How do you pay, reward, and retain your GMs?

The general manager position is arguably the most important employee for a multi-unit restaurant franchisee. That person is often the eyes and ears of the restaurant, managing staff, making key decisions, and overseeing day-to-day operations. That role is especially valuable for franchisees who own multiple restaurants and cannot be present at each location every day.

A talented and experienced GM is an invaluable resource for a restaurant owner. In a crowded landscape, an underappreciated general manager may leave for a competitor if they sense a better opportunity elsewhere. Franchise Update asked several multi-unit franchisees how they pay, reward, and retain their general managers.

GMs are primarily rewarded monetarily, through competitive base pay, as well as bonuses, incentives, and raises. Incentives are based on restaurant performance in areas such as revenue, customer reviews, and staff management. By rewarding GMs for performance, owners give them a sense of personal investment in the restaurant’s success.

Beyond financial incentives, restaurant franchisees reward their GMs with recognition and greater autonomy. They will often give these leaders the tools to develop their careers and grow within the organization. One of the best ways to retain GMs is to treat them as true partners in the business.

One way franchisees give GMs and employees greater autonomy is by giving them room to innovate and experiment. These team members are the closest to food preparation, customer interaction, and sometimes local marketing efforts. The owners we spoke with all welcomed their input and suggestions to improve the business. See the Franchisee Bytes section below to learn how successful restaurant franchisees are giving their employees room to innovate and experiment.

Kristy Rans

Company: Prime Hospitality Group
Brands: 12 Ruth’s Chris Steak House
Years in Franchising: 20

We approach GM retention as more than a compensation question. Competitive pay and performance-based incentives matter, but so do recognition, meaningful development opportunities, clear expectations, strong operational support, and the ability to influence the business. Our goal is to build an environment where GMs are treated as true businesspartners, understandinghow their performance contributes to the company’s success, andseeinga long-term path for growth within the organization.

Jason Thomas

Company: Marquee Coffee LLC
Brands: 3 Bad Ass Coffee of Hawaii
Years in Franchising: 3

We compensate our general managers with a competitive base salary and performance incentives tied to measurable results, including sales growth, profitability, labor management, guest satisfaction, and team development. Just as importantly, we give them clear expectations, operating autonomy, regular recognition, and opportunities to grow as our organization expands. Retaining strong GMs requires more than compensation; it requires giving talented leaders the tools, trust, and career path tooperatetheir location like a business they genuinely influence.

Matt Roth

Company: Geaux Route Partners
Brands: 3 Walk-Ons Sports Bistreaux
Years in Franchising: 7

We pay our GMs an annual salary with quarterly, incentive-based bonuses. If I were advising someone just getting into the business, I would encourage them to think carefully about building incentives into their compensation structure from the beginning. I've seen other franchisees tie bonuses to multiple areas of performance, which gives managers the motivation to focus on factors like labor, food costs, and the overall profitability of the restaurant. The key is to make sure the incentive structure works for both the manager and the business.

Marshall Degani

Company: Neptune New Millennium, LLC
Brands: 6 Kolache Factory
Years in Franchising: 25

We take a holistic approach built around clear performance metrics, and we use two different levers for two different purposes. Bonuses are the short-term reward. When a GM hits targets on sales, cost control, and team performance, they see that payoff quickly. Raises are the long-term lever. They represent our sustained investment in the people who grow with the business and lead it well over time. The combination means our managers know exactly how they're measured, get rewarded promptly when they deliver, and can watch their base compensation climb as they build a career with us. In our experience, that clarity is what keeps good people.

Franchisee Bytes

How do you give your team room to innovate and experiment?

I consistently challenge our teams to bring forward new ideas and thoughtful feedback. We try to create an environment where people feel empowered to identify opportunities to improve and adapt.
-Alex Anthraper, Multi-Unit Franchisee, Anthraper Restaurants, 22 IHOP, 1 Applebee's

We encourage our store managers to test ideas that resonate with their local communities, whether that’s through collaborations, events, or creative marketing approaches. Giving them that freedom keeps the brand fresh and allows each location to build authentic connections with our guests.
-Misha Punwani, Multi-Unit Franchise Owner, Playa Bowls, 16 Playa Bowls

I tell my team to be open to new ideas and not to be afraid. I want them to feel comfortable stepping outside of their comfort zones and doing something different.
-Shak Patel, Multi-Unit Franchisee, Breaking Bread LLC, 6 Potbelly, 1 The Halal Guys

We provide them with the opportunity to make their own decisions on a day-to-day basis (within reason). For example, if they think we need to focus more on digital or local store marketing over print, we empower them to make those decisions and own the initiative.
-Tom Lovelace, Owner/President, Tom Lovelace Group, 96 Papa Murphy’s

I allow them to improve upon our existing operations. If they find a better approach, I ask that they convince me. If they do, we will change. The truth is that when an area manager approaches me with an improvement in our procedures, it is almost always better, and we make a change.
-James Bullock, Multi-Unit Franchisee, Ekon Investments, 14 Tropical Smoothie Cafe

I allow my team to follow their gut, and if I see they are getting off track a bit, I will help them get on track with a little nudge. I found that allowing them to trust in themselves to make the call often leads to a stronger team able to handle tough decisions almost the way I would have done myself. Hiring from within and keeping the culture alive helps a lot with this.
-Andy Cabral, CEO, Vigario Management, 25 Dunkin’, 9 Baskin-Robbins

I strongly encourage my teams to connect with all other teams and employees at the company. No matter your title or rank, you will always learn something from one another. This opens the door to innovative ideas.
-Nadeem Bajwa, Co-founder and CEO, Bajco Group, 270+ Papa Johns

We are always looking for new ways to improve our business. As a franchisee, I will never alter the recipes, but how we execute the franchisor playbook is up to my team and me. We are highly focused on using technology to streamline all our operations.
-David Weeks, CEO, The Bean Team, 9 Barberitos, 8 Dunkin’, 4 Newk’s Eatery, 1 Dunkin’/Newk’s co-brand