensuring that all employees meet food handling standards? You guessed it. 

There’s not an aspect of day-to-day restaurant operations that GMs don’t touch. 

But in order to keep GMs operating at their best, it’s crucial that restaurants prioritize their satisfaction and happiness. 

Not only does this impact their performance, but it also has staggering effects on your bottom line. 

Today, we’ll take a deeper dive into the specific responsibilities of a restaurant General Manager, before exploring 3 key reasons why keeping them happy should be a top priority for your hospitality brand.  

The Three Core Responsibilities of Restaurant General Managers

So you’re aware that GMs do it all. But how far does all extend to? 

Taking a closer look, it becomes evident that GM responsibilities can be broken down into the following buckets: 

1. Employee Management - 40% 

GMs spend the majority of their time on employee management tasks. This includes:

2. Food and Employee Safety Protocols - 30% 

Food and employee safety takes up about 30% of a GM’s working hours. These responsibilities include:

3. Revenue Management - 30% 

Finally, revenue management takes up the last 30% of a GM’s time. This entails: 

3 Evidence-Based Reasons Why GM Satisfaction Directly Impacts Restaurant Profitability

1 - GM retention directly impacts hourly employee retention 

The restaurant industry struggles with a notoriously high turnover rate – averaging 76.9% over the past decade. 

And one of the most damaging aspects of turnover is the impact that it has on a business’ bottom line:

At scale, these numbers have the potential to do serious damage to your restaurant’s profitability, especially when you consider the fact that the two are correlated. 

Studies have shown that high levels of GM turnover directly correspond to high levels of hourly employee turnover. 

In other words, the domino effect of low retention has manifold repercussions on team morale, productivity, and your bottom line. 

Keeping GMs happy is crucial to retention, and GM retention is crucial to team wide retention. It’s that simple. 

2 - Mentorship is key to Gen Z – and GMs are the key 

Did you know that Gen Z makes up 49% of food service workers? And as the youngest members of Gen Z continue to age into the workforce, this number is only rising. 

In order to futureproof your brand, it’s crucial to appeal to Gen Z and what they want out of a job. Studies have shown that Gen Z hires value:

• Flexibility in scheduling and work arrangements
• Comprehensive benefits and growth opportunities
• Mentorship from experienced leaders (cited by 40% of Gen Z workers as essential)

Keeping GM’s satisfied and invested in their jobs is a key way to provide the mentorship that Gen Z team members crave. 

And with Gen Z themselves being promoted into management positions 1.2x faster in 2023 than in 2019, an investment into your GMs today is an investment into the GMs of tomorrow. 

3 - Consistency and quality in the guest experience

This one’s a no-brainer, but it’s so important that it’s still worth mentioning. 

As we said at the beginning of this piece, GMs are the backbone of the restaurant industry. 

Without them, your brand’s quality suffers, teams have no direction, and practical operations take a turn for the worse. 

By keeping GMs satisfied with their jobs, you’re effectively ensuring that guests have not only a positive experience, but a consistent one.

While you may not be able to mitigate all hourly employee turnover, having a consistent GM means continuity across your FOH and BOH teams. They’ll have the context to take your brand into the future, while building on the legacy of the past. 

At the end of the day, it doesn’t matter how good your food is if you don’t have the team to back it up. And at the center of your team’s universe is a happy, satisfied GM who wants to be with your brand for the long haul. 

How to Increase Restaurant GM Satisfaction and Reduce Turnover

Technology Solutions for Reducing Administrative Burden

Now you might be thinking – okay, I’m convinced. GM satisfaction is clearly important – how do I make sure my GMs are feeling great about their jobs? 

The most effective strategy to improve GM satisfaction is getting rid of tedious administrative tasks that prevent them from focusing on high-value responsibilities.

Leading restaurant brands like Salt & Straw, DIG, and Naf Naf Grill have implemented AI-powered hiring solutions that:

• Automate candidate sourcing and screening processes
• Provide multilingual engagement with applicants
• Schedule interviews with qualified candidates automatically
• Reduce hiring-related administrative work by up to 85%

Implementing GM-Focused Retention Strategies

Beyond technology, comprehensive GM retention strategies should include:

• Competitive compensation packages aligned with industry benchmarks
• Clear advancement pathways and professional development opportunities
• Work-life balance initiatives that prevent burnout
• Recognition programs that acknowledge their impact

Conclusion: The ROI of Happy Restaurant GMs

To keep GMs satisfied with their jobs, you need to empower them to love their jobs. 

This means equipping them with the right tools and technology to cut down on the tedious, mundane aspects of their jobs.

That way, they’ll be empowered to spend time on what really matters – building strong teams and guest experiences for your brand.

➡️ Ready to boost GM satisfaction and retention? Discover how leading restaurant brands are using AI-powered hiring assistants to reduce administrative burdens and empower their management teams.