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The Cost of the Wrong GM: Why Leadership Recruiting Is a Profit-Protection Strategy
By Ray Camillo
Friday, 29th August 2025
 

Hiring the right General Manager (GM) for your restaurant is one of the most critical decisions you’ll make, but the wrong GM can cost you far more than just a few bad shifts.

Poor leadership doesn’t just affect the day-to-day. It impacts every aspect of your operation, from the guest experience to your bottom line.

At Blue Orbit, we believe that leadership recruiting is a profit-protection strategy, and we want to ensure that the GM you hire is set up for success.

Here’s why:

1. The Wrong GM Can Cost You More Than Salary

A GM doesn’t just oversee operations. They shape the culture, set the tone, and hold your team accountable.

When you hire the wrong GM, it doesn’t just lead to operational inefficiencies, but it also creates issues with team morale, employee turnover, and guest satisfaction. The impact? Wasted labor, increased food costs, inventory mismanagement, and inconsistent service…all of which hit your bottom line hard.

2. Recruiting Is Just the First Step. Installation and Integration Are Key

While we specialize in leadership recruiting, we also offer installation, organization, and training services as an additional layer of support.

Once the right GM is in place, we don’t just walk away. We help ensure that the GM integrates seamlessly into your systems and culture, setting them up for success.

We also train owners and leadership teams on how to manage the GM, making sure they can effectively work together for long-term profitability.

3. Why Exposure to Systems Isn’t Enough

It’s easy to assume that the GM with the most exposure to best-in-class systems is the right choice. But here’s the reality: No matter how many systems a GM has been exposed to, their ability to create systems and structures is limited. A GM needs the organization to have systems in place already.

They should be hired not for their ability to create systems from scratch, but for their proven skill in managing those systems effectively. The key to hiring the right GM lies in finding someone who can execute and optimize existing systems. Someone who excels at leadership, not just system exposure.

4. The Cost of a Bad GM Is Far Greater Than You Think

When the wrong GM is in place, the financial repercussions are immediate and long-lasting.

Beyond salary, there are hidden costs: wasted productivity, increased turnover, lost revenue, and the toll of fixing mistakes. These ripple effects create a drain on your resources and can stall your restaurant’s growth.

5. A Great GM Protects Your Profit Margins

The right GM does more than just manage operations. They protect your profit margins by ensuring systems are running smoothly, the team is performing at its best, and the guest experience is consistent.

They act as the cornerstone of your restaurant, ensuring that operations are efficient, costs are controlled, and that you have a profitable, sustainable business.

At Blue Orbit, leadership recruiting isn’t just about filling a role. It’s a profit-protection strategy. We focus on finding the right GM who is not only skilled in managing systems, but also in leading teams, optimizing performance, and protecting your profits. If you’re ready to ensure that your leadership team is set up for success, let’s talk.

Ray Camillo - Follow
Founder & CEO @ Blue Orbit Restaurant Consulting

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