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Management Systems: Retaining Unit Managers

Upstart operators share their tactics for recruiting and retaining general managers as they grow.

By Maya Norris, Managing Editor -- Chain Leader, 7/1/2008

Mazzio's manager works the room
Mazzio's Italian Eatery attracts and retains unit managers by offering bonuses if they meet food and labor costs and customer-loyalty targets.
General managers are vital to any successful restaurant chain. After all, GMs are regularly on the front lines interacting with the customers and staff to bring the concept to life while trying to make it profitable. So how do small, expanding chains compete against larger companies for such an important asset?

Joe Kirwin, director of operations, Pastini Pastaria, Portland, Ore.

We've promoted from within, and that's been the most successful thing we've done. We feel very strongly that we have a lot more insight into the quality of work and work ethic of somebody that may need some professional development, but we're taking a lesser risk with that person who needs to be developed than someone with a great resume who doesn't understand our culture. So there's a benefit we feel to getting as much as we can out of our own sources before we're looking outside.

We have hired recently a business coach to help all of us professionally develop our business skills. We're going to share that experience and person with our general managers.

John Kunkel, founder and CEO, Lime Fresh Mexican Grill, South Miami Beach, Fla.

Once we think we have a good prospect, we have really found the most success in doing Discovery Days with our managers. We have them literally spend a little time in each position, and we really seem to open up the eyes of a lot of people. [Either] this is great, I love it. Or, wow, that's a lot of work.

It is a very demanding schedule within the restaurant business. So we really adhere to the five-day workweek. We do a long [three-day] weekend [once a month]. We try to respect the fact that everybody has a life outside the restaurant.

Matt Phipps, founder, president and CEO, Blendz, Campbell, Calif.

Generic advertising doesn't work because the best GMs aren't necessarily looking for work. Instead of doing a job ad in the classifieds, we buy an ad in the center of [alternative weekly] papers.

It does a dual purpose. It obviously is branding, whether it's an offer or a special that you're promoting. But it also gives you the ability to say “Now hiring. Looking for great people.” And it's in a unique position in the newspaper that people aren't necessarily expecting it, but everybody is looking at because they're looking at what to do that weekend or where's the new hot restaurant to go to.

Since we are a newer brand, we can offer everything from starting as a store manager to a GM that manages multiple locations to ultimately franchise ownership. So identifying what their goals are and being able to match that with our opportunities.

Mario Ponce, vice president of operations, Straits Restaurant Group, San Francisco

Online screening has really been very helpful. If we like the fellow, then we will invite him to do the online assessment profile for us, [which looks for] work style, leadership, decision-making. We take those scores and match it with our interview, and we get a pretty good story on that person. At that point, if he's a candidate that we're still interested in, then I'd like for them to meet their management team and the owner. We'll then make a decision.

And I think an environment of learning is also very important. I'm a huge proponent of learning. When we have meetings, the first 15 minutes, learn what we are teaching our people. Then let's talk about some of the issues at hand.

Daniel Harf, chief operating officer, Tavistock Restaurants, Emeryville, Calif.

By giving them the ability to make the decisions, it gives them a sense of ownership. It gives them a feeling of purposefulness and appreciation, recognition that they just don't get in a lot of companies where all the decisions are made for them and their job is just to execute. Because I believe that the job isn't to get them to your front door. The issue is how do you get them inside the door fully enculturated and living up to their potential. And we believe the only way you could do that is create a culture where people can thrive, be restaurateurs.

Charles Cocotas, president, UFood Grill, Newton, Mass.

You have to offer competitive salaries. Even though we're a young startup company, you can't get away with paying people less than what they're able to earn at other places.

Bonus programs are extremely important because you can say thank you all day long, but these days people like to see it in the paycheck, too. If a general manager can improve the profitability of the store to the extent that that bonus exceeds my salary, that's fine with me.

Yorgo Koutsogiorgas, president, Go Roma, San Francisco

Go Roma does not recruit general managers outright. The operational complexities of our concept (scratch kitchen, etc.) make it more efficient for a manager to start as an assistant and grow with the company's support and guidance into the general manager's role, usually within a year after joining Go Roma. This is not an unusual or a very cost-effective method, however it has worked very well for Go Roma since our beginning. Our turnover in the GM position is extremely low by industry standards.

For industry veteran Harry Bond's five tips for recruiting and retaining managers, read "Invest in Recruiting and Retaining Managers."
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