Are your restaurant managers acting like owners? (And why they probably aren't)

Are your restaurant managers acting like owners? (And why they probably aren't)

Are your restaurant managers acting like owners? (And why they probably aren't)

By Richard McLeod, Loaded

Why "we've always done it this way" costs multi-venue hospitality groups money, and how to build a culture that gets your managers thinking like owners

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Are your restaurant managers acting like owners? (And why they probably aren't)

If you’ve just read our email, you know the chair story already: two people, thirty minutes of stacking chairs, a couple of quiet nights a week when the cleaner wasn’t coming in at all, and chairs stacked anyway, then taken down again for the next day’s service, then stacked again that evening. Same job, done for a reason that was no longer relevant, on repeat, for years, before anyone asked why.

It’s stuck with us because it was never really about the chairs. It was about the hundreds of small habits, good and bad, that build up inside a hospitality business as it grows. A roster shape that made sense when a venue first opened. A closing task introduced for a specific reason that stopped applying. A double shift that has always been there. A weekly order quantity nobody has revisited in years. Most of these start for a perfectly good reason. The problem is that things change while the process doesn’t.

Why does a “we’ve always done it this way” culture cost multi-venue operators money?

At one venue, the cost looks too small to worry about. Two people spending fifteen minutes on a task that didn’t need to happen that night doesn’t feel like an operational issue worth chasing. But once you have five, eight or twelve venues, and the same kind of thinking is happening across dozens of different tasks, those small inefficiencies stop being a rounding error and start being a real labour and margin problem.

The deeper cost isn’t even the minutes themselves. It’s what a “don’t ask, just do it” culture teaches your best people. A manager who notices the gap between what’s being done and what’s actually needed learns pretty quickly whether flagging it changes anything. If it doesn’t, they stop flagging things. You lose the input of the people closest to the floor at the exact moment you need it most, because you’ve grown past the point where you can be everywhere yourself.

What mistakes do most operators make when trying to open this up?

The most common mistake is treating financial reporting as a weapon instead of a mirror, which trains managers to get good at explaining variances, defending decisions and justifying the result, rather than acting like an owner and getting good at improving the performance of the venue. If every conversation about roster cost or wastage starts with “why did you go over,” that’s the behaviour you’re training for.

The second common mistake is the reverse: giving managers full autonomy with no reporting at all, on the theory that “empowered” means “hands off.” That doesn’t work either, because managers can’t act on what they can’t see. Real empowerment sits in the middle: share the numbers plainly, trust managers to understand what they mean, then move quickly to quality questions around what could be changed.

The third mistake is asking for big reinvention, instead of small, constant questions and improvements. Most operators get further by building a habit of small questions asked constantly than by an irregular push to “make change”. Small and constant beats big and occasional, because small questions get answered and can be acted on, all in the same week.

What does a culture where managers question everything actually look like?

It looks like managers who feel empowered to spot the gap between habit and what should actually be happening, and comfortable enough to say something about it, as a normal part of running a shift or venue, rather than a one-off special project. When you only have one or two venues, you’re close enough to the floor to notice the strange crossover shift or the quiet period with too many people rostered on yourself. Once you grow past that, you cannot be everywhere. You need the people closest to each venue (and to your customers)noticing those things for you, and genuinely caring enough to raise them.

That only works if a manager questioning something is never met with “that’s how we’ve always done it.” In practice, the better conversations tend to move quickly to a short, consistent set of questions:

  • Where are the unnecessary hours?
  • Is there a better way to shape the shift?
  • Does this task still need to happen every night?
  • What would you change if you were running the venue as your own?

A culture that punishes questions vs. culture that rewards them

A culture that says “don’t question it”A culture that says “bring us a better way”
Reporting is used mainly to hold managers accountable after the fact. Managers get good at explaining and defending variances rather than fixing them. Inherited routines are applied the same way regardless of whether tonight actually needs them. Improvement ideas get raised once, ignored, and stop being raised.Numbers are shared plainly and managers are trusted to understand what they mean. Conversations move quickly to what could change. Every recurring task gets re-tested against whether tonight is one of the nights it’s actually needed. Managers raise mismatches as a normal part of running a shift, not a special event.

A real management example. How do you know if you have the right number of staff on for a shift?

You have the right number when nobody is standing around with nothing to do, and nobody is so overwhelmed they can't keep up, which is easier to picture as a curve than a single number. Picture performance on one side and stress on the other. As stress rises from zero, performance rises with it, right up to a peak where the team is busy, engaged and switched on. Push stress past that peak and performance falls off a cliff: people get overwhelmed, service slips, and the shift stops being enjoyable for anyone in it.

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The mistake most operators make is only watching one side of that curve. Low stress feels safe, so a roster with too many hours on a quiet shift rarely gets questioned, even though it's just as damaging as understaffing. Standing around with nothing to do is disengaging for a team, and it's a direct roster cost with no offsetting benefit. The goal isn't to minimise stress, it's to find the peak: enough people that nobody is overwhelmed when it's genuinely busy, and no more than that when it isn't.

Finding that peak isn't something you can do from head office. It depends on a manager who's actually on the floor, close enough to see the curve moving in real time, and comfortable enough to say something the moment it shifts. Take a Tuesday lunch rostered for six because that's what Tuesday lunches have always needed. If a private function fills the room at midday, a manager who's watching and trusted to flag it calls for backup before service backs up. If the same manager is heads-down doing prep because two of the six were never needed and nobody wanted to hear that the roster was wrong, the gap only shows up as complaints and a bad review. The roster on paper was identical in both cases. The difference was whether the manager felt safe raising what they were actually seeing

How does technology help managers make these calls in real time?

Technology helps by giving managers the same picture an owner would have if they were standing on the floor, without requiring the owner to actually be there, and while there’s still time to change the outcome. A roster built a week in advance can’t account for how a Tuesday afternoon actually plays out, and a wage cost percentage calculated at month-end is a post-mortem, not a decision tool.

A live view of hours against a rolling trend, rather than just looking at last weeks dollar figure, lets a manager see mid-shift whether they’re drifting toward the overstaffed or understaffed end of that curve. The same applies to wastage: tracking it daily, rather than reacting at the end of one bad week, makes it possible to notice a drift early and flag it to the team plainly.

Put simply it puts the power of the numbers that matter to the owner, in the hands of your manager.

See how Loaded can work for your business

If you’ve never seen Loaded in action, jump over and book a demo with us. 
30 minutes is all we’ll need to show you the magic!

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Are your restaurant managers acting like owners? (And why they probably aren't)

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