From Restaurant GM to Multi-Unit Leader: Why These Promotions Often Fail—and How to Fix It

In the restaurant industry, moving from General Manager (GM) to Multi-Unit Leader (MUL)—whether as a District Manager, Area Manager, or Regional Director—is usually seen as a natural career progression. After all, a high-performing GM has already mastered running a restaurant, hitting numbers, developing teams, and managing day-to-day operations, so giving them more locations should be a win.

Not necessarily.

Many top-performing GMs struggle in MUL roles or, worse, fail altogether. I’ve seen it firsthand during my decade leading HR for over 200 Potbelly Sandwich Works locations, my 15+ years advising restaurant owners through Restaurant HR Group, and even through my husband, John Luxem, as he has built his Dunkin’ business. On my YouTube show, I’ve talked to other industry leaders, like Dan Anfinson, COO of MH Restaurant Group, about this problem and how companies can position promoted managers for success. 

Through these experiences, I’ve identified common challenges encountered when transitioning from single- to multi-unit leadership and what you can do to prevent these issues.

Why Strong GMs Fail as Multi-Unit Leaders

The leap from GM to MUL entails more than managing additional locations and people; it requires an entirely different skill set, mindset, and leadership approach. Yet, too often, new multi-unit leaders are thrown in the deep end and left to “figure it out” without structured support. 

The result? 

Unnecessary frustration, burnout, and turnover.

Here’s why even the most talented GMs can struggle in a multi-unit role:

The Skills That Made Them a Great GM Aren’t Enough.

Successful GMs excel at hands-on leadership. They are all about direct oversight, rolling up their sleeves to solve problems, and setting the example in their restaurant. As an MUL, this hands-on style becomes a liability because now they must manage leaders, not operations. Instead of doing, they must coach,nurturing skills in their GMs to develop them into the next generation of in-the-trenches problem-solvers.

They Struggle to Let Go of Control.

GMs are used to making the final call on scheduling, hiring, P&L, and guest experience. In a multi-unit role, that level of control isn’t possible. A great MUL must empower and influence their GMs rather than micromanage them. Learning to trust, not dictate, is one of the most challenging transitions.

They Lack Strategic Thinking Experience.

GMs typically focus on operational execution, such as managing labor, food, and staffing costs. However, as MULs, they must think big picture and analyze trends across locations, coach managers, and makestrategic decisions that impact multiple units. Without development in critical thinking, prioritization, and high-level decision-making, many struggle to shift from working in the business to working on the business.

They Receive Little to No Mentorship.

A big mistake that restaurant companies make is assuming that an experienced GM can seamlessly step into a multi-unit position. The reality? Most will flounder without mentorship, training, and structured support. Many restaurants invest heavily in GM training but fail to continue development after MUL promotion. That’s a problem.

The Critical Mindset Shifts for Multi-Unit Success

To succeed, newly promoted MULs must embrace three fundamental shifts in their leadership approach:

1. From Managing Tasks to Coaching People

A GM oversees execution, essentially managing tasks to keep operations moving, while an MUL must develop this operational mindset in their GMs. When problems arise, MULs must coach GMs on fixingthem instead of telling them precisely what to do. 

A simple way for MULs to practice this mindset shift is to ask coaching questions:

• “What have you tried so far?”

• “What do you think is the best solution?”

• “How can I support you without stepping in?”

The goal is to build leaders, not just manage locations.

2. From Hands-On to Hands-Off (While Remaining Accountable)

A critical lesson I’ve learned through my husband’s Dunkin’ journey is that systems and trust matter more than personal involvement. If an MUL has to be physically present in every store for things to run smoothly, they are falling short in their responsibility to develop capable GMs. 

Multi-unit success requires striking a balance between empowerment and accountability. This means:

✓ Letting go of the need to control everything.

✓ Setting clear expectations and holding GMs accountable for results.

✓ Guiding without micromanaging.

3. From Daily Operations to Long-Term Strategy

The best GMs thrive in the day-to-day hustle. However, in a multi-unit position, the focus shifts to strategy: identifying trends across locations, pinpointing the root cause of systemic issues, and developing GM talent instead of reacting to problems.

This transition takes time, but it’s essential for sustainable success.

How Companies Can Set Multi-Unit Leaders Up for Success

If you want your newly promoted MULs to thrive, it’s time to move beyond a “sink or swim” approach.These strategies are a great start. 

Implement a Mentorship Program

Pair new MULs with an experienced leader so they can:

✓ Gain perspective from someone who’s been in their shoes.

✓ Learn best practices for coaching GMs.

✓ Have a sounding board for challenges.

Provide Leadership Training for Multi-Unit Skills

Most restaurant companies train their GMs, but few invest in ongoing, structured MUL development. MUL training should explore the following:

✓ Strategic thinking.

✓ Leadership coaching and development.

✓ Financial acumen beyond single-unit P&Ls.

✓ Time and priority management at scale.

Set Clear Expectations for the Role

MULs struggle because their role is vague beyond “manage more restaurants.” Companies should clearly define:

✓ What success looks like in the first 90 days.

✓ Key performance metrics (e.g., turnover, sales growth).

✓ How to balance leadership with operations.

Exclusive Offer for MRM Readers

If you’re serious about setting up your MULs for success, you don’t have to figure it out alone.

Modern Restaurant Management readers can access Restaurant HR & Leadership Academy for exclusive resources, on-demand courses, and live training sessions designed for restaurant leaders. Learn more about the Academy and accept your special offer HERE.