For any business to succeed, profit is more than a goal—it is the lifeblood that keeps it viable and thriving. Yet, a puzzling contradiction exists at the heart of many multi-unit businesses: while profit is supposedly non-negotiable, the very individuals tasked with driving it – location managers – are almost always unprepared for this critical responsibility.
This disconnect causes owners to become trapped in a cycle of micromanagement and dwindling returns. They are left grappling with low profits and trapped in day-to-day operations, with little time to focus on the bigger picture.
This is a clear sign of a critical skills gap in the multi-unit business model that demands immediate attention and action.
The Problem: Undertrained Managers
Some people are just great operators. They run a tight ship, pay attention to detail, embrace the ops manual, and know exactly what it takes to run a great location. These individuals rise through the ranks based on their success in managing a single location, elevated to multi-unit responsibility without the necessary preparation.
Overseeing multiple locations brings new challenges requiring new skills and financial know-how. There is a financial and leadership skills gap. That leads to frustrating disconnects for managers, their direct reports, and the investors who expect them to build profitable operations.
We prioritize training for frontline employees and single-unit managers, preparing them to master the required tasks responsibly. We assume these skills will make them good at managing, but we fail to provide the needed training, leadership and mentorship new managers and multi-unit owners need to succeed.
News flash! It is a common misconception that task mastery automatically translates to effective leadership. The reality is, without comprehensive training, we’re setting up our managers for failure. The short-term cost-saving measure of not providing this training leads to long-term inefficiencies and operational challenges that hurt the bottom line.
Prepare for the Key Responsibilities of Multi-Unit Management
Multi-unit owners and their managers must ensure consistency, quality control, systems compliance, and employee engagement across multiple locations. Most importantly, they must orchestrate those elements to drive profitable growth. This requires financial acumen, resources, strong communication, a structure of goals and accountability, and coaching skills. Without proper training and support, these overwhelming responsibilities lead to burnout and high turnover, destabilizing operations and compromising profit. We repeatedly see great operators fail as multi-unit managers.
You Thought it was a People Problem. Instead, It’s a Systemic Oversight
One or two bad experiences may lead you to believe you hired wrong. Sorry. The recurring nature of this problem underscores a systemic miss within operations: promotion without preparation.
Effective multi-unit management requires:
- A strategic mindset that combines operational expertise with coaching, communication, and leadership skills.
- Basic financial acumen, including breakeven analysis, profit-driven goal setting, and how to align KPI targets with desired financial outcomes.
- A strong organizational culture that motivates managers to drive profitable growth. Because profit is not optional.
The Solution: Invest in Training, Data and Tools
Shift how you approach your resource allocation, recognizing the critical role of multi-unit managers. Invest in training to fill the knowledge gaps, information to keep people on track, and employee development platforms to support efficient team development. Here are my three “must-haves” for enhancing multi-unit manager effectiveness:
1. Comprehensive Training Programs
- Operational Training: Emphasize best practices in logistics and time management, strong processes and systems that drive operational controls and quality assurance.
- Leadership and Management Training: Focus on strategic thinking, coaching techniques, and team development.
- Financial Training: Equip multi-unit owners and managers with the skills to use KPIs, financial statements, and budgets to lift profits and get financial control over their operations.
2. Advanced Data Analytics and Reporting Tools
- Business Intelligence (BI) Software: Aggregate data from all units, providing robust benchmark insights into sales trends and operational efficiencies.
- Real-Time Reporting: Gain instant access to key performance indicators (KPIs), enabling remote oversight and informed decision-making.
- Predictive Analytics: Forecast trends for proactive inventory management, staffing, and marketing efforts.
3. Employee Development Platforms
- Learning Management Systems (LMS): Provide ongoing training opportunities to ensure consistent service quality.
- Performance Management Tools: Track employee performance compared to goals and facilitate regular feedback and development discussions.
- Onboarding Programs: Ensure new hires are quickly integrated and trained to maintain high operational standards. The first day is the most important day of any employee’s tenure.
Having a Proper Mindset
Well-trained, well-supported multi-unit managers are the secret sauce for unit profitability. If profits are lacking, let your dissatisfaction with the status quo be a catalyst for change.
Adopt a continuous improvement culture. The best knives require sharpening when they get dull. Let’s face it: a group of “dull knives” in your operation is a sure recipe for failure.
Profit is not optional. Neither is the comprehensive training and preparation of the managers who are responsible for driving profits. Investing in the education and development of multi-unit owners and managers is not just a smart strategy—it is essential for sustainable success!
Resources for You
Profit Labs –– Profit Soup’s Profit Labs are a great way to drive profitable growth for coaching clients or franchise systems. Our Certified Profit Lab Facilitator training empowers your team to inspire, coach and lead your clients or franchisees to apply financial skills to their own businesses. Learn more about Profit Labs.
Request information or register for our next facilitator training cohort here.