What It Takes to Be an Effective General Manager in a Restaurant

If you're thinking about stepping into the role of a general manager (GM) in a restaurant, you're in for a rewarding adventure! The GM is the heart of the restaurant, juggling everything from staff management to customer satisfaction. It's a challenging job, but with the right skills and mindset, you can lead your team to success and create an amazing dining experience for your guests. So, what does it really take to be an effective general manager at a restaurant? Let's dive in!
How to Become a General Manager in a Restaurant
Most GMs didn't just pop into their roles overnight. Many started their journey in entry-level positions like server, busser, or dishwasher. Having first-hand experience in these roles gives you an insight into the ins and outs of restaurant life. You learn the basics: how the kitchen operates, what it takes to serve customers, and the rhythm of busy shifts. Plus, you get to see what makes your restaurant tick and what can sometimes go wrong.
As you move up, you'll take on more responsibilities. Maybe you'll become a shift leader or an assistant manager. Each step on the ladder teaches you something new. You'll gain valuable experience in customer service, team dynamics, and even how to handle complaints. It's this hands-on experience that often trumps formal education in this field.
While many restaurant managers have a degree in business or hospitality management, experience is key. You might find that years spent working in various positions give you a deeper understanding of what it takes to run a restaurant.
You'll also develop important skills along the way, like problem-solving and leadership. The restaurant industry can be unpredictable, so being able to think on your feet is essential. With hard work and a positive attitude, you'll find plenty of opportunities to advance.
What You Need to Know About Education
While it's great to have a degree (44% of GMs do), it's not the only ticket to success. Many managers have climbed the ranks without formal education, relying instead on their practical experience. Common degrees among restaurant managers include business, hospitality management, and accounting.
Continuous Learning is Key
But education isn't just about degrees. It's also about continuous learning. The more you learn about your industry, the better equipped you'll be to tackle challenges.
Consider taking advantage of training programs that can enhance your skills. Organizations like the National Restaurant Association offer valuable courses, and online platforms like Typsy can help you learn at your own pace. Continuous education helps you stay relevant and competitive in a fast-paced industry.
By combining formal education with hands-on experience and ongoing training, you'll set yourself up for success as a restaurant general manager.
Salary Insights: What to Expect
When it comes to salary, you can expect to earn a solid income. Your earnings can vary based on several factors. Managers in big cities or high-traffic restaurants often earn more. Plus, your level of experience and education plays a role. Those with a bachelor's degree or extensive experience usually find themselves at the higher end of the pay scale.
The average salary for a restaurant general manager varies widely depending on experience, location, and the specific restaurant. According to recent data:
- The total pay for a restaurant general manager typically ranges from $52,000 to $117,000 annually.
- More specifically, averages reported include $59,527 according to Salary.com and around $60,000 according to Talent.com.
- For managers with extensive experience, salaries can go as high as $140,000.
The great news is that there's a lot of room for growth. As you gain experience and improve your skills, you can move up to higher-paying positions. The restaurant industry is dynamic, and those who invest in their education and experience often see the best returns.
The Key Responsibilities of a Restaurant General Manager

As a GM, you have a lot of responsibilities. One of these is managing staff and overseeing daily operations. This means hiring and training employees, monitoring labor costs, and ensuring everything runs smoothly. You'll also handle budgeting, financial transactions, and inventory management.
Keeping an Eye on Finances
Financial oversight is a big part of the job. You'll be responsible for managing expenses and making sure the restaurant stays profitable. This includes keeping track of accounts payable, managing payroll, and ensuring compliance with labor laws. Labor costs can account for a significant portion of your restaurant's revenue (25-35%), so careful management here is essential.
Ensuring Compliance with Regulations
You must also ensure that your restaurant complies with health and safety regulations. This involves training staff on proper food handling practices, conducting regular inspections, and staying updated on local laws. Non-compliance can lead to fines and damage your restaurant's reputation.
Mastering Staff Management
Managing your team well is one of the most critical aspects of being a successful GM. Proper staff management can drastically reduce turnover rates, which often exceed 75% in the restaurant industry. Here are a few key areas to focus on:
Setting Up a Solid Onboarding Process
A great onboarding process is key to setting your new hires up for success. Make sure they receive comprehensive training and understand their roles from day one. The time you invest in training will pay off by creating a more competent and confident team.
Conducting Performance Appraisals
Regular performance reviews are essential. They help you maintain high standards and hold everyone accountable. To motivate your team, offer constructive feedback and recognize achievements. This practice fosters a positive work environment and improves staff retention.
Cultivating a Strong Team Culture
Creating a positive team culture is vital. Set clear goals that align with the restaurant's vision and empower your employees to make decisions. When staff members feel valued and trusted, they're more likely to be motivated and deliver excellent customer service.
Enhancing the Customer Experience
One of the biggest parts of your job is ensuring customers have a great experience. Happy customers are more likely to return and recommend your restaurant to others, so building relationships with customers can make a huge difference.
Strategies for Customer Loyalty
Implementing loyalty programs is an effective way to encourage repeat visits. These can include discounts, special offers, or exclusive access to events. Also, actively seek feedback through surveys or online reviews to better understand what your customers want.
Engaging with your community through social media and local events also strengthens relationships. By being present and interactive, you create a sense of connection and loyalty among your patrons.
Using Technology for Customer Management
Technology can help streamline your customer management efforts. Using CRM (Customer Relationship Management) software allows you to track customer preferences and behaviors. This data can inform your marketing strategies and help you deliver a more personalized experience.
Adapting to Changes in the Industry
The restaurant industry is always changing, so it's crucial to stay updated on trends. As a GM, you should keep an eye on new dining preferences, technology advancements, and shifts in consumer behavior. For example, incorporating plant-based options or using contactless payment systems could give you a competitive edge.
Embracing Technology
Technology can make a huge difference in how you manage your restaurant. Operational software solutions can simplify various aspects of your business, from inventory management to employee scheduling. Platforms like Restaurant365 integrate everything into one system, helping you make informed decisions more easily.
Navigating Challenges
The restaurant industry often faces challenges, like staffing shortages or economic shifts. A successful GM needs to be proactive in addressing these challenges. Developing contingency plans and staying flexible will help you navigate any hurdles that come your way.
Essential Skills for a General Manager

Strong Leadership Abilities
Being a great leader is crucial in this role. Your leadership style will set the tone for your team and influence the restaurant's culture. Leading by example and being approachable will inspire your staff to perform at their best.
Communication is Key
Good communication is essential for managing a diverse team. Ensure that everyone knows what's expected of them and foster open lines of communication. When your team feels comfortable sharing ideas and feedback, it creates a positive work environment.
Problem-Solving Skills
The ability to think quickly and address unexpected challenges is vital. Whether resolving a customer complaint or managing inventory shortages, effective problem-solving ensures that operations run smoothly.
Time Management Skills
In a fast-paced restaurant, managing your time is crucial. You'll need to juggle multiple responsibilities, from staff scheduling to financial oversight. Developing strong organizational skills will help you stay on top of everything.
Emotional Intelligence
Emotional intelligence is becoming increasingly important in the restaurant industry. Understanding team dynamics and customer emotions can enhance your management effectiveness. By recognizing and addressing the needs of your staff and patrons, you foster a positive atmosphere that encourages collaboration and loyalty.
Best Practices for Success
Data-Driven Decision-Making
Implementing best practices is key to thriving in the busy restaurant world. Fostering a data-driven culture will enhance decision-making and operational efficiency. By closely monitoring labor costs and sales data, you can make informed choices that positively impact the bottom line.
Hiring a Diverse Team
When hiring, aim for a diverse team with a range of strengths. A well-rounded team not only offsets leadership weaknesses but also promotes creative problem-solving. Setting clear, measurable goals for your staff will align their efforts with the restaurant's vision, motivating them to succeed.
Fostering a Positive Work Environment
Effective communication is essential for maintaining high employee morale. As a GM, you should lead by example, displaying a positive attitude and clear communication. Empowering your employees by trusting their decision-making abilities increases job satisfaction and retention, which is particularly important in an industry with high turnover rates.
Leadership Strategies to Implement
Leading by Example
Your behavior directly impacts employee morale and the customer experience. Show dedication and a positive outlook, and your staff will likely follow suit. When your team sees you putting in the effort, they'll be motivated to do the same.
Building a Diverse and Strong Team
Embrace diversity within your team. A group with varied backgrounds and experiences can lead to innovative solutions and improved customer service. Plus, this diversity helps create a more inclusive environment where everyone feels valued.
Empowering Your Employees
Give your team the autonomy to make decisions. When employees feel trusted, they're more likely to take ownership of their roles and contribute positively to the restaurant's atmosphere.
Tools and Resources for General Managers
Essential Management Software
In today's tech-savvy world, having the right tools is crucial for efficient restaurant management. Platforms like Restaurant365 integrate accounting, inventory management, scheduling, and payroll functions into one easy-to-use system. This integration allows you to focus on running the restaurant instead of getting bogged down in paperwork.
Ongoing Training and Development
Investing in training is key to developing a capable team. On-the-job training is the best way for new managers to learn the ropes, but don't overlook external resources. Programs like ServSuccess offer courses on financial management, safety, and marketing, which can enhance your team's skills. Online platforms like Typsy provide flexible learning opportunities that fit around your staff's schedules.
Networking Opportunities
Don't underestimate the power of networking! Joining industry groups and attending workshops can help you stay informed about trends and best practices. Networking boosts your professional development and connects you with other restaurant leaders who can offer support and insights.
Conclusion
Being an effective general manager in a restaurant is both challenging and rewarding. With the right blend of skills, experience, and a passion for hospitality, you can lead your team to success and create a memorable dining experience for your customers.
Remember, your journey starts with a willingness to learn and grow. Whether you're just starting out or looking to advance in your career, there's always room to improve. Embrace the challenges, celebrate the successes, and keep striving to be the best GM you can be. The restaurant world is waiting for you!




