The Real Cost of Poor Management in Hospitality—and How to Fix It

3 Steps to Recognizing and Repairing Poor Management

Hospitality isn’t just about serving food, making drinks, or booking rooms—it’s about people. And when management fails to prioritize people, the entire operation suffers. Poor management creates more than just stressful shifts; it leads to burnout, high turnover, and a toxic work culture. If your team is struggling, the problem often starts at the top. This requires an honest inventory of internal practices that aren’t serving your business. Sometimes the easiest path to identifying poor management practices is to examine the symptoms.

Let’s break down the most common management pitfalls in hospitality, how they damage your team, and, most importantly, how to fix them. We’ll  start by naming the mismanagement practice and then dive into the symptoms it causes.

The Hidden Signs of Poor Management

Poor management isn’t always obvious. While some bad habits are blatant—like yelling at employees or playing favorites—others are more subtle but just as damaging. Here are a few of the most common players when it comes to mismanagement of your teams:

• Micromanagement and Neglect. Some managers hover over employees, checking every detail and second-guessing their work. Others do the opposite—failing to check in at all, leaving their team without guidance. Both styles create stress and uncertainty. Team members either have too much direction and not enough agency, making them feel constantly afraid of making a misstep, or they have so little direction they are never sure if they’re doing the right thing. Ideally, teams will be provided with a combination of guidance and agency, with corrections when appropriate.
• Lack of Recognition. Hospitality is demanding, and employees need to feel valued. If management never acknowledges hard work or only gives feedback when something goes wrong, morale plummets fast.
• Poor Communication. Ambiguous schedules, unclear expectations, and last-minute changes without explanation create chaos. When employees don’t know what’s going on, mistakes happen, guests get frustrated, and blame starts flying.
• Favoritism and Unfair Treatment. When promotions, schedules, or perks seem to favor a select few, resentment builds. A fair workplace fosters teamwork; an unfair one fuels tension and turnover.

How Bad Management Impacts Your Business

Bad management does more that create anxiety and chaos on the floor. It has a reaching impact on your business internally. It can also affect your business reputation. Positive leadership training can lessen the impact before it happens. However, if you are already in the weeds, you’ll see warning signs. Here’s what’s at stake:

• Increasing Turnover. People don’t leave jobs—they leave bad managers. High turnover means constant hiring, training, and lost productivity. Worse, it damages your reputation in the industry.
• Burnout and Low Morale. Long hours and demanding work are tough enough. Add in a toxic work environment, and even your best employees will burn out. Low morale leads to poor service, which drives guests away.
• Inconsistent Service and Guest Complaints. Unhappy employees don’t deliver great service. When management creates stress, it trickles down to the guest experience. Poor reviews, fewer returning customers, and a damaged brand reputation follow.

Turning Things Around: Better Management for a Stronger Team

Fixing poor management isn’t just about improving the work environment—it’s about making your business more successful. Here’s how to start:

Invest in Leadership Training

Too often, hospitality managers are promoted based on experience, not leadership ability. Your business needs to give new managers the tools to succeed with training in communication, conflict resolution, and team motivation. By doing so, you will enable them to:

• Set Clear Expectations. Uncertainty creates stress. Be upfront about job roles, expectations, and performance standards. Transparent policies and open communication build trust and accountability.
• Recognize and Reward Hard Work. A simple “thank you” can go a long way. Regularly acknowledge employee efforts with shoutouts, incentives, or career growth opportunities.
• Foster a Culture of Support. Hospitality is a team effort. Encourage mentorship, open-door policies, and regular check-ins to ensure employees feel heard and supported.
• Lead by Example. Your team follows your lead. Stay calm under pressure, communicate clearly, and treat every employee with respect. A positive leadership style sets the tone for the entire workplace.

Want to learn more about investing in your leaders? Read “Now Is the Time to Invest in Restaurant Managers.” If you are looking for a training program that is curated to your business and will accelerate your leadership in order to build better teams, check out our Leadership Accelerator Program.)

Building a Workplace Where People Want to Stay

Great hospitality starts with great leadership. When managers prioritize their team’s well-being, employees stay longer, work harder, and create better guest experiences. The industry is challenging, but with the right management approach, you can build a workplace where both employees and your business thrive.

What’s been your biggest challenge with management in hospitality? Let’s talk in the comments!

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